What you need before you walk in
You need two things before any bank will open a business account: proof that your business exists as a legal entity, and proof of who you are. The first document depends on what kind of business you run. If you are a sole proprietor (you own it alone and have not filed paperwork), you need a government-issued ID and proof that you use a business name—which can be as simple as a utility bill or lease in that name, or a DBA (Doing Business As) certificate from your county clerk. If you are an LLC, S-corp, or C-corp, you need your Articles of Incorporation or Articles of Organization from your state's Secretary of State office.
The second piece is personal identification. Bring a driver's license, passport, or state ID. Some banks also ask for a second form of ID, like a Social Security card or tax ID letter. If you have not yet received an Employer Identification Number (EIN) from the IRS, you can apply for one online at irs.gov before you go to the bank—it takes about 15 minutes and you get a number immediately. Many banks will accept an EIN application confirmation in place of the actual number if your account is brand new.
Have your business address ready, even if it is your home. You will also need to decide what type of account you want: a checking account (for day-to-day transactions), a savings account (for holding money), or both. Most small businesses start with a business checking account.
Key Takeaways
- Sole proprietors need a government ID and proof the business name exists; LLCs and corporations need Articles of Organization or Incorporation from their state.
- An Employer Identification Number (EIN) from the IRS is not required to open an account, but having one or an application confirmation speeds up the process.
- Different banks have different minimum balances, monthly fees, and transaction limits—call ahead or check their website to find one that fits your cash flow.
- The entire process usually takes 30 minutes to an hour in person, or one to three business days if you apply online.
- Once your account is open, you will receive a debit card and checks; online banking access is usually available within 24 hours.
Where to open the account: bank, credit union, or online
You have three main routes. A traditional bank (Chase, Bank of America, Wells Fargo, or a local community bank) has physical branches, which means you can deposit cash and checks in person and talk to someone if something goes wrong. A credit union is a member-owned nonprofit that often charges lower fees and offers better rates, but you have to be a member first—membership is usually free and based on where you live or work. An online bank (Chime, Mercury, Brex, or Square) has no physical branches but often has lower or no monthly fees and faster account setup.
The trade-off is convenience versus cost. If you handle a lot of cash or need to deposit checks frequently, a bank or credit union with branches is usually easier. If you rarely touch physical money and want to keep fees low, an online bank works. Some business owners use both—a local bank for deposits and an online bank for savings or a second checking account.
Before you choose, check the bank's website or call and ask about: monthly maintenance fees (many charge $10 to $25 per month, though some waive it if you keep a minimum balance), transaction limits (some online banks cap how many transfers you can make per month), check-writing fees, and whether they offer merchant services (card processing) if you plan to take customer payments. These details matter more than the bank's name.
Documents to bring or upload
If you are opening an account in person, bring originals or certified copies. If you are opening online, you will upload photos or PDFs. Here is what each business structure needs:
| Business Type | Required Documents |
|---|---|
| Sole Proprietor | Government-issued ID; DBA certificate (if you use a business name) or utility bill/lease in the business name |
| LLC | Government-issued ID; Articles of Organization from your state; EIN letter or application confirmation |
| S-Corp or C-Corp | Government-issued ID; Articles of Incorporation from your state; EIN letter or application confirmation |
| Partnership | Government-issued ID for each partner; Partnership Agreement; EIN letter or application confirmation |
If you do not have an EIN yet, you can get one the same day by applying at irs.gov. The IRS gives you a number immediately online; print the confirmation page and bring it with you. Some banks will also let you apply for an EIN through them, though this takes longer.
If your business is very new and you do not have an Articles of Organization or Incorporation yet, ask the bank whether they will hold your account open while you file with the state. Most will, but they may freeze the account until you provide the paperwork—usually within 30 days.
The application process: in person or online
In person, you walk in with your documents, sit with an account representative, and fill out a form. The bank verifies your ID, checks your documents against their records, and usually opens the account on the spot. You leave with a debit card (or a temporary one) and online banking login information. Checks arrive by mail in five to seven business days.
Online, you upload your documents, answer questions about your business and ownership, and wait for approval. This usually takes one to three business days. Some banks call you to verify information before they approve. Once approved, you can start using the account immediately for transfers and bill pay, but you cannot deposit checks or cash until your debit card arrives.
During the application, the bank will ask: your business name and address, what your business does, how much money you expect to move through the account each month, and whether you have any criminal history or prior banking problems. They run a check through ChexSystems (a banking history database) and sometimes pull a business credit report. This does not hurt your personal credit score.
What happens after approval
Once your account is open, you will receive a debit card within five to ten business days. Online banking access is usually live within 24 hours—you can log in, see your balance, set up bill pay, and transfer money. Checks take longer; order them from the bank or a third-party printer like Deluxe or Costco if you need them faster.
Your first deposit might be a transfer from your personal account or a check deposit. If you are depositing a check, use your mobile app (most banks let you photograph checks) or go to a branch. If you are receiving customer payments, ask the bank about merchant services—they can set you up to accept credit cards, either through a card reader or an online payment link.
Keep your account active. Some banks close accounts that sit unused for six months or longer. Make at least one transaction per month—a transfer, a bill payment, or a deposit—to stay in the clear.
Fees and minimums to watch for
Monthly maintenance fees range from $0 to $25 depending on the bank and account type. Some banks waive the fee if you keep a minimum balance (often $500 to $2,500) or set up direct deposit. Others charge it no matter what. Read the fee schedule before you open the account—it is usually on the bank's website under "Business Checking" or "Business Account Pricing."
Other fees to know about: overdraft fees (usually $25 to $35 if you spend more than you have), wire transfer fees (often $15 to $30 per wire), stop-payment fees (around $25 to $35 if you ask the bank to cancel a check), and returned-check fees (charged if a check you deposit bounces). Online banks often have lower or no fees; traditional banks are more likely to charge.
If you plan to deposit checks frequently, ask whether the bank charges per-check fees or has a limit on how many checks you can deposit per month. Some online banks cap deposits at a certain number or amount. If you will be making a lot of transfers, check whether there is a monthly limit—some banks restrict transfers to six per month, though this rule is less common now.
Keeping your account in good standing
Once your account is open, do not let it sit empty. Banks close inactive accounts, and you may lose access to your debit card and checks. Make at least one transaction per month—a transfer out, a bill payment, or a deposit.
Keep your contact information current. If the bank cannot reach you and suspects fraud, they may freeze your account. Update your phone number and email address if you move or change numbers.
Reconcile your account monthly. Compare your bank statement to your own records to catch errors or unauthorized charges. If you spot a problem, contact the bank within 30 days—after that, they are not required to investigate.
If your business structure changes (you convert from a sole proprietor to an LLC, for example), tell the bank. You may need to update your account paperwork or open a new account under the new legal name.
Frequently Asked Questions
Can I open a business account if I do not have an EIN yet?
Yes. You can use your Social Security number instead, especially if you are a sole proprietor. However, getting an EIN takes 15 minutes online at irs.gov, and having one makes the process smoother and keeps your personal and business finances more separate. Most banks recommend it.
How long does it take to open a business account?
In person, 30 minutes to an hour. Online, one to three business days for approval. Once approved, you can use the account for transfers and bill pay immediately, but your debit card and checks arrive by mail.
What if the bank rejects my application?
Banks usually reject applications because of a ChexSystems flag (a history of overdrafts or fraud at another bank), criminal history, or incomplete documents. Ask the bank why you were rejected. If it is a ChexSystems issue, you can dispute it. If it is your documents, gather what is missing and try another bank.
Do I need a separate business account, or can I use my personal account?
You can use your personal account, but it is not recommended. A business account keeps your finances separate, makes taxes easier, and protects you legally if your business is sued. Most banks make business accounts affordable, so the cost is usually worth it.
Can I open a business account online if I am a new LLC?
Yes, but you will need to upload your Articles of Organization from your state. Some online banks process these faster than others. If your state has not issued your Articles yet, call the bank and ask whether they will hold your account open while you wait for the paperwork.