What banks ask for before they open your account
Most banks want three things before they will open a business checking account: proof of your business identity, proof of your personal identity, and proof of your business address. The exact documents vary by bank and by what kind of business you run, but the pattern is the same across all of them.
If you are a sole proprietor operating under your own name, you need less paperwork than if you have formed a legal entity. If you have formed an LLC, corporation, or partnership, you need documents that prove the entity exists and that you have authority to open the account on its behalf.
Key Takeaways
- Sole proprietors typically need a driver's license, Social Security number, and proof of business address, which can be a utility bill or lease in your business name.
- LLCs and corporations require an EIN (Employer Identification Number) from the IRS, articles of organization or incorporation, and an operating agreement or bylaws.
- You will need to bring the original documents or certified copies — banks do not accept photocopies or digital images for most business formation documents.
- The process usually takes one to three business days once you submit everything, though some banks offer same-day accounts if you explore in person.
- Some banks require a minimum opening deposit, which ranges from zero to several hundred dollars depending on the institution.
Documents for a sole proprietorship
If you operate as a sole proprietor — meaning you have not filed paperwork to form an LLC or corporation — you need your personal identification and proof that you are running a business at a specific address.
Bring a government-issued photo ID (driver's license or passport), your Social Security number, and a document showing your business address. That address document can be a utility bill, lease agreement, or mail from a government agency addressed to your business name at that location. Some banks accept a recent bank statement from another account if it shows your business address. If you operate from home, your home address counts as your business address.
A few banks ask for an Employer Identification Number (EIN) even for sole proprietors, though it is not required by law if you have no employees. If you do not have one and the bank asks for it, you can obtain one free from the IRS at irs.gov — the process takes about ten minutes online and the number is issued when ready.
Documents for an LLC or corporation
If you have formed a legal entity, you need proof that the entity exists and that you have the authority to open a bank account on its behalf. This means bringing your articles of organization (for an LLC) or articles of incorporation (for a corporation), your operating agreement or bylaws, and your EIN.
The articles of organization or incorporation are the documents you filed with your state to create the entity. You can obtain certified copies from your state's Secretary of State office if you do not have the originals. The operating agreement (for LLCs) or bylaws (for corporations) are the internal rules governing how the business operates — you drafted these when you formed the entity, or you can use a template from your state's Secretary of State website.
The EIN is a nine-digit number issued by the IRS that functions as a tax ID for your business. You can obtain one free at irs.gov by filling out Form SS-4 online. The number is issued when ready and you can use it right away.
Some banks also ask for a resolution or certificate of authority signed by the owners or board of directors authorizing the account opening. This is a straightforward document stating that the person opening the account has permission to do so. Your bank can provide a template, or you can create one yourself using language from your operating agreement or bylaws.
Personal identification and tax information
Regardless of your business structure, you will need to provide personal identification for anyone who will have signing authority on the account. This is typically a government-issued photo ID and a Social Security number.
If there are multiple owners or signers, each person needs to provide their own ID and Social Security number. The bank will run a background check on each person — this is standard practice and does not mean anything is wrong. The check looks at banking history and fraud indicators.
You will also fill out a W-9 form, which tells the bank your tax classification (sole proprietor, LLC, S-corp, C-corp, partnership, or other). This is a standard IRS form and the bank provides it.
Proof of business address
Your business address does not have to be separate from your home address. If you work from home, your home address is your business address. If you rent commercial space, use the lease address. If you own the building, use the property address.
To prove the address, bring a document dated within the last 60 days showing your business name and address. A utility bill works. A lease agreement works. A letter from a government agency works. Some banks accept a recent statement from another business account if it shows the address.
If your business address is different from your personal address on your ID, the bank will ask you to explain the difference. This is routine — just tell them you operate from that location.
Minimum deposits and account setup fees
Some banks require a minimum opening deposit before they will set up your account. This amount varies widely. Many banks have no minimum. Others require $100 to $500. A few require $1,000 or more, though this is less common for small business accounts.
Ask the bank about their minimum before you go in. If they have one and you do not have that amount available, you can open the account at a different bank or ask if they will waive the minimum — some banks do this for customers who set up direct deposit or maintain a certain monthly balance.
Some banks charge a monthly maintenance fee for business checking accounts. Others charge no fee if you maintain a minimum balance or set up direct deposit. Ask about fees when you are comparing banks, because they add up over time.
Timeline and what happens after you submit documents
Once you submit all your documents, the bank will verify them and run background checks on anyone with signing authority. This usually takes one to three business days. Some banks offer same-day accounts if you explore in person at a branch and bring original documents.
The bank will contact you if they need anything else or if there is a problem with any of your documents. If everything is in order, they will send you a confirmation email or call you to let you know the account is open. You can then set up online banking, order checks, and start using the account.
If you applied online, you may be able to start using the account when ready for transfers and bill pay, even if your debit card and checks have not arrived yet. Ask the bank what services are available while you wait for your physical cards.
Frequently Asked Questions
Can I open a business account if I do not have an EIN yet?
Yes. If you are a sole proprietor, you can use your Social Security number instead. If you have formed an LLC or corporation, you can obtain an EIN free from the IRS at irs.gov in about ten minutes — you do not have to wait for anything. Some banks will hold your account open while you get the EIN if you are in the process of forming the entity.
What if I do not have a separate business address?
Your home address is fine. Use the address where you actually conduct business. Bring a utility bill or other document showing that address, and tell the bank it is your business location. Banks understand that many small businesses operate from home.
Do I need to bring original documents or can I send copies?
Banks typically require original documents or certified copies for articles of organization, incorporation, operating agreements, and bylaws. For identification, they usually make a copy of your ID in front of you. Ask the bank before you go in whether they will accept copies or if you need originals.
How long does it take to get the account open?
If you explore in person with all documents, many banks can open the account the same day. If you explore online, it usually takes one to three business days. The bank will contact you if they need anything else or if there is a delay.
What if the bank rejects my documents?
The bank will tell you what is wrong — usually a document is expired, illegible, or missing a required signature. You can fix it and resubmit. If there is a problem with your background check, the bank will explain what triggered it and give you a chance to respond before making a final decision.