How to Open a Business Bank Account

Why a Separate Account Matters, Whatever Your Structure

Even a sole proprietor with no legal separation from the business benefits from a dedicated account, since mixing business and personal transactions makes bookkeeping and tax preparation far harder. For an LLC or corporation, a separate account is more than convenient: commingling funds is one of the clearest ways a court can find the entity isn't being treated as genuinely separate from its owner, which can undermine the liability protection forming it was meant to provide.

What a Sole Proprietor Typically Needs

If you're operating as a sole proprietor under your own legal name, a bank may open an account with just personal identification and, often, an EIN, even though the IRS would allow you to file taxes under your Social Security number instead. If you're operating under a different business name, most banks require your DBA ("doing business as") filing as proof you're legally authorized to use that name.

What an LLC, Partnership, or Corporation Typically Needs

For a formally registered entity, banks generally ask for a consistent set of documents, though the exact list varies by bank:

• Your state-approved formation document (Articles of Organization for an LLC, Articles of Incorporation for a corporation, or a partnership agreement for a partnership).
• Your EIN confirmation letter from the IRS.
• An operating agreement (LLC) or bylaws (corporation), which banks use to confirm who can act on the entity's behalf, even in states where the law doesn't require one to exist.
• Personal identification for anyone who will be an authorized signer on the account.
• A business license, if your bank asks for one, though not every bank requires this upfront.

See our guide to opening an LLC bank account for the full LLC-specific document list and beneficial ownership details.

Get an EIN Even if You Don't Strictly Need One

A sole proprietorship with no employees can file taxes under the owner's SSN, and some single-member LLCs qualify for the same treatment. Most banks, however, won't open a business account under a personal SSN tied to a business name, so getting a free EIN from the IRS, usually issued immediately online, removes a common reason an account application gets delayed.

Expect Beneficial Ownership Questions for an Entity

If your business is an LLC, corporation, or partnership, FinCEN's Customer Due Diligence rule requires the bank to identify and verify the beneficial owners of that entity when it first opens an account there, separate from any state or IRS filing your business makes. As of a February 2026 FinCEN exceptive relief order, this verification generally happens once per banking relationship, so opening a second account at the same bank typically doesn't require repeating it. This bank-level check is separate from the Beneficial Ownership Information report that domestic LLCs and corporations are now exempt from filing directly with FinCEN under a 2026 final rule.

Compare Banks Before You Commit

Monthly fees, minimum balance requirements, transaction limits, and whether the bank offers services like merchant payment processing or accounting software integration all vary significantly between banks. A local or regional bank may offer more personalized service for a small or new business, while a larger national bank may offer more extensive online tools; compare a few options against what your specific business actually needs.

Keep the Account Strictly for Business Use

Once the account is open, run every business transaction through it and avoid informal transfers to or from a personal account. This is good practice for every structure, but it's especially important for an LLC or corporation, where consistent separation over time matters more than how the account was originally opened.

A New Business May Need to Show Projected Activity

Some banks ask a new business for a brief description of its activities or expected transaction volume, especially for industries the bank considers higher-risk. Having a simple, clear description ready speeds up the review.

Online-Only Banks Have the Same Underlying Rules

Fintech or online-only banking platforms often streamline the application, but they're still subject to the same beneficial ownership verification rules as a traditional bank. Confirm an online bank is FDIC-insured, either directly or through a partner bank, before relying on it for business funds.

A Multi-Owner Business May Need a Banking Resolution

If more than one person will have authority over the account, a partnership, multi-member LLC, or corporation, the bank may ask for a resolution signed by the owners authorizing specific individuals to open and manage the account, in addition to your operating agreement or bylaws.

This Isn't Legal or Tax Advice

Which documents a specific bank requires, and how beneficial ownership rules apply to your ownership structure, can vary and change over time. Confirm current requirements directly with your bank and, for a complex ownership structure, a business attorney.

Update the Bank When Your Business Changes

If you change your business name, add an owner, or change your structure, for example converting a sole proprietorship to an LLC, notify your bank and update its records rather than continuing to use an account set up under the old information.