What banks will ask for before you open an account
Most banks need three things before they will open a business account: proof of your business identity, proof of your personal identity, and proof of your business address. The exact documents vary by bank and by the structure of your business, but the pattern is the same across all of them.
You will need to show who you are as a person—a driver's license, passport, or state ID card. You will also need to show that your business exists and is registered. For a sole proprietorship, that might be a DBA (Doing Business As) certificate from your county clerk. For an LLC or corporation, it is your Articles of Incorporation or Articles of Organization filed with your state. For a partnership, bring the partnership agreement and each partner's ID.
The third piece is proof that your business operates at a real address. This can be a lease, a utility bill in the business name, a property tax statement, or even a mail forwarding service receipt if you use one. Some banks will accept a home address if you are running the business from home; others will not. Call ahead and ask.
Key Takeaways
- You need a government-issued ID for yourself, a business registration document (DBA, Articles of Organization, or equivalent), and proof of a business address.
- Different business structures require different registration documents—sole proprietorships use a DBA, LLCs and corporations use Articles of Organization or Incorporation, and partnerships need the partnership agreement.
- Some banks accept home addresses for sole proprietorships; others require a separate business location, so confirm this with your bank before you visit.
- Bring originals or certified copies of all documents; banks will not accept photos or uncertified copies for most registration paperwork.
- Opening an account usually takes 15 to 30 minutes in person, though some banks offer online account opening that takes a few days to complete.
How to get your business registration documents if you do not have them yet
If your business is not yet registered, you will need to register it before the bank will open an account. The process and cost depend on your business structure and your state.
For a sole proprietorship operating under your own name, you may not need anything—you can open an account in your name and use it for business. If you want to use a different name (a DBA or "Doing Business As"), you file a form with your county clerk's office, usually for $10 to $50. This takes a few days to a few weeks depending on the county.
For an LLC or corporation, you file Articles of Organization or Articles of Incorporation with your state's Secretary of State office. You can do this online on most state websites. The filing fee ranges from $50 to $300 depending on your state. Processing takes anywhere from same-day to two weeks, depending on whether you pay for expedited processing. Once you receive your approval, you have the document you need for the bank.
For a partnership, you do not have to register with the state in most cases, but you do need a written partnership agreement. If you do not have one, you and your partners should draft one before opening the account. A template from your state bar association or a business formation service can get you started.
Documents to bring in person or upload online
| What the bank needs | What counts | Original, copy, or certified? |
|---|---|---|
| Your personal ID | Driver's license, passport, state ID card | Original (bank will scan it) |
| Business registration | DBA certificate, Articles of Organization, Articles of Incorporation, partnership agreement | Original or certified copy |
| Proof of business address | Lease, utility bill, property tax statement, mail forwarding receipt | Copy is usually fine |
| EIN (Employer Identification Number) | IRS Form SS-4 confirmation or EIN letter from the IRS | Copy is fine; some banks will look it up themselves |
| Ownership information (for LLCs and corporations) | List of all owners and their ownership percentages | You may write this yourself; bank may ask you to sign it |
Whether you need an EIN before opening the account
An EIN is an Employer Identification Number issued by the IRS. Many banks will open an account without one, but some require it. Call your bank and ask before you go in.
If you need an EIN, you can get one free from the IRS. You can explore online at irs.gov/ein, by phone at 1-800-829-4933, or by mail using Form SS-4. Online is fastest—you get your EIN when ready. By phone it takes about 15 minutes. By mail it takes two to four weeks.
If you are a sole proprietor with no employees, you can use your Social Security number instead of an EIN on your business account, though most banks prefer an EIN. If you are an LLC, corporation, or partnership, you will need an EIN regardless of whether you have employees.
What happens during the account opening appointment
If you are opening the account in person, the banker will ask you to sign signature cards and account agreements. Read these before you sign. The signature card tells the bank who is authorized to sign checks and withdraw money. The account agreement spells out the bank's fees, minimum balance requirements, and what happens if you overdraw.
The banker will also ask about the nature of your business, how much money you expect to deposit each month, and whether you will be receiving cash deposits or mostly checks and transfers. Answer honestly. Banks use this information to flag unusual activity later—if you suddenly start depositing $50,000 a month when you said you would deposit $5,000, the bank may freeze the account while they investigate.
Some banks offer online account opening. You upload your documents, answer questions about your business, and the bank reviews everything remotely. This usually takes one to three business days. You will get an email when the account is ready to use.
Fees and minimum balances to ask about before you commit
Business accounts are not free. Banks charge monthly maintenance fees that range from $10 to $30 or more, depending on the bank and account type. Some banks waive the fee if you keep a minimum balance—often $1,000 to $5,000—or if you set up direct deposit.
Ask about fees for checks, wire transfers, ACH transfers, and overdrafts. Some banks charge per transaction; others include a certain number free each month. If you plan to deposit a lot of checks, ask whether the bank charges per check or has a flat monthly fee for check deposits.
Ask whether the account comes with online banking and mobile deposit (the ability to photograph a check and deposit it from your phone). Most do, but confirm it is included and not an add-on fee.
What to do if the bank denies your account
Banks can deny a business account for several reasons: incomplete or fraudulent documentation, a mismatch between what you told them and what they found when they checked, or a history of fraud or financial crime associated with you or your business name.
If your account is denied, ask the bank why. They are required to tell you. If the reason is a documentation problem—missing paperwork, an address that does not match, a name spelled differently—you can fix it and try again at a different bank or the same one after 30 days.
If the reason is a background check issue, you have the right to see what the bank found. The bank usually uses a service called ChexSystems or Early Warning Services to check your banking history. You can request your report free from these services and dispute any errors. If you have a legitimate explanation for past problems—a closed account due to a dispute that was resolved, for example—write a letter explaining it and include it with your next process.
Frequently Asked Questions
Can I open a business account online without going to the bank in person?
Some banks offer fully online account opening, but many still require you to come in person to verify your ID and sign documents. Call your bank and ask whether they offer remote opening. If they do, you will upload documents and answer questions online, and the account usually opens within one to three business days.
Do I need an EIN if I am a sole proprietor with no employees?
No, you can use your Social Security number instead. However, most banks prefer an EIN because it keeps your personal and business finances more separate. Getting an EIN is free and takes minutes online, so it is worth doing even if it is not required.
What if my business address is my home?
Many banks accept a home address for sole proprietorships. Some do not. Call your bank before you explore and ask whether they allow home-based businesses. If they do not, you can use a mail forwarding service address or a coworking space address instead.
How long does it take to open a business account?
In person, 15 to 30 minutes. Online, one to three business days. Some banks offer same-day opening if you come in person with all your documents ready.
What if I do not have a DBA certificate yet?
You can file for a DBA while your account process is being processed. Most banks will hold your process for a few days while you get the certificate. Alternatively, you can open the account in your personal name and transfer it to a business account once you have the DBA, though this is more work.