Discovery Bank does not offer business checking accounts

Discovery Bank, owned by Discover Financial Services, focuses on personal banking products. The bank provides personal checking and savings accounts, personal loans, and home loans, but does not have a business banking division. If you operate a sole proprietorship, partnership, LLC, or corporation and need a dedicated business checking account, you will need to look elsewhere.

This matters because mixing personal and business money in a single account creates tax and legal problems. The IRS expects to see separate accounts, and if you face a lawsuit, commingling funds can expose your personal assets. A business checking account also gives you clearer records for tax time and makes bookkeeping simpler.

Key Takeaways

  • Discovery Bank does not operate a business banking department and cannot open business checking accounts for any business structure.
  • If you bank with Discovery for personal accounts, you will need to open a business checking account at a different bank.
  • Banks that do offer business checking include Chase, Bank of America, Wells Fargo, Citibank, and many regional and online banks.
  • You will need an Employer Identification Number (EIN) or Social Security Number, a business license, and proof of address to open a business account at most banks.

Why you need a separate business account

The IRS does not require a business checking account by law, but the agency expects to see one. When you file taxes, you report business income and expenses. If those transactions are mixed with personal spending in a single account, you create confusion during an audit and make it harder to prove what was actually a business expense.

A separate account also protects you legally. If your business is sued or faces a judgment, a plaintiff's attorney can argue that you did not treat the business as separate from yourself. Commingling funds weakens your liability protection and can put your house, car, and personal savings at risk. Banks also flag accounts that show both personal and business activity, and some will close them without warning.

Banks that offer business checking accounts

Most major banks and many smaller ones offer business checking. The largest options are Chase, Bank of America, Wells Fargo, and Citibank. Online banks like Mercury, Novo, and Brex also serve small businesses, often with lower fees and faster account opening. Credit unions in your area may offer business accounts as well.

The choice depends on what you need. If you want a physical branch to deposit checks and speak to someone in person, a traditional bank works best. If you rarely visit a branch and want low fees and fast setup, an online bank may suit you better. Some accounts charge monthly fees; others waive them if you maintain a minimum balance or set up direct deposit.

What you need to open a business checking account

Most banks ask for the same core documents. You will need a business license or registration showing your business name and structure (sole proprietorship, LLC, corporation, etc.). You will also need an Employer Identification Number (EIN) from the IRS, or you can use your Social Security Number if you are a sole proprietor. Bring a government-issued ID and proof of your business address—a utility bill, lease, or mortgage statement usually works.

Some banks also ask for a business plan summary, articles of incorporation (for corporations), or an operating agreement (for LLCs). Online banks often skip the physical documents and let you upload photos instead. The process usually takes a few minutes to a few hours, depending on whether the bank verifies your information in real time or reviews it later.

How to get an EIN if you do not have one

An EIN is a nine-digit number the IRS issues to identify your business for tax purposes. You can request one for free at the IRS website (irs.gov) or by calling the IRS at 1-800-829-4933. If you apply online, you receive your EIN immediately. By phone or mail, it takes longer—usually a few weeks by mail.

You do not need an EIN if you are a sole proprietor with no employees and you use your Social Security Number for business taxes. However, many banks prefer to see an EIN because it separates your personal and business identity more clearly. Getting one takes only a few minutes online and costs nothing.

Alternatives if you want to stay with Discovery

If you prefer to keep your personal banking with Discovery, you have two options. First, you can open a personal savings account at Discovery and use it only for business—though this does not fully solve the legal and tax problems of commingling. Second, you can open your business account at another bank while keeping your personal accounts at Discovery. Many people do this; there is no rule against banking at multiple institutions.

Some business owners use a business savings account as a holding tank for business income, then transfer money to a business checking account at another bank for day-to-day spending. This approach works if you do not need to write checks or use a debit card from Discovery itself.

What to compare when choosing a business bank

Monthly fees vary widely—some banks charge $10 to $25 per month, while others charge nothing. Look at what the fee covers: unlimited transactions, a set number of checks, wire transfers, or ACH payments. Some banks waive the fee if you keep a minimum balance (often $1,000 to $5,000) or receive direct deposits.

Also check the interest rate on any business savings or money market account the bank offers, the cost of wire transfers and ACH payments, and whether the bank charges for checks. If you need to deposit cash or checks frequently, ask whether the bank has branches or ATMs near your location. Online banks often have no physical locations but partner with ATM networks or offer mobile check deposit.

Frequently Asked Questions

Can I use a personal Discovery account for my business?

Technically yes, but it creates problems. The IRS expects to see a separate business account, and if you are sued, commingling funds can expose your personal assets. Discovery may also close the account if it detects business activity. A dedicated business account is the safer choice.

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

Online banks often approve and fund accounts in minutes to hours. Traditional banks may take one to three business days. You will need your business license, EIN or SSN, government ID, and proof of address. Some banks verify information instantly; others review applications later.

Do I need an EIN to open a business checking account?

Not always. Sole proprietors can use their Social Security Number instead. However, most banks prefer an EIN because it clearly separates your personal and business identity. Getting an EIN is free and takes minutes online at irs.gov.

What if I have bad personal credit?

Most banks do not run a hard credit check for business accounts. They may check your banking history or run a soft inquiry, but approval usually depends on your business license and ability to fund the account, not your personal credit score. Ask the bank about their specific requirements.

Can I have multiple business checking accounts?

Yes. Some business owners keep one account for operating expenses and another for savings or a specific project. There is no limit to how many accounts you can open, though each bank may charge a separate monthly fee.