What You Need Before You Walk Into a Bank
You will need an Employer Identification Number (EIN) from the IRS before most Texas banks will open a business account. This is a nine-digit number that works like a Social Security number for your business. You can get one free from the IRS website (irs.gov) in about 15 minutes, and you receive it immediately if you apply online.
Bring your EIN, a government-issued photo ID, and proof of your business address. The address can be your home, a commercial space, or a UPS mailbox — banks accept all three. You will also need to know your business structure: sole proprietorship, partnership, LLC, S-corp, or C-corp. This matters because the bank needs to match your account type to your tax filing structure.
If your business is brand new and you have not yet filed taxes, bring whatever paperwork shows you are in business — a business license from your city or county, a DBA (Doing Business As) certificate if you registered one, or even a contract with your first client. Texas does not require you to register an LLC or corporation before opening an account, but having some proof that the business exists makes the process faster.
Key Takeaways
- You need an EIN from the IRS, which you can obtain free and instantly online at irs.gov.
- Texas banks accept home addresses, commercial spaces, and mailbox addresses as your business location.
- Bring your EIN, photo ID, and proof of business address; the bank will ask what your business structure is.
- Most Texas banks open business checking accounts the same day you visit, though some require a minimum deposit that ranges from $0 to $500.
- Online banks often have lower fees and no minimum deposit but may take 3 to 5 business days to fully activate your account.
Where to Open an Account: In-Person vs. Online
Texas has two main routes: walk into a local or regional bank branch, or open an account entirely online. In-person is faster if you need to deposit cash or checks immediately. Chase, Bank of America, Wells Fargo, and Texas-based banks like Frost Bank and Cullen/Frost all have branches across the state and can open a business account while you wait. You will leave with a debit card and checks within a few days.
Online banks like Mercury, Brex, and Square Cash have no branch locations but often charge lower monthly fees and do not require a minimum deposit. The tradeoff is that you cannot deposit cash at a branch — you deposit checks by photo or through ACH transfers from another account. Account setup takes 3 to 5 business days because the bank verifies your EIN and business information by mail.
If you need to move money fast or handle cash regularly, a local or regional bank is the better choice. If you mostly send invoices and pay bills online, an online bank usually costs less and has fewer restrictions on how you use the account.
The Documents You Will Actually Hand Over
Bring your photo ID and your EIN letter from the IRS. The IRS sends this by mail if you applied by phone or mail, but if you applied online, you can print your confirmation page immediately — most banks accept this as proof. You do not need to wait for the physical letter to arrive.
Bring proof of your business address. A utility bill, lease, or mortgage statement in your business name works. If the address is your home and the bill is in your personal name, bring a piece of mail showing your home address plus a statement saying the business operates from that location — you can write this yourself on a piece of paper and sign it.
If you are opening an LLC or corporation, bring a copy of your formation documents from the Texas Secretary of State. You can download these free from their website (sos.texas.gov) if you have already filed. If you have not filed yet, tell the bank — most will still open the account if you show your EIN and explain that formation paperwork is in progress.
Minimum Deposits and Monthly Fees in Texas
Minimum deposits vary by bank and account type. Many Texas banks have no minimum at all for business checking. Others require $500 to $2,500 to avoid a monthly fee. Chase and Bank of America typically charge $15 to $25 per month if you do not maintain a minimum balance, while smaller regional banks often waive fees if you keep $1,000 or more in the account.
Online banks almost never charge a monthly fee and rarely require a minimum deposit. Mercury, for example, has no monthly fee and no minimum. Brex charges no monthly fee but requires a minimum deposit of $0 — you can open and fund the account with $1. Square Cash also has no monthly fee and no minimum.
Ask the bank directly about their fee structure before you open the account. The difference between a $20-per-month bank and a no-fee online bank adds up to $240 per year, which matters if your business is small or just starting.
How Long the Process Takes
If you walk into a branch with all your documents, you can open an account in 30 to 60 minutes. The bank verifies your EIN by phone or computer while you wait, takes your information, and issues you a temporary debit card on the spot. Checks arrive by mail in 5 to 10 business days, and your account is ready to use immediately.
Online accounts take longer. After you submit your information, the bank mails you a verification letter with a code. You receive this letter in 3 to 7 business days, enter the code on the bank's website, and your account is fully activated. Some online banks skip the mail step and verify you by phone instead, which cuts the timeline to 1 to 2 business days.
If you need checks printed with your business name and address, add another 5 to 10 business days. Most banks include a starter set of checks free, but if you want custom checks with a logo or special design, order them from a third-party printer like Deluxe or Costco, which usually takes 7 to 14 business days.
What Happens After You Open the Account
Your account is active as soon as the bank confirms your information. You can transfer money in and out, set up automatic bill payments, and receive ACH deposits from clients or customers. If you opened in person, you have a debit card and can start using it immediately. If you opened online, the bank will mail you a debit card in 5 to 10 business days.
Set up your business name on the account so that checks and invoices show your business name, not your personal name. Most banks do this automatically when you provide your EIN, but confirm it before you order checks or give your account number to clients.
If you plan to accept credit card payments from customers, ask the bank about merchant services. They can set you up with a card reader or online payment processor, though you may pay a per-transaction fee (usually 2% to 3% of each sale). Some online banks partner with payment processors like Stripe or Square, which may offer lower rates.
Special Situations: Sole Proprietors and Partnerships
If you are a sole proprietor (you own the business by yourself and have not formed an LLC or corporation), you can open a business account using your personal Social Security number instead of an EIN. However, getting an EIN is still worth doing because it keeps your personal and business finances separate for tax purposes. The bank will ask which you prefer to use; choose the EIN if you have one.
If you have a partner, you will both need to be present or provide written authorization for one person to open the account. The bank will ask whether the account requires both signatures to withdraw money or whether one signature is enough. This is a legal question — check your partnership agreement or consult a lawyer before you decide, because changing it later is complicated.
If you are opening an account for an LLC or corporation you have not yet registered with the state, bring your EIN and explain that formation is in progress. Most banks will open the account, but some require you to file your formation documents first. Call ahead to ask — it takes 30 seconds and saves you a wasted trip.
Frequently Asked Questions
Do I need an EIN if I am a sole proprietor?
No, you can use your Social Security number instead. However, getting an EIN is free and takes 15 minutes online. It keeps your personal and business finances separate, which makes taxes simpler and protects your privacy — your Social Security number does not appear on business checks or invoices.
Can I open a business account if my business is not registered yet?
Yes, if you have an EIN. The bank does not require you to have filed formation documents with the state. Bring your EIN, photo ID, and proof of your business address, and most banks will open the account the same day.
What if I do not have a business address yet?
You can use your home address, a UPS mailbox, or a coworking space address. Texas banks accept all three. Bring proof of the address — a utility bill, lease, or mail from the location. If you use a mailbox, bring the mailbox rental agreement.
How much money do I need to deposit to open the account?
It depends on the bank. Many Texas banks have no minimum deposit. Others require $500 to $2,500 to avoid a monthly fee. Online banks almost never require a minimum. Ask the bank before you open the account so you know what to expect.
Can I open a business account online if I live in Texas?
Yes. Online banks like Mercury, Brex, and Square Cash serve Texas and do not require you to visit a branch. The process takes 3 to 5 business days, and you cannot deposit cash, but fees are usually lower than traditional banks.