What you need before you walk in
A business bank account requires proof that your business exists as a legal entity separate from you personally. The bank will ask for documents that show this — what you bring depends on what kind of business you are.
If you are a sole proprietor (you own the business by yourself with no formal registration), you will need your Social Security number, a government ID, and proof of your business name. Many banks accept a DBA filing (Doing Business As) from your county, a business license, or even a utility bill in your business name. If you have not registered your business name anywhere yet, some banks will still open an account, but they may require you to register it within 30 days.
If you are an LLC, S-corp, or C-corp, bring your Articles of Organization or Articles of Incorporation — the document you filed with your state when you created the business. You will also need an Employer Identification Number (EIN) from the IRS, which is free and takes about 15 minutes to get online at irs.gov. Bring your personal ID and the Social Security number of the person who will sign documents on behalf of the business (usually the owner or manager).
If you are a partnership, bring the partnership agreement, the EIN, and IDs for each partner who will have signing authority. Some banks require all partners to be present; others do not. Call ahead and ask.
Key Takeaways
- Sole proprietors need a government ID, Social Security number, and proof of business name (DBA, license, or utility bill).
- LLCs and corporations need Articles of Organization or Incorporation, an EIN from the IRS, and the personal ID of the person signing for the business.
- Bring originals or certified copies of formation documents — banks will not accept photos or PDFs of most paperwork.
- Different banks have different minimum balances and monthly fees; call three banks and compare before you go in.
- The account opens the same day in most cases, though it may take one to three business days for the routing and account numbers to be active for transfers.
Which documents to bring and why
Banks verify that you are who you say you are and that your business is real. Bring originals or certified copies of everything — photocopies and photos on your phone will not work for most documents.
For a sole proprietor, a DBA filing is the strongest proof. It is a public record filed with your county clerk or secretary of state, and it shows your business name, your legal name, and the date you started using that name. If you have not filed a DBA, a business license from your city or county works. If you have neither, bring a recent utility bill, lease, or business credit card statement in your business name. Bring your driver's license or passport and your Social Security number.
For an LLC or corporation, bring the Articles of Organization or Incorporation. This is the document you filed with your state to create the business. If you do not have a copy, you can order one from your state's secretary of state office — it usually costs $5 to $25 and arrives in one to two weeks. Bring the EIN letter from the IRS (the letter that came when you applied for your EIN, not just the number written down). Bring the personal ID and Social Security number of the person who will be the authorized signer.
Some banks also ask for a resolution or certificate of good standing. A resolution is a document signed by the owners saying they authorize the business to open a bank account. A certificate of good standing is a letter from your state saying the business is registered and in good standing. Not all banks require these, but if one does, you can get a certificate from your state's secretary of state office in one to three business days.
How to choose a bank and what to compare
Business accounts vary widely in cost and features. Before you open an account, call or visit the websites of at least three banks and compare what they charge.
Ask about the monthly maintenance fee. Some banks charge $0 if you keep a minimum balance (often $500 to $2,500) or if you set up direct deposit. Others charge $10 to $30 per month no matter what. Ask whether the bank charges per check written, per deposit, or per transfer. Some banks charge nothing; others charge $0.25 to $1 per transaction. Ask about overdraft fees — these range from $25 to $35 per overdraft.
Ask whether the bank offers online banking, mobile check deposit, and ACH transfers (the electronic transfers used to pay bills and receive payments). Ask how long it takes to process a check deposit and how long it takes for ACH transfers to clear. Most banks clear deposits in one to two business days and ACH transfers in one to three business days, but some are slower.
Ask whether the bank offers a business credit card or a line of credit. Some banks offer these to new business customers; others require you to have an account for six months or a year first. If you think you will need to borrow money, ask about the process and the rates.
What happens on the day you open the account
Bring all your documents, your personal ID, and your Social Security number. The bank will verify your identity, check that your business documents are real, and ask you to sign signature cards — these are cards that show which people are authorized to sign checks and make decisions for the account.
The bank will ask how you plan to use the account: how many checks you expect to write per month, how many deposits, whether you will receive wire transfers or ACH payments. This helps them set up the right account type and alert you to fees you might incur. They will ask for your business address and phone number.
The bank will give you a temporary debit card on the spot or mail one to you within five to seven business days. Your routing number and account number will be printed on a temporary slip of paper that day. However, it may take one to three business days for the account to be fully active for online transfers and ACH payments. Ask the bank when you can start using the account for bill payments and transfers.
Some banks will also ask whether you want to set up online banking that day. If you do, they will give you a temporary password and walk you through logging in. You can change the password immediately.
What to do if the bank asks for more documents
Some banks ask for additional paperwork, especially if your business is new or if you are opening the account remotely. Common requests include a personal tax return (to verify your income and identity), a business plan or lease (to verify that the business is real and operating), or a personal credit report authorization (so the bank can check your credit).
If the bank asks for a personal tax return, bring your most recent return (usually the one from the previous year). If you are self-employed or own an LLC, bring your Schedule C (the self-employment income section). If the bank asks for a business lease or utility bill, bring the most recent one you have.
If the bank asks you to authorize a credit check, this is normal and does not hurt your credit score. It is a soft inquiry, not a hard inquiry. Sign the authorization and the bank will pull your report.
If the bank asks for documents you do not have, ask whether there is an alternative. For example, if they ask for a business lease and you work from home, ask whether a utility bill or a letter from your landlord will work instead. If they ask for a tax return and you just started the business, ask whether a business license or DBA will work instead. Banks have some flexibility, and it is worth asking.
After the account is open: what to set up next
Once the account is open and active, set up online banking and mobile check deposit if the bank offers them. Online banking lets you see your balance, transfer money, and pay bills without going to the bank. Mobile check deposit lets you photograph a check and deposit it from your phone.
Set up bill pay through the bank's website or app. This lets you pay vendors and contractors electronically instead of writing checks. Most banks offer this for free.
If you will be receiving payments from customers, ask the bank about ACH transfers and wire transfers. ACH transfers are cheaper and slower (one to three business days); wire transfers are faster (same day or next day) but cost $15 to $30 per transfer. Some banks also offer payment processing through services like Square or PayPal, which deposit money into your business account.
If you have employees, ask the bank about payroll services. Some banks offer payroll processing for a flat fee or per-employee fee. Others recommend third-party services like Gusto or ADP. The bank can also set up ACH transfers so you can pay employees electronically.
Common reasons a bank might decline to open an account
Banks use a system called ChexSystems to check whether you have had problems with bank accounts in the past. If you have bounced checks, overdrafted repeatedly, or closed an account with a negative balance, the bank may see this and decline to open an account for you.
Banks also check whether your business name matches your personal identity and whether your documents are real. If your business name does not match your legal name and you do not have a DBA or business license, the bank may ask for more proof.
If your business is in a high-risk industry (like cannabis, gambling, or money services), the bank may decline or ask for additional documentation. These industries face stricter banking rules, and some banks simply do not work with them.
If you have an outstanding fraud claim or a criminal record related to financial crimes, the bank may decline. This is rare, but it happens.
If the bank declines, ask why. If it is because of ChexSystems, you can dispute the information on your report. If it is because of your documents, you can try a different bank — different banks have different standards. Some banks specialize in working with new or high-risk businesses and are more flexible.
Frequently Asked Questions
Do I need an EIN if I am a sole proprietor?
No. As a sole proprietor, you can use your Social Security number instead of an EIN. However, getting an EIN is free and takes 15 minutes online, and some banks prefer it because it keeps your personal and business finances more separate. If you plan to hire employees later, you will need an EIN anyway.
Can I open a business account online without going to the bank?
Some banks offer online account opening for businesses, but most still require you to verify your identity in person or through a video call. Call the bank and ask whether they offer remote opening. If they do, they will walk you through uploading photos of your documents and verifying your identity on a video call.
How long does it take to open a business account?
The account usually opens the same day you visit the bank or complete the online process. However, it may take one to three business days for the routing and account numbers to be fully active for transfers and bill payments. Ask the bank when you can start using the account.
What if I do not have a DBA or business license yet?
You can still open an account as a sole proprietor using your Social Security number and personal ID. However, the account will be in your personal name, not your business name. Once you file a DBA or get a business license, you can contact the bank and ask them to update the account name.
Can I open a business account if my business is brand new?
Yes. Banks do not require you to have been in business for any length of time. However, if your business is very new (less than a few weeks old), the bank may ask for additional documents like a business plan, a lease, or a utility bill to verify that the business is real and operating.