What you need before you walk in
A business bank account separates your personal money from your business money. Banks require proof that your business exists and proof of who you are before they will open an account. The exact documents depend on your business structure — sole proprietorship, partnership, LLC, or corporation — and on the bank you choose.
Start by gathering your personal identification. You will need a government-issued ID like a driver's license or passport. If you are opening the account in person, bring the original; if you are opening it online, you will upload a photo or scan. Some banks also ask for a second form of ID, such as a utility bill or lease showing your current address.
Next, gather proof that your business exists. This is where the documents differ by structure. A sole proprietor might bring a business license or a DBA (Doing Business As) certificate from their county clerk. A partnership or LLC needs the formation documents filed with the state — usually called Articles of Organization or Articles of Partnership. A corporation needs Articles of Incorporation. If you have not filed these yet, you cannot open a business account; you will need to file with your state first.
Key Takeaways
- You will need a government-issued ID, proof your business exists (like a business license or state formation documents), and your Social Security number or EIN.
- The documents required depend on whether you are a sole proprietor, partnership, LLC, or corporation — each has different state filings.
- Most banks let you open an account online, by mail, or in person, and the process usually takes one to three business days.
- You will choose between a checking account, savings account, or both, and decide whether you need a merchant account to accept card payments.
- Some banks charge monthly fees for business accounts, while others waive fees if you keep a minimum balance or set up direct deposit.
Sole proprietors, partnerships, and LLCs
If you are a sole proprietor operating under your own name, you may only need your personal ID and Social Security number. If you are operating under a business name (a DBA or "Doing Business As"), you need the DBA certificate from your county clerk's office. This is a one-page document that costs between $10 and $100 depending on your county and takes a few days to a few weeks to receive.
If you are a partnership or LLC, you need the formation documents you filed with your state. These are usually called Articles of Organization (for an LLC) or Articles of Partnership. You filed these when you created the business; if you have not, you cannot open a business account yet. Bring the filed copy — the one stamped by the state — not a draft. If you have lost it, you can request a certified copy from your state's Secretary of State office for a small fee, usually $5 to $15.
Some banks also ask for an Operating Agreement (for an LLC) or Partnership Agreement. This is an internal document that describes how the business is run. You may have created one when you formed the business, or you may have skipped it. If the bank asks and you do not have one, ask whether it is required or optional; many banks will open the account without it.
Corporations and businesses with an EIN
If you are a corporation, bring your Articles of Incorporation — the document you filed with your state when you created the corporation. You will also need an EIN, which is a federal tax ID number issued by the IRS. This is different from your Social Security number and is required for all corporations, most LLCs, and some sole proprietorships.
You can get an EIN for free from the IRS website (irs.gov) or by calling 1-800-829-4933. The online process takes about 15 minutes and you receive your number when ready. If you explore by phone, you get it the same day. If you explore by mail, it takes about four weeks. Most banks will not open an account without an EIN if your business structure requires one, so do this before you go to the bank.
Bring the EIN letter the IRS sends you, or write down your EIN and be ready to provide it when you open the account. Some banks will verify it directly with the IRS, so you do not always need the letter, but having it speeds things up.
Choosing a bank and account type
You can open a business account at most banks that offer personal accounts — national banks like Chase or Bank of America, regional banks, credit unions, and online-only banks. Each charges different fees and offers different features. Some waive monthly fees if you keep a minimum balance (often $500 to $2,500), maintain direct deposit, or process a certain number of transactions per month. Others charge $10 to $30 per month regardless.
Decide whether you need just a checking account or both checking and savings. Most small businesses start with checking only. A checking account lets you write checks, use a debit card, and deposit money. A savings account earns a small amount of interest but is less convenient for daily business use. Some banks bundle them together; others charge separately.
If you plan to accept credit card or debit card payments from customers, ask whether the bank offers a merchant account or can refer you to one. This is a separate service that lets you process card payments. Some banks include it; others charge extra or require you to use a third-party processor like Square or Stripe.
Opening the account online, by mail, or in person
Most banks let you start the process online. You will enter your business information, upload photos of your ID and business documents, and provide your Social Security number or EIN. The bank then reviews your documents, which usually takes one to three business days. Some banks approve you when ready and send you account details the same day; others wait until they have verified everything.
If you prefer to open the account in person, visit a branch with your original documents. Bring your government-issued ID, your business formation documents (Articles of Organization, DBA certificate, or Articles of Incorporation), and your EIN letter if you have one. The banker will review everything, answer questions about fees and features, and open the account on the spot. You will usually receive a debit card and checks within one to two weeks.
Some banks also accept applications by mail. You send copies of your documents and a completed process form. This is slower — usually two to four weeks — and carries a small risk that documents will get lost, so it is less common than online or in-person opening.
What happens after you open the account
Once the account is open, the bank will send you a welcome packet with your account number, routing number, and initial debit card. You can start depositing money when ready. If you ordered checks, they arrive within one to two weeks. If you need to make payments before checks arrive, you can use the debit card, set up online bill pay through the bank's website, or use ACH transfers (electronic transfers directly from your account).
Set up online banking right away so you can monitor your account and catch any errors. Most banks let you do this through their website or mobile app. You will create a username and password, and some banks add extra security like two-factor authentication (a code sent to your phone when you log in).
If you are a sole proprietor or partnership, ask the bank whether they require you to file a separate tax return for the business account or whether you can report it on your personal return. If you are a corporation or multi-member LLC, you will file a separate business tax return. The bank cannot advise you on taxes, but they can tell you what records they keep and what documents you will need at tax time.
Common reasons banks decline to open an account
Banks sometimes decline to open a business account. The most common reason is that your business formation documents are missing or incomplete. If you have not filed Articles of Organization with your state, or if your DBA certificate has expired, the bank will ask you to fix this before opening the account. This is not a rejection; it just means you need to complete the paperwork first.
Another reason is a mismatch between the name on your ID and the name on your business documents. If your ID says "Robert Smith" but your LLC is registered under "Bob Smith," the bank may ask for clarification or a legal name change document. This is usually straightforward to resolve by explaining the situation or providing a document showing both names.
Banks also check your personal banking history. If you have unpaid overdrafts, fraud, or other serious issues with a previous bank, some banks may decline. If this happens, try a credit union or an online bank, which often have less strict policies. You can also ask the bank why they declined and whether you can reapply after addressing the issue.
Frequently Asked Questions
Do I need an EIN if I am a sole proprietor?
Not always. If you operate under your own name and have no employees, you can use your Social Security number instead. If you operate under a business name (DBA), have employees, or plan to hire contractors, you should get an EIN. It is free and takes 15 minutes online.
Can I open a business account if I have not filed my business formation documents yet?
No. You must file your Articles of Organization, DBA certificate, or Articles of Incorporation with your state before opening a business account. The bank will ask to see the filed copy stamped by the state. If you have not filed yet, do that first — it usually takes a few days to a few weeks depending on your state.
What is the difference between a business checking account and a personal account?
A business account is designed for business use and keeps your business money separate from personal money. It may have higher fees, higher balance requirements, and features like merchant services. A personal account is for individual use. Using a personal account for business can create tax and legal problems, so open a business account even if your business is small.
How long does it take to open a business account?
Online applications usually take one to three business days from submission to approval. In-person applications at a branch can be completed the same day. By mail takes two to four weeks. Once approved, you will receive your debit card and account details within one to two weeks.
What if the bank asks for documents I do not have?
Ask the banker which documents are required and which are optional. If a document is required but you do not have it, ask how to get it. For example, if they ask for an Operating Agreement and you do not have one, they may accept a straightforward statement that no agreement exists. If they ask for an EIN letter and you have the number, they may verify it directly with the IRS instead.