What you need before you walk into a bank
A business bank account is separate from your personal account and holds money that belongs to your company, not you. Banks require proof that your business exists as a legal entity before they will open an account in the company's name. The documents you bring depend on what type of business structure you have — sole proprietorship, partnership, LLC, corporation, or nonprofit.
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. If you are a sole proprietor operating under your own name, you may not have filed anything yet, and that changes what the bank will ask for. If you operate under a different name (called a "doing business as" or DBA), you need the registration for that name from your county or state.
You will also need a federal Employer Identification Number, or EIN. This is a nine-digit number the IRS assigns to your business. Even if you are a sole proprietor with no employees, you may want one so the business and your personal finances stay separate in the IRS's records. You can get an EIN free from the IRS website (irs.gov) in minutes — you do not need to pay a service to do this for you.
Key Takeaways
- Bring your business formation documents (Certificate of Formation, Articles of Organization, or DBA registration) and your EIN to prove your business exists as a legal entity.
- The bank will ask for a government-issued ID from the person opening the account, even though the account belongs to the company.
- You will sign a signature card or resolution that authorizes specific people to sign checks and move money from the account.
- Some banks require a minimum deposit to open the account, and that amount varies by bank and account type.
- The whole process usually takes 15 to 30 minutes in person, or several days if you do it by mail or online.
Documents to bring to the bank
The exact list depends on your business structure, but most banks ask for the same core set. Bring your business formation document (the one that proves your business is registered), your EIN letter from the IRS, and a government-issued photo ID — usually a driver's license or passport. The ID must be in the name of the person opening the account, not the company name.
If you are a sole proprietor and have not registered your business with the state, bring your driver's license and your EIN letter. Some banks will also ask for a recent utility bill or lease in your business name to prove the address. If you operate under a DBA, bring the DBA registration from your county or state clerk's office.
For partnerships, bring the partnership agreement and the IDs of the partners who will have authority to sign checks. For LLCs and corporations, bring the formation document and the operating agreement or bylaws if you have one. For nonprofits, bring your Articles of Incorporation and your IRS information letter (the document that says you are tax-exempt).
Who can sign checks and move money
The bank will ask you to name the people authorized to sign checks and conduct transactions on the account. This is usually done on a signature card or a corporate resolution — a document that says the company authorizes certain people to act on its behalf. You do not have to authorize everyone who owns the business. You can authorize just yourself, or you can authorize multiple people.
If you authorize more than one person, the bank will ask whether both signatures are required for every check, or whether one signature is enough. This is called "joint and several" authority (one person can act alone) or "joint" authority (both must sign). Choose based on how much control you want and how much you trust the other authorized people.
The bank will ask each authorized person to sign the card or resolution in front of a bank employee. If you are opening the account by mail or online, you may be able to sign electronically, but the process varies by bank.
Minimum deposits and account types
Most banks require a minimum deposit to open a business account. This amount varies widely — some banks ask for $100, others for $500 or $1,000, and some have no minimum. The money you deposit becomes part of your account balance, so you are not losing it; you are just putting it in the account to start.
Banks offer different types of business accounts. A business checking account is designed for daily transactions — paying bills, receiving deposits, writing checks. A business savings account earns interest but usually limits how many withdrawals you can make per month. Some banks offer a combined account that has both checking and savings features. Ask the bank what types they offer and what the differences are in fees and interest rates.
The account you choose affects what you pay in monthly fees and what you earn in interest. A business checking account with no minimum balance and low fees might cost $10 to $15 per month, while a premium account with higher minimums might cost more but offer perks like free wire transfers or discounted merchant services.
The step-by-step process
Call the bank ahead of time or visit their website to find out what documents they need for your specific business type. This saves you a trip if you are missing something. When you are ready, bring all your documents to a branch near you.
Tell the person at the desk that you want to open a business account. They will review your documents, ask you questions about your business (what you do, how much money you expect to move through the account, who the owners are), and explain the account options. They will show you the signature card or resolution and ask you to sign it. If other people are authorized on the account, they need to sign too.
You will make your minimum deposit — usually by check, cash, or transfer from another account. The bank will give you temporary checks or a debit card, though the permanent checks usually arrive by mail in one to two weeks. Your account is now open and ready to use.
Opening an account by mail or online
Some banks let you open a business account without visiting a branch. The process is similar but happens on their website or through the mail. You upload photos of your documents, fill out an process form, and sign electronically. The bank may call you to verify information before they open the account.
Online and mail accounts usually take longer — three to five business days instead of the 15 to 30 minutes it takes in person. You may also have to make your deposit by check or transfer, which adds another few days before the account is fully active. Some banks require you to visit a branch in person at least once to verify your identity, even if you started the process online.
Ask the bank whether they will mail you checks or whether you have to order them separately. Some banks include a starter set of checks; others charge for them.
What happens after you open the account
Once the account is open, you can start depositing money and writing checks. The bank will send you a monthly statement showing all transactions. Keep these statements for your records and for tax purposes — they prove what money came in and went out of your business.
Set up online banking so you can check your balance, transfer money, and pay bills from your computer or phone. Most banks offer this free. You can also set up automatic payments for bills that are the same amount every month, like rent or insurance.
If you need to add or remove authorized signers later, contact the bank and ask them to update your signature card or resolution. If you need to change the account type or close the account, the bank can do that too, though closing may take a few days and you will need to move any remaining balance.
Frequently Asked Questions
Do I need an EIN if I am a sole proprietor with no employees?
You do not legally need one, but most banks ask for it anyway. Getting one is free and takes a few minutes on the IRS website. It keeps your business finances separate from your personal finances in the IRS's records, which is useful for taxes and for keeping your business identity clear.
Can I open a business account if my business is not registered with the state?
Yes, if you are a sole proprietor. Bring your driver's license, your EIN letter, and proof of your business address (like a utility bill or lease). Some banks may also ask for a DBA registration if you operate under a name different from your own.
What if I need to add someone else as an authorized signer after the account is open?
Contact your bank and ask them to update your signature card or resolution. You will need to bring that person's ID and have them sign the new card in front of a bank employee, or sign electronically if the bank offers that option.
How long does it take to get my permanent checks?
Most banks mail permanent checks one to two weeks after you open the account. You can use temporary checks or a debit card in the meantime. Some banks let you order checks from a third-party printer, which may be faster or cheaper.
What is the difference between a business checking account and a business savings account?
A checking account is for frequent transactions — paying bills, receiving deposits, writing checks. A savings account earns interest but limits withdrawals. Most businesses use checking for daily operations and savings to set aside money for taxes or emergencies.