What you need before you walk into a bank
A business bank account separates your personal money from your business money, which protects both you and makes taxes simpler. To open one, you will need to show the bank that your business exists and that you are authorized to manage its money. The exact documents depend on what kind of business you run — a sole proprietorship needs different paperwork than an LLC or corporation.
Start by gathering your legal business documents. If you registered your business with your state (which you should have done), you have a document that proves it exists. For an LLC or corporation, this is your Articles of Organization or Articles of Incorporation. For a sole proprietorship, you may have a DBA certificate (Doing Business As) if you registered one, though many states do not require it. If you have not registered your business yet, do that before opening the account — banks will not open a business account for an unregistered business.
You will also need a federal Employer Identification Number, or EIN. This is a nine-digit number the IRS assigns to your business. You can get one free from the IRS website (irs.gov) in about ten minutes, and you receive it when ready. Even if you are a sole proprietor with no employees, getting an EIN keeps your personal Social Security number off the account and is worth doing.
Key Takeaways
- You must have registered your business with your state before opening a business bank account — banks will verify this registration.
- An EIN (Employer Identification Number) is free from the IRS and takes ten minutes to obtain online; you get it when ready.
- Bring your business registration documents, EIN, personal ID, and initial deposit to the bank; different account types may require additional paperwork.
- Banks offer different business account types with different fees and features — compare what you actually need rather than choosing the cheapest option.
- Some banks require a minimum opening deposit, which varies by bank and account type; ask before you go in.
Documents to bring to the bank
Bring originals or certified copies of your business registration documents. For an LLC, bring your Articles of Organization. For a corporation, bring your Articles of Incorporation. For a sole proprietorship with a DBA, bring the DBA certificate. The bank will make a copy and return the original to you.
Bring your EIN letter from the IRS. This is the document you receive when you explore for an EIN online — print it or bring it on your phone. Bring a government-issued photo ID (driver's license or passport). Bring your Social Security number or have it memorized. Bring a checkbook or debit card from your personal bank if you have one — the bank may ask to see how you currently handle money, though this is not required.
If you are opening the account as a representative of the business but not the owner (for example, you are a manager opening it on behalf of an LLC owned by someone else), bring a document that proves you have authority to do so. This is usually a resolution from the business owners or a power of attorney. Ask the bank what they need before you go in — different banks have different rules about who can open an account.
Choosing between account types
Most banks offer several business account types, usually tiered by the size of the business or the number of transactions you expect. A basic checking account is usually the cheapest and works for most small businesses. A premium or "business plus" account costs more but includes things like higher transaction limits, free wire transfers, or a dedicated account manager. A money market account pays interest on your balance but usually requires a larger minimum deposit.
Think about what you actually need. If you process fewer than 100 transactions per month and do not need to send wire transfers, a basic account is usually enough. If you regularly move money between accounts or send payments to suppliers, a premium account may save you money in per-transaction fees. Ask the bank for a fee schedule — this is a document that lists every charge, including monthly maintenance fees, per-check fees, overdraft fees, and wire transfer fees.
Compare at least two banks before deciding. Credit unions often have lower fees than large national banks, and some online banks have no monthly fees at all. The cheapest account is not always the best — a bank with poor customer service or inconvenient branch locations may cost you more in time and frustration.
Minimum deposits and opening the account
Many banks require a minimum opening deposit to start a business account. This amount varies widely — some banks require $100, others require $1,000 or more. A few banks have no minimum. Ask the bank what their minimum is before you go in, so you know whether you have enough cash on hand.
The opening deposit becomes part of your account balance. You are not paying a fee; you are putting money into the account you just opened. If the bank requires $500 and you deposit $500, you have $500 in the account and can start using it when ready.
Once you have gathered your documents and know the minimum deposit, call the bank or visit a branch. Many banks let you open an account online, but for a business account, most still require you to come in person or speak to someone by phone. The bank will verify your documents, take your information, process your opening deposit, and give you temporary checks or a debit card. You usually receive permanent checks in the mail within one to two weeks.
What happens after you open the account
The bank will give you online banking access so you can check your balance, transfer money, and set up automatic payments. Write down your account number and routing number — you will need these to set up direct deposit, pay bills, or receive payments from customers. The routing number is specific to the bank branch where you opened the account, so if you have multiple accounts at different branches, each one may have a different routing number.
Set up a system to track your business spending from day one. Keep receipts and separate your business expenses from personal ones. This makes tax time much easier and helps you understand whether your business is actually making money. Many small business owners use accounting software like QuickBooks or Wave (which is free) to track income and expenses automatically.
Review your account statements monthly. Check for unauthorized charges, errors, or fees you did not expect. If you see something wrong, contact the bank when ready — they have time limits for investigating disputes, and the sooner you report a problem, the better.
If you are self-employed or a sole proprietor
If you are a sole proprietor, you can open a business account even without registering your business with the state, though most banks will ask for a DBA certificate or at least proof that you are operating under a business name. Some banks will let you open an account under your personal name with a note that it is for business use, but this defeats the purpose of separating personal and business money.
Getting an EIN is still worth doing even if you have no employees. It keeps your Social Security number off the account and makes it clear to the IRS that you are running a business. When tax time comes, you can report your business income and expenses on Schedule C of your personal tax return.
If you are a freelancer or contractor, a business account is especially useful because it makes it straightforward to show clients that you are a legitimate business. It also makes invoicing and tracking payments much simpler.
Common reasons banks reject applications
Banks may reject a business account process if your business is not registered with the state, if you cannot provide an EIN, or if you have a history of overdrafts or fraud at other banks. Some banks also reject applications from certain industries — cannabis businesses, for example, face restrictions at many banks because of federal law.
If a bank rejects you, ask why. If it is because your business is not registered, register it and try again. If it is because of your personal banking history, try a credit union or a bank that specializes in second-chance banking. If it is because of your industry, you may need to search for a bank that works with businesses like yours — this is common for cannabis retailers, cryptocurrency businesses, and other industries with regulatory uncertainty.
Frequently Asked Questions
Do I need an EIN if I am a sole proprietor with no employees?
No, you can use your Social Security number instead. However, getting an EIN is free and takes ten minutes, and it keeps your personal number off the account. Most accountants recommend it because it makes your business look more established and keeps your personal finances more private.
Can I open a business account online, or do I have to go to a branch?
Some banks let you open a business account entirely online, but most require at least a phone call with a banker or a visit to a branch. Call the bank first to ask what their process is. Online banks often have faster and easier processes than traditional banks.
What if I have not registered my business yet?
Register it with your state first. This usually takes a few days to a few weeks depending on your state. Once you have your registration documents, you can open the bank account. You cannot open a business account for an unregistered business.
How much money do I need to open an account?
It depends on the bank and the account type. Some banks require $100, others require $1,000 or more, and some have no minimum. Call the bank and ask before you go in. The opening deposit becomes your account balance, so it is not a fee.
Can someone else open the account for me?
Only if you give them written authority. If you are the owner, you should open it yourself. If you are a manager or employee opening it on behalf of the owner, bring a document that proves you have authority — usually a resolution from the owners or a power of attorney. Ask the bank what they need.