Yes, but the account type depends on your business structure
You can open a bank account under your business name in most cases, but the bank will ask what legal structure your business has — sole proprietorship, partnership, LLC, corporation, or something else. That structure determines what paperwork the bank needs and whether the account is truly separate from your personal finances.
If you are a sole proprietor operating under your own name, many banks will let you open a business account with just your Social Security number and a business license or DBA (doing business as) certificate. If your business is an LLC or corporation, the bank will require an Employer Identification Number (EIN) from the IRS, articles of incorporation or formation, and often a resolution authorizing the account. The bank uses these documents to confirm that your business is a real legal entity, not just a personal account with a business label.
The distinction matters because a true business account — one opened under an LLC or corporation — creates a legal separation between your personal and business money. A sole proprietor account opened under a DBA does not. Both can be called "business accounts," but they work differently for taxes, liability, and if you ever face a lawsuit or audit.
Key Takeaways
- Sole proprietors can open a business account with a DBA certificate and Social Security number, but the account remains personally liable.
- LLCs and corporations must provide an EIN, articles of formation, and often a board resolution before the bank will open an account.
- The bank will ask for your business structure upfront; lying about it or opening a personal account for business use can trigger fraud flags and account closure.
- A business account opened under an LLC or corporation creates legal separation between your personal and business finances, which protects you in lawsuits and simplifies taxes.
- Some banks charge monthly fees for business accounts, while others waive them if you maintain a minimum balance or set up direct deposit.
What paperwork you need based on your business structure
The documents required depend on how your business is legally organized. A sole proprietor needs the least: a government-issued ID, your Social Security number, and either a DBA certificate (filed with your county or state) or proof that you are operating under your legal name. Some banks will open the account with just the ID and Social Security number if you tell them your business name.
An LLC or S-corporation needs more. Bring your articles of organization or incorporation (the document filed with your state when you created the business), your EIN letter from the IRS, and a government-issued ID. Many banks also ask for a corporate resolution — a one-page document signed by an owner or manager stating that the business authorizes this person to open and manage the account. You can write this yourself; it does not need a lawyer. Some banks provide a template.
A partnership needs the partnership agreement, an EIN letter, and IDs for the partners who will sign checks or access the account. A nonprofit needs its articles of incorporation, IRS information letter (proof of 501(c)(3) status), and often bylaws or a board resolution.
Bring originals or certified copies if possible. Banks sometimes accept photocopies, but certified copies (stamped by the government office that issued them) carry more weight and reduce the chance of the bank asking for more documentation later.
Why the bank asks for your business structure
Banks are required by federal law to verify the identity of anyone opening an account and to confirm that the account holder is who they claim to be. When you say the account is for a business, the bank needs to know whether that business is a real legal entity or just a personal account with a business name.
If you are a sole proprietor, the bank knows the account is ultimately your personal responsibility — your Social Security number is the account's tax ID, and you are personally liable for any overdrafts or fraud. If you are an LLC, the bank knows the business is a separate legal entity with its own tax ID (the EIN), and the liability stops at the business, not at you personally.
The bank also uses this information to file reports with the IRS and the Financial Crimes Enforcement Network (FinCEN). These reports help the government track money laundering and tax evasion. Lying about your business structure or opening a personal account for business use can trigger these reports and lead to account closure or investigation.
The difference between a sole proprietor account and an LLC account
A sole proprietor business account opened under a DBA is simpler to set up but offers no legal protection. The money in the account is legally yours, not the business's. If someone sues your business, they can go after the account. If you owe taxes, the IRS can seize it. If you default on a business loan, your personal credit is damaged.
An LLC or corporation account is legally separate from your personal finances. Money in the account belongs to the business, not to you. If the business is sued, the account is protected (in most cases — there are exceptions). If you owe personal taxes, the IRS cannot touch the business account without a judgment against the business itself. This separation is one of the main reasons people form an LLC or corporation in the first place.
The trade-off is complexity and cost. An LLC or corporation account usually costs more per month ($10 to $30, depending on the bank), requires more paperwork to open, and means you have to keep business and personal money separate — which is actually a legal requirement, not just good practice. If you mix them, you risk losing the liability protection.
How to open the account: the step-by-step process
Start by gathering your documents. If you are a sole proprietor, get your DBA certificate (or confirm you are operating under your legal name), your Social Security number, and a government-issued ID. If you are an LLC or corporation, collect your articles of formation, EIN letter, and ID.
Call or visit the bank and tell them you want to open a business account. Many banks let you start the process online, but you will likely need to visit in person or send documents by mail to complete it. The bank will ask questions about your business: what you do, how much money you expect to move through the account each month, and whether you have any other accounts at the bank.
Provide the documents the bank requests. Do not guess or leave fields blank — incomplete applications slow things down. If the bank asks for a corporate resolution and you do not have one, ask if they provide a template or if you can write one yourself.
Once the bank approves the account, you will receive a confirmation, account number, and routing number. Some banks issue a debit card and checks immediately; others mail them. Ask how long it takes and whether you can access the account online before the physical cards arrive.
Fees and minimums to watch for
Business accounts often cost more than personal accounts. Monthly maintenance fees range from $0 to $30 depending on the bank and account type. Some banks waive the fee if you maintain a minimum balance (often $500 to $2,500), set up direct deposit, or keep a certain number of transactions per month.
Check the bank's fee schedule before you open the account. Ask specifically about overdraft fees (usually $25 to $35 per overdraft), wire transfer fees (often $15 to $25), and fees for excess transactions if you plan to move money frequently. Some banks charge per check if you order checks from them; others let you order from a third party for less.
Online banks and credit unions often have lower fees than traditional banks, but they may not offer all the services you need — some do not issue checks, for example, or do not accept cash deposits. If you need to deposit cash regularly, a bank with physical branches is usually worth the extra cost.
What happens if you open a personal account for business use
Some people try to save money by opening a personal account and using it for business. Banks can close the account if they discover this, especially if large sums are moving through it or if the activity looks unusual for a personal account. The bank is not required to give you much notice.
More importantly, using a personal account for business blurs the line between your personal and business finances. If you are ever audited, the IRS will scrutinize the account more closely because the mixing of funds makes it harder to prove which expenses were business and which were personal. If your business is sued, a lawyer can argue that you did not maintain a true separation between personal and business money, which can strip away your liability protection — a process called "piercing the corporate veil."
It is worth the extra $10 or $20 per month to open a real business account. The protection and clarity are worth more than the fee.
Frequently Asked Questions
Can I open a business account if I have not formed an LLC yet?
Yes, if you are operating as a sole proprietor. You can open an account under a DBA with just a DBA certificate and your Social Security number. If you want to open an LLC account, you need to file your articles of organization with your state first and get your EIN from the IRS before the bank will open the account.
Do I need an EIN if I am a sole proprietor?
No. A sole proprietor can use their Social Security number as the tax ID for the business. You only need an EIN if you have employees, operate as an LLC or corporation, or file certain types of tax returns. Many sole proprietors get an EIN anyway for privacy reasons — it keeps your Social Security number off business documents.
How long does it take to open a business account?
If you have all your documents ready and apply in person, the bank can often open the account the same day or within a few business days. If you apply online or by mail, it usually takes one to two weeks. If the bank needs to verify your documents or has questions about your business, it can take longer.
Can I add other people to the account?
Yes. You can add co-owners, employees, or authorized signers. The bank will ask for their IDs and may require them to sign paperwork. Authorized signers can make transactions but do not own the account; co-owners have equal rights to the money and can close the account without your permission.
What if the bank rejects my application?
Banks can reject applications for several reasons: incomplete documents, a history of fraud or unpaid debts, or suspicious activity patterns. Ask the bank why they rejected you. If it is a documentation issue, fix it and try again. If it is a credit or fraud issue, you may need to try a different bank or work with a credit union, which sometimes has more flexible standards.