What you need before you walk into a bank
You need your Employer Identification Number (EIN) from the IRS, your Articles of Organization (the document that created your LLC with your state), and a government-issued ID showing your name and address. Some banks also ask for your LLC's operating agreement, though not all require it. A few banks will open an account without the EIN if you use your Social Security number instead, but that exposes your personal credit to business debt, so avoid it.
Before you go to the bank, call ahead and ask what documents that specific bank needs. Requirements vary between Chase, Wells Fargo, a local credit union, and a business-focused online bank. Some banks want proof of your business address (a lease, utility bill, or mail from the state); others do not. Asking first saves you a trip back home for a missing document.
If you do not yet have an EIN, you can get one free from the IRS in about 15 minutes by phone (844-489-4357) or online at irs.gov/ein. The IRS issues it immediately over the phone; you do not have to wait for mail.
Key Takeaways
- You must have your EIN, Articles of Organization, and a government ID before most banks will open an account for your LLC.
- Call the bank branch you plan to visit and ask what documents they need, because requirements differ between banks and sometimes between branches.
- Bring your LLC's operating agreement if you have one, even if the bank does not require it, because it proves you have authority to open the account.
- Some banks charge monthly fees for business accounts; compare fee structures before you choose, because costs vary widely.
- The whole process usually takes 15 minutes to an hour in person, or one to three business days if you open the account online.
Getting your EIN if you do not have one yet
The IRS issues an EIN free of charge. You can get one by phone, online, or by mail. The phone route is fastest: call 844-489-4357 during business hours (Monday through Friday, 7 a.m. to 10 p.m. Eastern time). Have your Social Security number, the LLC's legal name, and your address ready. The IRS agent will ask you questions about the business and issue the number on the spot.
Online, go to irs.gov/ein and use the online application. You will answer the same questions and get your number immediately. You can print a confirmation right away. By mail, you fill out Form SS-4 and send it to the IRS; this takes two to four weeks.
Once you have the EIN, write it down in multiple places. You will need it not just for the bank account, but for taxes, hiring, and business licenses.
What to bring to the bank
Bring your EIN confirmation (the letter from the IRS, or the printed confirmation from the online application), your Articles of Organization from your state, and your government-issued ID. If the bank asks for your operating agreement, bring that too. If you have a business license from your city or county, bring it—it is not always required, but it strengthens your application.
Bring proof of your business address if the bank asks for it. This can be a lease, a utility bill in the LLC's name, or a letter from your state confirming the registered address. If you work from home, a utility bill with your home address and the LLC's name usually works.
If someone other than you will be signing checks or managing the account, bring that person's government ID and Social Security number. The bank will need to verify their identity and run a background check.
Choosing between in-person and online banks
In-person banks (Chase, Wells Fargo, Bank of America, local credit unions) let you walk in, hand over your documents, and walk out with a debit card the same day. You can ask questions face-to-face and get immediate answers. The downside is that monthly fees are often higher—$15 to $30 per month is common—and minimum balance requirements may apply.
Online banks (Mercury, Brex, Lemonade, Square) have lower or no monthly fees and no minimum balance. You open the account entirely online in 10 to 20 minutes. The downside is that you cannot deposit cash in person; you have to use mobile check deposit or ACH transfers. Some online banks also have stricter rules about what kinds of businesses they will accept.
A middle ground is a credit union. Credit unions often have lower fees than big banks, let you open an account in person, and sometimes have more flexible requirements for new businesses. Search for credit unions in your area that offer business accounts.
The documents the bank will ask you to sign
The bank will give you a signature card (a form that records who is authorized to sign checks and access the account), a deposit agreement (the contract between you and the bank), and possibly a business tax ID verification form. Read the deposit agreement before you sign it; it spells out fees, overdraft policies, and what happens if you close the account.
Some banks ask you to sign a resolution or certification stating that you have authority to open the account on behalf of the LLC. This is normal. If you do not have your operating agreement with you, the bank may ask you to sign a statement saying the LLC exists and that you are authorized to act for it.
Do not sign anything you do not understand. If the bank uses language you cannot parse, ask them to explain it. Banks are used to this question.
What happens after you open the account
If you opened the account in person, you will leave with a temporary debit card or a card number you can use immediately. Checks usually arrive by mail within five to ten business days. If you opened online, the bank will mail you a debit card and checks; this takes one to three weeks.
Set up online banking and bill pay as soon as you can log in. Most banks let you do this the same day you open the account. You will need to link the account to your business accounting software (QuickBooks, FreshBooks, Wave) so you can track expenses and reconcile transactions.
If you plan to accept credit card payments, ask the bank about merchant services. Some banks offer this; others refer you to a third party. Rates and fees vary widely, so compare before you commit.
Common reasons banks reject LLC accounts and what to do
Banks sometimes reject new business accounts because the LLC is too new (less than a few weeks old), the business type is considered high-risk (cannabis, firearms, money services), or there are red flags in the background check. If your application is rejected, ask the bank why. They are required to tell you.
If the reason is that your LLC is too new, wait a few weeks and try again. If the reason is the business type, you may need to look for a bank that specializes in that industry. Some banks will not touch cannabis businesses; others will. Some will not open accounts for sole proprietors but will for LLCs. Shop around.
If there is a background check issue, you have the right to dispute it. Ask the bank which company ran the check and get a copy of the report. You can correct errors on your own credit report through Equifax, Experian, or TransUnion.
Frequently Asked Questions
Do I need an operating agreement to open a business bank account?
Most banks do not require it, but many ask for it. If you have one, bring it—it proves you have authority to open the account and manage the LLC's money. If you do not have one yet, ask the bank if they will accept a signed statement from you instead.
Can I use my Social Security number instead of an EIN?
Some banks will let you, but do not. Using your Social Security number ties your personal credit to the business account, which means business debt can damage your personal credit and vice versa. An EIN is free and takes 15 minutes to get. Get one.
How long does it take to open a business account for an LLC?
In person, 15 minutes to an hour. Online, 10 to 20 minutes to open, but one to three weeks to receive your debit card and checks by mail. If you need to use the account right away, open in person or ask if the bank will issue a temporary card number the same day.
What if I do not have a business address yet?
Use your home address. If the LLC is registered with your state at your home address, that is your business address for banking purposes. If you use a mailbox service or a coworking space, bring proof that you have access to that address.
Can someone else open the account on behalf of my LLC?
Only if you give them written authority and the bank accepts it. Bring a power of attorney document or a resolution from the LLC authorizing that person to open the account. The bank will still need your government ID and Social Security number to verify you exist.