What you need before you walk in or click explore

Most banks will ask for the same core documents whether you open an account in person or online. Have your Employer Identification Number (EIN) ready — this is the federal tax ID for your business, issued by the IRS. If you're a sole proprietor, you can use your Social Security number instead, though some banks prefer the EIN. You'll also need a government-issued ID (driver's license or passport) and proof of your business address, which can be a utility bill, lease, or office rental agreement dated within the last 60 days.

The bank will want to see what kind of business you run. Bring your business license or articles of incorporation if you have them. If your business is brand new and you haven't filed taxes yet, bring whatever paperwork shows you're operating — a business license, DBA (Doing Business As) certificate, or even a signed contract with a client. Banks vary on how strict they are about this; some will open an account for a business that exists only on paper, while others want to see actual revenue or a lease.

You'll need an initial deposit. The minimum varies widely — some banks ask for $100, others $500 or $1,000. A few online banks have no minimum. Ask about this before you go in, because it affects which banks are realistic options for you right now.

Key Takeaways

  • Bring your EIN (or Social Security number if you're a sole proprietor), government ID, and proof of your business address to open an account.
  • Banks differ on how much documentation they need about your business — some accept a license, others want to see revenue or a lease agreement.
  • Minimum deposits range from zero to $1,000 depending on the bank and account type.
  • Online banks typically open accounts faster than brick-and-mortar branches, sometimes in a single day.
  • After opening, you'll need to set up tax withholding and understand what triggers IRS reporting on your account.

Where to open: online banks versus traditional banks

Online banks are usually faster. You can complete the entire process from your computer or phone in 15 to 30 minutes. The bank verifies your identity electronically, pulls your EIN from IRS records, and funds the account the same day or next business day. You won't have a physical branch to visit, but you get a debit card in the mail within a week and can start using the account when ready. Examples include Mercury, Brex, and Square Cash for Business, though dozens of traditional banks also offer online-only business checking.

Traditional banks with physical branches take longer but may feel more familiar. You'll sit with a banker who can answer questions about business loans, merchant services, or other products. The account usually opens the same day, but you may need to wait for your debit card and checks to arrive. Some branches can issue a temporary debit card on the spot. This route works well if you want a relationship with a local banker or if you need to deposit cash regularly.

Credit unions are a third option. They often have lower fees and friendlier terms for small businesses, but they may require you to be a member first (which can take a few days) and they typically have fewer branches. If you already bank at a credit union, ask whether they offer business checking — many do.

The actual steps to open the account

Online: Visit the bank's website and click the business checking link. You'll enter your business name, EIN, and business address. The bank will ask what type of business structure you have (sole proprietor, LLC, S-corp, C-corp, partnership). Upload a photo of your ID and proof of address. The bank verifies your identity electronically and confirms your EIN with the IRS. You'll choose a username and password, set up online banking, and link a funding source (usually a personal bank account) to make your initial deposit. The account is live within hours or by the next business day.

In person: Call ahead or check the bank's website to confirm what documents you need and whether you need an appointment. Bring your ID, EIN documentation, proof of business address, and your business license or articles of incorporation. A banker will fill out the account process with you, verify your identity, and process the initial deposit. You'll set up online banking and receive temporary access to the account that day. Your debit card and checks arrive by mail in 5 to 10 business days.

Some banks offer a hybrid: you start online and finish in a branch, or vice versa. This can be useful if you want to ask questions before committing or if you need to deposit cash when ready.

What happens after the account opens

Once your account is active, the bank will send you a welcome packet with your account number, routing number, and instructions for setting up direct deposit and bill pay. You can start receiving payments and paying vendors when ready, even before your physical debit card arrives.

The bank will file a Currency Transaction Report (CTR) with the IRS if you deposit or withdraw $10,000 or more in a single transaction. This is automatic and not a problem — it's just how the system tracks large cash movements. The bank will also file a Suspicious Activity Report (SAR) if your account shows patterns that look unusual (like frequent large deposits followed by when ready withdrawals to unrelated accounts). This is rare for legitimate businesses, but it's worth knowing the threshold exists.

You don't need to do anything special to set up tax withholding on a business account. The IRS doesn't withhold taxes from business deposits the way they do from paychecks. Instead, you'll pay estimated taxes quarterly if you're a sole proprietor or partnership, or your business will file a corporate return if you're an LLC or corporation. Your accountant or tax software will handle this — the bank's job is just to hold the money.

Fees and features to compare

Business checking accounts charge different fees depending on the bank and the account tier. Most charge a monthly maintenance fee ($10 to $30 is typical), though some waive it if you maintain a minimum balance or set up direct deposit. Many charge per-check fees (25 cents to $1 per check) if you write more than a certain number each month. Wire transfer fees usually run $15 to $30 per wire.

Look at what's included: unlimited debit card transactions, online bill pay, mobile check deposit, and ACH transfers (moving money between accounts electronically) are standard at most banks. Some business accounts include merchant processing (the ability to accept credit cards) or accounting software integration, which can save you money if you use those services.

Online banks often have lower fees because they don't maintain physical branches. Traditional banks may charge more but offer services like in-person cash deposits and access to a banker. The right choice depends on how you actually use the account — if you rarely write checks and don't need to deposit cash, an online bank is usually cheaper.

If your business is new or your credit is complicated

Most banks don't run a personal credit check for business checking accounts. They verify your identity and check whether you have a history of bouncing checks or fraud through ChexSystems (a banking history database), but they don't pull your credit score. This means a new business or a business owner with poor personal credit can usually open an account without problems.

Some banks do a soft pull of your business credit report if your business has been operating for a few years. This doesn't affect your credit score and is just a way for the bank to see whether your business has a history of unpaid debts. If your business is brand new, the bank won't have anything to pull, so this isn't a barrier.

If you've been denied a business account in the past, ask the bank why before you explore elsewhere. Common reasons include a fraud flag in ChexSystems (which you can dispute), a pattern of overdrafts at another bank, or a mismatch between your ID and your business address. If you know the reason, you can address it or find a bank that's more flexible.

Timeline: how long everything takes

Online accounts open fastest. You can complete the process in 15 to 30 minutes, and the account is usually live within 24 hours. Your debit card arrives in 5 to 10 business days. You can start using the account (for transfers, bill pay, and direct deposit) before the card arrives.

In-person accounts at a traditional bank usually open the same day. You walk out with temporary access to online banking and a temporary debit card (if the branch issues them). Your permanent debit card and checks arrive in 5 to 10 business days.

Credit union accounts may take longer if you need to become a member first. Membership can take 1 to 3 business days, and then the account opening takes another day or two. Total time is usually 3 to 5 business days.

Frequently Asked Questions

Do I need an EIN if I'm a sole proprietor?

No, but most banks prefer one. You can use your Social Security number instead, and the account will work fine. However, an EIN keeps your personal and business finances more separate in the IRS's records and is free to get from the IRS website. If you plan to hire employees or grow the business, you'll need an EIN eventually anyway.

Can I open a business account if my business doesn't have a physical location?

Yes. You can use your home address, a coworking space address, a virtual office address, or a UPS store address as your business address. The bank just needs proof that you receive mail there — a utility bill, lease, or even a piece of mail from the virtual office service will work.

What if I don't have a business license yet?

Many banks will open an account without one, especially if you have an EIN. Some require a DBA certificate (which you file with your county or state) or articles of incorporation if you're an LLC or corporation. Call the bank before you explore and ask what documentation they accept for a new business.

Can I use a business account for personal expenses?

Technically yes, but it defeats the purpose of having a separate account. The IRS expects business accounts to hold business money, and mixing personal and business expenses makes tax time harder and can complicate things if you're ever audited. Keep the accounts separate.

How long does it take to get checks printed?

The bank usually orders checks for you automatically when the account opens, and they arrive in 5 to 10 business days. You can order additional checks through the bank's website, and they typically arrive in 7 to 14 business days. Some banks charge for checks; others include them. You can also use online bill pay or ACH transfers instead of checks, which is faster and often free.