How to Open a Business Bank Account

Opening a business bank account requires an Employer Identification Number (EIN) from the IRS, a government-issued photo ID, and your business formation documents. Sole proprietors can use their Social Security Number instead of an EIN. Online bank applications take 10 to 15 minutes and most accounts are approved the same day. Traditional bank applications may require a branch visit but can also be completed in a single appointment.

Before You Apply

The application process is straightforward, but gathering your documents in advance prevents delays. Different business entity types require different documentation, and some banks have specific requirements beyond the basics. Taking 30 minutes to organize everything before you start the application ensures a smooth process.

If you have not yet decided on a bank, review the best business checking accounts comparison to choose between traditional and online banks. Your choice affects the application process: online banks handle everything digitally, while traditional banks may require in-person visits.

Step-by-Step Process

Step 1: Get your Employer Identification Number (EIN).
An EIN is a nine-digit number assigned by the IRS that identifies your business for tax purposes. Even if you are a sole proprietor who could use your SSN, getting a separate EIN is recommended because it protects your Social Security Number from appearing on business documents, invoices, and vendor applications. Apply directly at irs.gov for free. The online application takes about 10 minutes and you receive your EIN immediately upon completion. Do not use third-party services that charge fees for EIN applications, as the IRS provides this service at no cost.

Step 2: Gather your required documents.
The specific documents you need depend on your business entity type. All entity types need a government-issued photo ID (driver's license or passport) for each account signer and your EIN confirmation letter (IRS Letter 147C or CP 575). LLCs also need their Articles of Organization filed with the state and their Operating Agreement. Corporations need Articles of Incorporation, bylaws, and a corporate resolution authorizing the account opening. Partnerships need the partnership agreement. Sole proprietors need a DBA (Doing Business As) certificate if they operate under a name other than their legal name. Some banks also request a business license, though this requirement varies by location and industry.

Step 3: Choose your bank.
Match your bank to your operational needs. If you deposit cash regularly, choose a traditional bank with nearby branches. If you operate entirely online and want the lowest fees, choose an online business bank like Mercury, Relay, or Bluevine. If you want to earn interest on your checking balance, Bluevine offers 2.0% APY. If you want multiple sub-accounts for financial organization, Relay offers unlimited free sub-accounts. Consider your future needs too: if you plan to apply for a business loan within the next year, establishing a relationship with a traditional bank that offers SBA lending can improve your application strength.

Step 4: Complete the application.
For online banks, the entire process happens on their website or app. You will enter your business information (legal name, address, EIN, formation date, industry, expected monthly deposits), personal information for each account signer, and upload photos or scans of your supporting documents. Most online bank applications take 10 to 15 minutes to complete, and approval decisions come within minutes to a few hours. For traditional banks, you can often start the application online and complete it during a branch visit, or handle the entire process in person. Bring originals of all documents since branch bankers may need to verify them. A typical branch appointment takes 30 to 45 minutes.

Step 5: Fund your account and set up integrations.
Most banks require an initial deposit to activate the account. Online banks often accept any amount, including $0 for some, while traditional banks may require $25 to $100. Fund the account through ACH transfer from your personal bank, wire transfer, or in-person deposit. Once funded, immediately set up your critical integrations: connect your payment processors (Stripe, PayPal, Shopify Payments) to deposit into the new account, link your accounting software for automatic transaction importing, and order debit cards for business expenses.

What Each Entity Type Needs

Sole Proprietor

Sole proprietors have the simplest application process. You can open a business bank account using your SSN instead of an EIN, though getting an EIN is recommended for privacy and credibility. If you operate under your legal name, you generally need only your photo ID and SSN or EIN. If you operate under a business name like "Smith's Widget Shop," you need a DBA (Doing Business As) certificate, also called a fictitious business name filing, from your county or state. DBA registration typically costs $10 to $50 and takes a few days to process. Read the full guide to business banking for sole proprietors.

LLC

Opening a bank account for an LLC requires your Articles of Organization (the document filed with your state to create the LLC), your Operating Agreement (even a single-member LLC should have one), your EIN confirmation letter, and photo IDs for all members who will be signers on the account. Some banks require the Operating Agreement to specifically authorize the member or manager opening the account to conduct banking activities on behalf of the LLC. If your Operating Agreement does not include banking authorization language, your bank may ask you to amend it or provide a separate resolution. Opening a bank account for an LLC covers the full process including state-specific requirements.

Corporation

Corporations need Articles of Incorporation, corporate bylaws, a corporate resolution signed by the board of directors authorizing the account opening and designating authorized signers, EIN confirmation, and photo IDs for all authorized signers. The corporate resolution is the document banks most commonly request that businesses forget to prepare. It should name the specific individuals authorized to open accounts, sign checks, initiate transfers, and manage the banking relationship on behalf of the corporation. Many banks provide their own corporate resolution template that you can complete and have signed by your board.

Partnership

Partnerships need a signed partnership agreement that identifies all partners and their ownership percentages, EIN confirmation, and photo IDs for all partners who will be signers. If the partnership agreement authorizes specific partners to manage banking on behalf of the partnership, bring the relevant sections. If all partners must sign, everyone needs to be present for a branch application or all must complete online identity verification.

Common Application Problems

Address verification issues: Banks verify your business address through public databases. If your business address is a PO Box, virtual office, or registered agent address, some banks may require additional documentation to verify the address is associated with an actual operating business. Home-based businesses generally do not have address issues as long as the address matches other documentation.

Industry restrictions: Some banks restrict certain industries, particularly those considered high-risk for payment processing. Cannabis-related businesses, cryptocurrency companies, adult entertainment, firearms sellers, and gambling operations face limited banking options. If your business falls into a restricted category, look for banks that specifically serve your industry rather than applying broadly and receiving rejections.

Credit check concerns: Most business bank accounts do not require a credit check for opening a basic checking account. However, some banks run a soft inquiry through ChexSystems, which tracks banking history (bounced checks, unpaid overdrafts, account closures) rather than credit scores. If you have negative ChexSystems history, online banks are generally more flexible than traditional banks in their approval criteria.

Multiple signers: If your business has multiple owners who need account access, the application requires identity verification for each signer. For online banks, each signer completes their own verification step. For traditional banks, all signers may need to visit the branch, though some allow signers to verify at different branches or through mail-in documentation.

After Your Account Is Open

Opening the account is just the beginning. Take these steps within the first week to fully set up your business banking infrastructure.

Update your payment processor deposit settings. Log into Stripe, PayPal, Shopify, Amazon Seller Central, and any other platform that sends you money, and update the deposit bank account to your new business account. Keep your old account active during the transition until you confirm all deposits are routing correctly.

Connect your accounting software. Set up the bank feed in QuickBooks, Xero, or your preferred accounting tool so transactions import automatically. Create categorization rules for recurring transactions to minimize manual bookkeeping.

Set up financial separation by ensuring all business expenses are paid from the business account and all personal expenses are paid from your personal account. The separation needs to be clean and consistent from day one to maintain the legal protections your business entity provides and to build a clear financial history for future business credit applications.