The main choices are your current bank, online-only banks, and credit unions
You can open a business bank account at a traditional bank branch, an online bank, or a credit union. Each route has different requirements, fees, and speed. A traditional bank like Chase or Bank of America lets you walk in with documents and sometimes open an account the same day. Online banks like Mercury or Brex have no branch visits but require you to upload documents and wait for approval, usually one to three business days. Credit unions often have lower fees but membership requirements and smaller branch networks.
The choice depends on what you need most: in-person support, low fees, fast setup, or specific features like invoicing tools. There is no single best answer — a freelancer and a retail store have different needs.
Key Takeaways
- Traditional banks require an EIN (or SSN if sole proprietor), articles of incorporation or formation documents, and a government ID, and can open accounts same-day in person.
- Online banks move faster for approval but require uploading documents and waiting one to three days, with no branch support if something goes wrong.
- Credit unions often charge lower monthly fees and per-transaction costs but require membership and may have stricter underwriting.
- You will need to choose between a sole proprietorship account (using your SSN) and a business account (using an EIN), which affects what documents you bring.
Traditional banks: Chase, Bank of America, Wells Fargo, and local banks
A traditional bank branch is the most straightforward route if you already bank there or live near a branch. Bring your EIN letter from the IRS (or your SSN if you are a sole proprietor), a government ID, and your articles of incorporation or formation if you have an LLC or corporation. Many branches can open an account in 15 to 30 minutes. You will get a debit card, checks, and online access the same day or within a few days.
The downside is monthly fees — most business checking accounts cost $10 to $25 per month, plus per-transaction fees if you exceed a certain number of deposits or withdrawals. Some banks waive fees if you maintain a minimum balance, usually $1,000 to $5,000. Call your local branch first to ask what documents they need and whether they have same-day opening available; requirements vary by location.
Local and regional banks often have lower fees and more flexibility than national chains. If you have a relationship with a smaller bank, ask whether they offer business accounts — many do, and some will negotiate fees for new business owners.
Online banks: Mercury, Brex, Novo, and others
Online banks have no branches but often have lower fees and faster account setup for straightforward businesses. Mercury, Brex, and Novo are built for small business and startups. You download their app or visit their website, upload a photo of your ID and your EIN letter, and wait for approval. Most approve within one to three business days. You get a debit card mailed to you within five to ten business days and can start using the account before the card arrives.
The catch is that online banks have stricter rules about what businesses they will accept. Some will not open accounts for certain industries (like cannabis, gambling, or high-risk finance). If your business is rejected, you will not know why and have no branch manager to call. Online banks also offer fewer services — no check deposits at a branch, no in-person support, and limited customer service hours.
Online banks are best if your business is straightforward (freelancing, e-commerce, consulting), you do not need to deposit checks often, and you are comfortable troubleshooting online. They are worst if you need immediate help or your business model is unusual.
Credit unions
Credit unions often charge $5 to $10 per month for business accounts and have lower per-transaction fees than banks. You must be a member to open an account, which usually means living or working in a certain area or belonging to a profession or employer group. Some credit unions have joined shared branching networks, so you can use other credit unions' branches if your local one is far away.
Opening an account at a credit union takes the same documents as a bank — EIN letter, ID, and articles of incorporation if applicable — and usually takes one to two business days. Credit unions tend to be more flexible about unusual business structures and may negotiate fees. The downside is that credit unions have fewer branches and ATMs than banks, and their online platforms are often older and slower.
Credit unions work well if you value lower fees and personal service over convenience and technology. Check whether you are already a member or whether your employer or profession qualifies you.
What documents you need to bring or upload
| Document | Why | Where to get it |
|---|---|---|
| EIN letter from the IRS | Proves your business tax ID; required for LLCs, corporations, and partnerships | IRS.gov; issued immediately when you apply for an EIN online |
| Social Security Number (SSN) | Used instead of EIN if you are a sole proprietor with no employees | Your Social Security card or tax return |
| Government-issued ID | Proves your identity; required by all banks | Driver's license, passport, or state ID |
| Articles of incorporation or formation | Proves your LLC or corporation exists; required for LLCs and corporations | Your state's Secretary of State website; you received a copy when you formed the business |
| Business license or DBA certificate | Some banks ask for this; not always required | Your city or county clerk's office |
How to decide between sole proprietor and business account
If you are a sole proprietor (self-employed, no employees, no LLC or corporation), you can open an account using your SSN instead of an EIN. This is simpler — you need only your ID and SSN. However, the account is technically personal, not business, so it does not separate your business and personal finances as clearly.
If you have an LLC, corporation, or partnership, you must use an EIN and open a business account. This separates your finances and protects your personal assets if something goes wrong. The account is in your business's name, not your personal name.
Most business owners choose to get an EIN even as a sole proprietor because it keeps finances separate and looks more professional to customers and lenders. Getting an EIN is free and takes five minutes online at IRS.gov.
Speed comparison: same-day to three days
Traditional bank branches are fastest if you have all documents ready. Walk in with your ID, EIN letter, and articles of incorporation, and you can open an account in 30 minutes to an hour. You get online access immediately and a debit card within three to five business days.
Online banks take one to three business days for approval after you upload documents. You can use the account online immediately but must wait for your debit card to arrive by mail, usually five to ten business days.
Credit unions typically take one to two business days and require an in-person visit or a phone call to verify your identity. Some will mail you a debit card; others require you to pick it up at a branch.
Monthly fees and what to watch for
Traditional banks charge $10 to $25 per month for business checking, plus per-transaction fees if you exceed a limit (often 50 to 100 transactions per month). Some waive the monthly fee if you keep a minimum balance of $1,000 to $5,000. Wire transfer fees are usually $15 to $30 per wire.
Online banks often charge $0 to $10 per month and have no per-transaction limits. Wire transfers are usually $0 to $15. The tradeoff is that they offer fewer services and less support.
Credit unions charge $5 to $10 per month and often have lower per-transaction fees. Wire transfers are usually $10 to $20. Some credit unions waive fees for members who maintain a minimum balance.
Before you open an account, ask about all fees in writing — monthly maintenance, per-deposit, per-withdrawal, wire transfer, overdraft, and check printing. Some banks advertise low monthly fees but charge high per-transaction fees, which can add up if you deposit checks often.
Frequently Asked Questions
Can I open a business account without an EIN?
Yes, if you are a sole proprietor. You can use your Social Security Number instead. However, most business owners get an EIN anyway because it separates personal and business finances and looks more professional. Getting an EIN is free and takes five minutes at IRS.gov.
Do I need to have formed an LLC or corporation to open a business account?
No. You can open a business account as a sole proprietor using your SSN. However, if you have formed an LLC or corporation, you must use an EIN and open a business account in your business's name, not your personal name.
What if a bank rejects my application?
Banks can reject applications for many reasons — high-risk industry, poor personal credit, or unusual business structure. Ask the bank why in writing. If you are rejected by one bank, try a credit union or an online bank that specializes in startups. Some banks are more flexible than others.
Can I open a business account online without uploading documents?
No. All banks require identity verification, which means uploading a photo of your ID and usually your EIN letter. This protects against fraud. The process takes a few minutes and approval usually takes one to three business days.
Do I need a business license to open a business bank account?
Most banks do not require a business license. They require an EIN letter, ID, and articles of incorporation if you have an LLC or corporation. Some banks ask for a business license as extra proof, but it is not mandatory. Check with your bank before you apply.