What you need to bring to the bank
Most banks want five things before they will open a small business checking account: proof of your business structure, a federal tax ID number (or your Social Security number if you are a sole proprietor), a form of personal ID, proof of your business address, and an initial deposit. The exact documents vary by bank and by what type of business you run, but these five categories cover what nearly every institution asks for.
The initial deposit is usually between $100 and $500, though some banks have no minimum. A few online banks have dropped the minimum entirely. The deposit sits in the account — it is not a fee — but you need to have it available on the day you open the account.
Key Takeaways
- You will need an Employer Identification Number (EIN) from the IRS, which you can obtain for free online in minutes, or your Social Security number if you operate as a sole proprietor.
- Proof of business structure means your articles of incorporation, articles of organization, or sole proprietorship documentation — what you filed with your state to register the business.
- Banks verify your personal identity with a driver's license or passport and your business address with a utility bill, lease, or business license.
- Most banks require an opening deposit of $100 to $500, though some have no minimum; this money stays in the account and is not a fee.
- Online banks typically have faster approval and lower documentation requirements than brick-and-mortar branches.
Your federal tax ID and why banks ask for it
If your business is anything other than a sole proprietorship operating under your own name, you need an Employer Identification Number (EIN) from the IRS. This is a nine-digit number that functions as your business's tax ID. You can obtain one free from the IRS website (irs.gov) in about ten minutes — you answer questions about your business structure, and the number is issued when ready.
If you are a sole proprietor and plan to use your own name as the business name, you can use your Social Security number instead. However, many sole proprietors get an EIN anyway because it separates personal and business finances more clearly for tax purposes and keeps your Social Security number off business documents.
Banks ask for this number because they report account activity to the IRS under that ID. Without it, they cannot legally open a business account for you.
Proof of what your business structure actually is
Banks need to see the document you filed with your state to register your business. For a limited liability company (LLC), this is your articles of organization. For a corporation, it is your articles of incorporation. For a partnership, it is your partnership agreement or the equivalent document your state requires. For a sole proprietorship, you may need a business license or a DBA (doing business as) certificate if you registered one with your county.
You do not need to have these documents notarized or certified — a copy is fine. If you have not yet filed these documents with your state, you cannot open a business checking account. You have to complete your business registration first.
Some banks will accept a screenshot of your state's business registry if you can show them the URL and your business name appears in the search results. Call ahead and ask whether your bank accepts this, because not all do.
Personal identification and business address verification
Bring a government-issued photo ID — a driver's license or passport. The bank will scan or photocopy it. This is standard for any account opening, personal or business.
For your business address, the bank needs proof that you actually operate there. A utility bill in your business name, a lease agreement, a property tax bill, or a business license all work. If you work from home, a utility bill with your home address is usually sufficient. If you rent a mailbox at a UPS Store or similar location, bring the mailbox agreement.
Some banks will accept a recent bank statement from a personal account at that address if you do not have a utility bill yet. Ask what the bank accepts before you go in.
The opening deposit and account minimums
Most banks require between $100 and $500 to open a business checking account. Some regional banks ask for $1,000 or more. Online banks often have no minimum at all. This money goes into the account as your opening balance — it is not a separate fee.
After the account opens, some banks impose a monthly minimum balance (often $500 to $2,500) to avoid a monthly fee. Others charge a flat monthly fee regardless of balance. A few online banks charge nothing if you meet certain conditions, like maintaining direct deposit or a minimum number of transactions per month. Check the fee schedule before you choose a bank, because these costs add up over time.
How the process works at different types of banks
At a brick-and-mortar bank, you walk in with your documents, the banker reviews them on the spot, and you usually walk out with a debit card and checks ordered. The whole process takes 30 to 45 minutes. If anything is missing, they tell you when ready.
At an online bank, you upload photos of your documents through their website or app. A person reviews them within one to three business days. If everything is in order, the account opens and you can start using it when ready — your debit card arrives by mail in five to ten business days. If something is missing or unclear, the bank emails you and asks you to resubmit.
Online banks are faster for account opening but slower for receiving physical cards and checks. Brick-and-mortar banks are slower to open but faster to get cards in hand. Choose based on what matters to you — when ready access or when ready physical cards.
What happens if you do not have all the documents yet
If you have not registered your business with your state yet, you cannot open a business checking account. Registration comes first. This takes one to five business days online in most states and costs between $50 and $300 depending on your state and business type.
If you do not have an EIN yet but need to open the account quickly, call the IRS at 1-800-829-4933 and request one by phone. You will need your Social Security number, business structure, and business address. The IRS issues the number over the phone and mails you a confirmation letter. This takes about two weeks. In the meantime, some banks will hold your process and open the account once the EIN arrives.
If your business address is not yet finalized — you are still negotiating a lease, for example — use your home address temporarily. You can update the business address later once you have signed the lease.
Frequently Asked Questions
Can I open a business checking account with just my Social Security number?
Yes, if you are a sole proprietor operating under your own name. You do not need an EIN. However, you still need proof of business registration (a business license or DBA certificate) and all other documents. Many sole proprietors get an EIN anyway to keep their Social Security number off business documents.
What if my business is brand new and I have not made any money yet?
That does not matter. Banks do not check your revenue or profit. They only verify that your business is legally registered and that you have the required documents. A brand-new business with zero revenue can open a checking account the same day as an established one.
Do I need a separate business address or can I use my home?
You can use your home address. Bring a utility bill or other proof that you live there. Many small businesses operate from home, and banks accept this. If you use a mailbox service or coworking space, bring the agreement for that address instead.
How long does it take to open a business checking account?
At a physical bank branch, 30 to 45 minutes if all documents are in order. At an online bank, one to three business days for approval, then five to ten business days for your debit card to arrive by mail. You can usually start using the account when ready after approval, even before the card arrives.
What if the bank rejects my process?
Banks rarely reject applications if your documents are complete and legitimate. More often they ask for clarification or a resubmitted document. If a bank does reject you, ask why in writing. Common reasons are incomplete business registration, a mismatch between the name on your ID and the business name, or a previous banking issue flagged in ChexSystems (a banking history report). You can try another bank or address the issue and reapply.