What you need before you walk in
A business checking account requires proof that your business exists and proof of your identity. The exact documents depend on whether your business is registered as a sole proprietorship, partnership, LLC, corporation, or something else — and they vary by bank.
Start by gathering: your Social Security number or Employer Identification Number (EIN), a government-issued ID like a driver's license or passport, and proof of your business address. If your business is registered with your state, bring the registration paperwork. If you operate under a name different from your legal name, bring a "Doing Business As" (DBA) certificate or the equivalent from your state — some states call this a fictitious name statement.
If your business is an LLC, corporation, or partnership, the bank will also ask for the formation documents filed with your state. For an LLC, this is usually the Articles of Organization. For a corporation, it is the Articles of Incorporation. You can get copies from your state's Secretary of State office if you do not have them.
Key Takeaways
- You will need your government ID, Social Security number or EIN, and proof of your business address before opening an account.
- Sole proprietors can open an account using just their personal documents, but registering a DBA with your state first makes the process smoother.
- LLCs, corporations, and partnerships must bring formation documents filed with the state — the bank will not open the account without them.
- Some banks require a minimum deposit to open the account, and monthly fees vary widely, so compare banks before you choose one.
- The bank will ask you to sign a signature card so they know which signatures are authorized to withdraw money from the account.
The difference between sole proprietor and registered business accounts
If you are a sole proprietor — meaning you own the business by yourself and have not registered it with the state — you can open a business checking account using your personal Social Security number and ID. The bank will ask for your business name and address, but you do not need state paperwork. Many sole proprietors do this and it works fine.
However, if you have registered your business with your state as an LLC, corporation, or partnership, the bank will require you to bring those state documents. They will also ask for an EIN, which is a federal tax ID number for your business. You can get an EIN for free from the IRS website (irs.gov) — it takes about 15 minutes and you get the number when ready.
The reason banks ask for this is legal protection. A registered business is a separate legal entity from you as a person. The bank needs to confirm that entity exists and that you have the authority to open an account on its behalf.
Steps to open the account
Most banks let you start the process online, by phone, or in person. Online is usually fastest if the bank's website has a business account option. You will enter your business name, address, and the type of business structure, then upload photos of your documents. The bank reviews these and contacts you within a few business days to confirm.
If you go in person, bring originals of all documents listed above. The banker will make copies, ask you questions about the business (what it does, how much you expect to deposit each month, whether you need a debit card or checks), and have you sign a signature card. The signature card is a record of whose signatures are authorized to withdraw money. If you are the only owner, you sign it once. If there are multiple owners or employees who will have access, each person signs it.
Some banks require a minimum opening deposit — this might be $25, $100, or $500 depending on the bank and account type. Ask about this before you go in, because if you do not have the minimum, you will need to bring it with you or arrange a transfer.
What happens after you open the account
The bank will give you a debit card, usually within a few business days. Checks take longer — typically 7 to 10 business days — because they are printed to order. You can order checks through the bank or through a third-party printer, which is often cheaper.
You will also receive online banking access. Write down your username and password somewhere safe. Set up bill pay if you plan to pay vendors or contractors by electronic transfer. Most banks include this for free with business checking.
If your business is an LLC or corporation, the bank may ask you to provide an IRS Form SS-4 (the EIN process) or a copy of your EIN letter from the IRS. Keep these documents in your business records. You will need them later for tax purposes and if you ever need to prove the account is in your business's name.
Monthly fees and what to compare
Business checking accounts charge monthly maintenance fees that range widely — some banks charge nothing, others charge $15 to $30 per month. The fee often depends on your average balance or the number of transactions you make. Some banks waive the fee if you keep a minimum balance (like $2,500) or if you set up direct deposit.
Before you open an account, compare these costs at three or four banks. Ask specifically: What is the monthly fee? Is there a minimum balance to waive it? How much does it cost to order checks? Are there fees for transfers, wire transfers, or deposits? Do you get a free debit card? Some banks offer better rates for nonprofits or very new businesses, so mention what you are if it applies.
Also ask whether the bank offers a business savings account or money market account. If you plan to keep a cash reserve, these accounts earn a small amount of interest, which a checking account does not.
Where to open an account
You have three main options: a traditional bank (like Bank of America, Wells Fargo, or a local community bank), an online bank (like Novo, Mercury, or Brex), or a credit union.
Traditional banks have physical branches where you can deposit cash and speak to someone in person. Online banks have no branches but usually have lower fees and faster account opening. Credit unions are member-owned and often have lower fees than big banks, but you have to be a member first — membership usually requires living or working in a certain area or belonging to a certain group.
If you need to deposit cash regularly, a bank with branches near you matters. If you mostly transfer money electronically, an online bank often costs less. Community banks and credit unions sometimes offer better customer service for small business owners because they work with local businesses regularly.
Common mistakes to avoid
Do not open a personal checking account and use it for your business. Banks can close the account if they discover you are using it for business purposes, and you lose the legal separation between your personal and business finances. That separation protects you if your business is sued.
Do not assume all your documents are acceptable without asking the bank first. Requirements vary by bank and by state. Call ahead or check the bank's website to confirm what they need before you gather everything.
Do not skip the signature card. It is the bank's record of who can withdraw money. If you add an employee or partner later and do not update it, they may not be able to access the account even if you want them to.
Do not order checks from the bank's default printer without comparing prices. Third-party check printers like Deluxe or Costco often cost half as much.
Frequently Asked Questions
Can I open a business checking account if my business is not registered with the state?
Yes. Sole proprietors can open a business account using just a Social Security number and ID. However, registering your business as a DBA or LLC first makes the process smoother and gives you legal protection. If you plan to hire employees or take on debt, registration is worth doing anyway.
How long does it take to open an account?
Online applications usually take 1 to 3 business days. In-person applications can be done the same day if you have all your documents. The debit card arrives in a few days; checks take 7 to 10 business days.
What if I do not have an EIN yet?
You can get one for free from the IRS website (irs.gov) in about 15 minutes. If your business is a sole proprietorship, you can use your Social Security number instead. If it is an LLC or corporation, you need an EIN before the bank will open the account.
Do I need a separate business address?
No. You can use your home address. The bank just needs to know where the business operates. If you use a home address, make sure your state registration (if you have one) lists the same address.
What if I have bad personal credit?
Most banks do not check personal credit for business checking accounts. They may check your banking history to see if you have had accounts closed or bounced checks, but that is different from a credit score. Ask the bank what they check before you explore.