Can I open a business bank account with just an LLC?

Yes, but you’ll need your LLC formation documents, EIN, and possibly an operating agreement.

What is required to open a business account for an online business?

Most banks require an EIN (or SSN for sole proprietors), business registration documents, and a business license (if applicable).

Can I open a business bank account without a business license?

It depends on the bank and your business type. Some sole proprietors and freelancers may not need one.

How long does it take to open a business bank account?

Most accounts can be opened within the same day if you have all necessary documents, though some banks may take a few days for verification.

Can I open a business bank account without an EIN?

Sole proprietors can often use their Social Security Number, but corporations and LLCs typically need an EIN.

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What Do You Need To Open a Business Bank Account?

March 5, 2025

5 min Read

Written by Cynthia Measom

Edited by Nupur Gambhir

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Regardless of how small your small business is or how it is structured, you should consider opening a business bank account. Even if you don’t yet have many expenses, you hopefully will have income to deposit each month. Keeping business expenses separate from your personal finances can help you better monitor your business’ cash flow and more easily complete your taxes.

Here’s how to open a business bank account, whether at a physical branch, online or by phone.

Requirements for Opening a Business Bank Account

To open a business bank account, you’ll need to provide:

Business formation documents (Articles of Incorporation, LLC operating agreement, or partnership agreement)
Employer Identification Number (EIN) or Social Security number for sole proprietors
Business license (if required by your industry or state)
Ownership agreements (if applicable)
Initial deposit (varies by bank)

Check with your chosen bank for specific requirements, as they may differ based on business structure and location.

Types of Business Bank Accounts

Business Checking Account

Best for: Everyday transactions, payroll, and bill payments.

Features:

Debit card access
Online and mobile banking
Unlimited or limited monthly transactions, depending on the account

Business Savings Account

Best for: Setting aside funds for future expenses or emergencies.

Features:

Earns interest
Limited withdrawals per month
May require a minimum balance

Merchant Account

Best for: Businesses that accept credit and debit card payments.

Features:

Enables card payment processing
Funds deposited directly into a linked account
Fees for each transaction may apply

Money Market Account

Best for: Businesses that want to earn higher interest while maintaining liquidity.

Features:

Higher interest rates than standard savings
Limited check-writing capabilities
Requires a higher minimum balance

Certificates of Deposit (CDs)

Best for: Businesses looking for a secure, long-term savings option.

Features:

Fixed interest rates for a set period
Penalties for early withdrawals
Ideal for holding funds not needed immediately

Steps to Open a Business Bank Account

Choose the Right Bank – Compare account options, fees, and features that align with your business needs.
Prepare Your Business Documentation – Gather the required legal documents, EIN, and business license if applicable.
Complete the Application Process – Apply online or in person, depending on the bank’s procedures.
Make Your Initial Deposit – Some accounts require a minimum deposit to activate.

Features to Look for When Opening a Business Bank Account

Low or no monthly fees – Look for accounts with minimal costs.
Online and mobile banking – Essential for managing finances remotely.
Integration with accounting software – Helps streamline bookkeeping.
Flexible transaction limits – Choose an account that suits your business’s transaction volume.

How to Choose the Best Bank for Your Business

Selecting the best bank for your business requires careful consideration of several factors. Start by assessing accessibility and convenience–do you need a local branch for in-person banking, or will an online bank with robust digital tools be sufficient? If cash deposits are frequent, a bank with nearby ATMs and branch locations may be essential. Another key factor is customer support. A bank that prioritizes business clients and offers reliable service can be a valuable resource when you need assistance with transactions, loans, or account management.

Beyond basic banking, look at the additional financial services a bank provides. Some institutions offer business credit cards, financing options, and payment processing solutions, which can be beneficial as your company grows. If your business handles payroll or needs insurance, finding a bank that includes those services could simplify your financial management. Lastly, compare fees and account limits to ensure the bank’s structure fits your business model. Choosing a bank with reasonable costs and the features you’ll find useful can help you manage cash flow more efficiently while preparing for future growth.

Fees Associated with Business Bank Accounts

Monthly maintenance fees – Some banks waive these if you meet balance requirements.
Transaction fees – May apply for exceeding free monthly transactions.
ATM withdrawal fees – Check if the bank offers free access to nationwide ATMs.
Wire transfer and foreign transaction fees – International transfers may come with added costs.

Reflecting on Your Business Type and Needs

Before choosing an account, ask yourself:

What type of business do I run? Sole proprietors and large corporations have different banking needs.
How often will I make deposits and withdrawals? Some accounts have transaction limits.
Do I need financing? If you’ll need business loans or lines of credit, consider a bank that offers them.
What are my financial goals? Whether you’re saving for growth or managing daily expenses, the right account can help.
Do I handle international transactions? If so, check for foreign transaction capabilities.

Opening a business bank account is a crucial step in managing your company’s finances efficiently. By choosing the right account and bank, you can streamline transactions, separate personal and business expenses, and set your company up for long-term financial success. Take the time to compare your options, understand the fees, and select a bank that supports your business’s unique needs.

Andrea Norris contributed to the reporting for this article.

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