Yes, a partnership can open a bank account, but you need the right paperwork and both partners must be present or authorized

A partnership bank account works like any other business account, except the bank needs proof that the partnership legally exists and documentation showing who can sign checks or move money. Most banks will ask for your partnership agreement, an Employer Identification Number (EIN) from the IRS, and identification from each partner. The account itself belongs to the partnership as a legal entity, not to you individually — which means either partner can typically withdraw funds, unless your partnership agreement says otherwise.

The process differs slightly depending on whether you have a general partnership, limited partnership, or limited liability partnership (LLC taxed as a partnership). Each structure requires different documents, and some banks move faster than others. The whole process usually takes one to three business days once you have your paperwork in order.

Key Takeaways

  • You need an EIN from the IRS before opening a partnership bank account; you can get one free online in minutes.
  • Bring your partnership agreement, EINs, and government-issued ID for each partner to the bank.
  • Both partners do not have to be present at the bank, but the one who is must have written authorization from the other.
  • The account belongs to the partnership, so either partner can typically withdraw money unless your agreement restricts it.
  • Some banks require a minimum deposit or charge monthly fees; ask about these before you open the account.

What documents the bank will ask for

Banks have a standard checklist for partnership accounts. You will need a copy of your partnership agreement — the document that outlines how the partnership is structured, who owns what percentage, and how decisions are made. If you do not have a written agreement yet, some banks will accept a verbal partnership, but they will ask you to sign a document stating the partnership terms right there at the bank. This is riskier because it creates a record that may not match what you and your partner actually agreed to.

You will also need your EIN, which is a nine-digit number the IRS assigns to your partnership for tax purposes. You can get an EIN free by going to the IRS website (irs.gov), calling 1-800-829-4933, or visiting a local IRS office. The online method is fastest — you get your number immediately. Bring the EIN letter the IRS sends you, or write down the number and bring it to the bank.

Each partner must provide a government-issued photo ID — a driver's license, passport, or state ID card. The bank will copy these. If one partner cannot be present, the absent partner can sign a power of attorney form authorizing the other partner to open the account on their behalf. Some banks have their own form; others accept a simple notarized letter.

Whether both partners need to be present

No, both partners do not have to show up together. One partner can open the account alone if they bring written authorization from the other partner. This authorization can be a power of attorney, a notarized letter, or a form the bank provides. The bank will keep this document in the file.

However, some banks require both partners to sign the signature card in person — the card that tells the bank which signatures are authorized to withdraw money or close the account. If that is the bank's policy, one partner will need to come back later to sign, or the second partner will need to come in at the time of opening. Call the bank before you go and ask whether both signatures are required on the signature card.

How signing authority works in a partnership account

By default, most banks assume that any partner can sign checks, withdraw cash, or move money from the partnership account. This is called joint authority. It means either partner can act alone without asking the other. This is convenient for day-to-day operations but risky if you do not fully trust your partner or if you want to prevent one partner from making large withdrawals without approval.

If you want to restrict who can sign, you can ask the bank to set up the account so that both partners must sign every check or withdrawal. This is called dual signature authority or dual control. It slows things down but gives both partners veto power. You can also set a threshold — for example, either partner can sign for amounts under $5,000, but both must sign for anything larger. Ask the bank what options they offer and whether there are extra fees for dual signature accounts.

Your partnership agreement should spell out who has authority to sign and under what conditions. If your agreement says one partner handles all withdrawals but the bank's signature card says both can sign, the bank's version controls what the bank will honor. Make sure the bank's setup matches your partnership agreement.

Different partnership structures and what they need

A general partnership (GP) is the simplest. Both partners are liable for the partnership's debts, and both have equal authority unless the agreement says otherwise. To open an account, you need the partnership agreement and EIN.

A limited partnership (LP) has general partners who run the business and limited partners who invest but do not make decisions. The bank will need to know which partners are general and which are limited, because only general partners can typically sign for the account. Bring your LP agreement and EIN.

A limited liability partnership (LLP) protects each partner from liability for the other's actions. The bank treats it much like a general partnership for account purposes. You will need your LLP agreement and EIN.

An LLC taxed as a partnership is a limited liability company that chose to be taxed like a partnership for federal purposes. The bank will ask for your operating agreement (the LLC's version of a partnership agreement) and your EIN. Some banks may ask whether the LLC is member-managed or manager-managed, because that affects who can sign.

Minimum deposits and fees

Most banks require a minimum opening deposit for a business account, typically between $100 and $500. Some banks waive the minimum if you set up direct deposit or keep a higher balance. Ask about this before you open the account so you know what to bring.

Partnership accounts usually have a monthly maintenance fee, which ranges from $10 to $30 depending on the bank and the type of account. Some banks waive the fee if you maintain a minimum balance or use certain services like payroll processing. Online banks and credit unions often charge less than traditional banks. Compare a few options before you decide.

What happens if one partner wants to close the account

If one partner wants to close the account without the other's consent, the bank will usually refuse unless that partner has sole authority over the account. If both partners have equal authority, the bank typically requires both to sign a closure form. If you and your partner disagree about closing the account, the bank will not move the money until the dispute is resolved — either by a court order or by both partners signing.

If the partnership dissolves, you will need to close the account and distribute the money according to your partnership agreement or state law. Bring a dissolution document or a court order to the bank showing that the partnership has ended. The bank will freeze the account until they see proof of how the money should be divided.

Frequently Asked Questions

Do I need an EIN if I am a sole proprietor doing business with a partner?

If you and your partner have not formally created a partnership and are just working together as individuals, you may not need an EIN — you can use your Social Security number instead. However, most banks will treat you as a partnership and ask for an EIN anyway. It is simpler to get one upfront. If you later want to hire employees or form an LLC, you will need an EIN regardless.

Can I open a partnership account if my partner lives in another state?

Yes. Your partner does not need to be present if they sign a power of attorney or notarized authorization. Some banks will also accept a video call with both partners present. Call the bank and ask what they accept for remote authorization.

What if my partnership agreement says one partner handles all money but the bank lets both partners withdraw?

The bank's signature card controls what the bank will honor. If you want to enforce your agreement, you will need to take legal action against your partner, not against the bank. Before you open the account, make sure the bank's setup matches your agreement — ask for dual signature authority if that is what you want.

Can I use a personal bank account for partnership money?

Legally, no. Mixing personal and partnership money makes it harder to track expenses, complicates taxes, and can put your personal assets at risk if the partnership is sued. Most banks will close a personal account if they discover it is being used for business. Open a partnership account from the start.

How long does it take to open a partnership bank account?

If you have all your documents ready, most banks can open the account the same day or within one business day. If you need to get an EIN first, add a few minutes online or a few days if you call or visit an IRS office. The longest part is usually gathering your partnership agreement and getting both partners' IDs.