What you need before you walk into a bank or go online
Banks will ask for three things before they open a business checking account: proof that your business exists as a legal entity, identification for the person signing the account, and money to deposit. The exact documents depend on your business structure and the bank you choose, but you cannot skip any of them.
If you are a sole proprietor, you need a Social Security number and a government-issued ID. If you registered your business as an LLC, S-corp, or C-corp, you need the formation documents from your state (usually called Articles of Organization or Articles of Incorporation) and an Employer Identification Number (EIN) from the IRS. If you are a partnership, you need the partnership agreement and an EIN. Banks will not open the account without proof that the business is real and registered.
The minimum deposit to open the account varies by bank — some ask for $100, others for $500 or $1,000. A few banks have no minimum. The deposit becomes your opening balance, so you are not losing money; you are funding the account itself.
Key Takeaways
- Sole proprietors need a Social Security number and government ID; all other business structures need formation documents from your state and an EIN from the IRS.
- Banks require a minimum opening deposit that ranges from zero to $1,000 depending on the institution, and this money becomes your account balance.
- You can open an account in person at a branch, online through the bank's website, or by mail with some banks, and online accounts typically open within one to three business days.
- Monthly fees, per-transaction costs, and balance requirements vary widely, so comparing banks before you choose one saves money over time.
- If your business is brand new and you do not have an EIN yet, you can request one from the IRS online and receive it immediately, or apply by mail and wait two to four weeks.
Getting an EIN if your business structure requires one
An Employer Identification Number is a nine-digit code the IRS assigns to your business. You need one if you are an LLC, partnership, S-corp, or C-corp. You do not need one if you are a sole proprietor using your Social Security number as your business tax ID, though many sole proprietors get one anyway to keep personal and business finances separate.
The fastest way to get an EIN is online through the IRS website at irs.gov. Go to the "Apply for an EIN" page, answer questions about your business, and you will receive your number immediately on screen. You can print it or write it down right then. This takes about 15 minutes and costs nothing.
If you cannot apply online, you can call the IRS at 1-800-829-4933 during business hours and receive your EIN over the phone. If you apply by mail using Form SS-4, expect to wait two to four weeks. Most banks will not open your account until you have the EIN in hand, so the online or phone route is worth the small effort.
Choosing between in-person, online, and mail applications
You have three ways to open a business checking account. In-person means walking into a bank branch with your documents and signing papers on the spot. The account opens that day or the next business day. This works well if you want to ask questions face-to-face or if the bank requires a signature on specific forms.
Online applications are the fastest route for most people. You upload photos of your documents, answer questions about your business, and fund the account by linking a personal bank account or providing a debit card. The account opens within one to three business days. You never speak to anyone, but you also do not have to leave your office or home.
Mail applications are rare now but still offered by some banks. You print forms, gather documents, mail everything in, and wait. This typically takes one to two weeks after the bank receives your envelope, plus mail time both ways. Use this only if the bank does not offer online or in-person options.
Documents checklist by business structure
| Business Structure | Documents You Need | ID Required |
|---|---|---|
| Sole Proprietor | None (or business license if you have one) | Government-issued ID (driver's license, passport) |
| LLC | Articles of Organization from your state; EIN from IRS | Government-issued ID for the owner signing the account |
| Partnership | Partnership agreement; EIN from IRS | Government-issued ID for the partner signing the account |
| S-Corp or C-Corp | Articles of Incorporation from your state; EIN from IRS | Government-issued ID for the officer signing the account |
If you registered your business with your state but have not received the official documents yet, contact your state's Secretary of State office. Most states let you download a certified copy of your formation documents online or request one by mail. This usually takes a few days and costs $5 to $25.
Some banks will accept a screenshot or email confirmation of your formation documents while you wait for the official copy to arrive. Call the bank before you apply and ask whether they will hold the account open pending receipt of the original documents. This can save you time if you are in a hurry.
What happens after you submit your application
After you submit your documents, the bank verifies that your business is real and that the person opening the account has the authority to do so. This is called Know Your Customer verification, and it is required by federal law. The bank checks your identity against government records and may call you to confirm details.
If everything checks out, the account opens. You will receive a confirmation email with your account number, routing number, and instructions for setting up online banking. Some banks mail you a debit card and checks; others let you order them online. You can start using the account as soon as it opens, even if your physical card has not arrived yet.
If the bank cannot verify your information, they will contact you and ask for more documents or clarification. This is uncommon but happens if your business name does not match your formation documents exactly, or if there is a discrepancy in your personal information. Respond quickly — delays here can push your account opening back by a week or more.
Monthly fees and features to compare
Business checking accounts are not all the same. Some banks charge $10 to $25 per month; others charge nothing. Some charge per transaction ($0.25 to $1 per deposit or withdrawal); others offer unlimited transactions. Some require a minimum balance to waive the monthly fee; others do not.
Before you choose a bank, compare three things: the monthly fee structure, the transaction limits, and whether the bank offers the features you need. If you take a lot of cash deposits, make sure the bank does not charge per deposit. If you send many wire transfers, check the wire fee. If you need to deposit checks by phone or mail, confirm the bank accepts remote deposits.
Online banks (like Mercury, Brex, or Novo) often have lower fees and no minimum balance but may not have physical branches. Traditional banks (like Chase, Bank of America, or Wells Fargo) have branches everywhere but charge higher fees. Credit unions often fall in the middle. The cheapest option depends on how you plan to use the account.
What to do if the bank denies your application
Banks can refuse to open a business checking account if they cannot verify your identity, if your business does not appear to be legitimate, or if you have a history of fraud or financial crime. This is rare, but it happens.
If a bank denies you, ask why. The bank must tell you the reason. If it is a documentation issue — a missing form or a name mismatch — you can fix it and reapply. If it is a background check issue, you may need to wait a few months and try again, or try a different bank. Some banks are stricter than others.
If you have been denied by multiple banks, consider a credit union or a community bank in your area. They sometimes have more flexible policies and may be willing to work with you if you can explain the issue. Bring all your documents and be honest about your situation. Many community banks specialize in working with new or small businesses that larger banks turn away.
Frequently Asked Questions
Do I need an EIN if I am a sole proprietor?
No, you can use your Social Security number instead. However, many sole proprietors get an EIN anyway to keep personal and business finances separate and to protect their Social Security number. Getting one is free and takes 15 minutes online at irs.gov.
How long does it take to open a business checking account?
Online accounts typically open within one to three business days. In-person accounts open the same day or the next business day. Mail applications take one to two weeks after the bank receives your documents, plus mail time. The speed depends on how quickly the bank can verify your information.
Can I open a business checking account if my business is brand new?
Yes, but you need proof that the business is registered with your state. If you just filed your formation documents and have not received them yet, contact your state's Secretary of State office and request a certified copy. Most states provide this within a few days for a small fee.
What if I do not have a government-issued ID?
You will need one to open a business checking account. A driver's license, passport, or state ID card all work. If you do not have any of these, contact your state's DMV or passport office to get one before you approach a bank.
Can I open a business checking account online if I am out of the country?
Most banks allow it, but some require you to be a U.S. resident or have a U.S. address. Online banks are more flexible than traditional banks on this. Check the bank's requirements before you start the application.