Most banks charge nothing to open a business checking account, but you will pay monthly fees unless you meet their requirements

Opening a business checking account itself is free at nearly every bank. The cost comes later, in monthly maintenance fees that range from $0 to $25 or more, depending on the bank and what you keep in the account. Some banks waive the monthly fee if you maintain a minimum balance, set up direct deposit, or keep a certain number of transactions per month. Others charge the fee no matter what.

The real question is not the opening cost but the ongoing cost — and whether you can avoid it. A bank that charges $15 a month costs you $180 a year, which adds up fast for a new business. Knowing what triggers fees and what waives them before you open the account saves you money from month one.

Key Takeaways

  • Opening a business checking account is free, but monthly maintenance fees typically range from $0 to $25 depending on the bank and account type.
  • Most banks waive monthly fees if you maintain a minimum balance, usually between $500 and $2,500, though some require higher amounts.
  • Online banks and credit unions often charge lower or no monthly fees than traditional brick-and-mortar banks.
  • You will need an Employer Identification Number (EIN) or Social Security Number, business license, and initial deposit to open the account, but these documents themselves cost nothing to provide.
  • Comparing fee structures across banks before opening saves you hundreds of dollars annually in maintenance charges.

What banks charge to open the account versus what they charge to keep it

The opening itself costs nothing. You walk in (or go online), provide your business information and initial deposit, and the account is active. No process fee, no setup fee, no processing charge — this is standard across banks.

The monthly maintenance fee is what you need to watch. A typical large bank charges $12 to $20 per month just to hold the account open. Some banks charge less — $5 to $10 — and some charge nothing at all. Credit unions and online banks tend to have lower fees or no monthly charge. The fee appears on your statement every month unless you meet a waiver condition.

A few banks also charge per-transaction fees on top of the monthly fee: $0.25 to $1 per check deposited, per wire transfer, or per ACH payment. These add up quickly if you process many transactions. Most business accounts include a set number of free transactions (often 50 to 100 per month) before per-transaction fees kick in.

Minimum balance requirements that waive the monthly fee

The most common way to avoid the monthly fee is to keep a minimum balance in the account. This balance varies widely by bank and account type. A small community bank might waive fees for a $500 balance, while a large national bank might require $2,500 or $5,000. Some banks have no minimum at all.

The balance is usually calculated as a daily balance or an average balance over the month. If you dip below the minimum on even one day, you may be charged the fee for that month. Some banks are stricter than others — read the fee schedule carefully to understand how they measure the balance.

For a new business with limited cash flow, a high minimum balance requirement can be a real problem. You may be better off choosing a bank with a lower minimum or no minimum, even if the monthly fee is slightly higher, because you will actually be able to meet the condition.

Other ways banks waive or reduce monthly fees

Beyond minimum balance, banks offer other paths to waive the fee. Direct deposit is common — if you set up payroll direct deposit or regular deposits from customers, the bank may waive the monthly charge. Some banks require just one direct deposit per month; others require a certain dollar amount.

Transaction volume can also trigger a waiver. A bank might say: "No monthly fee if you process 20 or more transactions per month." For a business that writes checks, deposits customer payments, and makes online transfers regularly, this is straightforward to hit. For a business with very few transactions, it is not.

A few banks waive fees if you maintain accounts with them in other categories — for example, if you have a business savings account or a business credit card in addition to the checking account. This is less common but worth asking about.

What you actually need to bring or provide to open the account

You will need an Employer Identification Number (EIN) if your business is a partnership, corporation, or LLC. If you are a sole proprietor, you can use your Social Security Number instead, though some banks prefer an EIN. You can get an EIN free from the IRS — it takes about 15 minutes online at irs.gov.

You will also need a business license or registration document showing your business name and structure. This comes from your state or local government and costs money to obtain (typically $50 to $500 depending on your state and business type), but that is a separate business cost, not a banking cost.

Bring a government-issued photo ID, your Social Security Number or EIN, and your initial deposit. The initial deposit can be as small as $1 at some banks or as much as $100 or more at others. This money goes into the account — it is not a fee. You can withdraw it anytime.

How online banks and credit unions compare on cost

Online banks typically charge lower monthly fees than traditional banks because they have fewer physical locations and lower overhead. Many online banks charge $0 per month with no minimum balance requirement. Examples include banks that operate entirely through websites and mobile apps, though you should verify current fees directly with each bank since they change.

Credit unions often have lower fees than large national banks, and many credit unions waive monthly fees for business accounts. However, credit union membership requirements vary — some require you to live or work in a specific area, or to be employed by a certain company. If you are may be able to access to join, a credit union may be your cheapest option.

The trade-off is usually convenience. An online bank has no branch where you can walk in to deposit cash or speak to someone in person. A credit union may have fewer locations than a large bank. For a business that rarely needs in-person service, this trade-off is worth it. For a business that needs to deposit cash regularly or meet with a banker, a traditional bank branch may be worth the higher fees.

Comparing total annual cost across different banks

To compare banks fairly, calculate the total annual cost under your actual situation. If you plan to maintain a $1,000 balance, find banks that waive fees at that balance level. If you will process 30 transactions per month, find banks that waive fees at that volume. Do not compare based on the advertised monthly fee alone.

For example: Bank A charges $15 per month but waives it with a $500 minimum balance. Bank B charges $5 per month with no waiver. If you can comfortably keep $500 in the account, Bank A costs you $0 per year. If you cannot, Bank A costs $180 per year while Bank B costs $60. The cheaper advertised fee is not the cheaper bank.

Write down the fee schedule for three to five banks you are considering, then calculate what you would actually pay in year one based on your expected balance, transaction volume, and deposits. The bank with the lowest total cost is the one to choose, not the one with the lowest advertised fee.

Frequently Asked Questions

Do I have to pay to get an EIN before opening the account?

No. The IRS issues EINs free of charge. You can get one online at irs.gov in about 15 minutes, or by mail or phone. The only cost is your time. Some banks will let you open an account with your Social Security Number if you do not have an EIN yet, though you may need to provide the EIN later.

What if I cannot meet the minimum balance requirement?

Choose a bank with a lower minimum or no minimum requirement. Online banks and credit unions often have no minimum balance. You may pay a small monthly fee instead, but if the fee is $5 and the alternative is a $2,500 minimum balance you cannot afford to keep, the fee is the better choice.

Can I avoid fees by keeping my business money in a personal checking account?

Technically yes, but it is not recommended. Personal accounts are not designed for business use, and mixing personal and business money makes taxes and accounting much harder. If your business grows, the IRS may question the arrangement. A business account costs little and protects you legally.

Do I need to keep the same bank forever?

No. You can close the account and move to a different bank anytime. There is usually no penalty for closing. If you find a bank with lower fees after a few months, switching is free — just open the new account and transfer your balance.

What happens if my balance drops below the minimum for one day?

Most banks charge the monthly fee if your balance falls below the minimum on any single day during the month. Some banks are more lenient and look at your average balance instead. Read the fee schedule or ask the bank directly how they measure the minimum before you open the account.