What you need before you walk in
A business bank account requires two things upfront: proof that your business exists as a legal entity, and proof of who you are. The first part depends on what kind of business you have. If you are a sole proprietor operating under your own name, you may need nothing but your Social Security number and a driver's license. If you registered a business name, you will need the registration document — often called a DBA (Doing Business As) certificate, filed with your county or state. If you formed an LLC or corporation, you need the formation documents from your state's Secretary of State office, usually called Articles of Organization or Articles of Incorporation.
The second part is straightforward: bring a government-issued ID, typically a driver's license or passport. Some banks also ask for a second form of ID, like a utility bill or lease showing your address. A few banks request an Employer Identification Number (EIN) from the IRS, which is free to obtain but takes a separate step if you do not have one yet. Call the bank before you go in and ask what documents they want — requirements vary by institution and by the type of business structure you chose.
Key Takeaways
- Sole proprietors can open an account with just a driver's license and Social Security number, but registering a business name first makes the account easier to set up.
- LLCs and corporations must bring formation documents from your state — the bank will not open the account without proof the entity legally exists.
- An EIN is not always required, but some banks ask for one; you can obtain one free from the IRS before you visit the bank.
- The entire process usually takes 15 to 30 minutes in person, or one to three business days if you open the account online.
- Bring original documents or certified copies, not photocopies — banks verify documents directly with state agencies.
The difference between opening in person and online
Opening an account at a physical branch takes one visit and completes the same day. The banker verifies your identity on the spot, reviews your documents, and you leave with a debit card and account number. This route works well if you want to ask questions or if your business structure is unusual — the banker can tell you when ready whether the bank will accept it.
Opening online is faster in calendar time but slower in wall-clock time. You upload photos of your documents, answer questions about your business, and the bank's back office reviews everything — a process that typically takes one to three business days. You do not see a person, so if something is missing or unclear, the bank emails you to ask for more information, which adds another day or two. Online accounts usually come with a temporary debit card number you can use when ready, but the physical card arrives by mail.
Some banks offer both routes. If you have all your documents ready and your business structure is straightforward, either method works. If you are uncertain whether your documents are correct, the in-person route is faster because you get an answer the same day.
What happens after you hand over your documents
The bank verifies three things: that you are who you say you are, that your business legally exists, and that you have the authority to open an account on behalf of the business. For the first check, they scan your ID and may run a background check. For the second, they contact your state's Secretary of State office to confirm your business registration or formation documents are real. For the third, they review your formation documents to see who is authorized to sign on the account.
This verification usually takes minutes in person or a few hours to a day online. The bank then decides whether to open the account. Most applications are approved, but the bank can decline if your background check raises concerns, if your documents do not match what the state has on file, or if the bank has decided not to serve your industry. Banks sometimes decline cannabis businesses, money services businesses, or other high-risk categories, even in states where they are legal.
Once approved, the bank creates the account, assigns an account number, and issues you a debit card. You can begin depositing money and writing checks when ready, though some banks place a hold on the first deposit while they verify the source of funds.
Documents you will need by business type
| Business Type | Documents Required | Additional Notes |
|---|---|---|
| Sole proprietor (no registration) | Driver's license, Social Security number | Some banks require an EIN even for sole proprietors; ask first. |
| Sole proprietor (with DBA) | Driver's license, DBA certificate, Social Security number | The DBA must be current and on file with your county or state. |
| LLC | Driver's license, Articles of Organization, EIN | The Articles must be certified or stamped by your state. Some banks accept a copy; others require the original. |
| Corporation | Driver's license, Articles of Incorporation, EIN, corporate resolution | The corporate resolution authorizes you to open the account. Your state or a lawyer can provide a template. |
| Partnership | Driver's license, partnership agreement, EIN | All partners may need to sign the account process, depending on the bank. |
Getting an EIN if you do not have one
An EIN is a nine-digit number the IRS assigns to your business for tax purposes. You can obtain one free by calling the IRS at 1-800-829-4933 during business hours, or by filling out Form SS-4 on the IRS website and submitting it online or by mail. The phone route is fastest — you answer a few questions about your business, and the IRS gives you the number on the spot. Online submission usually takes 15 minutes and the number arrives by email within a few minutes to a few hours. Mail takes two to four weeks.
You do not technically need an EIN to open a sole proprietor account — you can use your Social Security number instead. But many banks ask for one anyway, so obtaining it before you visit the bank saves a trip back. If you have already formed an LLC or corporation, you must have an EIN before opening a business account.
What to expect for fees and minimum balances
Business accounts cost more than personal accounts. Most banks charge a monthly maintenance fee ranging from $10 to $30, though some waive the fee if you maintain a minimum balance or set up direct deposit. A few banks charge per transaction — for example, $0.25 per check deposited or $1 per wire transfer. Some accounts have no monthly fee but charge when you use certain services.
Minimum balance requirements vary widely. Some banks require $500 to $1,000 to open the account and maintain it. Others have no minimum. A few banks waive the minimum if you set up payroll direct deposit or maintain a linked savings account. Read the fee schedule before you open the account — it is usually available on the bank's website or from the banker in person.
Debit cards, checks, and wire transfers are usually free or low-cost. ACH transfers (moving money between accounts electronically) are often free. International wire transfers cost $15 to $50. Ask about the specific services you plan to use most often, because fees add up if you are moving money frequently.
Common reasons banks decline business accounts
Banks decline business accounts for a few specific reasons. The most common is that your documents do not match what the state has on file — for example, your business name is spelled differently, or the formation date does not match. This is usually fixable: contact your state's Secretary of State office, correct the record, and reapply. Another common reason is a personal background check that raises concerns — unpaid judgments, fraud convictions, or other serious issues. If this happens, you can ask the bank why they declined and whether you can reapply later.
Some banks decline entire industries. Cannabis businesses, money services businesses, and high-risk financial services are common rejections, even in states where they are legal. If your business falls into a category a bank has declined, try a different bank — some specialize in high-risk industries. Credit unions sometimes have different policies than traditional banks, so that is another option to explore.
Frequently Asked Questions
Can I open a business account online if I have an LLC?
Yes, but you will need to upload a photo or scan of your Articles of Organization. The bank's back office verifies it with your state, which takes one to three business days. If the document does not match the state's records exactly, the bank will ask you to resubmit or provide a certified copy.
Do I need an EIN if I am a sole proprietor?
Not always. You can use your Social Security number instead. However, many banks ask for an EIN anyway, so it is worth obtaining one before you visit — it takes 15 minutes by phone with the IRS. An EIN also keeps your personal and business finances more separate for tax purposes.
What if the bank declines my process?
Ask the bank why. If it is a document mismatch, contact your state to correct the record and reapply. If it is a background issue, you can ask whether you can reapply later. If the bank has declined your entire industry, try a different bank or a credit union — policies vary by institution.
How long does it take to receive checks after I open the account?
Most banks can order checks for you on the day you open the account. Delivery takes five to ten business days from the printer. Some banks offer temporary checks you can use when ready while you wait for the printed ones to arrive.
Can I open a business account if my business is not registered yet?
If you are a sole proprietor operating under your own name, yes — you need only a driver's license and Social Security number. If you have registered a DBA, bring the certificate. If you formed an LLC or corporation, you must have the formation documents before the bank will open the account.