How to Open a Business Bank Account (Steps & Docs)

Now that you’ve launched your business, you’ve already taken the first leap. You may now want to consider opening a business bank account to help separate your funds from those of your business.

But what’s the procedure for opening a business bank account? What documents and requirements do you need?

This post will help prepare you with all the information you need to know before heading out to the bank. Take a couple of minutes to look over the steps to open a business bank account.

Key Points and Facts About Opening a Business Bank Account

You’ll typically need your EIN (or SSN if you’re a sole proprietor with no employees) and proof of business registration before a bank will open an account.
Lenders generally calculate how long you’ve been in business from your EIN issuance date or entity formation date, not your bank account opening date — but opening your account early still helps avoid a documentation gap.
Your options go beyond traditional banks. Credit unions and online-first platforms are viable alternatives worth comparing.
Which documents you need depends heavily on your business structure — sole proprietorship, partnership, LLC, or corporation.
There are several types of business bank accounts, each suited to a different way of managing funds.

Opening a Business Bank Account

Before you open a business bank account, it’s essential that you first register your entity with the state. Most banks will demand proof that you are a registered entity, among other requirements. You may also have to acquire an EIN from the IRS, although it depends on your business structure.

It’s smart to open your account as soon as you register your entity and begin operations.

Lenders typically calculate how long you’ve been in business using your EIN issuance date or your entity formation date — whichever is earlier — rather than the date you opened your bank account.

Still, waiting too long to open a dedicated account can leave a gap between your formation date and your bank statements — a gap some lenders read as a red flag when reviewing an application. Let’s look at the steps to follow when opening a business bank account.

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1. Choose a Bank

Take some time to research and find a bank that fits how your business operates. The United States has an enormous selection of banks that you can choose from — some operate locally while others operate nationally, and fees and account terms vary widely from one institution to the next. Go for a bank geared toward helping small businesses grow.

Your options aren’t limited to traditional banks, either. Credit unions, which are insured by the NCUA rather than the FDIC, often offer lower fees and more personal service for local businesses.

Online-first platforms have also become a mainstream alternative — many charge no monthly fees, pay interest on checking balances, and allow unlimited transactions, though they typically operate without physical branches.

There are other good banks that you can select for your bank account. Take a day or two to do your research and ask around about banks ideal for a small business. Here are a few other tips to help you choose a bank:

Check the fees associated with opening and using the business bank account.
Check the termination fees should you decide to close the account.
Assess the minimum required deposit.
Check the interest rate if the account is a savings or a certificate of deposits account.
Go for a bank with reliable and professional customer support.

2. Gather Required Documentation

Once you choose your ideal bank, the next step will be to gather all the requirements and documents.

As mentioned above, most banks will require you to have a federal EIN and show proof of business registration before opening a business bank account. You may also be required to issue documents to verify your identity. Here are the documents your bank may ask for:

Owner’s photo ID
Business registration documents
Federal EIN (Employer Identification Number)
SSN (Social Security Number) if your entity is a sole proprietorship
Business license
Your state-issued driver’s license
Your United States passport
Credit card revenue details (if you are opening a merchant account)

We will go over these requirements in a later section.

3. Go to the Bank’s Location or Website

Once you gather all the necessary documents, it’s time to apply for a business bank account. You can either set up an account online on the bank’s website or go physically to one of the bank’s branches. It depends on your bank and business type. For example, some banks may require you to open an account physically if your business has multiple owners.

4. Fill In the Required Documentation

Your bank will, in most cases, issue you paperwork for you to fill in. The information that you may need to complete includes:

Business name
Business address
Business federal EIN
Type of business structure
Industry or product or service offered
Date of application
Date of entity establishment
Country and state of business formation
Owner’s information and address
Contact information
Owner’s signature(s)
Personal Financial Statement — required for any owner holding 10% or more of the business, or anyone providing a personal guarantee on the account

5. Deposit the Minimum Required Amount

After filling in the required paperwork for opening an account, the last step is to deposit funds. You can put in an initial deposit through an electronic fund transfer, written check, or a cash deposit. The minimum amount that you need to deposit depends on your bank.

Types of Business Bank Accounts

There are several types of business bank accounts that you can open, and they all have their distinguishing characteristics and purpose. It’s crucial that you select the one that meets your business needs. Let’s go over the types one by one:

Business Checking Account

Checking accounts are the most common bank accounts available. You can use them to deposit funds, make withdrawals and payments, and transfer money from your account to another.

This bank account is suitable if funds constantly move in and out of your business account.

Business checking accounts have a low opening deposit.

Most banks allow frequent access to your funds, though many cap the number of free transactions per statement cycle — commonly somewhere between 100 and 250 — before charging a per-item fee.

Some online-first accounts offer unlimited transactions with no such cap, so it’s worth checking a specific account’s terms if you expect high transaction volume.

Business Savings Account

Business savings accounts are ideal if you want to store funds over a long period. This account, however, comes with certain limitations.

You typically can’t withdraw funds through an ATM or write checks against it.

Many banks also still cap withdrawals or transfers at around six per month, even though that limit is no longer a federal requirement — it’s now up to each bank’s own policy, so check your specific account’s terms.

Business savings accounts are not suitable for a business that constantly moves funds. They are only ideal if you want your funds to stay for long periods and accrue interest. Business savings accounts have a higher opening deposit.

Merchant Account

You need a merchant service account to accept credit card payments.

When a customer pays you using a debit or credit card, the funds initially go to your merchant account before transferring to your business bank account.

A merchant account is ideal if you run an online business or want your customers to pay via credit card.

Setting up a merchant account on top of your business bank account may attract additional monthly and transactional fees.

Foreign Currency Accounts

Foreign currency accounts are suitable if you receive funds in different currencies. This account also allows you to send funds in multiple currencies.

One disadvantage of a foreign currency account is that the minimum deposit is high and your total balance fluctuates depending on the exchange rates.

Business Certificate of Deposit Accounts (CDs)

Business certificate of deposit accounts are an excellent alternative to business savings accounts. They offer a high interest rate, often higher than a money market or savings account.

The only disadvantage is that your money stays locked in for a specified amount of time, ranging from a few months to a couple of years. You may be subject to paying steep penalties if you withdraw the funds earlier than the set time.

Business Money Market Accounts

Business money market accounts are like a hybrid of checking and savings accounts. They are interest-bearing and allow you to write checks and make ATM withdrawals using debit cards.

These accounts, however, require a minimum deposit. There is also a limit on the number of transactions and withdrawals you can make.

Why You Need a Business Bank Account

The key reason why you should open a business bank account is to separate your business funds from your personal finances.

Commingling finances makes it difficult to distinguish business transactions from personal ones, which makes running your business more challenging. Let’s look at a few other reasons why you should have a business bank account:

Your Business Will Look More Professional

How you present yourself to customers, investors, and partners matters. A dedicated bank account shows stakeholders you’re serious about the venture — it builds confidence with clients, investors, and suppliers, and signals that you’re in it for the long haul.

You Can Accept Credit Card Transactions

As mentioned above, you can’t accept credit cards without a merchant account. This type of business bank account acts as a holding account for payments made via a credit card.

Many customers expect the option to pay by card, and without it, you risk losing sales to people who don’t carry cash or checks.

It Simplifies Expense and Revenue Tracking and Preparing Tax Reports

A dedicated account makes it easier for your accountant or bookkeeper to track expenses and revenue. Since every transaction in the account is for the business, no one has to sort through statements guessing which charges were personal and which weren’t.

That saves your accountant or bookkeeper time on financial statements and speeds up tax preparation.

Building a Business Credit Profile

With a business bank account, you can begin building a credit profile for your business.

A solid credit profile makes it easier to take out loans, mortgages, and lines of credit in your business’s name. A lender reviewing that track record is more willing to extend credit to the business.

Documents Required Depending on Business Structure

Your bank may require you to submit various documents depending on your business structure. Let’s look at some of the requirements for each business structure.

Sole Proprietorships

The requirements for opening a business bank account for a sole proprietorship include:

SSN – If your business is a sole proprietorship with no employees, you can use your SSN to open a business bank account.
DBA certificate – The bank may ask for a DBA certificate if you’ve registered your business as a DBA. A DBA certificate allows you to conduct business in a trade or fictitious name.
Personal identification documents – Your bank may also request personal identification documents such as a driver’s license and passport to verify your identity.

Partnerships

Here are the requirements for opening a business bank account for a partnership:

Partnership agreement documents – The bank may request a partnership agreement or any other documents to prove the legal existence of your business.
Federal EIN – You will need a federal EIN to set up a business bank account for your partnership.
Business license – You may need to provide your business license to show the legitimacy of your business. This requirement depends on your industry.
DBA certificate – If your entity is a general partnership operating with a fictitious business name, you may have to submit a DBA certificate.

Limited Liability Company (LLC)

Federal EIN – Your bank will ask for your federal EIN to verify your business’s identity.
Articles of organization – Your bank may request business formation documents like articles of organization to show your LLC’s legal existence.
DBA certificate – If your LLC conducts operations with a name other than that registered with the state, you may have to provide a DBA certificate to verify your business name.
Certificate of Good Standing – If your LLC is more than a year old, or you’re banking in a different state from where you formed, some banks will ask for this to confirm you’re current on your state filings.

Corporations

Articles of incorporation – When opening a business bank account for a corporation, the bank may request certified articles of incorporation or a corporate charter.
Corporate resolution – The bank may also ask for a corporate resolution signed by owners or managers who will become signatories in opening the bank account.
Certificate of Good Standing – As with LLCs, an established corporation or one banking outside its state of formation may need to show this to prove it’s current on state filings.

Other documents required for setting up a business bank account for a corporation include:

Federal EIN
Business licenses
Signatories information

Action Steps for Opening a Business Bank Account

Decide which accounts you actually need

Match account types to how your business handles money — a checking account for daily transactions, a savings or CD account for reserves, a merchant account if you take card payments.
Avoid opening accounts you won’t use regularly; extra accounts can mean extra fees.

Compare banks, credit unions, and online-first platforms

Weigh fees, minimum deposits, transaction caps, and interest rates against each other rather than defaulting to the first bank you find.
Consider whether you need in-person branch access or are comfortable managing the account entirely online.

Confirm which documents your business structure requires

Pull the document list for your specific structure — sole proprietorship, partnership, LLC, or corporation — rather than assuming one list fits all.
Check whether your bank will require a Certificate of Good Standing or Personal Financial Statement before you show up.

Choose how you’ll apply

Decide between an online application and an in-person branch visit based on your bank’s requirements and your business’s ownership structure.
Multi-owner businesses should confirm ahead of time whether all signatories need to be present.

Checklist for Opening a Business Bank Account

Confirm your business is registered and get your EIN
- Register your entity with the state, if you haven’t already.
- Apply for a federal EIN, or confirm you can use your SSN as a sole proprietor.
Gather your personal identification
- Driver’s license or state-issued ID.
- Passport, if you have one, as a backup form of ID.
Gather your structure-specific documents
- DBA certificate, partnership agreement, articles of organization, or articles of incorporation, as applicable.
- Certificate of Good Standing, if your bank requires one.
Know your minimum deposit
- Confirm the minimum opening deposit for your chosen account and have the funds ready.
Confirm your signatories
- Identify who needs to sign or be present, especially for partnerships and multi-owner LLCs or corporations.
- Have Personal Financial Statements ready for any owner with 10% or more ownership or providing a personal guarantee.

FAQ: Opening a Business Bank Account

Do I need an EIN to open a business bank account?

In most cases, yes. The exception is a sole proprietorship with no employees, which can use the owner’s SSN instead.

Can You Open a Business Bank Account with Bad Credit?

Yes, you can set up a business bank account if you have bad credit. However, there might be a limitation to the number of banks that will allow you to open an account. Some banks run a credit check when opening a business bank account. Even though you are not asking for a loan, they may still consider your business a potential risk.

How Long Does It Take to Open a Business Bank Account?

The process may take a day to a couple of weeks, depending on the bank and the business structure. The more complex the entity structure, the more time it may take to verify all the information and set up the account.

Conclusion

Opening a business bank account is a crucial step that comes after forming and registering a business. The steps to follow when setting up the account include choosing a bank, gathering required documents, and applying online or at one of the bank’s local branches. The bank will open your business bank account once you fill in the paperwork and make the minimum initial deposit.

There are several types of business bank accounts that you can set up, each with its own distinguishing features. You need to go for the one that enables your business to meet its financial needs and obligations. The documents required to open a business bank account include business registration and personal details, a federal EIN, and business licenses — though exactly which ones depend on your business structure.

How to Open a Business Bank Account: Steps, Documents, and Account Types