Documents and information you'll need before you walk in

Most banks want the same core set of documents to open a business account, though the exact list varies by bank and by the legal structure of your business. You will need proof of your business's legal existence, proof of your identity, and proof of your ownership stake. The bank also needs to know who has signing authority and what the account will be used for.

Start by gathering your Employer Identification Number (EIN) — the federal tax ID for your business. If you're a sole proprietor, you can use your Social Security number instead, but most banks prefer the EIN. You can get an EIN free from the IRS website or by phone; it takes minutes and is issued immediately.

Next, bring proof that your business legally exists. For a sole proprietorship, this might be a business license from your city or county. For an LLC, you need a copy of your Articles of Organization filed with your state. For a corporation, bring your Articles of Incorporation. For a partnership, bring the partnership agreement or a certificate of partnership from your state. If you operate under a name different from your legal name, bring a "Doing Business As" (DBA) certificate or assumed name certificate from your county clerk.

Personal identification and ownership documentation

Bring a government-issued photo ID — a driver's license, passport, or state ID card. The bank will verify your identity against this document and may run a background check. If you're opening the account as a representative of the business rather than as the owner, bring documentation showing your authority to act on behalf of the business, such as a board resolution or power of attorney.

If the business has multiple owners, the bank will want to know who they are and their ownership percentages. Bring a list of all owners with their names, addresses, dates of birth, and Social Security numbers or EINs. Some banks require all owners to be present; others allow one owner to open the account on behalf of the others. Call ahead to ask what your bank requires.

For LLCs and corporations, the bank may ask for a certificate of good standing from your state's Secretary of State office. This document confirms that your business is registered and in compliance with state requirements. You can order this online from your state's website for a small fee, usually $5 to $25, and it arrives within days.

Key Takeaways

  • You need an EIN (or your Social Security number if you're a sole proprietor), a government photo ID, and proof your business legally exists, such as Articles of Organization or a business license.
  • The bank will ask for the names, addresses, and Social Security numbers of all owners and anyone with signing authority over the account.
  • If your business operates under a name different from your legal name, bring a DBA or assumed name certificate from your county.
  • Some banks require all owners to be present; others allow one owner to open the account alone, so call your bank first to confirm what they need.
  • A certificate of good standing from your state confirms your business is registered and current; you can order it online for $5 to $25.

What the bank will ask you during the appointment

The banker will ask you to describe the nature of your business — what you sell or what service you provide, how long you've been operating, and how much money you expect to move through the account each month. They're not judging; they're checking for money-laundering risk and making sure the account type matches your actual use.

Be honest about your expected monthly volume. If you say you'll deposit $500 a month but then deposit $50,000, the bank may flag the account for review or freeze it temporarily. If you're not sure of your volume yet, give a reasonable estimate and tell the banker you can update them later.

The banker will also ask whether you want a checking account, a savings account, or both. Most small businesses use a checking account for day-to-day operations and a savings account to set aside money for taxes or emergencies. Some banks bundle these together; others charge separate fees.

Fees and account minimums to compare before you go

Business bank accounts are not free. Most banks charge a monthly maintenance fee ranging from $10 to $50, though some waive the fee if you maintain a minimum balance or set up direct deposit. Some banks charge per check written, per deposit, or per transfer. A few banks offer no-fee business checking, but these are less common than free personal accounts.

Ask about the minimum balance required to open the account and the minimum balance required to avoid monthly fees. Some banks require $500 to $1,000 to open; others have no minimum. If you fall below the minimum, you may pay a fee each month until you bring the balance back up.

Compare the cost of checks, wire transfers, and ACH transfers across banks. If you write many checks, a bank that charges per check will cost more than one with unlimited check writing. If you send frequent wire transfers, look for a bank that offers them at a reasonable rate or waives the fee for a certain number per month.

Timeline from application to first deposit

Opening a business account usually takes 15 to 30 minutes in person. The banker will verify your documents, run a background check, and set up the account while you wait. You'll receive your account number and routing number immediately, and you can start using the account that day if you deposit money before the bank closes.

If you open the account online, the process takes longer. You'll upload photos of your documents, and the bank will review them — this can take one to three business days. Once approved, the bank will mail you debit cards and checks, which arrive within five to ten business days. You can usually start making transfers and ACH deposits before the physical cards arrive, but you won't be able to use the debit card or write checks until they arrive.

Some banks offer expedited card delivery for an extra fee, usually $15 to $25. If you need to start using a debit card right away, ask whether the bank offers this option.

What happens if the bank denies your account

Banks can refuse to open a business account if your personal credit is very poor, if you have a history of fraud or money laundering, or if your business operates in a high-risk industry such as cannabis or payday lending. Some banks also deny accounts to businesses with owners who have been convicted of certain crimes.

If a bank denies your account, ask for the reason in writing. If it's because of your credit, you can work on improving your credit score before trying another bank. If it's because of your business type, you may need to look for a bank that specializes in that industry — for example, some banks work specifically with cannabis businesses in states where it's legal.

If you're denied because of an error in your background check, you have the right to dispute it. Contact the bank and ask which agency ran the check, then contact that agency to request a copy of your report and file a dispute if the information is wrong.

Sole proprietors and the Social Security number question

If you operate as a sole proprietor and have not yet obtained an EIN, you can open a business account using your Social Security number instead. However, most banks now prefer an EIN because it separates your personal finances from your business finances and protects your Social Security number from being shared with vendors and customers.

Getting an EIN is free and takes five minutes online at the IRS website. You can apply immediately and receive your number the same day. Once you have it, you can use it to open the account and update your bank records later if you've already opened the account under your Social Security number.

Frequently Asked Questions

Can I open a business account without an EIN?

Yes, if you're a sole proprietor, you can use your Social Security number instead. However, most banks prefer an EIN because it keeps your personal and business finances separate. Getting an EIN is free and takes five minutes online at irs.gov.

Do all owners have to be present when I open the account?

It depends on the bank. Some require all owners to sign in person; others allow one owner to open the account and add other owners later. Call your bank before you go to find out what they require.

What if I don't have a certificate of good standing yet?

Many banks will open your account without it, but some require it. If your bank asks for one, you can order it online from your state's Secretary of State office for $5 to $25; it usually arrives within three to five business days. Ask the banker if you can open the account and provide the certificate later.

How long does it take to get my debit card and checks?

If you open the account in person, you can start using it immediately, but physical debit cards and checks arrive within five to ten business days. If you open online, the entire process takes one to three weeks. Some banks offer expedited delivery for $15 to $25.

What should I do if the bank denies my account?

Ask for the reason in writing. If it's a credit issue, work on improving your score before trying another bank. If it's an error in your background check, contact the agency that ran the check and file a dispute. If your business type is the issue, look for a bank that specializes in your industry.