What you need to do before you walk into a bank
A business bank account separates your personal money from your business money, which protects you legally and makes taxes simpler. Before you contact a bank, you need to have your business structure in place — that means registering your business name with your state, getting an Employer Identification Number (EIN) from the IRS if you have employees or operate as an LLC or corporation, and having your business license if your state or city requires one.
The bank will ask for proof of all three of these things. If you are a sole proprietor with no employees, you may be able to use your Social Security number instead of an EIN, but most banks prefer the EIN anyway because it signals you are serious about the business. You do not need to wait until your business is profitable or even generating revenue — you can open the account as soon as your paperwork is filed.
Gather your documents before you call or visit. You will need your EIN letter from the IRS (or your Social Security number if you are using that), your business license, proof of your business address, and a government-issued ID. Some banks also ask for a copy of your articles of incorporation or LLC formation documents. Having everything ready means the process takes one visit instead of three.
Key Takeaways
- You must register your business name and obtain an EIN or use your Social Security number before opening a business bank account.
- Bring your EIN letter, business license, proof of business address, and government ID to your bank appointment.
- Different banks charge different monthly fees, require different minimum balances, and offer different numbers of free transactions — compare at least three before you decide.
- The account usually opens the same day or within one business day, and you can order checks and set up online banking immediately.
Choosing a bank and account type
You have three main routes: a traditional brick-and-mortar bank, a credit union, or an online bank. Traditional banks have physical branches where you can deposit cash and talk to someone in person. Credit unions often have lower fees and better customer service but may have fewer branches. Online banks have the lowest fees and the fastest account opening but no physical location to visit.
Call or visit the websites of at least three banks in your area and compare their business checking accounts. Look at the monthly maintenance fee (which ranges from zero to $25 or more), the minimum balance required to waive that fee, the number of free transactions per month, and whether they charge per check or per deposit. Some banks offer the first three months free to new business customers. Write down the numbers side by side so you can see which one costs you the least based on how you plan to use the account.
Ask whether the bank offers online banking, mobile check deposit, and ACH transfers (electronic transfers to and from other accounts). These features matter more than you might think — if you cannot deposit checks from your phone, you will waste time driving to the bank. If ACH transfers cost money, you will pay extra every time a client pays you electronically.
Documents and information the bank will ask for
Bring originals or certified copies of your business registration documents. The bank needs to verify that your business actually exists and that you are authorized to open an account on its behalf. If you are an LLC or corporation, bring your articles of organization or incorporation. If you are a sole proprietor, bring your business license or your DBA (doing business as) certificate if you filed one.
You will also need to provide your business address. This can be your home address if you work from home, a commercial space, or a virtual office address — the bank just needs to know where the business operates. Bring a utility bill, lease, or mortgage statement dated within the last 60 days to prove you control that address.
The bank will ask you to sign signature cards authorizing who can sign checks and withdraw money. If you are the only owner, you sign alone. If you have partners or employees who will handle money, you can authorize them now or add them later. The bank keeps these cards on file so they can verify signatures on checks.
What happens on the day you open the account
The process usually takes 30 minutes to an hour. A bank representative will review your documents, verify your EIN with the IRS, run a background check (which is standard and does not affect your credit), and ask you questions about the nature of your business and the expected monthly volume of deposits and withdrawals. They are not judging you — they are filling out federal forms required by anti-money-laundering laws.
You will choose a business checking account type (some banks offer multiple tiers with different fees and features), set an initial deposit amount, and decide whether you want a debit card. Most banks issue a debit card on the spot or mail it within a few days. You can start using the account for electronic transfers immediately, even before the debit card arrives.
Before you leave, ask the bank representative to set up online banking access and show you how to use it. Request a temporary check stock or ask when your permanent checks will arrive — this usually takes five to ten business days. If you need to write checks before then, ask whether the bank can issue starter checks or a temporary check number you can use.
Setting up online banking and payment tools
Online banking lets you check your balance, transfer money, and pay bills without visiting the bank. Set this up the same day you open the account. The bank will give you a username and temporary password, which you should change immediately to something only you know. Write down your online banking phone number and customer service email in case you need help later.
Most business accounts include bill pay, which lets you schedule payments to vendors and contractors directly from your account. You can set up recurring payments for rent or regular suppliers, or make one-time payments as needed. Bill pay usually takes one to three business days to reach the recipient, so plan ahead if you have a deadline.
Ask about mobile check deposit if the bank offers it. This feature lets you photograph a check with your phone and deposit it without visiting the bank — a huge time-saver if you receive checks from clients. Not all banks offer this for business accounts, so confirm before you choose.
Ordering checks and setting up payroll
Your bank will provide you with a routing number and account number, which you need to order checks. You can order checks from the bank itself, which is usually more expensive but may provide to work, or from a third-party check printer like Deluxe or Costco, which is cheaper but takes longer. Do not order checks until you have used your account for at least a few days and confirmed the account number is correct.
If you have employees, you will need to set up payroll. Some banks offer payroll services directly, or you can use a separate payroll provider like Gusto, ADP, or QuickBooks Payroll. These services calculate taxes, print checks or set up direct deposit, and file payroll forms with the IRS and your state. You will need your EIN and your employees' Social Security numbers or ITINs to get your free guide.
Keep your routing number and account number in a safe place — you will need them for invoices, vendor payments, and tax filings. Many business owners write them down and store them in a password manager or a locked file.
Common mistakes to avoid
Do not mix personal and business money in the same account, even temporarily. This blurs the line between your personal finances and your business, which can cause problems if you are ever audited or sued. The whole point of a business account is to keep them separate.
Do not assume all banks offer the same features. Some banks charge for wire transfers, some charge for ACH transfers, and some charge per check. Read the fee schedule before you open the account, not after you have already started using it.
Do not order checks before you have confirmed your account number is correct. A typo in your account number means checks will bounce or go to the wrong place. Wait at least a few days, make a small deposit or transfer, and confirm the account number matches what the bank gave you.
Do not ignore your monthly statements. Review them regularly to catch fraud, unauthorized charges, or errors. Most banks require you to report problems within 30 to 60 days, so staying on top of your account protects you.
Frequently Asked Questions
Can I open a business bank account without an EIN?
Yes, if you are a sole proprietor with no employees, you can use your Social Security number instead. However, most banks prefer an EIN because it keeps your personal and business finances more clearly separated. Getting an EIN is free and takes about 15 minutes online through the IRS website.
How long does it take to open a business bank account?
The account usually opens the same day you visit the bank or within one business day if you open it online. You can start making electronic transfers immediately. Debit cards and checks arrive within a few days to two weeks, depending on the bank.
What is the minimum deposit required?
This varies by bank and account type. Some banks require no minimum deposit at all, while others require $500 to $2,500 to open the account or to waive the monthly fee. Check the bank's website or call before you visit.
Do I need a business license to open a business bank account?
Most banks require proof that your business is registered with your state, which usually means a business license or DBA certificate. Some states do not require a business license for sole proprietors, in which case your EIN letter or articles of incorporation may be enough. Call your bank to ask what they accept.
Can I add another person to my business bank account later?
Yes. You can authorize additional signers or account holders after the account is open by visiting the bank or, with some banks, through online banking. The bank will need their government ID and signature card. This is useful if you hire an office manager or accountant who needs access to the account.