What banks ask for before they open your account

Most banks will ask for five things: proof of your business structure, a federal Employer Identification Number (EIN), a government-issued ID, your Social Security Number, and an initial deposit. The exact documents vary by bank and by what type of business you run, but these five cover the standard path for sole proprietors, partnerships, LLCs, and corporations.

The reason banks ask for so much is that they have to verify you are who you say you are and that your business actually exists. They also need to file a report with the federal government under anti-money-laundering rules. This is not optional—every bank does it, and the process is the same whether you are opening an account at a large national bank or a small credit union.

Some banks will let you start the process online and finish in person. Others require you to come in from the start. A few will do everything by mail or video call, though this is less common. Call ahead or check the bank's website to see which route they offer.

Key Takeaways

  • You will need an EIN from the IRS, a government ID, your Social Security Number, and proof of your business structure before any bank will open an account.
  • The initial deposit required ranges from zero to several thousand dollars depending on the bank and account type—ask before you go in.
  • Sole proprietors can sometimes use their Social Security Number instead of an EIN, but most banks prefer an EIN even when it is not required.
  • The whole process usually takes one to two weeks from the day you walk in or submit your process, though some banks finish in a few days.
  • Banks will pull your credit and check you against federal watch lists, so having a clean record helps but is not always a barrier.

Getting an EIN and what documents to bring

An Employer Identification Number is a nine-digit code the IRS issues to businesses. You can get one free by filling out Form SS-4 on the IRS website, by phone, or by mail. If you explore online, you get the number when ready. By phone (1-800-829-4933), you get it the same day. By mail, it takes about four weeks.

You do not have to have an EIN to open a business checking account if you are a sole proprietor—you can use your Social Security Number instead. But most banks will ask for one anyway, and having it makes the process faster. If you are an LLC, partnership, or corporation, you need an EIN no matter what.

Bring these documents to the bank: your EIN letter from the IRS (or a screenshot if you got it online), your government-issued ID (driver's license, passport, or state ID), proof of your business address (a utility bill, lease, or mortgage statement in your business name works), and your Social Security Number. If your business is registered with your state, bring that registration document too—it is called different things in different states (Articles of Organization for an LLC, Articles of Incorporation for a corporation, and so on).

What the initial deposit needs to be

Banks vary widely on this. Some have no minimum. Others require $100 to $500 to open the account. A few require $1,000 or more, especially if you want a premium business account with extra features. Check the bank's website or call before you go in, because if you show up without enough money, you will have to leave and come back.

The deposit sits in your account as your opening balance. It is your money—you can spend it or move it out whenever you want. It is not a fee. Some banks waive the minimum if you set up direct deposit or if you maintain a certain balance each month, so ask about that too.

How the bank verifies your information

When you hand over your documents, the bank will check your ID against your Social Security Number to make sure they match. They will also run a check against the Office of Foreign Assets Control (OFAC) list, which is a federal watch list of people and businesses the government has flagged. This is automatic and takes a few minutes.

The bank may also pull your personal credit report and your business credit report (if one exists). They are looking for signs of fraud or financial instability, but having bad credit does not automatically disqualify you. Many banks will open accounts for people with poor credit history, though some may require a larger deposit or deny you outright.

If something does not match—your ID is expired, your address does not line up, or your name appears on a watch list—the bank will tell you what the problem is and what you need to fix. This can add a few days to the process, but it is usually fixable.

Timeline from process to first use

If you explore in person with all your documents, most banks will tell you on the spot whether you are approved. You walk out with a temporary debit card or a card number you can use right away. Your physical card arrives in the mail in five to ten business days.

If you explore online, the bank will review your process within one to three business days. If they need more information, they will email or call you. Once approved, you can usually start using the account within 24 hours, though some banks wait until they have mailed you a physical card.

A few banks take longer—up to two weeks—if they want to verify your business in person or if they are running extra checks. This is rare, but it happens. Ask the bank upfront what their timeline is.

Banks that make the process faster or easier

Online banks like Mercury, Brex, and Wise tend to move faster than traditional banks because they do not require you to come in person. You can open an account in 15 minutes on your phone if you have your EIN and ID ready. The trade-off is that some online banks have higher fees or require higher balances.

Credit unions often have simpler requirements than big banks and may waive the EIN requirement if you are a sole proprietor. They also tend to be more flexible if you have credit issues. The downside is that credit unions have fewer branches and ATMs, so access can be limited depending on where you live.

Local and regional banks fall somewhere in the middle. They usually move faster than national banks but slower than online banks. Many will let you start the process online and finish in person, which saves time if you are busy.

What to do if the bank says no

Banks can refuse to open an account if you fail the OFAC check, if your documents do not verify, or if they see signs of fraud. They do not have to tell you why in detail, but they should give you a reason. If they do, ask what you can do to fix it.

If the problem is a name mismatch or an address issue, you can usually fix it by bringing updated documents. If the problem is that you appear on a watch list, that is harder to resolve—you may need a lawyer to help clear your name with the government.

If one bank says no, try another. Different banks have different risk tolerances. A bank that turns you down might be overly cautious, while another bank might be comfortable with your situation. Online banks and credit unions are often more flexible than large national banks.

Frequently Asked Questions

Do I need an EIN if I am a sole proprietor?

No, you can use your Social Security Number instead. But most banks prefer an EIN and will ask for one anyway. Getting an EIN is free and takes five minutes online, so it is worth doing before you go to the bank.

Can I open a business account if I do not have a physical business location yet?

Yes. You can use your home address as your business address. Bring a utility bill or lease in your name as proof. Some banks ask for a commercial address, but most will accept a residential one for a home-based business.

What if I do not have a government ID?

You will need one. A driver's license, passport, or state ID all work. If you do not have any of these, you will have to get one before the bank can open your account. This is a federal requirement, not a bank choice.

How much money do I have to keep in the account to avoid fees?

It depends on the bank and the account type. Some have no minimum balance requirement. Others require $500 to $2,500 to avoid monthly fees. Ask the bank about their specific requirements before you open the account, because fees can add up fast if you fall below the minimum.

Can I open a business account online without going to the bank?

Some banks let you do this, but not all. Online banks like Mercury and Wise can open accounts entirely online. Traditional banks usually require you to come in person or do a video call with an employee. Check with your bank first.