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 — the exact list depends on your business structure and the bank you choose, but most banks want the same core items.
If you are a sole proprietor, you will need your Social Security number, a government-issued ID, and proof of your business name (a DBA filing, business license, or tax ID letter from the IRS). If you are an LLC or corporation, you will need your Articles of Organization or Articles of Incorporation, an EIN (Employer Identification Number) from the IRS, and the same personal ID. Partnerships need the partnership agreement and each partner's ID. You will also need to bring a recent utility bill or lease to prove your business address.
Some banks ask for a business plan or proof of income, but most do not require this upfront. Call the bank branch before you go and ask what documents they want — this saves a trip back.
Key Takeaways
- Sole proprietors need a DBA filing or business license, your Social Security number, and a government ID; LLCs and corporations need an EIN and Articles of Organization or Incorporation.
- Bring proof of your business address (utility bill, lease, or mail from a government agency) because banks verify the location.
- Different banks have different requirements — call ahead to confirm what documents your chosen bank wants before you visit.
- You will need to sign signature cards and authorize the bank to pull your credit report, which does not affect your personal credit score.
- The account opens the same day or within one business day; you can deposit money and start using it immediately.
The documents you need for each business structure
A sole proprietorship is the simplest. You and your business are legally the same entity, so the bank treats you as an individual who is doing business under a name. Bring your Social Security number, a government ID (driver's license or passport), and either a DBA (Doing Business As) certificate from your county or a business license. If you have not filed a DBA, some banks will still open an account under your legal name, but you will not be able to deposit checks made out to your business name. A DBA costs between $10 and $100 depending on your county and takes one to two weeks to arrive.
An LLC (Limited Liability Company) is a separate legal entity, so the bank needs proof it exists. Bring your Articles of Organization (the document you filed with your state to create the LLC), your EIN letter from the IRS, and a government ID. If you have not yet received your EIN letter, you can print your EIN confirmation from the IRS website or call the IRS at 1-800-829-4933 to get your number over the phone and bring a written record of it. The bank may ask for a resolution or certificate of good standing from your state, but most do not require this unless you are opening a business credit line.
A corporation follows the same path as an LLC: Articles of Incorporation, EIN letter, and your ID. A partnership needs the partnership agreement (signed by all partners), each partner's ID, and the EIN. If you are a nonprofit, bring your Articles of Incorporation, your 501(c)(3) information letter from the IRS, and the EIN.
How to choose which bank to use
The choice comes down to three things: monthly fees, minimum balance requirements, and whether you need a physical branch or online-only banking.
Most banks charge a monthly maintenance fee for business accounts, ranging from $0 to $25 per month. Some waive the fee if you keep a minimum balance (often $500 to $2,500) or maintain a certain number of monthly transactions. Online-only banks like Mercury, Brex, and Wise typically charge no monthly fee and have no minimum balance, but they do not have physical branches — you deposit checks by phone camera and wire money online. Traditional banks like Chase, Bank of America, and Wells Fargo have branches where you can deposit cash and speak to someone in person, but they charge monthly fees unless you meet their balance or transaction requirements.
If you take cash payments or need to deposit checks frequently, a bank with a physical branch near you is usually worth the monthly fee. If you pay mostly by invoice and transfer money electronically, an online bank saves money. Check the bank's website for the current fee schedule and minimum balance requirements — these change, and what you see online is what applies when you open the account.
What happens when you open the account
The process takes 15 to 30 minutes in person or 10 to 20 minutes online. You will fill out an account application that asks for your business name, address, the type of business, your ownership structure, and your personal information. The bank will ask you to authorize a credit check — this is a soft pull that does not affect your personal credit score. You will sign signature cards (documents that authorize specific people to sign checks and make withdrawals) and choose your account type.
Most banks offer a basic checking account for small businesses, a money market account (which pays interest but limits withdrawals), or a sweep account (which automatically moves money between checking and savings). For most new businesses, a basic checking account is the right choice. You can add a savings account later if you want to set aside money and earn interest.
The account opens immediately or within one business day. The bank will give you a temporary debit card on the spot or mail one within 5 to 7 business days. You can start depositing money and writing checks as soon as the account is open, even if your debit card has not arrived yet.
Setting up online banking and transfers
Before you leave the bank, ask them to set up online banking access for you. They will give you a username and temporary password, and you can log in that day to see your account balance, transfer money between accounts, and set up bill pay. Change your password to something only you know as soon as you log in.
If you plan to receive payments from customers or clients, you will need to set up a way for them to pay you. Most banks offer ACH transfers (direct bank-to-bank transfers) for free, which you can share with customers as your routing number and account number. Some banks also offer payment processing through third-party services like Square or PayPal, which charge a small fee per transaction but are easier for customers who do not have your bank details.
If you have employees, you will need to set up payroll. Many banks offer payroll services directly, or you can use a third-party payroll processor like Gusto or ADP. The bank can walk you through the options when you open the account.
What to do if the bank denies your account
Banks rarely deny a business account outright, but they may ask for additional information or flag your application for review. The most common reasons are a mismatch between your business address and your personal address, a recent bankruptcy or fraud on your personal credit report, or an incomplete application.
If the bank asks for more documents, provide them within the timeframe they give you — usually 5 to 10 business days. If they deny the account, ask them in writing why they denied it. They are required to tell you the specific reason. If the reason is related to your personal credit, you can dispute errors on your credit report with the credit bureau (Equifax, Experian, or TransUnion). If the reason is related to your business structure or documents, fix the issue (file a missing DBA, correct your EIN, etc.) and try a different bank.
If you have been denied by multiple banks, try a community bank or credit union in your area. They often have more flexible requirements than large national banks and may be willing to work with you if you explain your situation.
Keeping your account active and in good standing
Once your account is open, use it regularly. Banks close accounts that show no activity for 12 months or more. Make at least one deposit or withdrawal every few months, even if it is small. If you are not using the account, let the bank know you plan to keep it open so they do not close it automatically.
Keep your contact information up to date. If you move your business address or change your phone number, update it with the bank right away. This prevents the bank from freezing your account if they cannot reach you.
Review your account statements monthly to catch fraud or errors early. If you see a transaction you did not make, report it to the bank within 60 days. Most banks will reverse unauthorized transactions if you report them promptly.
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 keeps your personal and business finances more separate, which is useful for taxes and liability. You can apply for an EIN online at irs.gov in about 15 minutes.
Can I open a business account without a business license?
Yes, if you are a sole proprietor. You can open an account under your legal name without any business filing. However, you will not be able to deposit checks made out to your business name unless you file a DBA. If you are an LLC or corporation, you must have filed your Articles of Organization or Incorporation before the bank will open an account.
How long does it take to get a debit card?
Most banks issue a temporary debit card on the spot when you open the account, or mail a permanent one within 5 to 7 business days. Some online banks mail the card within 1 to 3 business days. You can use your account to transfer money and pay bills online before the card arrives.
What is the difference between a business checking account and a personal account?
A business account is designed to handle multiple users, higher transaction volumes, and business-related activity. Personal accounts are for individual use only and may have lower transaction limits. Using a personal account for business can complicate your taxes and may violate the bank's terms of service.
Can I open a business account online, or do I have to go to a branch?
Most banks let you open an account online, though you may need to verify your identity by uploading photos of your ID and business documents. Some banks require you to visit a branch in person. Check the bank's website to see which option they offer.