Small organizations can open a checking account at most banks, but you'll need to prove the organization exists and show who has authority to spend its money

A small organization — whether a nonprofit, club, partnership, or sole proprietorship — opens a checking account much like a person does, except the bank needs to verify that your organization is real and legally registered. You'll need documents that prove the organization exists, a federal tax ID number (or your Social Security number if you're a sole proprietor), and identification for the person who will manage the account. The process usually takes a few days to a week.

The main difference from a personal account is that banks treat organizational money as separate from personal money, which protects both you and the organization. This separation also makes it easier to show donors, members, or the government how money was spent — which is why having an organizational account matters even for very small groups.

Key Takeaways

  • You will need proof that your organization is registered with the state, such as articles of incorporation, a business license, or a nonprofit registration certificate.
  • The person opening the account must bring a government-issued ID and the organization's federal tax ID number (EIN), which you can get free from the IRS if you don't have one yet.
  • Most banks offer checking accounts for nonprofits and small businesses, though some have minimum balance requirements or monthly fees that vary by institution.
  • You'll likely need to name at least one other person who can sign checks or access the account, so the bank knows the account isn't controlled by a single person.

What documents you need to bring to the bank

Bring the document that proves your organization is registered. For a nonprofit, this is usually your articles of incorporation or a nonprofit registration certificate from your state. For a business, bring your business license or articles of incorporation. For a partnership, bring the partnership agreement or registration. If you're a sole proprietor (you own the business by yourself), you may only need your personal ID and Social Security number, though some banks ask for a business license or a "doing business as" (DBA) certificate.

Bring the organization's federal tax ID number, also called an EIN (Employer Identification Number). If you don't have one yet, you can get it free from the IRS website (irs.gov) in about 15 minutes — you don't need to wait. If your organization is very small and has no employees, you might be able to use your personal Social Security number instead, but most banks prefer an EIN because it keeps personal and organizational finances separate.

Bring a government-issued photo ID for the person opening the account — a driver's license, passport, or state ID card. Some banks also ask for a second form of ID, such as a utility bill or recent bank statement showing your address.

How to get a federal tax ID if you don't have one

You can get an EIN free from the IRS at irs.gov/ein. Go to the "explore for an EIN" section and choose "explore online." The online process takes about 15 minutes and you'll receive your EIN when ready — you can write it down or print it right away. You don't need to file any tax forms first or pay any fee.

If you prefer to explore by mail or phone, you can, but online is fastest. Mail takes about four weeks. If you call the IRS at 1-800-829-4933, they can issue an EIN over the phone, but wait times are often long.

Once you have your EIN, keep it in a safe place. You'll use it every time you open a bank account, file taxes, or deal with government agencies on behalf of the organization.

Which banks accept small organizations and what they typically charge

Most banks and credit unions offer checking accounts for nonprofits and small businesses. National banks like Bank of America, Wells Fargo, and Chase all have business and nonprofit accounts. Local and regional banks often have simpler requirements and lower fees. Credit unions sometimes offer accounts at lower cost, especially if you're a member or if your organization is community-based.

Fees vary widely. Some banks charge a monthly maintenance fee (ranging from $0 to $25 or more), while others waive the fee if you keep a minimum balance or set up direct deposit. Some charge per check or per transaction. A few banks offer free checking for nonprofits. Call or visit the bank's website to compare — the cheapest option for your organization depends on how many checks you'll write and how much money you'll keep in the account.

If a bank turns you down, it's usually because your organization's registration documents are incomplete or because the bank has stopped opening accounts for nonprofits or small businesses. Try a different bank or a local credit union. If you're a sole proprietor and the bank won't accept your business, you can sometimes open a personal account and use it for business — though this makes accounting harder and offers less legal protection.

Who needs to sign the account paperwork and set up signing authority

The person opening the account must be present with their ID. This is usually the founder, executive director, or owner. However, the bank will ask you to name at least one other person who can sign checks or withdraw money — this is called signing authority. This second person doesn't have to be present when you open the account, but you'll need their name, address, and usually a copy of their ID.

Naming a second signer protects the organization because it prevents one person from controlling all the money. It also means the account can still function if the first person is unavailable. You can set up the account so that both people must sign every check, or so that either person can sign — the bank will ask which you prefer.

If you're a sole proprietor, the bank may allow you to be the only signer, but some banks still ask for a second person. If you can't name anyone, ask the bank whether you can add a signer later, after the account is open.

How long the process takes and what happens next

Opening an account usually takes one to two hours at the bank. You'll fill out an process form, show your documents, and the bank will verify your organization's registration (usually by checking state records online). If everything is in order, you'll leave with a temporary debit card and checks can be ordered that day. You may be able to start using the account when ready, or the bank may wait one to three business days before activating it.

Some banks now offer same-day account opening if you explore online and upload your documents. You'll still need to visit in person to show your ID, but the paperwork is done beforehand. Check your bank's website to see whether this option is available.

Once the account is open, you'll receive checks, a debit card, and online banking access. Set up online banking right away so you can monitor the account and catch any errors. If you're a nonprofit, keep records of all deposits and withdrawals — you may need to show them to donors or the government later.

What to do if a bank won't open an account for your organization

If a bank declines, ask why. Common reasons are incomplete registration documents, a name mismatch between your process and your state registration, or a problem with the person's credit history (though this is less common for organizational accounts). Fix the problem and try again, or try a different bank.

If you're a nonprofit and multiple banks have declined, contact your state's nonprofit association or a local community development organization — they sometimes know which banks are actively opening nonprofit accounts and can point you toward one that will accept you.

If you're a sole proprietor and can't get a business account, you have a temporary option: open a personal checking account and use it for business. This is not ideal because it mixes personal and business money, making taxes and accounting harder, and it offers less legal protection. But it lets you separate your money from your personal account while you work on getting a business account later.

Frequently Asked Questions

Do I need an EIN if I'm a sole proprietor?

Not always. You can use your Social Security number instead. However, using an EIN keeps your personal and business finances more separate and is better for your privacy. Getting an EIN is free and takes 15 minutes online, so most sole proprietors do it anyway.

Can I open an account if my organization is brand new and not yet registered with the state?

No. Banks require proof that your organization is registered. Register with your state first — this usually takes a few days to a few weeks depending on the state. Once you have your registration certificate or articles of incorporation, you can open the account.

What if the person who will manage the account can't come to the bank in person?

Most banks require the account opener to show up with a photo ID. Some banks now offer online account opening where you upload documents and verify your ID through video, but you'll still need to confirm your identity somehow. Call your bank to ask whether they offer this option.

Can I have more than two people with signing authority?

Yes. You can name as many signers as you want. However, each additional signer requires their own ID and information, and the bank may charge a small fee per signer. For most small organizations, two signers (the founder and one other person) is enough.

What's the difference between a nonprofit checking account and a business checking account?

Nonprofit accounts are designed for tax-exempt organizations and usually have lower fees. Business accounts are for for-profit organizations. If you're a nonprofit, ask for a nonprofit account — the fees are typically lower. If you're unsure whether your organization qualifies, the bank can tell you.