How to Open a Business Bank Account
Opening a business bank account is one of the first things every business owner should do. Here is exactly what you need and how to do it in under an hour.
Documents Checklist
Choose your business structure first
Banks require proof of your business entity. If you are a sole proprietor, you can open an account with just your SSN and DBA filing. LLCs need their Articles of Organization. Corporations need Articles of Incorporation and bylaws.
Get your EIN from the IRS
An Employer Identification Number (EIN) is your business's tax ID. Apply free at IRS.gov — you get it instantly online. Most banks require an EIN even if you have no employees. Sole proprietors can sometimes use their SSN, but an EIN is better practice.
Gather your documents
You will need: EIN confirmation letter, business formation documents (Articles of Organization for LLC, Articles of Incorporation for Corp), government-issued ID, business address, and your DBA certificate if operating under a trade name.
Choose the right bank
Online banks (Relay, Mercury) have no fees and are great for digital businesses. Traditional banks (Chase, Bank of America) offer in-person service and cash deposits. Match the bank to how your business actually operates.
Apply online or in-branch
Most banks now allow online applications. Upload your documents, fund the account with the minimum deposit (often $0–$100), and you are done. Some banks may require an in-person visit for business accounts.
Set up your accounting integration
Connect your new account to QuickBooks, Wave, or Xero immediately. This automates transaction categorization and makes tax time dramatically easier. Never mix personal and business transactions again.
Never mix personal and business finances
Commingling funds is the #1 mistake new business owners make. It pierces your LLC liability protection, makes taxes a nightmare, and disqualifies you from most business loans. Open the account before you make your first business transaction.