Everyone thinks opening a business account is simple until they hit a wall at the bank. You’ve got your idea, your energy, maybe even a few early customers, but without the right paperwork you’re walking out empty-handed. Knowing what banks actually want can turn this into a one-visit job.
Separating your personal finances from your business isn’t optional, it’s foundational for tracking expenses and staying sane at tax time. But not every bank works the same way, and the differences matter more than most people expect. So let’s cover who can open a business account, what documents you’ll need, and how to read the fine print on fees.

Who Can Open a Business Account

Most banks work with sole proprietors, partnerships, LLCs, and corporations, but the requirements shift depending on your structure. Sole proprietors get the easier path: you can usually use your Social Security Number instead of an Employer Identification Number, though not every bank allows this, so it’s worth calling ahead. If you’re running an LLC or corporation, you’ll need an EIN, which you can get free through the IRS website in about ten minutes.
Banks also check your banking history before saying yes. Most run a ChexSystems report, which flags things like unpaid fees or chronic overdrafts. A client of ours got turned down at their first-choice bank for exactly this reason and had to go with a credit union instead, which honestly worked out fine, but it cost them two weeks they didn’t have.

Documents Banks Actually Require

The exact list varies, but these show up almost everywhere when you go to open a business account:
– EIN: Required for LLCs and corporations; sole proprietors may use an SSN depending on the bank.
– Business license: Proof of licensure is often needed, especially for regulated industries.
– Articles of Incorporation: LLCs and corporations should bring these, full stop.
– Personal ID: A current driver’s license or passport works at most institutions.
Prepare everything before you go. Arriving unprepared doesn’t buy goodwill, it just means a second trip.

Comparing Account Types and Costs

Online banks like Relay and Mercury tend to skip the minimums entirely, while traditional banks usually ask for somewhere between $25 and $100 to get started. Monthly fees at traditional banks run roughly $10 to $30, though many waive them if you keep a minimum balance. Online accounts mostly charge nothing monthly, which adds up. When I set this up for my first LLC, the fee difference over a year was around $240, not life-changing, but not nothing either.
Here’s a quick comparison:

The honest trade-off is convenience versus human contact. Online banks are faster and cheaper (usually), but if you regularly deposit cash or need a teller for something complicated, a traditional bank is harder to replace. Neither is wrong, it just depends on how your business actually runs day to day.

Your Path Forward

Before you go to open a business account, gather your documents, check your ChexSystems history if you have any doubt about it, and decide whether low fees or in-person access matters more to you right now. Those three things handle most of the surprises. Getting this right early means you’re not untangling personal and business transactions six months later when your accountant is asking questions you can’t answer.

FAQs

Do I need an EIN to open a business account?

LLCs and corporations need one; sole proprietors can often use their SSN, but some banks still ask for an EIN regardless.

Can I open a business account online same day?

Many online banks approve and activate accounts the same day, provided all required documents are ready when you apply.

What is the minimum deposit to open a business account?

Traditional banks typically require $25 to $100; many online banks start at $0.