What you need before you walk into the bank
A company bank account requires proof that your business exists as a legal entity separate from you personally. The bank will not open an account for a business name alone — they need documentation showing the business is registered with your state or local government.
The exact documents depend on your business structure. A sole proprietorship needs your Social Security number and a DBA (Doing Business As) certificate if you operate under a name other than your own. An LLC or corporation needs the Articles of Organization or Articles of Incorporation filed with your state, plus an EIN (Employer Identification Number) from the IRS. A partnership needs the partnership agreement and each partner's Social Security number or EIN.
Bring your personal ID — a driver's license or passport — even though the account is for the business. The bank verifies your identity as the person authorized to open and manage the account. You will also need an initial deposit, which varies by bank and account type but typically ranges from $25 to $500.
Key Takeaways
- Your business must be registered with your state before the bank will open an account; a business name alone is not enough.
- Sole proprietorships need a DBA certificate if operating under a name other than your own; LLCs and corporations need their formation documents and an EIN.
- Bring your personal ID, the business registration documents, and an initial deposit when you visit the bank.
- Banks typically require an EIN for any business structure other than a sole proprietorship, which can take two to four weeks to receive from the IRS.
- Some banks offer business accounts online without visiting a branch, though verification may still require a phone call or video meeting.
Getting an EIN if your business structure requires one
An EIN (Employer Identification Number) is a nine-digit number the IRS assigns to businesses. If you operate as an LLC, corporation, partnership, or S-corporation, the bank will ask for it. Sole proprietors do not need one unless they have employees or operate as an S-corp.
You can request an EIN online at irs.gov using Form SS-4. The online application takes about 15 minutes and you receive your EIN immediately upon completion — you can print it or write it down on the spot. If you apply by mail or fax, the IRS typically issues the number within two to four weeks.
Do not wait for the EIN to arrive in the mail before opening your bank account. The IRS does not mail EINs anymore; the number is yours the moment you receive it online or by phone. If you applied by mail and need the number before it arrives, call the IRS at 1-800-829-4933 and they will provide it over the phone.
Choosing between in-person and online account opening
Most banks let you start a business account online, but the process still requires verification. You upload photos of your business documents and personal ID, then the bank either approves automatically or schedules a brief phone or video call to confirm your identity and the business details.
Opening in person at a branch takes one visit and typically takes 30 to 60 minutes. The banker reviews your documents on the spot, answers questions about account features, and can discuss payment processing, credit lines, or other services you might need. This route works well if you want to ask about specific features or if your business structure is unusual.
Online opening is faster if the bank's system approves you automatically — you can have an account number within hours. However, if the bank flags your application for manual review, the process can take several business days. Check the bank's website to see whether they offer online business account opening and what documents they accept digitally.
What happens after you open the account
The bank provides you with an account number, routing number, and access to online banking. You can set up direct deposit for payroll, arrange automatic bill payments, and download statements. Some banks mail a debit card and checks; others require you to order them separately.
If you plan to accept credit or debit card payments from customers, you will need to set up merchant services separately — this is not automatic when you open the account. The bank may offer this service, or you may use a third-party processor like Square, Stripe, or PayPal. Merchant services involve a separate application and typically take three to five business days to activate.
For ACH transfers (moving money to and from other bank accounts), wire transfers, or payroll processing, inform the bank of your needs when you open the account or shortly after. Some features require additional setup or verification, and the bank may ask for more information about your business operations or expected transaction volume.
Documents checklist by business structure
| Business Structure | Documents Needed | Additional Requirements |
|---|---|---|
| Sole Proprietorship | Personal ID, DBA certificate (if using a business name) | Social Security number; EIN only if you have employees |
| LLC | Personal ID, Articles of Organization, EIN | EIN from IRS; operating agreement helpful but not always required |
| Corporation (C or S) | Personal ID, Articles of Incorporation, EIN, corporate resolution | EIN from IRS; some banks ask for a corporate resolution authorizing the account |
| Partnership | Personal ID, partnership agreement, EIN, each partner's ID | EIN from IRS; all partners may need to sign authorization or be present |
| Nonprofit | Personal ID, Articles of Incorporation, EIN, 501(c)(3) information letter | EIN from IRS; IRS information letter showing tax-exempt status |
Common reasons banks deny or delay business accounts
Banks may ask for more information or deny a business account if the documents do not match, if your personal credit history raises concerns, or if the business type triggers additional regulatory scrutiny. Money laundering and fraud prevention rules require banks to verify that the person opening the account is who they claim to be and that the business is legitimate.
If the bank denies your application, ask why. Common fixable issues include a mismatch between the name on your ID and the business registration, a missing EIN, or an incomplete application. If you have a poor personal credit history or prior banking problems, some banks may decline; others specialize in second-chance business accounts and may approve you.
If you are opening an account for a business in a high-risk industry — such as cannabis, money transmission, or certain financial services — expect additional documentation requests and longer review times. These industries face stricter regulatory oversight, and banks must file reports on certain transactions.
Setting up payment processing and transfers
Once your account is open, you can receive payments via ACH (Automated Clearing House), wire transfer, or check. ACH transfers typically take one to two business days; wire transfers settle the same day but cost $15 to $50. Checks clear within three to five business days depending on the bank.
To receive ACH payments, you provide your account number and routing number to the payer. To send ACH payments to vendors or employees, you enter their account and routing information into your bank's online system. The bank processes the transfer on the date you specify, and the funds arrive at the recipient's bank within one to two business days.
For credit card and debit card payments from customers, you need merchant services. The bank can refer you to a processor, or you can use an independent one. Processing typically costs 2 to 3 percent of each transaction plus a monthly fee, and funds deposit into your business account within one to two business days.
Frequently Asked Questions
Can I open a business account without an EIN if I have an LLC?
Most banks require an EIN for LLCs, but some allow you to use your Social Security number temporarily while you wait for the EIN to arrive. Call the bank before you visit to ask whether this is an option. If you apply for the EIN online, you receive it immediately and do not have to wait.
What if I do not have a DBA certificate yet?
If you operate as a sole proprietor under your own name, you do not need a DBA. If you use a business name, you must register it with your county or state before opening the account. The registration process typically takes one to two weeks and costs $10 to $100 depending on your location.
Do I need a business license to open a bank account?
A business license is not always required to open a bank account, but your business registration (DBA, Articles of Organization, or Articles of Incorporation) is. Some industries do require a license, and the bank may ask for it. Check your local requirements before you apply.
How long does it take to open a business account?
Online applications can be approved within hours if the bank's system verifies your documents automatically. In-person applications typically take 30 to 60 minutes. If the bank needs to review your application manually or requests additional documents, the process can take several business days.
Can someone else open the account on behalf of my business?
The person opening the account must be authorized to do so — typically an owner, officer, or manager. The bank will ask for proof of authorization, such as a corporate resolution or power of attorney. Bring the authorizing document and the authorized person's ID when you visit.