What banks ask for when you open a business account
Banks require three categories of information before they will open a business checking account: proof of who you are, proof of what your business is, and proof that you have the right to represent it. The exact documents depend on your business structure — sole proprietorship, partnership, LLC, corporation — and the bank's own rules, which vary. Some banks ask for more than others, and some require documents in person while others accept them by mail or upload.
The process takes anywhere from a few minutes to several weeks. If you have all your documents ready and your business structure is straightforward, you can often open an account in a single visit or online session. If the bank needs to verify information with a government agency or if your business structure is complex, it can take longer.
Key Takeaways
- Every bank requires a government-issued photo ID for the person opening the account, plus an Employer Identification Number (EIN) or Social Security Number tied to your business.
- You will need proof of your business structure — a certificate of formation for an LLC, articles of incorporation for a corporation, or a DBA filing for a sole proprietorship — obtained from your state.
- Banks verify your identity against federal databases and may ask for a second form of ID or a utility bill showing your address.
- Some banks require a minimum deposit to open the account, which ranges from zero to several hundred dollars depending on the bank and account type.
- If someone other than the owner is opening the account, the bank will need a resolution or power of attorney document proving that person has authority to act for the business.
Documents for your personal identity
Bring a current government-issued photo ID — a driver's license, passport, or state ID card. The bank will scan or photograph it and verify your name, address, and date of birth against federal databases. Some banks use a third-party verification service; others do the check in-house. Either way, the process is automatic and takes minutes.
If your address on the ID does not match your current address, bring a second document showing your current address. A utility bill, lease, mortgage statement, or recent bank statement all work. The document needs to show your name and address and be dated within the last 60 to 90 days — banks vary on how recent they require it to be. If you have moved recently and your ID is not yet updated, call the bank before you go in and ask what they accept.
Documents for your business structure
What you bring depends on how your business is legally organized. A sole proprietorship — a business you own by yourself with no separate legal entity — requires either a DBA (Doing Business As) certificate filed with your county or state, or nothing at all if you are using your own name. If you filed a DBA, bring the certificate. If you have not filed a DBA and are using your own name, some banks will open the account with just your personal ID and an EIN or Social Security Number.
An LLC (Limited Liability Company) requires a certificate of formation or articles of organization, issued by your state's Secretary of State office. You can read this from the state website or request it by mail. The bank needs to see the original or a certified copy. Some banks accept a photocopy; others do not. Call ahead and ask.
A corporation requires articles of incorporation, also from your state's Secretary of State office. The bank will want to see the original or a certified copy. You will also need corporate bylaws and a corporate resolution authorizing the account. The resolution is a document signed by the board of directors stating that the company is authorized to open a bank account. Your business attorney can draft this, or you can find templates online.
A partnership requires a partnership agreement and, in some states, a certificate of partnership filed with the state. The bank will want to see both. If you have not filed a certificate, bring the partnership agreement and ask the bank whether they need anything else.
Your business tax identification number
You will need an Employer Identification Number (EIN) for any business structure except a sole proprietorship using your own name. An EIN is a nine-digit number issued by the IRS. You can get one free by explore online at irs.gov, by phone, by fax, or by mail. The online process takes about 15 minutes and you receive your EIN when ready. Phone applications take about the same time. Mail and fax applications take one to two weeks.
If you are a sole proprietor using your own name and have no employees, you can use your Social Security Number instead of an EIN. Some banks prefer an EIN anyway; others do not require it. Call the bank and ask what they need before you explore for one.
Bring the EIN letter or document showing your number. If you applied online, print the confirmation page. If you applied by phone or mail, the IRS will send you a letter; bring that.
Verification of ownership and authority
If you are the owner of the business and you are opening the account yourself, the bank usually does not ask for additional proof of ownership beyond the business formation documents. They assume that the person whose name is on the formation documents is authorized to open an account.
If someone other than the owner is opening the account — a manager, accountant, or employee — the bank will ask for a document proving that person has authority. This is usually a corporate resolution (for corporations), an operating agreement or manager resolution (for LLCs), or a power of attorney. The document must be signed by the owner or the board of directors and state that the named person is authorized to open and manage bank accounts on behalf of the business.
If you are opening the account for a business you do not own but manage on behalf of someone else, ask the owner what document they have. If they do not have one, you will need to get a power of attorney drafted by an attorney or use a template from your state's bar association.
Minimum deposits and account fees
Some banks require a minimum deposit to open a business checking account; others do not. The amount varies widely — from zero to $500 or more, depending on the bank and the account type. The deposit becomes part of your account balance, so it is not a fee; it is money you are putting into the account. Some banks waive the minimum if you set up direct deposit or maintain a certain balance.
Ask the bank about minimum deposit requirements before you go in. If you do not have the cash on hand, you can ask whether they will waive it or whether you can make the deposit after opening the account. Some banks are flexible; others are not.
What happens after you submit your documents
The bank will verify your identity against federal databases — this is called Know Your Customer (KYC) verification and is required by law. They will also verify that your business formation documents are real by checking with your state's Secretary of State office or by calling the state directly. This verification usually takes a few business days.
Once verification is complete, the bank will issue you account numbers, routing numbers, and debit cards. Some banks do this on the same day; others mail everything to you. Ask the bank what their timeline is and whether you can start using the account before the debit card arrives.
If the bank cannot verify your information — for example, if your state has not yet processed your LLC formation — they will contact you and ask for additional documents or clarification. This is why it is important to file your business formation documents with the state before you try to open a bank account.
Frequently Asked Questions
Can I open a business checking account online?
Many banks allow you to start the process online by uploading photos of your ID and business documents. However, some banks still require you to visit a branch in person or to verify your identity by video call. Check with your bank about their process before you start.
What if I do not have an EIN yet?
You can get an EIN online from the IRS in about 15 minutes, or by phone in the same time. If you are a sole proprietor using your own name, you can use your Social Security Number instead. Call the bank and ask which they prefer before you explore.
Do I need a physical business address?
Most banks require a physical address for the business — not a PO box. If you work from home, you can use your home address. If you use a virtual office or mail forwarding service, call the bank first and ask whether they accept that address.
What if my business formation documents are not yet approved by the state?
Wait until the state has issued your formation documents before you try to open a bank account. The bank will verify the documents with the state, and if the state has no record of your business, the bank will not open the account. Check your state's Secretary of State website to see the status of your filing.
Can someone else open the account for me?
Yes, but the bank will need a power of attorney or corporate resolution proving that person has authority to act for the business. The document must be signed by you or by the board of directors and must specifically authorize opening and managing bank accounts.