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, and which documents depends on what type of business you have. You cannot open a business account with just your Social Security number and a business idea.
The core documents are: a form of business registration (articles of incorporation, articles of organization, a DBA certificate, or a business license), a federal Employer Identification Number (EIN) from the IRS, and a personal ID. Some banks also ask for a business plan or proof of address for the business location. If you are a sole proprietor operating under your own name, some banks will let you open a business account with just your Social Security number and a business license, but most require an EIN even for sole proprietorships.
Start by getting your EIN if you do not have one. You can apply for free at irs.gov using Form SS-4, either online (instant approval) or by mail (takes about four weeks). If you are a sole proprietor with no employees, you can sometimes use your Social Security number instead, but having an EIN keeps your personal and business finances separate in the IRS system and makes the bank process smoother.
Key Takeaways
- You need proof your business is registered as a legal entity: articles of incorporation, articles of organization, a DBA certificate, or a business license, depending on your business structure.
- Most banks require an Employer Identification Number (EIN) from the IRS, which you can get for free online at irs.gov in minutes.
- Bring your personal ID, your business registration documents, and your EIN to the bank; some banks also ask for proof of your business address.
- Different banks have different minimum balance requirements and fee structures, so compare options before you choose one.
- The whole process usually takes one to two hours in person, or you can start online and finish in the branch.
Gathering your business registration documents
The type of document you need depends on how your business is structured. If you formed a corporation or LLC, you need your articles of incorporation or articles of organization from your state's Secretary of State office. If you are operating as a sole proprietor under a name other than your own, you need a DBA (Doing Business As) certificate from your county or state. If you are a sole proprietor using your own name, a business license from your city or county is usually enough.
You can find these documents online through your state's Secretary of State website or your county clerk's office. If you formed your business recently and have not yet received official paperwork, call the office where you filed and ask if they can issue a certified copy or a letter confirming your registration. Banks will accept a certified copy or a letter on official letterhead; they will not accept a photocopy you made yourself.
If you do not yet have any registration, you will need to register your business before opening the account. This is a separate process from banking and varies by state and business type. Your state's Secretary of State website has instructions for your specific situation.
Getting your Employer Identification Number
An EIN is a nine-digit number the IRS assigns to your business. You need one if your business is a corporation, partnership, or LLC, or if you are a sole proprietor with employees. Many banks also require one even if you are a sole proprietor with no employees, because it separates your business finances from your personal finances in the IRS system.
Apply for an EIN at irs.gov using Form SS-4. If you apply online, you get your EIN immediately and can print it on the spot. If you apply by mail or fax, it takes about four weeks. There is no cost. You do not need a lawyer or a tax professional to apply; you can do it yourself in ten minutes.
When you apply, the IRS will ask for your business name, business address, the type of business structure, and the reason you need an EIN. Have your Social Security number and your business registration documents handy. If you are applying online and your state is on the approved list (most are), you will have your EIN before you leave the IRS website.
Choosing a bank and what to bring
Not all banks offer business accounts, and the ones that do have different requirements and fees. Call ahead or check the bank's website to confirm they offer business accounts and what documents they need. Some banks require a minimum opening deposit (usually $100 to $500), and some charge monthly maintenance fees or per-transaction fees. Compare at least two or three banks before you decide.
When you go to open the account, bring: your personal ID (driver's license or passport), your business registration documents (articles of incorporation, articles of organization, DBA certificate, or business license), your EIN letter from the IRS, and proof of your business address (a lease, utility bill, or mail addressed to the business). Bring originals or certified copies, not photocopies. Some banks also ask for a business plan or recent tax return, but this is less common for new businesses.
If you are opening the account online, you will upload these documents through the bank's website. The bank will review them and contact you if anything is missing. Online accounts usually take one to three business days to open.
What happens after you open the account
Once the account is open, the bank will issue you a debit card, checks, and online banking access. You can start depositing money and paying bills immediately. The bank will send you a tax ID confirmation letter for your records; keep this in case the IRS asks about your account later.
Set up your payroll and tax payments through the bank's bill pay system or through the IRS and your state's tax agency directly. If you have employees, you will need to set up payroll withholding and make deposits on a schedule set by the IRS. If you are a sole proprietor, you will make quarterly estimated tax payments to the IRS and your state.
Keep your business and personal finances completely separate from the start. Deposit all business income into the business account and pay all business expenses from it. This separation protects you legally if your business is sued, and it makes tax time much simpler.
Common reasons banks reject business account applications
Banks may deny a business account if your business registration documents do not match the name on your personal ID, if your EIN does not match your business registration, or if the bank cannot verify your business address. If this happens, ask the bank which document caused the problem and fix it before applying elsewhere.
Banks also check your personal credit and banking history. If you have unpaid debts, a history of overdrafts, or accounts closed due to fraud, some banks will deny you. If you are denied, ask which bank will work with you. Credit unions and community banks are often more flexible than large national banks, especially for new businesses with no banking history yet.
If you cannot open an account at a traditional bank, look into credit unions or online banks. Some online banks have lower minimum balances and fewer fees, though they may not offer checks or in-person services.
Frequently Asked Questions
Can I use my Social Security number instead of an EIN?
If you are a sole proprietor with no employees, some banks will let you use your Social Security number. However, most banks prefer an EIN because it keeps your business finances separate from your personal finances in the IRS system. An EIN is free and takes minutes to get online, so it is worth doing even if the bank does not require it.
How long does it take to open a business account?
In person, the process usually takes one to two hours from start to finish. Online, it takes one to three business days for the bank to review your documents and approve the account. You can start using the account as soon as the bank confirms it is open.
What if my business address is my home?
Most banks accept a home address as your business address. Bring a utility bill or lease in your name as proof. If you use a mailbox service or a virtual office address, bring the agreement from that service showing your business name and the address.
Do I need a business license before I open a bank account?
It depends on your business type and location. Some businesses need a license from the city or county before they can legally operate. Check with your city or county clerk's office to find out what you need. You will need at least one form of business registration (a license, DBA certificate, or articles of incorporation) before any bank will open an account for you.
What if I already have a personal account at the bank?
You can open a business account at the same bank, but it is a separate account with its own number and debit card. The bank will treat it as a new account and ask for the same documents. Having both accounts at the same bank can make it easier to transfer money between them, but you still need to keep them completely separate for tax and legal purposes.