Documents and information you'll need before you walk in
Most banks want the same core set of documents before they'll open a business account. You'll need your Employer Identification Number (EIN) — a nine-digit tax ID issued by the IRS. If you're a sole proprietor, you can use your Social Security number instead, but an EIN keeps your personal and business finances separate on paper. You can get an EIN for free from the IRS website in minutes, or by phone, mail, or fax if you prefer.
Bring a government-issued photo ID — a driver's license or passport works. You'll also need proof of your business address: a lease, utility bill, or mortgage statement dated within the last 60 days. Some banks accept a PO box; others don't, so call ahead if that's your only option.
Have your business structure ready to name: sole proprietorship, partnership, LLC, S-corp, or C-corp. The bank needs this because it affects how they report your account to the IRS and what paperwork they ask for. If you're an LLC or corporation, bring a copy of your formation documents — the articles of incorporation or articles of organization filed with your state.
Key Takeaways
- You need an EIN (or your Social Security number if you're a sole proprietor), a photo ID, and proof of your business address within the last 60 days.
- Bring your business formation documents if you're an LLC, corporation, or partnership — a sole proprietor can often open an account with just an ID and EIN.
- Different account types (checking, savings, money market) have different minimum balances and fee structures; ask the bank what they charge for overdrafts and monthly maintenance.
- Some banks require a personal may provide, meaning you're personally liable if the business can't pay what it owes — read the account agreement before signing.
- The whole process usually takes 15 minutes to an hour in person, or a few business days if you apply online.
What happens if you're a sole proprietor versus an LLC or corporation
A sole proprietor — someone running a business without forming a separate legal entity — can often open a business account with just an EIN, a photo ID, and proof of address. Some banks will let you use your Social Security number instead of an EIN, though having an EIN is cleaner for record-keeping. You won't need formation documents because there are none to file.
If you're an LLC, partnership, or corporation, the bank will ask for your articles of organization or incorporation — the document you filed with your state to create the business entity. They may also ask for a certificate of good standing, which proves your business is still active and in compliance with state law. You can get this from your state's Secretary of State office, usually for $5 to $25 and within a few business days.
Partnerships need a bit more: the bank typically wants a copy of the partnership agreement and may ask each partner to provide a photo ID. Some banks require all partners to sign the account opening paperwork; others designate one or two signers. Ask the bank what their policy is before you show up.
Minimum balances and account fees
Banks vary widely on what they charge. Some have no minimum balance requirement; others want $500, $1,000, or more sitting in the account at all times. If your balance drops below the minimum, you'll pay a monthly fee — often $10 to $25. Ask the bank upfront what the minimum is and what happens if you fall short.
Overdraft fees are another cost to understand. If you write a check or make a debit card purchase that exceeds your balance, the bank will either decline the transaction or cover it and charge you a fee — typically $25 to $35 per overdraft. Some banks let you link a savings account or line of credit to cover overdrafts automatically; others don't. This matters if your cash flow is uneven.
Monthly maintenance fees range from $0 to $20 or more, depending on the bank and account type. Some banks waive the fee if you maintain a certain balance or set up direct deposit. Compare a few banks' fee schedules before you decide — the difference over a year can be significant.
Personal guarantees and what they mean for you
Many banks, especially for newer businesses, will ask you to sign a personal may provide. This means you're personally liable for anything the business account owes — overdrafts, loans, or other debts. If the business fails or can't pay, the bank can come after your personal assets to settle the debt.
This is a real legal obligation, not a formality. Read the personal may provide clause in the account agreement before you sign. Some banks will remove the requirement after a year or two of good standing; others won't. If you're uncomfortable with it, ask the bank whether it's negotiable or whether they have accounts that don't require one.
Established businesses with strong credit and a track record may be able to avoid a personal may provide, but most banks will require one for a new account. It's worth asking, but expect to sign it.
How to apply: in person, online, or by mail
Most banks let you open an account in person at a branch, online through their website, or by mail. In-person is fastest — you'll walk out with a debit card and account number the same day, usually within 15 minutes to an hour. Bring all your documents and be ready to answer questions about the nature of your business and expected monthly deposits and withdrawals.
Online applications take longer because the bank has to verify your identity and documents remotely. You'll upload photos of your ID, EIN letter, and business formation documents. The bank will review them and contact you if anything is missing. This usually takes 3 to 5 business days, though some banks are faster.
Mail applications are the slowest route and require you to send originals or certified copies of your documents. The bank will verify everything and mail you a welcome packet with your debit card and account details. Plan for 1 to 2 weeks. Most banks don't offer this option anymore, but a few still do if you ask.
What to do if the bank asks for more information
Some banks, especially larger ones, will ask follow-up questions before they approve your account. They may want to know what your business does, how much revenue you expect, who your customers are, and whether you'll be receiving cash deposits or wire transfers. These questions are part of anti-money-laundering compliance — the bank is required by federal law to understand the source of your funds.
Answer honestly and specifically. If you say you're a consulting business, be ready to explain what kind of consulting and who your clients are. If you expect large wire transfers, explain where they're coming from. Vague answers slow things down; clear ones speed them up.
If the bank denies your account, ask why. Common reasons include a mismatch between your ID and the name on your business formation documents, a history of fraud or unpaid debts, or concerns about the nature of your business. Some of these you can fix (update your ID, explain a past issue); others you can't. If one bank says no, try another — different banks have different risk tolerances.
After your account opens: what comes next
Once your account is open, the bank will send you a welcome packet with your account number, routing number, and debit card. You'll need the routing number and account number to set up direct deposit, pay bills by check, or arrange wire transfers. Keep these numbers safe — they're the core information anyone needs to send money to your account.
Order checks if you plan to pay vendors or contractors by check. Most banks can print them for you, or you can order from a third-party printer like Deluxe or Costco. Checks usually arrive within 5 to 10 business days.
Set up online banking so you can monitor your balance, transfer money, and pay bills without visiting a branch. Most banks offer this free. You'll create a username and password and may set up two-factor authentication for security. Spend time learning the interface — knowing how to move money quickly matters if you need to cover an unexpected expense.
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, an EIN is free and keeps your personal and business finances separate for tax purposes, so it's worth getting even if the bank doesn't require it.
Do I need a separate business license to open a bank account?
No. A business license is separate from a bank account. Some banks don't ask for one; others do. If the bank asks and you don't have one, you can usually get it from your city or county clerk's office while your account application is being reviewed.
What if I'm opening an account for an LLC but I'm the only member?
You'll still need your articles of organization and an EIN. The bank treats a single-member LLC the same way it treats a multi-member LLC — as a separate legal entity. You'll sign the account agreement in your capacity as the LLC's owner or manager, not as an individual.
How long does it take to get a debit card after I open my account?
If you open in person, the bank usually gives you a temporary card or number on the spot. A permanent card arrives by mail in 5 to 10 business days. Online applications take longer — expect 2 to 3 weeks for the card to arrive after your account is approved.
Can I use my personal bank account for my business instead?
Legally, yes, but it's not recommended. Mixing personal and business money makes taxes harder, creates liability issues, and looks unprofessional to customers and vendors. A separate business account costs little and protects you.