What you need before you walk into a bank
Banks will ask for three things before they open a business checking account: proof that your business exists as a legal entity, proof of your identity, and a way to fund the account. The exact documents depend on your business structure—sole proprietorship, LLC, S-corp, or C-corp each have different requirements—and on which bank you choose.
Start by gathering your Employer Identification Number (EIN), which the IRS issues to almost all business structures except sole proprietorships operating under a personal name. You can get an EIN for free from the IRS website or by phone; it takes minutes. If you are a sole proprietor using your Social Security number instead, bring that instead.
Next, bring a government-issued photo ID—driver's license or passport—in your personal name. Many banks also want to see a document that proves your business is registered: a Certificate of Formation for an LLC, Articles of Incorporation for a corporation, or a DBA (Doing Business As) certificate if you are operating under a name different from your own. Some banks will accept a business license from your city or county in place of these.
Key Takeaways
- You will need an EIN (or your Social Security number for a sole proprietorship), a photo ID, and proof your business is registered—such as a Certificate of Formation or business license.
- Different business structures require different documents; an LLC needs different paperwork than a sole proprietorship or corporation.
- Banks vary in which documents they accept and how much money they require to open an account, so calling ahead saves a trip.
- You can open an account online with some banks, but many still require at least one in-person visit to verify your identity and sign documents.
- Bring a blank check or deposit slip to fund the account on the spot, or arrange a transfer from your personal bank account beforehand.
Documents by business structure
A sole proprietorship is the simplest: bring your Social Security number, photo ID, and a business license or DBA certificate if you operate under a name other than your own. Some banks will open an account with just the ID and SSN, though they may ask why you need a business account if you are not using a separate business name.
An LLC requires your EIN, your personal photo ID, and the Certificate of Formation (or Certificate of Organization, depending on your state). A few banks also ask for the Operating Agreement, though many do not. If you have not filed the Certificate yet, do that first—you cannot open a business account for an entity that does not legally exist.
A corporation (S-corp or C-corp) needs your EIN, your photo ID, and the Articles of Incorporation. Some banks also want to see corporate bylaws and a resolution from the board authorizing the account. If you are not the sole owner, the bank may ask for a list of all shareholders or members and their ownership percentages.
A partnership requires an EIN, photo IDs for all partners, and a Partnership Agreement. The bank will likely ask which partners are authorized to sign checks and withdraw money, so have that decided before you arrive.
How to choose a bank and start the process
Call or visit the websites of banks in your area and ask three questions: what documents do they need for your business structure, what is the minimum opening deposit, and can you start the process online or must you come in person. The answers vary widely. Some banks require $500 to $1,000 to open; others have no minimum. Some let you upload documents and sign electronically; others require you to appear in person with original documents.
Once you have chosen a bank, you can usually start online by filling out an application with your business name, address, EIN, and the names and Social Security numbers of all owners. The bank will then either send you a link to upload documents or tell you to bring them to a branch. If you upload, expect the bank to contact you within a few business days to verify information or ask follow-up questions.
If you must visit in person, bring originals of all documents plus copies for the bank to keep. Bring a blank check from your personal account or arrange a wire transfer beforehand so you can fund the account on the spot. Some banks will hold the account open temporarily while they verify your documents, then activate it once everything clears.
What happens after you open the account
The bank will give you a temporary debit card and checks within a few days, though your permanent checks may take one to two weeks to arrive. Your account number and routing number will be available immediately, so you can set up direct deposit or bill pay right away if you need to.
Some banks run a background check or verify your business registration with the state, which can take three to five business days. During that time, your account is usually active for deposits and transfers, but the bank may hold large deposits or restrict withdrawals until verification is complete. This is normal and does not mean anything is wrong.
Once the account is fully open, you can add other authorized users—employees or co-owners—by bringing their photo IDs and filling out a form. Some banks allow you to do this online; others require a visit to the branch.
Common reasons banks deny or delay opening an account
Banks use ChexSystems and Early Warning Services to check your banking history. If you have unpaid overdrafts, fraud claims, or multiple closed accounts due to negative balances, the bank may deny your application. This is separate from your credit score; a bad credit history does not automatically disqualify you, but a history of bounced checks or disputes does.
If your business name is too similar to another registered business in your state, the bank may ask you to clarify which entity you are opening the account for. This is rare but happens most often with common names like "Smith Consulting" or "Main Street Services."
If you cannot produce a Certificate of Formation or Articles of Incorporation, some banks will accept a business license or EIN letter from the IRS as proof your business exists. If you have neither, you will need to register your business first before opening an account.
Opening an account online versus in person
Many banks now let you start the application online and upload documents without visiting a branch. This works well if your documents are clear and your business structure is straightforward. The bank will review everything and contact you if they need clarification.
However, most banks still require at least one in-person visit to verify your identity and sign signature cards—documents that authorize you to sign checks and conduct transactions. A few online-only banks (such as Mercury or Brex, which focus on startups) skip this step, but they have higher fees and stricter requirements about what kind of business you run.
If you choose to go in person from the start, call ahead to confirm the branch has the right forms for your business structure and to schedule an appointment if required. Bringing everything at once is faster than making multiple trips.
Funding your account and getting started
You can fund your account by depositing a check, making a wire transfer, or setting up an ACH transfer from your personal bank account. If you are depositing cash or a check in person, bring it with you when you open the account. If you are transferring money electronically, you can do it the same day or wait until the account is fully activated.
Once the account is open, you can set up payroll, pay vendors, and receive customer payments. If you plan to accept credit card payments, you will need to set up a merchant account separately—the bank can refer you to a processor, but this is a different product from the checking account itself.
Keep your account active by maintaining the minimum balance (if there is one) and using it regularly. Banks close accounts that sit dormant for a year or more, so even if you do not use it every day, make at least one transaction every few months.
Frequently Asked Questions
Do I need an EIN if I am a sole proprietor?
No. Sole proprietors can use their Social Security number instead. However, getting an EIN is free and keeps your personal and business finances more separate, so many sole proprietors get one anyway. The choice is yours.
Can I open a business account if my business is not registered yet?
No. The bank needs proof that your business legally exists. Register your business first—file your LLC, corporation, or DBA—then open the account. This takes a few days to a few weeks depending on your state.
What if I do not have a physical business address?
You can use your home address, a UPS box, or a virtual office address. The bank needs somewhere to send statements and documents. If you use a UPS box, make sure it is registered to your business name, not your personal name.
How long does it take to open an account?
If you go in person with all documents, the account opens the same day. If you apply online, expect three to five business days while the bank verifies your information. Some banks are faster; call ahead to ask.
Can I open a business account if I have bad credit?
Yes. Banks do not check your personal credit score for a business checking account. They check your banking history and whether your business is registered. Bad credit does not disqualify you, but a history of bounced checks or fraud does.