Small Business
How to Open a Business Bank Account
Quick answer
To open a business bank account you'll need: an EIN from the IRS (free, minutes online), your business formation documents (articles of organization for LLCs), and a government ID. Compare monthly fees, transaction limits, cash deposit allowances, and software integrations — then apply online or in branch. Most accounts open the same day.
Key takeaways
- Get your EIN first — it's free from the IRS and takes minutes.
- Bring formation documents (LLC/corp) or a DBA certificate for sole proprietors using a trade name.
- Compare: monthly fee + waiver, free transactions, cash deposits, ATM network, accounting integrations.
- Fund it immediately and route all business income/expenses through it from day one.
Step 1: Get your paperwork in order
EIN. Apply free at irs.gov — it takes minutes and you get the number immediately. Sole proprietors can use an SSN, but an EIN keeps your SSN off vendor forms and is required if you hire.
Formation documents. LLCs and corporations: articles of organization/incorporation. Sole proprietors using a trade name: your DBA ('doing business as') certificate from the county or state.
ID and basics. Government-issued photo ID, business address, and a starting deposit.
Step 2: Compare accounts on what actually matters
Ignore the marketing; compare these five things: (1) Monthly fee and how to waive it — many $0–$30 fees disappear with a minimum balance. (2) Free transactions per month — count your expected deposits, withdrawals, and transfers. (3) Cash deposits — some online accounts limit these heavily; cash businesses beware. (4) ATM network — where can you get cash free? (5) Software integration — does it connect cleanly to your accounting tool?
Step 3: Apply and fund it
Most banks let you apply online in 15–30 minutes; some require a branch visit for certain entity types. Fund the account immediately — even a small deposit — and update your payment rails the same week: client invoices, payment processor payouts, and autopay bills all point at the new account. From that day forward, business money never touches your personal account.
At a glance
| Document | LLC / Corp | Sole proprietor |
|---|---|---|
| EIN (irs.gov, free) | Required | Recommended |
| Articles of organization | Required | — |
| DBA certificate | If using a trade name | If using a trade name |
| Photo ID | Required | Required |
| Operating agreement | Sometimes asked | — |
Document checklist by business type
What this means for you
This is a one-afternoon task that pays off every tax season for the life of your business. Don't overthink the 'perfect' account — pick a reasonable one now; you can switch banks later with far less pain than untangling years of mixed finances.
FAQ
Can I open one before I have revenue?
Yes — and you should. The account exists to separate finances from the first dollar, not after you're 'established.'
Online bank or local branch?
Online banks often have lower fees; branches matter if you deposit cash regularly or want in-person help. Cash-heavy businesses should strongly prefer branch access.
How much does it cost?
Many business checking accounts are free with a modest minimum balance. Even paid ones ($10–$30/month) are a deductible business expense — and far cheaper than an accountant reconstructing mixed books.
Sources
- IRS — apply for an Employer Identification Number (irs.gov)
- U.S. Small Business Administration — choose your business structure (sba.gov)
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