You cannot straightforward transfer a business bank account to another person the way you would transfer money. The account itself stays with the bank under its original structure — what changes is who owns and controls it, and that process depends on your business type and the bank's rules.
If you want someone else to take over the account, you have three main paths: add them as a signer with limited authority, change the account ownership through a formal ownership transfer, or close the account and open a new one in the new owner's name. Which one works depends on whether you are stepping back entirely, bringing in a partner, or handing the business to someone else.
The bank does not move the account. Instead, the bank updates who can sign checks, who receives statements, and who the account legally belongs to. This requires paperwork from you, often notarized, and sometimes proof that the business structure itself has changed.
Key Takeaways
- Adding someone as a signer lets them conduct transactions but does not transfer ownership — you remain the account owner and liable for the account.
- Transferring full ownership requires the bank's ownership change form, a notarized signature, and proof of the new owner's identity and tax ID.
- If your business is a sole proprietorship, the account is tied to your personal tax ID, and transferring it means the new owner must open a new account in their name.
- If your business is an LLC or corporation, ownership can transfer within the same account if the bank allows it, but you will need corporate documents showing the ownership change.
- Closing the old account and opening a new one is often simpler than fighting with the bank's transfer process, especially if the new owner is not already connected to the business.
Adding someone as a signer versus transferring ownership
These are two different things, and many people confuse them. When you add someone as a authorized signer, they can write checks, make deposits, and withdraw money — but the account still belongs to you. You are still the owner. You still receive the statements. You are still liable if the account goes negative or if there is fraud. The signer is just someone you have given permission to act on your behalf.
When you transfer ownership, the other person becomes the legal owner of the account. They receive statements. They control who else can sign. They are liable for overdrafts. You step out entirely, or you become a signer on their account instead. This is a bigger change and requires more paperwork.
If you are bringing in a partner or hiring a manager who needs to pay bills, adding them as a signer is usually what you want. If you are retiring and handing the business to someone else, or if you are selling the business, you need an ownership transfer.
How to add an authorized signer
Contact your bank and ask for the form to add an authorized signer. Most banks have this form on their website or can email it to you. You will need the new signer's full legal name, date of birth, Social Security number or tax ID, and address. Some banks also require a government-issued ID photocopy.
You sign the form in front of a bank employee or, sometimes, a notary public. The bank then updates the account. The new signer can usually start using the account within one to three business days. They will receive their own debit card and checks if you request them.
The signer does not need to be present for this process in most cases. You can handle it alone. However, some banks require the signer to visit in person or sign a separate authorization form themselves.
Transferring full ownership when you own a sole proprietorship
If your business is a sole proprietorship — meaning you are the only owner and the business is not registered as an LLC or corporation — the bank account is in your personal name with your Social Security number. You cannot transfer this account to someone else while keeping it open. Instead, the new owner must open a brand new account in their name.
Here is what happens: you close your account (after moving any remaining balance), and the new owner goes to the bank and opens a new business account in their name and their tax ID. The bank will ask for their Social Security number, a government ID, and proof of the business name if they are using one.
Before closing, make sure all automatic payments and deposits are switched to the new account. This usually takes a few days to process. You may want to keep the old account open for a week or two after the new one is set up, just to catch any stragglers.
Transferring ownership when your business is an LLC or corporation
If your business is an LLC or corporation, the account belongs to the business entity, not to you personally. This means ownership can transfer to a new owner while the account stays open — but only if the bank allows it and you have the right paperwork.
You will need to provide the bank with a document showing the ownership change. For an LLC, this might be an amended operating agreement or a certificate of membership showing the new member. For a corporation, it might be a board resolution or stock transfer document. The bank's business services department can tell you exactly what they need.
The new owner will also need to sign an account ownership form and provide their own ID and tax ID. Some banks require a notarized signature. The process usually takes two to four weeks because the bank has to verify the business documents and update their systems.
Not all banks will transfer an account this way. Some require you to close the old account and open a new one even if the business entity stays the same. Call your bank's business services line and ask whether they allow ownership transfers for your business type before you do any paperwork.
What happens to the account number and routing number
If you transfer ownership within the same account (which is possible with LLCs and corporations), the account number and routing number stay the same. This is useful because any automatic deposits or payments tied to that account will keep working without interruption.
If you close the old account and open a new one, you get a new account number and new routing number. You will have to update this information everywhere it is used: payroll systems, vendor payments, customer invoices, loan documents, and any other place that has the old number on file. This is the main reason people find the transfer process annoying — not the paperwork itself, but the downstream work of updating everything else.
Documents you will need
| Situation | Documents the bank will ask for |
|---|---|
| Adding an authorized signer | Signer's full name, date of birth, Social Security number, address, and government ID photocopy. Bank's authorized signer form, signed by you. |
| Sole proprietorship ownership transfer | You cannot transfer the account. The new owner must open a new account with their Social Security number, government ID, and proof of business name if applicable. |
| LLC or corporation ownership transfer | Amended operating agreement, board resolution, or stock transfer document showing the new owner. New owner's government ID, tax ID, and signature on the bank's ownership change form. Often notarized. |
| Closing and opening new account | For closing: usually just your signature. For opening: new owner's government ID, tax ID, Social Security number, address, and proof of business name or registration. |
Timing and what to expect
Adding a signer takes one to three business days. The bank updates the account, issues a card and checks if requested, and the signer can start using it almost when ready.
Transferring ownership of an LLC or corporation account takes two to four weeks. The bank has to verify the business documents, confirm the new owner's identity, and update their systems. During this time, the account usually stays open and functional under the old owner's name.
Closing one account and opening another takes three to five business days for the close, and one to three days for the new account to be fully set up. However, the new account may not be fully integrated into the bank's system for a week or more, which can cause delays with automatic deposits or payments.
Call your bank before you start any process and ask for a timeline specific to your situation. Banks vary, and some are faster than others.
Frequently Asked Questions
Can I transfer a business account if I am selling the business?
If the buyer is taking over the business as a new legal entity (a new LLC or corporation), they must open a new account in their name. If they are buying your existing LLC or corporation and keeping the same business structure, the bank may allow an ownership transfer on the existing account, but you will need to provide corporate documents proving the sale. Ask your bank whether they allow this before you close the deal.
What if the new owner is not a U.S. citizen?
Banks can open business accounts for non-citizens, but they will need an Individual Taxpayer Identification Number (ITIN) instead of a Social Security number, plus a government-issued ID from their home country and a U.S. address. Some banks have additional requirements. Call ahead to confirm what the bank needs.
Do I have to close the old account before the new owner opens theirs?
No. You can keep both accounts open during the transition. In fact, it is often safer to keep the old account open for a week or two after the new one is set up, in case any automatic deposits or payments are still tied to the old account number. Once you are sure everything has switched over, you can close it.
What if the bank refuses to transfer the account?
Some banks have strict policies against transferring accounts, even for LLCs and corporations. If your bank refuses, your only option is to close the old account and open a new one. This is inconvenient because you have to update the account number everywhere, but it is straightforward. The new owner can open the account in their name within a few days.
Can I transfer the account if there is a loan tied to it?
Not without the lender's permission. If you have a business loan and the account is designated as the loan's operating account, the lender has a say in whether the account can be transferred. Contact the lender and ask. They may require the new owner to sign a new loan agreement or may refuse the transfer entirely. Plan for this early if you know a transfer is coming.