What You Need to Open a Business Bank Account: A Complete Checklist

You've registered your business, set up your workspace, and maybe landed your first client. But when you try to get paid, there's a problem: you don't have a business bank account yet.

It sounds like a simple fix—just walk into a bank and open one—but plenty of small business owners are caught off guard by the paperwork requirements, minimum balances, and structural differences between account types. This guide walks you through exactly what you need, organized by business type, so you can open your account without delays.

Why a Separate Business Bank Account Matters

Around 96% of small businesses maintain separate business bank accounts, and there are good reasons why. Mixing personal and business finances might seem harmless early on, but it creates real problems:

• Tax complexity: Without separation, identifying deductible business expenses requires combing through personal statements.
• Legal exposure: For LLCs and corporations, commingling funds can "pierce the corporate veil," exposing your personal assets to business liabilities.
• Professionalism: Clients and vendors pay business names, not personal names. Checks made out to "Jane Smith" instead of "Jane's Consulting LLC" raise eyebrows.
• Audit risk: The IRS looks unfavorably on blended finances, and reconstructing records after the fact is painful.

Opening a dedicated account is one of the most important early financial decisions you'll make.

The Universal Requirements

Regardless of your business structure, every bank will ask for:

1. Personal Identification

Bring at least two government-issued IDs. Acceptable forms typically include:

• Driver's license or state ID
• Passport
• Military ID

Some banks (Chase, for example) require two forms of ID. Check ahead of time.

2. Employer Identification Number (EIN)

Your EIN is like a Social Security number for your business—banks use it to verify the entity opening the account. You can apply for an EIN free through the IRS website, and you'll typically receive it instantly online.

Exception: Sole proprietors without employees don't legally need an EIN and can use their Social Security number instead. However, getting an EIN is free, fast, and protects your SSN from being handed out on business documents.

3. Business Name Documentation

You'll need proof of your registered business name. What qualifies depends on your structure:

• DBA (Doing Business As): A DBA certificate from your county or state
• LLC: Your Articles of Organization
• Corporation: Your Articles of Incorporation or corporate charter

4. Physical Business Address

Banks require a real street address—not a P.O. Box, not a virtual office address. If you work from home, your home address qualifies. If you use a registered agent service for legal purposes, that address typically won't work for banking.

Requirements by Business Structure

Sole Proprietorship

This is the simplest case. You'll typically need:

• Personal government-issued ID (two forms at most banks)
• Social Security number (or EIN)
• DBA certificate if you operate under a name other than your own

Many banks can open a sole proprietor account with minimal documentation, sometimes in under 20 minutes.

LLC (Limited Liability Company)

LLCs require more documentation because the bank needs to verify the entity's legal standing:

• Articles of Organization: Filed with your state when you formed the LLC
• Operating Agreement: Describes how the LLC is managed and who has authority. Many banks consider this mandatory even though not all states require LLCs to have one in writing.
• Partnership/member agreement: If the LLC has multiple owners
• Business licenses: Any licenses required to operate in your industry or locality
• EIN: Required for LLCs (you cannot use a personal SSN for a multi-member LLC)

One common mistake: showing up without the operating agreement. Even if you formed an LLC without drafting one, you should create this document before visiting the bank.

Corporation (C-Corp or S-Corp)

Corporations have the most formal documentation requirements:

• Articles of Incorporation: Filed with your state
• Corporate charter: Your governing document
• Corporate resolution: A document showing the board has authorized specific individuals to open and manage bank accounts
• Meeting minutes: Some banks ask for evidence of board approval
• EIN: Required for all corporations
• List of officers and authorized signers: Banks need to know who has signing authority

Wells Fargo, for instance, requires notarized forms if not all owners can be present in person for the account opening.

Partnership (General or Limited)

Partnerships need:

• Partnership agreement: Signed by all partners
• EIN: Required for partnerships
• DBA certificate: If operating under a trade name
• Business licenses: If applicable

What to Expect at the Bank

Minimum Opening Deposits

Opening deposit requirements vary significantly:

• Chase: $0 for business checking
• Wells Fargo: $25
• Bank of America: $100 for some accounts, varies by account type
• PNC: $100
• Online banks (Mercury, Relay, Found): Often $0

Keep in mind that the opening deposit is different from the minimum daily balance required to waive monthly service fees. Most traditional banks charge $15/month in maintenance fees unless you maintain $2,000–$5,000 in the account.

Monthly Fees to Watch For

Transaction fees at traditional banks can add up to $300–$3,600 annually if you're not careful. Before opening, review:

• Monthly maintenance fees and how to waive them
• Per-transaction fees above a monthly limit
• Cash deposit fees (per $100 deposited)
• Wire transfer fees
• ATM fees outside the bank's network

Online Banks vs. Traditional Banks

The right choice depends on how your business operates:

Feature	Online Banks	Traditional Banks
Monthly fees	Often $0	$15+ (waivable)
Account opening	Minutes, online	Same-day to 1 week
Cash deposits	Not supported	Yes
Lending products	Limited	Full suite
Customer support	Chat/email	In-person available
Integrations	Strong (accounting, payroll)	Varies

Choose online banking if: Your business is digital-first, you rarely handle cash, and you want lower fees and faster setup.

Choose traditional banking if: You handle cash, plan to apply for business loans, or prefer in-person support.

Both are FDIC-insured, so your deposits are equally protected.

Common Mistakes That Slow You Down

1. Missing the operating agreement
Particularly for LLCs, this is the most common reason banks send applicants home to come back another day.

2. Using a virtual address
Banks require a verifiable physical address. Mailbox services and virtual offices typically don't qualify.

3. Not having all signers present
If your business has multiple owners, many banks require all authorized signers to appear in person—or notarized authorization documents for anyone who can't attend.

4. Applying before getting your EIN
Don't schedule your bank appointment until you have your EIN confirmed. IRS processing is usually instant online, but delays happen.

5. Ignoring the fee structure
Don't just ask about opening requirements—ask about ongoing fees, minimum balance requirements, and what happens if your balance drops too low.

After You Open Your Account

Once the account is active:

• Update your business registration documents to reflect the account
• Set up your payment processors (Stripe, Square, PayPal) to deposit into the business account
• Notify clients of payment information with your business name
• Connect the account to your accounting software for automatic transaction tracking

Keep Your Finances Organized from Day One

Opening a business bank account is the foundation, but staying organized once the transactions start flowing is what keeps you in control. Beancount.io provides plain-text accounting that gives you complete transparency over your financial data—every transaction is human-readable, version-controlled, and easy to import from your bank statements. Get started for free and see why developers and finance professionals are switching to plain-text accounting.