What you need before you walk in or go online

You will need to bring or have ready: your Employer Identification Number (EIN) or Social Security Number if you are a sole proprietor, proof of your business address, a government-issued ID, and your initial deposit. Some banks also ask for your business license or articles of incorporation, depending on your business structure. Call the bank ahead to confirm what they require — requirements vary by institution and by whether you are a sole proprietor, LLC, partnership, or corporation.

If you do not yet have an EIN, you can get one free from the IRS before opening the account. The process takes about 15 minutes online at irs.gov, or you can apply by phone at 1-800-829-4933. The IRS issues the number immediately when you apply online. You do not need an EIN if you are a sole proprietor using your Social Security Number, but many business owners get one anyway to keep personal and business finances separate.

Your initial deposit amount depends on the bank. Some have no minimum; others require $100 to $500 to open the account. A few banks waive the minimum if you set up direct deposit or maintain a certain balance. Check the bank's website or call their business banking line to learn what they require.

Key Takeaways

  • You will need your EIN or Social Security Number, government ID, proof of business address, and your initial deposit amount before opening an account.
  • The IRS issues an EIN for free in about 15 minutes if you apply online at irs.gov, and you can use it the same day.
  • Different banks have different minimum deposit requirements, so compare what each bank asks for before you choose.
  • The entire process — from gathering documents to having a working account — usually takes one to three business days if you open in person or online.
  • You will need to decide whether to open at a traditional bank, credit union, or online bank, as each has different fees and features.

Choosing between a bank, credit union, or online option

Traditional banks offer in-person service, multiple branch locations, and often a relationship manager for business accounts. They typically charge monthly maintenance fees ranging from $10 to $30, though many waive the fee if you maintain a minimum balance or set up payroll direct deposit. Chase, Bank of America, Wells Fargo, and Citibank all offer business checking accounts, but fees and features vary by location and account type.

Credit unions often charge lower fees — sometimes zero monthly maintenance — and may offer better interest rates on money market accounts. However, credit unions have fewer branches and ATMs than national banks, and you must be a member to open an account. Membership usually requires living or working in a specific area or belonging to a certain profession or organization. If you already belong to a credit union, ask whether they offer business checking.

Online banks like Novo, Mercury, and Brex have no physical branches but offer lower fees (often $0 monthly) and faster account opening. The trade-off is no in-person support and limited check deposit options. Online banks work well if you rarely need to deposit checks or speak to someone in person. Traditional banks and credit unions are better if you deposit checks frequently or want face-to-face service.

Opening the account in person versus online

Opening in person takes about 30 minutes to an hour. You bring your documents and initial deposit to a branch, meet with a business banker, sign paperwork, and walk out with a debit card and temporary checks. Your account is usually active the same day. This route works best if you have questions about account features or want to discuss your business needs with a banker.

Opening online takes 10 to 20 minutes and can be done from anywhere. You upload photos of your ID and business documents, enter your information, and fund the account by linking a personal bank account or using a wire transfer. Most online banks activate your account within one to three business days. You receive a debit card by mail within 5 to 10 business days. Online opening is faster for the initial setup but slower for receiving your physical card.

Some banks offer a hybrid: you start online and finish in person at a branch, or vice versa. Ask whether the bank you choose allows this if you want the speed of online signup with the certainty of in-person verification.

Documents and information the bank will ask for

Have these items ready before you start the process:

  • Your EIN (or Social Security Number if you are a sole proprietor)
  • Government-issued photo ID (driver's license or passport)
  • Proof of business address (utility bill, lease, or business license dated within the last 90 days)
  • Your business structure (sole proprietor, LLC, S-corp, C-corp, partnership)
  • Articles of incorporation or organization (if you have an LLC or corporation)
  • Business license (some banks require this; others do not)
  • Initial deposit amount or linked bank account for funding

If you are opening as an LLC or corporation, the bank may also ask for a certificate of good standing from your state's Secretary of State office. This document proves your business is registered and in good standing. You can order it online from your state's Secretary of State website for $5 to $25, and it arrives by mail or email within a few days.

If someone else will have signing authority on the account (a partner, spouse, or employee), bring their government ID and Social Security Number as well. The bank will run a background check on anyone with signing authority.

What happens after you open the account

Once your account is open, you will receive a debit card, checks, and online banking access. Debit cards usually arrive within 5 to 10 business days if you opened in person; online accounts take slightly longer. Temporary checks are often available immediately or within one business day. Your online banking login is usually active the same day you open the account, so you can start moving money right away.

Set up online bill pay and payroll processing if you have employees. Most banks offer these services free or for a small monthly fee. You can also link your business account to accounting software like QuickBooks or FreshBooks so transactions sync automatically — this saves time at tax time and helps you track spending by category.

Ask the bank about their fraud protection and dispute resolution process. Business accounts have different protections than personal accounts, and it is worth understanding what the bank will do if someone makes an unauthorized transaction or if a check bounces.

Fees to watch for and how to avoid them

Monthly maintenance fees range from $0 to $30 depending on the bank and account type. Many banks waive the fee if you maintain a minimum balance (usually $500 to $2,500), set up direct deposit, or keep a certain number of transactions per month. Ask what triggers the fee and what waives it before you open.

Other common fees include per-check charges ($0.10 to $0.50 per check if you exceed a limit), wire transfer fees ($15 to $30 per wire), ACH transfer fees ($0 to $3), overdraft fees ($25 to $35 per overdraft), and ATM fees ($2 to $3 if you use an out-of-network ATM). Online banks typically charge fewer of these fees than traditional banks.

Compare the total cost across three banks before you decide. A bank with a $20 monthly fee but no per-transaction charges may cost less than a bank with no monthly fee but $1 per check. Use the bank's fee schedule or call their business line to calculate what you will actually pay based on your expected transaction volume.

Frequently Asked Questions

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

Not if you are a sole proprietor — you can use your Social Security Number instead. However, most business owners get an EIN anyway to keep personal and business finances separate and to protect their Social Security Number. The IRS issues an EIN for free in about 15 minutes if you apply online at irs.gov.

Can I open a business account if my business is not registered yet?

Some banks will open an account for a business that is not yet registered, especially if you are a sole proprietor. Others require proof of registration or a business license. Call the bank and ask — if they will not open without registration, you can register your business with your state's Secretary of State office before opening the account, which usually takes one to two weeks.

How long does it take to get checks after I open the account?

Temporary checks are usually available within one business day if you opened in person, or within three to five business days if you opened online. Permanent checks ordered through the bank arrive within 7 to 10 business days. You can also order checks from a third-party printer like Deluxe or Costco, which are often cheaper and arrive faster.

What if I need to add another person to the account later?

Contact the bank and ask to add an authorized user or signer. You will need that person's government ID and Social Security Number, and the bank will run a background check. The process usually takes one to three business days. Some banks charge a small fee to add a signer; others do not.

Can I transfer money from my personal account to my new business account right away?

Yes. Once your business account is open and you have online banking access, you can link your personal account and transfer money using ACH (Automated Clearing House). ACH transfers usually take one to three business days. You can also deposit a check, make a wire transfer, or visit a branch to deposit cash if you need the money faster.