A minor can open a business bank account, but the bank will require a parent or guardian to co-own it or sign off on it

Most banks will not let anyone under 18 open a business account alone. The account must be held in the minor's name, but a parent or legal guardian has to be the co-owner or authorized signer. Some banks require the adult to be the primary account holder and the minor a secondary one. The exact setup depends on the bank's policy and the type of business structure — a sole proprietorship is simpler than an LLC or corporation.

The bank will ask for proof of the business itself. This might be a business license, a Doing Business As (DBA) certificate filed with your county or state, or tax documents if the business is already running. If the minor is just starting out and has no formal registration yet, some banks will still open the account but may ask for a business plan or a letter explaining the business. Having these documents ready speeds up the process.

Key Takeaways

  • A parent or guardian must co-own the account or sign as an authorized adult, since minors cannot legally bind themselves to a bank contract.
  • The bank will want proof the business exists, such as a business license, DBA filing, or tax documents from a prior year.
  • Different banks have different rules about whether the adult or the minor is listed as the primary account holder.
  • The minor will usually get a debit card and online access, but the parent or guardian can monitor all transactions.

What banks need from you before opening the account

Bring a government-issued ID for both the minor and the parent or guardian. The bank will ask for the minor's Social Security number. You will also need proof of the business — this is the part that trips people up. If the business is registered with the state or county, bring that certificate. If it is a sole proprietorship and the minor is operating under their own name, you may not need formal registration, but the bank might still ask for something that shows the business is real.

Some banks ask for a business tax ID (EIN) from the IRS, but minors can get one if the business is structured as an LLC or corporation. If the business is a sole proprietorship, the minor can use their Social Security number instead. Have the parent or guardian bring a personal ID and proof of address, such as a utility bill or lease. A few banks also ask for a business address, which can be a home address if the business runs from home.

How the account ownership works

The bank will set up the account in one of two ways. In the first, the account is titled in the minor's name with the parent or guardian listed as a co-owner. Both names appear on the account, and both can withdraw money and make decisions about the account. In the second, the parent or guardian is the primary owner and the minor is an authorized user. The minor can use the debit card and see transactions online, but the adult has final control.

Which setup the bank uses depends on its internal rules and sometimes on the state. Ask the bank directly which structure they use before you open the account, because it affects who can close the account later and what happens when the minor turns 18. Some banks automatically convert the account to the minor's sole name at 18; others require the adult to remove themselves. Get this in writing if possible.

Banks that commonly work with minor business accounts

Large national banks like Chase, Bank of America, and Wells Fargo will open business accounts for minors with a parent co-owner, but their policies vary by branch and state. Call ahead to confirm, because some branches turn away minors even if the bank's official policy allows it. Credit unions often have more flexible rules and may be worth checking first, especially if your family already belongs to one.

Online banks like Stripe, Square, or PayPal are designed for business payments but do not offer traditional business checking accounts for minors. However, they can be used alongside a minor's business bank account to receive payments. Some online banks that focus on teen accounts, such as Greenlight or Step, do not offer business accounts at all. Start with a local or regional bank or credit union if you need a full business checking account.

What happens when the minor turns 18

The account does not close automatically. However, the bank may require the parent or guardian to remove themselves from the account, or it may convert to a standard adult business account. Some banks send a notice before the minor's 18th birthday asking what the account holder wants to do. If the adult stays on the account past the minor's 18th birthday, they remain a co-owner unless they formally request removal.

The minor should plan ahead by asking the bank what their specific process is. If the minor wants to keep the account in their name alone after turning 18, they may need to sign new paperwork or visit a branch in person. If the business is structured as an LLC or corporation, the account may need to be updated to reflect the business entity rather than the individual, regardless of age.

Alternatives if a bank turns you down

If local banks say no, try a credit union. Credit unions are member-owned and often have more lenient policies for minors, especially if a parent is already a member. You can search for credit unions in your area at CO-OP or Alliant's branch locator. Some credit unions will open a business account for a minor with a co-owner when banks will not.

Another option is to use a personal checking account in the minor's name (with a parent as co-owner) and keep business money separate through careful record-keeping. This is not ideal for tax purposes and can complicate things if the business grows, but it works as a temporary solution. A business accountant or tax professional can advise whether this approach makes sense for your specific situation.

Frequently Asked Questions

Does the parent have to be the primary account holder?

Not always. Some banks put the minor's name first and the parent as co-owner; others do the reverse. The bank decides based on its policy. Ask before opening the account so you know who has final say over account decisions and closures.

Can a minor get a business credit card for the account?

Most banks will not issue a credit card to a minor, even with a parent co-owner. However, the parent can get a business credit card tied to the account and give the minor a debit card instead. Some banks offer a debit card for the minor right away.

What if the minor's business is just online or on social media?

The bank still needs proof the business exists. A screenshot of an active social media business page, a portfolio website, or a letter from the minor explaining the business may be enough. Call the bank first to ask what counts as proof before you visit.

Can the minor run the account alone once it is open?

The minor can make deposits and withdrawals using the debit card and online banking, but the parent or guardian retains legal control as co-owner. The adult can see all transactions and can freeze or close the account without the minor's permission.

Do I need a business license before opening the account?

It depends on the type of business and your state. Some businesses need a license; others do not. Check your state's Secretary of State website or your city's business licensing office. Even if a license is not required, having a DBA filing or business registration makes opening the account easier.