A business bank account keeps your money separate from your personal finances
A business bank account is a checking or savings account held in your business's name rather than your personal name. Banks require this separation because it protects you legally — if your business faces a lawsuit or debt, your personal savings stay yours. It also makes taxes simpler: your accountant can see exactly what money came in and went out for business purposes.
The process differs depending on what type of business you run. A sole proprietorship (you working alone) has fewer requirements than an LLC or corporation. But in all cases, you'll need to prove your business exists and show who owns it. This article walks through what documents to bring, which banks accept which business types, and what happens after you open the account.
Key Takeaways
- You will need a business license or registration document, your Social Security number or EIN, and a form of ID to open most business accounts.
- Sole proprietors can sometimes open a business account using just their Social Security number, but an EIN (Employer Identification Number) makes the process faster and clearer.
- LLCs and corporations must bring their formation documents — the articles of organization or incorporation filed with your state — to prove the business legally exists.
- Different banks have different minimum balances, monthly fees, and rules about which business types they accept, so calling ahead saves a trip.
- You will need to bring the person whose name is on the business registration; some banks require all owners to be present.
What documents to bring to the bank
The exact documents depend on your business structure, but most banks want the same core set. Bring a government-issued photo ID (driver's license or passport) in the name of the person opening the account. Bring proof that your business exists — this is the document that changes most by business type.
If you are a sole proprietor (self-employed, no formal business structure), bring your business license if your city or county issued one. If you don't have a license, bring a DBA certificate (Doing Business As) if you registered one with your county clerk. If you operate under your own name with no registration, bring a recent business tax return or a letter from a client showing your business name. If you have an EIN (Employer Identification Number), bring the letter from the IRS that assigned it to you — this is the easiest proof.
If you formed an LLC or corporation, bring the articles of organization or articles of incorporation filed with your state. This is the official document that created your business legally. Bring it in its original form or a certified copy from your state's Secretary of State office. Some banks also ask for a corporate resolution — a document signed by the business owner saying they authorize this account to be opened. Your state's Secretary of State website has templates, or your accountant can provide one.
Bring your Social Security number or EIN. If you don't have an EIN yet, you can get one free from the IRS online (irs.gov/ein) or by phone in minutes. Many banks will open the account while you're there and assign you an EIN later, but having it beforehand speeds things up.
Sole proprietors: the fastest route
If you work alone and haven't formed an LLC or corporation, you can open a business account as a sole proprietor. Some banks let you do this with just your Social Security number and ID. Others ask for a business license or DBA certificate to prove you're operating a real business, not just using a personal account for side work.
Getting an EIN makes this easier. It takes five minutes online at irs.gov/ein and costs nothing. When you show the bank your EIN letter, they see when ready that you have a formal business identity. Without an EIN, the bank may ask more questions or require a business license.
If your city or county requires a business license for your type of work, get that first. If they don't (many don't for service businesses), you can register a DBA with your county clerk's office for a small fee — usually under $50. This gives you the document banks want to see.
LLCs and corporations: what the bank needs to see
If you formed an LLC or corporation, the bank needs proof that your business is a legal entity separate from you. Bring the articles of organization (for an LLC) or articles of incorporation (for a corporation) filed with your state. If you don't have the original, order a certified copy from your state's Secretary of State office — this usually costs $10 to $25 and takes a few days by mail or overnight.
Some banks ask for a corporate resolution or board resolution — a one-page document signed by the owner (or all owners if there are multiple) saying the business authorizes this account. This protects the bank by proving the person opening the account has permission to do so. You can write this yourself or find a template on your state's Secretary of State website. It doesn't need to be notarized, but some banks prefer it to be.
If your LLC or corporation has multiple owners, ask the bank whether all owners must be present to open the account. Some banks require it; others let one owner sign on behalf of the business. Knowing this before you go saves a second trip.
Choosing a bank and what to expect
Not all banks offer business accounts, and those that do have different rules. Call ahead or check the bank's website to confirm they accept your business type. Some banks don't open accounts for sole proprietors. Some have minimum balance requirements — you might need to keep $500 or $1,000 in the account at all times or pay a monthly fee. Ask about monthly fees, per-check charges, and whether they offer online banking and mobile deposits.
Credit unions often have lower fees than large banks and may be more flexible with sole proprietors. Community banks know local business owners and may offer better service. Large national banks have more branches and ATMs but sometimes higher fees. There's no single best choice — it depends on what matters to you.
Bring all your documents to the appointment. The process usually takes 20 to 30 minutes. The bank will ask you questions about the business — what you do, how much money you expect to move through the account, whether you'll be depositing checks or cash. Answer honestly. They're not judging; they're assessing risk and deciding what account features you need.
What happens after you open the account
The bank will give you a debit card, checks, and online banking access. You can usually start using the debit card and online banking the same day. Checks take a few days to arrive by mail. Some banks offer temporary checks you can print when ready if you need to pay someone by check right away.
Set up online banking and mobile deposit so you can deposit checks by taking a photo with your phone. This saves trips to the bank. If you have employees or contractors, ask the bank about ACH transfers — this lets you pay them electronically without writing checks.
Keep your business and personal finances separate from day one. Deposit all business income into this account and pay all business expenses from it. This makes tax time easier and protects the legal separation between you and your business. If you mix personal and business money, you risk losing the legal protection that a separate business structure provides.
Frequently Asked Questions
Can I open a business account if I haven't registered my business yet?
Most banks want proof your business exists before they open an account. For a sole proprietor, this can be as straightforward as a business license or DBA certificate. For an LLC or corporation, you must file your formation documents with your state first. You can't open a business account for a business that doesn't legally exist yet.
Do I need an EIN, or can I use my Social Security number?
You can use your Social Security number as a sole proprietor, but an EIN is easier. An EIN takes five minutes to get free from the IRS and makes the bank process faster. If you plan to hire employees or contractors, you'll need an EIN anyway, so getting it upfront saves a step later.
What if I have multiple owners in my LLC?
Call the bank before you go and ask whether all owners must be present. Some banks require all owners to sign; others let one owner open the account on behalf of the business. Bring all owners' IDs either way, and bring the articles of organization showing who owns what percentage.
Can I use a business account for personal expenses?
Legally, you can, but you shouldn't. Mixing personal and business money weakens the legal protection your business structure provides. If your business is sued, a court might decide your personal assets aren't protected because you didn't keep finances separate. Keep the accounts separate and transfer money to yourself as a salary or draw if you need personal cash.
How long does it take to open a business account?
The appointment usually takes 20 to 30 minutes. You can use online banking and your debit card the same day. Checks arrive by mail in 5 to 10 business days. Some banks offer temporary checks you can print when ready if you need to pay someone by check right away.