What you need before you walk in

A company bank account is separate from your personal account and holds money that belongs to your business, not you. Banks require proof that your business exists as a legal entity before they will open one. The documents you bring depend on what type of business you have — a sole proprietorship needs different paperwork than an LLC or corporation.

Start by gathering your business formation documents. If you registered your business with your state, you have a document that proves it — usually called a Certificate of Formation, Articles of Organization, or Articles of Incorporation, depending on your state and business type. If you operate as a sole proprietor under your own name with no formal registration, you may not have a formation document at all, and that changes what the bank will ask for.

You will also need a federal Employer Identification Number, called an EIN. This is a nine-digit number the IRS issues to businesses. Even if you are a sole proprietor with no employees, most banks now require an EIN to open a business account. You can obtain one free from the IRS website (irs.gov) in minutes, and the number is issued when ready online.

Key Takeaways

  • You must bring your business formation document (Certificate of Formation, Articles of Organization, or similar) and your EIN to open an account; sole proprietors may use a different process depending on the bank.
  • An EIN is a free nine-digit number from the IRS that takes minutes to obtain online and is issued when ready.
  • Banks will ask for a government-issued ID from the owner or authorized representative, proof of the business address, and sometimes a recent utility bill or lease.
  • Opening an account usually takes one to two weeks from the time you submit documents, though some banks offer same-day accounts if you visit in person.
  • Monthly fees, minimum balances, and transaction limits vary widely between banks, so compare options before choosing.

Documents to bring or have ready

The exact list depends on your business structure, but most banks ask for the same core items. Bring your Certificate of Formation, Articles of Organization, or Articles of Incorporation — whichever document your state issued when you registered your business. If you have not registered your business formally and operate as a sole proprietor, ask the bank whether they will open an account under your personal name with a business designation, or whether they require formal registration first.

Bring your EIN letter from the IRS. This is the document you receive when you explore for an EIN online; print it or have it ready to show. You will also need a government-issued photo ID — a driver's license or passport — for the person who will be the account owner or authorized representative. Some banks ask for a second form of ID as well.

Have your business address ready. This should be the physical location where your business operates or receives mail. If you work from home, you can use your home address. Some banks also ask for proof of the address — a recent utility bill, lease, or mortgage statement in the business name, or in your name if the business is new. A few banks will accept a utility bill in your personal name if the address matches.

Sole proprietors and the EIN question

If you operate as a sole proprietor — meaning you are the only owner and have not formed an LLC or corporation — the rules vary by bank. Some banks will open a business account using your Social Security Number instead of an EIN, especially if you have no employees. Other banks require an EIN regardless of business structure. Call the bank before you visit to ask which they accept.

Even if a bank allows you to use your Social Security Number, getting an EIN is still worth doing. It keeps your personal and business finances separate on paper, which matters for taxes and liability. The EIN is free and takes five minutes to request online at irs.gov.

The process and approval process

You can open an account in person at a branch, by mail, or online, depending on the bank. In-person is fastest — you can often walk out with an account number the same day. By mail or online, the process usually takes one to two weeks. The bank will review your documents to confirm your business exists and that you are authorized to open the account on its behalf.

Some banks ask additional questions: whether the business has other owners, whether you have a business license (required in some industries and states), or whether you have a business plan. These are informational questions, not barriers. Answer honestly. If your business requires a license — such as contracting, food service, or professional services — have that ready as well.

Once approved, the bank will issue you an account number, routing number, and debit card. They will also provide you with online banking access so you can check balances and transfer money. Some banks mail these items; others provide them when ready if you open the account in person.

Comparing fees and account types

Business accounts are not all the same. Banks charge monthly maintenance fees that range from zero to thirty dollars or more, depending on the bank and account type. Some waive the fee if you maintain a minimum balance — often five hundred to two thousand five hundred dollars — or if you set up direct deposit. Others charge per transaction: a fee for each check you deposit, each wire transfer, or each ACH payment you make.

Before you choose a bank, compare three or four options. Look at the monthly fee, the minimum balance requirement, the cost of checks, and whether the bank charges for common transactions like wire transfers or ACH payments. If you expect to deposit many checks, ask whether the bank has a mobile deposit feature (photograph the check with your phone) and whether they charge for it. If you plan to receive payments by ACH or wire transfer, confirm the bank accepts them.

Some banks offer accounts designed for startups or small businesses with lower minimums and fewer fees. Others offer accounts with higher minimums but more features. Choose based on what you actually need, not on the account name.

What happens after you open the account

Once your account is open, the bank will provide you with a routing number and account number. You will use these to set up direct deposit, receive payments from customers, and pay bills by ACH transfer. Keep these numbers safe — they are the equivalent of your checking account's address.

Set up online banking when ready. This lets you monitor your account, transfer money, and catch fraud quickly. Most banks offer free online banking and mobile apps. Enable alerts so the bank notifies you of large transactions or low balances.

If your business has employees or you plan to hire them, you will need to set up payroll. This is separate from opening the account but uses the account information. Talk to your accountant or payroll provider about how to handle this once your account is open.

Frequently Asked Questions

Can I open a business account if my business is not registered with the state?

It depends on the bank. Some will open an account for a sole proprietor using your Social Security Number and personal name with a business designation. Others require formal registration or an EIN. Call ahead to ask what the bank accepts before you visit.

How long does it take to get an EIN?

If you explore online at irs.gov, you receive your EIN when ready — within minutes. You can print the confirmation page and use it as proof. If you explore by mail or phone, it takes two to four weeks.

Do I need a business license to open a bank account?

Not always. Most banks do not require a license to open an account. However, some industries — contracting, food service, healthcare — require a license by law. If your business needs one, have it ready. If it does not, you do not need one for the bank.

What if I have multiple owners?

The bank will ask for information about all owners and may require each owner to sign the account agreement. Some banks allow multiple people to have signing authority on the account; others restrict it to one. Ask the bank what options they offer.

Can I use a PO box as my business address?

Some banks accept a PO box; others require a physical street address. Call ahead to ask. If the bank requires a physical address and you do not have one, you can use your home address or rent a mailbox at a UPS Store or similar service.