What you need before you walk into a bank

You will need your Employer Identification Number (EIN) from the IRS, a form of business registration or incorporation paperwork from your state, and a government-issued ID. Some banks also ask for your Social Security Number even though you have an EIN. Bring originals, not copies, unless the bank tells you copies are acceptable.

If your business is a sole proprietorship, you may be able to open an account using just your Social Security Number and a DBA (Doing Business As) certificate from your county or state — check with your bank first. If you are an LLC, corporation, or partnership, you will need the formation documents that prove the business exists in your state's records.

Have your business address ready, even if it is your home address. You will also need to know what type of account you want: a basic checking account, a checking and savings combination, a money market account, or a merchant services account if you take card payments. Different banks offer different combinations, and fees vary widely.

Key Takeaways

  • You must have an EIN from the IRS and your state business registration documents before most banks will open an account.
  • Sole proprietors may open accounts using only a Social Security Number and a DBA certificate, but LLCs and corporations need formal formation paperwork.
  • Bring original documents and a government-issued ID; some banks require your Social Security Number in addition to your EIN.
  • Compare account types and fee structures across banks before opening, because monthly maintenance fees, transaction limits, and overdraft charges vary significantly.
  • Online banks often have lower fees and faster account opening than brick-and-mortar banks, but may not offer in-person deposit options.

Getting your EIN and business registration in order

Your EIN is a nine-digit number the IRS assigns to your business. You can obtain one free through the IRS website (irs.gov) by filling out Form SS-4 online, by phone, by fax, or by mail. Online is fastest — you receive your EIN immediately after submitting the form. By phone, you can get one the same day if you call during business hours. By mail or fax, expect two to four weeks.

Your state business registration is separate from your EIN. If you are a sole proprietor using your own name, you may not need state registration at all — check your state's Secretary of State office website. If you are using a DBA, you typically register it with your county clerk or state business office. If you are forming an LLC or corporation, you file Articles of Organization or Articles of Incorporation with your state, which costs between $50 and $500 depending on the state.

Banks will ask to see proof that your business is registered. For sole proprietors, a DBA certificate or a letter from your county clerk works. For LLCs and corporations, bring a certified copy of your formation documents from your state — you can order these from your Secretary of State office, usually for $10 to $25.

Choosing between online and in-person banks

Online banks typically have lower monthly fees (often zero) and higher interest rates on savings, but they do not have physical branches. You deposit checks by photographing them with your phone, and you cannot hand-deliver cash or get a cashier's check on the spot. Online banks are faster to open — many complete the process in one to three business days.

Traditional banks with branches charge higher monthly fees (often $10 to $25) but let you deposit cash and checks in person, speak to someone face-to-face, and get services like cashier's checks and wire transfers without delay. Opening an account usually takes one to two business days if you go in person, or three to five if you start online.

Credit unions are a middle ground: they often have lower fees than traditional banks, physical locations in your area, and may offer better customer service for small business owners. Membership requirements vary — some are open to anyone, others require you to work in a specific industry or live in a specific area. Opening an account takes one to three business days.

Documents to bring and what happens during the opening process

Bring your EIN letter from the IRS, your state business registration or DBA certificate, your government-issued ID (driver's license or passport), and your Social Security Number. Some banks also ask for a recent utility bill or lease agreement to verify your business address. If you are opening the account in person, bring originals. If you are opening online, you will photograph or upload these documents through the bank's website.

The bank will ask you to sign signature cards and account agreements. Read the fee schedule carefully — it will list monthly maintenance fees, per-transaction fees, overdraft fees, and minimum balance requirements. Ask whether the bank offers any fee waivers for new business accounts or if fees change based on your account balance or monthly activity.

You will also choose how many authorized signers the account will have and set up online banking access. Some banks let you do this during the opening process; others send you a separate link by email after the account is created. Most banks provide a debit card within five to ten business days, though some offer instant digital cards you can use immediately.

What to expect after your account opens

Your account is usually active within one to three business days. The bank will send you a welcome packet with your account number, routing number, and initial debit card. You can start depositing money immediately, though some banks hold checks for a few business days before the funds are available.

Set up direct deposit with your clients or customers as soon as possible. You will need your account number and routing number, both of which appear on the welcome materials and in your online banking portal. If you take card payments, contact the bank about merchant services — this is a separate process from opening the account itself and can take an additional one to two weeks to set up.

Review your first statement carefully to make sure all fees match what you were quoted and that no unauthorized transactions appear. If something is wrong, contact the bank within 30 days — most banks have dispute resolution processes for errors.

Common reasons banks deny business accounts and what to do

Banks may deny an account if your business registration is not current, if you have a history of overdrafts or fraud at other banks, or if your business operates in an industry the bank considers high-risk (such as cannabis, cryptocurrency, or payday lending). Some banks also check ChexSystems, a database of banking history, and may deny you if you have unpaid overdrafts or closed accounts with negative balances.

If you are denied, ask the bank in writing why. They are required to tell you. If the reason is a ChexSystems report, you can dispute errors on that report directly with ChexSystems (chexsystems.com). If the reason is your business type, try a different bank — some specialize in industries others avoid. Credit unions are often more flexible with business types than large national banks.

If you have a history of overdrafts, consider opening a second-chance business account. Some banks and credit unions offer these with higher fees but no ChexSystems check. Once you have maintained the account in good standing for six months to a year, you may be able to move to a standard account with lower fees.

Comparing fees across banks before you commit

Monthly maintenance fees range from zero to $25 or more. Some banks waive the fee if you maintain a minimum balance (often $500 to $2,500) or if you set up direct deposit. Per-transaction fees for checks, ACH transfers, or wire transfers range from free to $2 per transaction. Overdraft fees typically run $25 to $35 per occurrence.

Create a spreadsheet listing the banks you are considering and their fee structures. Include monthly maintenance, per-check fees, ACH transfer fees, wire transfer fees, overdraft fees, and any minimum balance requirements. Multiply the monthly fees by 12 to see the annual cost, then add in the transaction fees you expect to pay based on how often you write checks or transfer money.

Do not choose based on lowest fees alone — consider whether the bank offers the services you need (merchant processing, payroll integration, accounting software connections) and whether you can reach customer service when you need it. A bank with slightly higher fees but excellent support may cost you less in time and frustration.

Frequently Asked Questions

Can I open a business account without an EIN?

Sole proprietors can sometimes open an account using only a Social Security Number and a DBA certificate, depending on the bank. LLCs, corporations, and partnerships must have an EIN. If you do not have an EIN yet, you can obtain one free from the IRS in minutes online at irs.gov.

How long does it take to open a business bank account?

In-person at a traditional bank or credit union typically takes one to two business days. Online banks usually complete the process in one to three business days. You can use the account immediately in most cases, though checks and debit cards arrive by mail within five to ten business days.

Do I need a separate business account if I am a sole proprietor?

You are not legally required to, but it is strongly recommended. A separate account makes tax time easier because all business income and expenses are in one place, and it protects your personal assets if your business is sued. It also looks more professional to clients and customers.

What if my business address is my home?

Most banks accept home addresses for business accounts. Bring a utility bill or lease agreement in your name at that address to verify it. Some banks may ask additional questions about home-based businesses, but this is normal and not a reason for denial.

Can I change banks later if I am unhappy with my choice?

Yes. You can open a new account at a different bank and transfer your balance. Notify your clients or customers of the new account number and routing number for direct deposits. Close the old account once all outstanding checks have cleared, usually within 30 days.