The documents and information banks require to open a business account

Banks will ask for three categories of things before they open a business checking account: proof that your business exists, proof of who owns it, and proof of your identity. The exact list varies by bank and by what type of business you run, but the core documents stay the same. Most banks can tell you their full requirement list before you visit, so calling ahead saves a trip.

The reason banks ask for all of this is regulatory. Federal law requires them to verify your identity and the beneficial ownership of the business—meaning they need to know who actually controls the money. This is not the bank being cautious; it is a legal requirement under the Bank Secrecy Act and Know Your Customer rules.

Key Takeaways

  • You will need a government-issued ID, an Employer Identification Number (EIN) or Social Security Number, and proof your business name is registered with your state.
  • Sole proprietorships need fewer documents than LLCs or corporations, which require formation documents and sometimes an operating agreement.
  • Banks verify ownership by checking who has signing authority, so bring documentation that shows the ownership structure.
  • Most banks want to see a recent business address, either a lease, utility bill, or mail from a government agency sent to that location.
  • Call your bank before you go in—different banks have different secondary requirements, and some ask for things like business licenses or tax returns.

Documents that prove your business exists

For a sole proprietorship, you often need only a business license from your city or county. If you registered a fictitious business name (also called a DBA or "doing business as"), you need the registration certificate from your state or county. If you formed an LLC or corporation, you need the formation documents—the Articles of Organization for an LLC or the Articles of Incorporation for a corporation—filed with your state's Secretary of State office.

These documents are public record. You can read them yourself from your state's Secretary of State website, or the bank can request them on your behalf. Some banks ask you to bring the originals; others accept certified copies or even digital copies. Ask when you call.

If your business is very new and you have not yet filed formation documents, some banks will open an account under your personal name with a DBA notation, but this is less common and usually only for sole proprietorships. Most banks want to see the registration before they proceed.

Identification for the owner or authorized signer

You will need a government-issued photo ID—a driver's license, passport, or state ID card. The bank will scan or photocopy it. If more than one person has signing authority on the account, the bank typically needs ID from each of them, though some banks only require ID from the primary account holder.

The bank is verifying that you are who you say you are. They will check your name, date of birth, and address against their fraud databases. If you have moved recently, bring a document showing your current address—a utility bill, lease, or mail from a government agency.

Tax identification numbers

If your business is a sole proprietorship, the bank will use your Social Security Number as the tax ID. If it is an LLC, S-corp, or C-corp, you need an Employer Identification Number (EIN). You can get an EIN free from the IRS website (irs.gov) in about 15 minutes, or by phone, or by mail. You do not need to have employees to have an EIN.

Bring the EIN letter the IRS sends you, or have the number ready. Some banks will let you explore for an account with just the number and verify it later, but most want to see the letter. If you have not received it yet, call the IRS at 1-800-829-4933 and they can confirm the number over the phone while you are at the bank.

Proof of business address

Banks want to know where your business operates. If you have a physical location, bring a lease, a utility bill in the business name, or a recent piece of mail from a government agency sent to that address. If you work from home, bring a utility bill or lease showing your home address, or a piece of mail from the IRS or your state tax authority.

Some banks ask for this; others do not. If you are opening an account online, you will enter the address in the process and the bank will verify it against public records. If you are opening in person, the bank may not ask for physical proof if your ID shows the same address.

What varies by bank and business type

Some banks ask for a business license even if you have formation documents. Some want to see a recent tax return or a letter from the IRS confirming your EIN. Some require a resolution or authorization letter showing who is allowed to sign checks and make transfers. Some ask for a list of all owners if the business has more than one.

Banks also vary by what they consider acceptable proof. One bank may accept a digital copy of your Articles of Organization; another may want a certified copy from the Secretary of State. One may open an account for a brand-new business with just an EIN letter; another may ask for a business license or tax return showing the business has been operating.

This is why calling ahead matters. When you call, say what type of business you have, whether it is new or established, and ask for the complete list of documents they need. Most banks have this list ready and can email it to you.

What happens after you bring the documents

The bank will photocopy or scan everything, verify the information against their databases and public records, and then open the account. This usually takes 10 to 15 minutes if you are in person and everything is in order. If you are opening online, it takes a few business days because the bank has to verify the documents remotely.

The bank will ask you to sign signature cards and account agreements. Read these before you sign—they spell out the bank's fees, what happens if the account is overdrawn, and what the bank can do if there is fraud. Once you sign, the account is active and you can usually start using it when ready, though some banks hold the first few transactions while they monitor for fraud.

Frequently Asked Questions

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

No. Sole proprietors can use their Social Security Number as the tax ID. You only need an EIN if you have employees, run as an LLC, S-corp, or C-corp, or want to keep your Social Security Number private from the bank. Getting an EIN is free and takes 15 minutes online.

What if I do not have a business license yet?

Call the bank and ask if they will open an account while you are getting the license. Some will; some will not. If the bank will not, get the license first—it usually takes a few days to a few weeks depending on your city or county. A business license is often cheaper than the bank's monthly fee, so it is worth getting anyway.

Can I open a business account if my business is brand new?

Yes, but the bank may ask for more documentation. Have your formation documents (Articles of Organization or incorporation) and your EIN letter ready. Some banks also ask for a business plan or a letter explaining what the business does. If the bank declines, try a different bank—requirements vary widely.

Do all owners need to come in person?

Not always. If you are opening in person, the bank usually needs ID from the primary account holder and sometimes from other owners with signing authority. If you are opening online, you may be able to add other signers after the account is open. Ask the bank what their process is.

What if I lost my EIN letter?

Call the IRS at 1-800-829-4933 and they will confirm your EIN over the phone. You can also request a new letter by mail or read a transcript from irs.gov that shows your EIN. The bank can usually verify the EIN in their system without the physical letter.