The main places to open a business bank account
You can open a business bank account at a traditional bank, a credit union, or an online bank. Each type has different requirements, fees, and what they offer. The choice depends on whether you need in-person service, how much you want to pay in monthly fees, and what banking tools matter most to your business.
Traditional banks like Chase, Bank of America, and Wells Fargo have physical branches where you can walk in, speak to someone, and deposit cash. Credit unions are member-owned and often have lower fees, but you must be a member to open an account. Online banks like Novo, Mercury, and Brex have no branches but lower fees and faster account opening, though you cannot deposit cash in person.
The account itself works the same way regardless of where you open it: you get a checking account in your business name, a routing number, an account number, and a debit card. The differences are in cost, speed, and convenience.
Key Takeaways
- Traditional banks offer in-person service and cash deposits but usually charge monthly fees between $10 and $30.
- Credit unions often have lower fees and personalized service if you become a member, though membership requirements vary by location.
- Online banks have the lowest fees or no monthly fees at all, but you cannot deposit cash in person and must use ATMs or mobile deposit.
- You will need your Social Security Number or EIN, a business license or DBA certificate, and a form of ID to open an account anywhere.
- Opening an account takes one day at a branch or 10 to 15 minutes online, depending on the bank and how quickly you provide documents.
Traditional banks and what they cost
A traditional bank is the most familiar option. You go to a branch, meet with an account representative, and they walk you through the process. They can answer questions in real time and help you understand what each feature does. If your business receives cash payments from customers, a traditional bank lets you deposit that cash at the branch without extra steps.
The trade-off is cost. Most traditional banks charge a monthly maintenance fee, usually $10 to $30, though some waive it if you keep a minimum balance (often $500 to $2,500) or set up direct deposit. Some also charge per-check fees, per-transaction fees, or fees to use ATMs outside their network. Over a year, these add up.
The account opening process at a branch typically takes 30 minutes to an hour. You bring your ID, Social Security Number or EIN, and proof of your business structure (a business license, DBA certificate, or articles of incorporation). The bank may also ask for a recent business tax return or a letter from the IRS showing your EIN. Once approved, your account is usually active the same day.
Credit unions as an alternative
A credit union is a bank owned by its members rather than shareholders. Because they are not trying to maximize profit, they often charge lower fees and offer better interest rates. Many credit unions have no monthly maintenance fee for business accounts, or charge only $5 to $10.
The catch is membership. To open an account at a credit union, you must first become a member. Membership requirements vary widely. Some credit unions are open to anyone in a geographic area. Others require you to work for a specific employer, belong to a certain organization, or live in a particular county. A few require a small membership fee, usually $5 to $25, though many waive it.
To find a credit union you can join, use the CO-OP Network search tool on the Credit Union National Association website, or search "credit unions near me" plus your city. Call the credit union and ask if you are may be able to access to join. If you are, ask what documents you need to bring to open a business account. The process is similar to a traditional bank: bring your ID, business documents, and Social Security Number or EIN.
Online banks and lower fees
An online bank exists only on the internet. You open an account on their website, upload photos of your documents, and the account is usually ready within 10 to 15 minutes. There are no branches to visit. Online banks like Novo, Mercury, Brex, and Stripe have become popular with small business owners because they charge no monthly fee and often include features like unlimited transactions and free invoicing tools.
The main limitation is cash deposits. If your business receives cash, you cannot walk into a branch and deposit it. Instead, you deposit checks using your phone camera (mobile deposit), or you use an ATM network to deposit cash. Some online banks partner with ATM networks that let you deposit cash at thousands of locations. Others require you to deposit checks only. Before you choose an online bank, check whether their deposit method works for how your business receives money.
Opening an account online is fast because the bank does not need to verify you in person. You upload a photo of your ID, provide your Social Security Number or EIN, and answer questions about your business. The bank checks your information electronically. Within a few minutes to a few hours, your account is active and you can start using it.
What documents you need to bring or upload
Every bank needs the same basic information, though the format differs. You will need a valid photo ID (driver's license or passport), your Social Security Number or your business's EIN, and proof of your business structure.
Proof of business structure depends on what type of business you have. If you are a sole proprietor, you may need a DBA (Doing Business As) certificate, which you get from your city or county clerk. If you are an LLC, S-corp, or C-corp, you need your articles of incorporation or formation, which you received when you registered the business with your state. If you have not registered your business yet, some banks will still open an account for you as a sole proprietor using just your Social Security Number, though this is less common.
Some banks also ask for a recent business tax return, a business license, or a letter from the IRS confirming your EIN. If you are brand new and have none of these, call the bank or check their website to ask what they will accept instead. Many banks are flexible with new businesses.
How long it takes and what happens next
At a physical branch, opening an account takes 30 minutes to an hour. You meet with an account representative, provide your documents, and they enter your information into their system. If everything checks out, your account is active the same day. You leave with a temporary debit card or a card number you can use when ready, and a permanent card arrives by mail in 5 to 10 business days.
At a credit union, the timeline is similar. You may need to complete a membership process first, which can add a few days if done by mail, though many credit unions now do this online.
At an online bank, the process is fastest. You open the account on your phone or computer, upload photos of your documents, and within 10 to 15 minutes you have an account number and routing number. You can start receiving transfers when ready. A physical debit card arrives by mail in 5 to 10 business days, though many online banks let you use a virtual card number right away.
Once your account is open, you receive a routing number and account number. You use these to set up direct deposit from customers, to pay bills by ACH transfer, and to receive payments from payment processors like PayPal or Square. Keep these numbers safe and do not share them with anyone you do not trust.
Comparing fees and features side by side
| Type of Bank | Monthly Fee | Cash Deposits | Account Opening Time | Best For |
|---|---|---|---|---|
| Traditional Bank | $10–$30 (may waive with minimum balance) | Yes, at branches | 30 minutes to 1 hour | Businesses that handle cash and want in-person support |
| Credit Union | $0–$10 (if you are a member) | Yes, at branches | 1–2 hours (plus membership) | Businesses that may have access to for membership and want lower fees |
| Online Bank | $0 (no monthly fee) | No in-person; ATM or mobile deposit | 10–15 minutes | Businesses that rarely handle cash and want the lowest cost |
Frequently Asked Questions
Can I open a business bank account if I have not registered my business yet?
Some banks will open an account for you as a sole proprietor using just your Social Security Number, even if you have not filed a DBA or formed an LLC. However, most banks prefer to see at least a DBA certificate or business registration. Call the bank you are interested in and ask what they require for a new, unregistered business.
Do I need an EIN or can I use my Social Security Number?
You can use your Social Security Number if you are a sole proprietor with no employees. If you are an LLC, S-corp, or C-corp, or if you have employees, you need an EIN. You can get an EIN for free from the IRS website in about 10 minutes. Many banks will help you get an EIN if you do not have one yet.
What is the difference between a business checking account and a regular checking account?
A business checking account is registered in your business name, not your personal name. This keeps your business money separate from your personal money, which is important for taxes and for protecting your personal assets if something goes wrong with the business. A regular checking account is in your personal name and is not designed for business use.
Can I open a business bank account online if I need to deposit cash?
Most online banks do not let you deposit cash in person, but many partner with ATM networks where you can deposit cash at thousands of locations nationwide. Before you choose an online bank, check their website to see if they support cash deposits through their ATM network or mobile deposit. If your business receives a lot of cash, a traditional bank or credit union may be more convenient.
How much money do I need to open a business bank account?
Most banks do not require a minimum opening deposit. You can open an account with $0 and deposit money later. However, some banks waive their monthly fee only if you keep a minimum balance, usually $500 to $2,500. Check the bank's fee schedule before you open to understand what balance you need to avoid charges.