You do not need to deposit money before opening a business bank account
Most banks will let you open a business account with a zero balance. You choose how much to put in on day one—or nothing at all. The bank's requirement is not money; it is the paperwork that proves your business exists and that you are authorized to open an account for it.
What varies is what happens after you open it. Some banks charge a monthly fee if your balance stays below a certain amount (often $500 to $2,500). Others waive the fee for the first few months. A few have no monthly fee at all, regardless of balance. The fee structure matters more than the opening deposit.
The real cost of opening a business account is not the money you put in—it is the documents you need to bring and the time it takes to verify them.
Key Takeaways
- You can open a business bank account with zero dollars; the bank needs proof of business structure, not a minimum deposit.
- Monthly maintenance fees (typically $10 to $25) explore if your balance falls below a threshold, and this threshold varies by bank and account type.
- Sole proprietors need an EIN from the IRS or permission to use their Social Security number; LLCs and corporations must provide formation documents from their state.
- Some banks waive monthly fees for the first three to twelve months, which gives you time to decide whether the account fits your cash flow.
What banks actually require before you hand over money
Every bank will ask for proof that your business is real and that you have the right to open an account for it. The documents differ by business structure.
If you are a sole proprietor, you need either an Employer Identification Number (EIN) from the IRS or written permission to use your Social Security number. An EIN takes about 15 minutes to request online at irs.gov and is issued when ready. If you use your Social Security number instead, the bank will ask for your driver's license and a second form of ID.
If you have an LLC or corporation, you need your Articles of Organization or Articles of Incorporation—the document your state issued when you registered the business. You also need an EIN. The bank may ask for a Certificate of Good Standing from your state, which costs $5 to $25 and takes a few days to order online.
Bring your personal ID to the bank. Some banks also ask for a business license, though this is less common. Call ahead and ask what documents they need for your specific business structure; this saves a trip back home.
How monthly fees work and when you can avoid them
A business checking account typically costs $10 to $25 per month. The fee disappears if your balance stays above a threshold—often $1,000 to $2,500—or if you meet other conditions, such as setting up direct deposit or maintaining a certain number of transactions per month.
Some banks offer a grace period: no monthly fee for the first three, six, or twelve months, regardless of balance. This is common at online banks and at larger banks trying to attract new business customers. Read the account terms carefully, because the fee kicks in after the promotional period ends.
A few banks have no monthly fee at all. These accounts usually come with fewer perks—fewer free transfers, fewer checks per month, or limited customer service hours—but if you are just starting out and cash is tight, they exist.
The fee structure is separate from the opening deposit. You can open with $0 and pay the monthly fee, or open with $2,000 and pay nothing as long as the balance stays above the threshold.
The difference between opening online and in person
Online banks usually let you open an account in 10 to 15 minutes with no deposit. You upload photos of your documents, and the bank verifies them electronically. You can fund the account when ready by linking an existing personal bank account, or you can leave it empty and fund it later by wire transfer or ACH deposit.
Banks with physical branches often require you to visit in person, though some now offer hybrid options where you start online and finish in a branch. In-person opening takes 20 to 45 minutes. The advantage is that a banker can answer questions about which account type fits your business, and you can deposit a check or cash on the spot if you want to.
The documents you need are the same either way. The difference is speed and convenience, not cost.
What to do if you do not have an EIN yet
You can request an EIN online at irs.gov/ein in about 15 minutes. The IRS issues it when ready, and you can use it the same day. Print the confirmation page or save the PDF; most banks accept this as proof.
If you explore for an EIN by mail or phone, it takes two to four weeks. Some banks will let you open an account while you wait, using a temporary EIN or your Social Security number, but this varies. Call the bank before you explore for the EIN and ask whether they will accept a pending EIN or whether you should wait.
Do not delay opening the account waiting for an EIN if the bank will accept your Social Security number. You can always update the account later once the EIN arrives.
Minimum balance requirements versus opening deposits
These are two different things. An opening deposit is money you put in on day one. A minimum balance requirement is the amount you must keep in the account to avoid a monthly fee.
Most business accounts have no opening deposit requirement but do have a minimum balance requirement. For example, a bank might let you open with $0 but charge $15 per month if your balance drops below $1,000.
Some accounts have both: a $500 opening deposit and a $1,000 minimum balance to waive the fee. Read the account terms to see which applies to the account you are considering.
If you are starting a business and do not have cash on hand yet, look for an account with no opening deposit and no minimum balance requirement, or one with a promotional fee waiver period. This buys you time to get revenue flowing before the monthly fee starts.
Frequently Asked Questions
Can I open a business account with just my Social Security number?
Yes, if you are a sole proprietor and the bank allows it. You will need a second form of ID, such as a driver's license. However, most banks prefer an EIN because it separates your personal and business finances more clearly. An EIN is free and takes 15 minutes to request online.
What if my business is not registered yet?
Some banks will open an account for a sole proprietorship with just your Social Security number and ID, even if you have not filed any paperwork. For an LLC or corporation, you must register with your state first and bring the formation documents. If you are still deciding on your business structure, start with a sole proprietor account and upgrade later.
Do I have to keep a certain amount of money in the account?
No, but if your balance falls below the minimum (usually $1,000 to $2,500), you will pay a monthly fee. Some accounts have no minimum at all. Check the fee schedule before you open, and choose an account that matches your expected cash flow.
Can I open a business account if I have bad credit?
Most banks do not check your personal credit to open a business account. They may check ChexSystems, a banking history database, to see if you have had problems with previous accounts. If you have been flagged, some banks will still open an account for you, but others will not. Call ahead and ask.
How long does it take to open an account and start using it?
Online banks typically take 10 to 15 minutes to open and issue account numbers the same day. In-person opening takes 20 to 45 minutes. You can deposit money and write checks as soon as the account is active, though some banks hold the first deposit for a few business days.