Yes, but the type of account depends on your business structure
You can open a bank account in your business name, but the bank will ask what legal form your business takes. A sole proprietorship, partnership, LLC, S-corp, or C-corp each have different requirements and different paperwork. The bank needs to know your structure because it determines who has legal authority to sign checks and withdraw money, and it affects how the IRS will tax the account.
If you have not yet chosen a business structure, that decision comes before the bank account. The structure you pick shapes what documents the bank will ask for and whether you need a separate tax ID number.
Key Takeaways
- Sole proprietors can open a business account under a business name without forming an LLC or corporation, but the bank may require your Social Security number as the owner.
- LLCs, partnerships, and corporations must provide an Employer Identification Number (EIN) from the IRS, which you obtain before opening the account.
- The bank will ask for proof of your business structure — articles of incorporation, an LLC operating agreement, or a DBA (Doing Business As) certificate if you are a sole proprietor using a business name.
- You will need a government-issued ID, your Social Security number or EIN, and an initial deposit, which varies by bank but is often $25 to $100.
- The whole process typically takes one to two weeks from the time you submit documents to the time the account is active.
What documents the bank will ask for, by business type
Sole proprietors using a business name (not their personal name) usually need to register that name with their state or county. This registration is called a DBA (Doing Business As) or a fictitious name registration. The bank will ask to see this certificate. You will also provide your Social Security number as the owner. Some banks will let you open the account with just your Social Security number and a DBA certificate; others require an EIN even for sole proprietors, so call ahead.
LLCs must have an EIN from the IRS before the bank will open the account. You get this by filing Form SS-4 with the IRS, either online (takes minutes) or by mail (takes two weeks). The bank will ask for your Articles of Organization (the document you filed to create the LLC with your state) and proof of the EIN, usually a letter from the IRS or a printout from the IRS website.
Partnerships need an EIN and a partnership agreement or certificate of partnership filed with the state. The bank will want to see both. If the partnership is a general partnership (not an LLC), you may also need to show which partners have authority to sign on the account.
Corporations (S-corp or C-corp) need an EIN and Articles of Incorporation filed with the state. The bank may also ask for a corporate resolution — a document signed by the board of directors authorizing the account and naming who can sign checks. Not all banks require this, but larger banks often do.
How to get an EIN if you need one
An EIN is a nine-digit tax ID number issued by the IRS. If your business is an LLC, partnership, or corporation, you need one before the bank will open the account. You do not need an EIN if you are a sole proprietor using your Social Security number, though some banks prefer it.
The fastest way is to file Form SS-4 online at irs.gov. You answer questions about your business, and the IRS issues your EIN when ready. You can print the confirmation page and bring it to the bank the same day. Filing by mail takes two to three weeks. You can also call the IRS at 1-800-829-4933 and explore by phone, though wait times are often long.
You do not need to have a business license or a registered business name to get an EIN. The EIN is separate from those steps. However, if you are opening an LLC or corporation, you should file your Articles of Organization or Incorporation with the state first, because the IRS will ask for your state filing number.
What to bring to the bank
Bring your government-issued photo ID (driver's license or passport). Bring your Social Security number or EIN. Bring the documents that prove your business structure: a DBA certificate for a sole proprietor, Articles of Organization for an LLC, a partnership agreement for a partnership, or Articles of Incorporation for a corporation. If you have an EIN, bring proof — the IRS letter or a printout from the IRS website.
Bring your initial deposit. Most banks require a minimum, which ranges from $25 to $500 depending on the bank and account type. Some banks waive the minimum if you set up direct deposit or maintain a certain balance. Ask the bank what they require before you go in.
If you are opening the account on behalf of the business but are not the owner (for example, you are an employee authorized to manage the account), bring a letter from the owner or a corporate resolution authorizing you to open it. Some banks will not let anyone but the owner open the account, so call ahead if this applies to you.
Timeline from paperwork to active account
If you already have your business structure in place and your EIN (if you need one), opening the account takes one to three business days. The bank verifies your identity and documents, deposits your initial deposit, and activates the account. You can usually start using it the same day or the next business day.
If you still need to register your business name, get an EIN, or file your LLC or corporation, add time for those steps. A DBA registration takes one to five business days depending on your county. An EIN from the IRS takes minutes online or two to three weeks by mail. Filing an LLC or corporation with the state takes one to ten business days depending on the state and whether you pay for expedited processing.
Plan for the whole process — from deciding your business structure to having an active account — to take two to four weeks if you are doing everything for the first time.
Sole proprietors: do you need to form an LLC first?
No. You can open a business bank account as a sole proprietor without forming an LLC. You register your business name with your county or state (a DBA registration), and the bank will open the account under that name. Your Social Security number is the tax ID for the account.
The main reason to form an LLC instead is liability protection. An LLC is a separate legal entity, so if someone sues your business, they cannot go after your personal assets. A sole proprietorship offers no such protection — your personal and business assets are legally the same. However, liability protection is a legal question, not a banking one. You can open a business account as a sole proprietor and form an LLC later if you decide you need the protection.
If you do form an LLC later, you will need to close the sole proprietor account and open a new one under the LLC's EIN. This takes a few days and is straightforward, but it is an extra step. If you think you might form an LLC soon, you could get an EIN now as a sole proprietor and use that for the business account, which makes the transition easier.
What happens if you use your personal account for business
You can deposit business income into your personal account, but the IRS and your bank both discourage it. The IRS may question whether you are actually running a business or just earning side income, which affects your tax obligations and deductions. Your bank may freeze the account if they see large or frequent business deposits, because they have to watch for money laundering.
More practically, mixing personal and business money makes taxes harder. You have to separate business income and expenses manually, which is error-prone and time-consuming. A business account keeps the records separate automatically, which makes tax time faster and gives you a clear picture of what your business actually earned.
If you are just starting out and do not have much money, a personal account is not illegal. But as soon as you are taking regular income from the business, open a business account. It costs little or nothing, and it protects you if the IRS ever asks questions about your income.
Frequently Asked Questions
Can I open a business account with just a business name and no legal structure?
Most banks will not. They need to know whether you are a sole proprietor, LLC, partnership, or corporation, because that determines who has legal authority over the account. If you are a sole proprietor, register your business name as a DBA with your county or state, and bring that certificate to the bank. If you have not registered it yet, the bank may ask you to do so before opening the account.
Do I need an EIN if I am a sole proprietor?
No, you can use your Social Security number. However, some banks prefer an EIN for business accounts, and getting one is free and takes minutes online. If you think you might hire employees later, get an EIN now — you will need it anyway, and it keeps your Social Security number out of business documents.
What if the bank asks for a corporate resolution and I do not have one?
Ask the bank what they need it to say. A corporate resolution is usually a straightforward one-page document signed by the board of directors stating that the corporation authorizes the account and names who can sign checks. You can write one yourself or ask your accountant or lawyer to draft it. Some banks provide a template. If the bank does not require it, you do not need to create one.
Can I open a business account online without going to the bank in person?
Some banks allow it, but most require at least one in-person visit to verify your identity and documents. Call the bank and ask whether they offer online account opening for business accounts. If they do, they will still ask for the same documents — proof of business structure, ID, and initial deposit — but you may be able to upload them and visit a branch later to finish.
How long does it take to get an EIN from the IRS?
Online filing takes minutes — you get your EIN when ready and can print it the same day. Mail filing takes two to three weeks. Phone filing also takes a few minutes, but IRS phone lines are often busy. If you need the account open quickly, file online.