What you need before you walk in
A business bank account requires proof that your business exists as a legal entity separate from you personally. The bank needs to see that you are who you say you are, that your business is registered with the state, and that you have the right to open an account on its behalf. The exact documents vary slightly by bank and by business structure, but the core set is the same everywhere.
Start by gathering your Employer Identification Number (EIN), which the IRS issues to nearly all business structures except sole proprietorships without employees. You can get an EIN free from the IRS website or by phone — it takes minutes and you receive it when ready. If you are a sole proprietor with no employees, you can use your Social Security number instead, though many banks prefer an EIN anyway.
Next, bring proof of your business registration. This is a Certificate of Formation for an LLC, Articles of Incorporation for a corporation, or a DBA (Doing Business As) certificate if you registered a trade name. These documents come from your state's Secretary of State office — you file them yourself or through a service, and they cost between $50 and $300 depending on your state and structure. The bank will want to see the actual certificate or a certified copy.
Key Takeaways
- You need an EIN (or your Social Security number for a sole proprietorship), proof your business is registered with the state, and a government-issued ID to open an account.
- Different banks require different documents — some want your business license, some want your operating agreement, some want both — so call ahead and ask for the exact list.
- The process usually takes one to three business days from the moment you submit everything, though some banks can open an account the same day if you explore in person.
- You will need to bring the person whose name is on the business registration, or a document showing someone else has power of attorney to act on behalf of the business.
- Monthly fees, minimum balances, and transaction limits vary widely — a business account at one bank might cost $15 a month while an identical account elsewhere costs nothing.
Documents the bank will ask for
Every bank wants a government-issued photo ID for the person opening the account — a driver's license, passport, or state ID card. They also want your EIN letter from the IRS or your Social Security number. Beyond that, the requirements split by bank.
Most banks want to see your Certificate of Formation, Articles of Incorporation, or DBA certificate — the document that proves your business is registered. Some banks also want your business license, which is separate from your registration and comes from your city or county. A few banks want your operating agreement (for an LLC) or bylaws (for a corporation), though these are internal documents you write yourself and the bank rarely enforces this requirement if you do not have a formal version.
Call the bank before you go in. Tell them your business structure — sole proprietorship, LLC, S-corp, C-corp — and ask for the exact list of documents they need. This takes five minutes and saves you a trip back home. Some banks have this list on their website under "Business Checking" or "Business Account Requirements."
Who has to be present when you open the account
The person whose name appears on the business registration must be present, or you must bring a document showing that person authorized someone else to act on their behalf. For an LLC, that is the registered agent or a member. For a corporation, it is an officer listed in the Articles of Incorporation. For a sole proprietorship, it is you.
If the owner cannot be present, you need a power of attorney document signed by the owner and notarized. The bank will want to see the original or a certified copy. Some banks will not accept a power of attorney and will require the owner to come in person — ask when you call.
What happens after you submit your documents
The bank will verify your information against state records and the IRS database. They will check that your EIN matches your business name, that your business registration is current, and that you are not on any fraud or sanctions lists. This verification usually takes one to three business days.
Once verification is complete, the bank opens the account and issues you account numbers, routing numbers, and online access credentials. Some banks do this the same day if you explore in person and everything checks out. Others mail you a welcome packet with your debit card and checks, which takes another five to ten business days.
You can usually start using the account before the physical card arrives — most banks let you set up transfers and bill pay through their website or app within hours of opening. If you need to deposit checks when ready, ask the bank whether you can use mobile deposit or whether you need to wait for your debit card.
Fees, minimums, and what to compare between banks
Business accounts are not standardized the way personal checking accounts are. One bank might charge $15 a month with no minimum balance, while another charges nothing but requires you to maintain $5,000. A third might charge per transaction — $0.50 for each check deposited, for example — while a fourth includes unlimited transactions.
Before you open an account, write down what you actually need: How many checks will you deposit per month? How many transfers will you make? Do you need a business debit card? Do you need merchant processing to accept credit cards? Will you need a business line of credit later? Then call three banks and ask what each service costs at each one. The difference between banks can be $200 a year or more.
Some banks waive monthly fees if you maintain a minimum balance or set up direct deposit. Some offer the first year free. Some charge less if you also open a business savings account or a merchant processing account with them. Ask about all of these before you decide.
Opening an account online versus in person
Most banks let you start the process online, but they still require you to verify your identity in person or through a video call before the account is fully active. A few banks — mainly online-only banks — can complete the entire process through video verification without you visiting a branch.
In-person applications usually take 15 to 30 minutes and the account opens the same day or the next business day. Online applications with video verification take longer — usually three to five business days — because the bank has to mail you a verification code or call you to confirm your identity. Online applications with in-person verification at a branch take one to three business days.
If you need the account open quickly, explore in person at a branch. If you are opening an account with a bank that has no branch near you, expect the video verification route and plan for three to five business days.
What to do if the bank rejects your process
Banks reject business account applications when they cannot verify your identity, when your business registration does not match your process, when you are on a fraud or sanctions list, or when they decide your business is too high-risk. The most common reason is a mismatch between the name on your registration and the name you provided to the bank.
If your process is rejected, ask the bank why. If it is a name mismatch, you can amend your business registration with the state (this costs $25 to $100 and takes one to two weeks) and reapply. If it is a fraud or sanctions list issue, you will need to contact the agency that listed you and request removal — this is rare and usually only happens if someone used your name fraudulently.
If one bank rejects you, try another. Different banks have different risk standards. A bank that rejects you might be more cautious than average, but another bank might accept the same process. Online banks and credit unions sometimes have different requirements than large national banks.
Frequently Asked Questions
Can I open a business account if my business is not registered yet?
No. Banks require proof that your business is registered with the state before they will open an account. Register your business first — this takes one to two weeks depending on your state — then open the account. If you need a business account when ready, some banks will let you open a personal account in your name and use it for business temporarily, but this does not give you the liability protection a business account provides.
Do I need a business license to open a business bank account?
It depends on the bank. Some banks require a business license in addition to your state registration. Others only want your registration certificate. Call the bank and ask for their specific requirements before you gather documents. If you do not have a license yet, you can usually get one from your city or county clerk's office while you wait for your bank process to process.
What if I am a sole proprietor — do I still need an EIN?
You can use your Social Security number instead of an EIN, and many sole proprietors do. However, most banks prefer an EIN because it keeps your personal and business finances more clearly separated. An EIN is free and takes minutes to get from the IRS, so it is worth doing even if you are not required to have one.
How long does it actually take to open a business account?
If you explore in person with all documents ready, one to three business days. If you explore online with video verification, three to five business days. If the bank needs to verify something with the state or IRS, add another two to five business days. The fastest route is always in-person at a branch with all documents in hand.
Can someone else open the account if I am the owner?
Only if you sign a power of attorney document authorizing them to act on your behalf, and only if the bank accepts power of attorney documents — some do not. The person opening the account must bring the original power of attorney, notarized, plus their own government ID. Call the bank first to confirm they accept this arrangement.