Start with your business structure and ownership details
Before you walk into a bank or start an online process, you need to know what legal form your business takes. The bank will ask whether you operate as a sole proprietorship, partnership, LLC, S-corporation, or C-corporation — because each one requires different paperwork and proof of who owns it.
If you are the only owner running the business under your own name, you are a sole proprietor. If you have partners, you need a partnership agreement showing how ownership is split. If you formed an LLC or corporation, you need the formation documents that the state issued when you registered. These are not optional — banks cannot open a business account without knowing the legal structure, because they need to understand who has authority to sign checks and make decisions about the account.
Have your Social Security number or Individual Taxpayer Identification Number (ITIN) ready. The bank will use this to run a background check and report account activity to the IRS. If your business has multiple owners, each owner's Social Security number or ITIN will be needed as well.
Key Takeaways
- You must bring proof of your business structure — a sole proprietorship requires only your ID, but an LLC or corporation requires the formation documents the state issued.
- A federal Employer Identification Number (EIN) is required for most business structures except sole proprietorships, which can use a Social Security number instead.
- You will need a government-issued photo ID for each owner or authorized signer, and the bank will verify your identity before opening the account.
- Some banks ask for a business plan or proof of business activity, especially for new businesses, though this is less common than it once was.
- Bring your Social Security number or ITIN, along with the business address and the names of anyone who will have signing authority on the account.
Get an Employer Identification Number if your business structure requires one
An Employer Identification Number (EIN) is a nine-digit identifier the IRS assigns to businesses. If you operate as a sole proprietor and have no employees, you can use your Social Security number instead. But if you have formed an LLC, partnership, S-corporation, or C-corporation, you must have an EIN before opening a business bank account.
You can request an EIN for free from the IRS website (irs.gov) or by phone. The online process takes about 15 minutes and you receive your number when ready. If you explore by phone, you speak to an IRS representative who asks questions about your business and issues the number on the spot. By mail, the process takes about four weeks. Most banks will not open an account without an EIN if your business structure requires one, so do not skip this step.
Write down your EIN and keep it in a safe place — you will use it for tax filings, payroll, and any business loans or credit applications. Bring the confirmation letter or a screenshot of your EIN when you open the account.
Bring government-issued photo identification for every owner
The bank must verify that you are who you say you are. Bring a valid driver's license, passport, or state ID card. If your business has multiple owners, each owner needs to bring their own photo ID. The bank will make a copy and keep it on file.
The ID must not be expired, though some banks will accept an ID that expired within the last year. If you do not have a current photo ID, you can obtain one from your state's Department of Motor Vehicles or explore for a passport through your county clerk's office. This takes time, so plan ahead if your ID is expired.
If you are opening the account in person, bring the original ID. If you are opening it online, you may be asked to upload a photo or video of your ID, or to answer security questions based on information in the ID. Banks vary in their process, so check with your bank about what they need before you explore.
Provide proof of your business address and ownership
The bank needs to know where your business operates. If you work from home, you can use your home address. If you rent an office or storefront, bring a lease or a letter from the landlord confirming you occupy the space. If you own the building, bring a property deed or tax bill showing your name.
For sole proprietorships, the bank may ask you to bring a Doing Business As (DBA) certificate if you operate under a name different from your own. This is a document you file with your county or state showing that you are using a business name. Not all states require a DBA, and not all banks ask for one, but having it removes any question about whether you have the right to use that business name.
If your business is brand new and you have not yet signed a lease or received a property deed, bring whatever documentation shows you have secured a location — an email confirmation from a landlord, a signed letter of intent, or even a utility bill in the business name if you have one. Banks understand that new businesses are still getting established.
Gather information about who will use the account
Decide in advance who will have authority to sign checks, make transfers, and access the account online. This might be just you, or it might include a business partner, manager, or accountant. The bank will ask for the name, Social Security number or ITIN, and photo ID for each person who will be an authorized signer.
You do not need to add signers on day one. You can open the account with just yourself and add authorized users later. But if you know you want someone else to have access, bring their information and ID to the opening appointment. This saves you a trip back to the bank.
Be clear about what level of access each person needs. Some accounts let you set different permissions — one person might be able to view the balance but not transfer money, while another can do everything. Ask the bank what options they offer before you decide.
Bring recent business documents if the bank requests them
Some banks, especially for new businesses, ask to see proof that your business actually exists and is operating. This might be a business license, a recent invoice you sent to a customer, a receipt from a business purchase, or a screenshot of your business website or social media page. These documents help the bank understand what your business does and that it is real.
If your business has been operating for a while, bring a recent business tax return or profit-and-loss statement. This shows the bank that you have income and gives them confidence that you will maintain the account responsibly. You do not need to bring this for a brand-new business, but it does not hurt to have it available.
Not every bank asks for these documents, and policies vary. Call ahead or check the bank's website to see what they require. If you are opening the account online, the bank will tell you in the process what documents to upload.
Understand what the bank will verify on their own
The bank will run a background check using your Social Security number or EIN. They check for unpaid debts, fraud, or other financial red flags. They also verify that your EIN is real and matches your business structure by contacting the IRS. This usually takes a few minutes if you are opening the account in person, or a few hours to a few days if you are opening it online.
The bank may also search public records to confirm that your business formation documents are real — for example, that your LLC was actually registered with the state. This is routine and does not require anything from you beyond what you have already provided.
If the bank finds something that concerns them, they will contact you to ask questions or request additional documents. This is rare, but it can happen if there is a name mismatch, an error on your process, or a flag in the background check. Respond promptly and honestly if the bank reaches out.
Frequently Asked Questions
Can I open a business account if my business is not officially registered yet?
Many banks will open an account for a sole proprietorship without formal registration, since sole proprietorships do not require filing with the state. For LLCs and corporations, you must have filed formation documents with the state before the bank will open an account. If you have not filed yet, do that first — it takes a few days to a few weeks depending on your state.
Do I need a business plan to open a business bank account?
Most banks do not require a formal business plan. They may ask what your business does and how long you have been operating, but a written plan is rarely necessary. If a bank does ask for one, a straightforward one-page description of your business, your products or services, and your expected revenue is usually enough.
What if I do not have a photo ID?
You will need to obtain one before opening the account. explore for a state ID card or driver's license at your Department of Motor Vehicles, or explore for a passport through your county clerk's office. This takes time, so plan ahead. Some banks may accept alternative forms of identification in rare cases — call and ask before you assume you cannot open an account.
Can someone else open the business account on my behalf?
No. The bank must verify your identity in person or through a video call, and you must sign the account agreement yourself. A representative, accountant, or lawyer cannot open the account for you, though they can help you gather documents and answer questions during the process.
How long does it take to open a business account once I have all the documents?
In person, opening takes 20 to 45 minutes. Online, it can take anywhere from a few hours to a few business days, depending on how quickly the bank verifies your information and whether they need to contact you with questions. Some banks offer same-day approval if you open early in the morning.