Open a Business Bank Account: Steps and Documents

The short answer

You can open a business bank account once you can prove who owns the business, what the business is, and that you are allowed to act for it. For most LLCs and corporations, that means waiting until your state approves the business, getting an EIN from the IRS, and having your formation documents ready. Sole proprietors can often open an account sooner, but may need a DBA if they use a business name that is not their legal name.

The best timing is usually: form the business first, get your EIN second, open the bank account third, then accept customer payments. That order avoids messy bookkeeping and helps keep your personal and business finances separate from day one.

This tutorial walks you through what to do, what to gather, and how to know each step worked.

What you need before you start

Before you apply, gather the basics. You do not need every item in every case, but most banks will ask for some version of these.

Step 1: Confirm your business structure

First, make sure you know what kind of business you are opening the account for.

If you are a sole proprietor, there is no separate legal entity. You and the business are legally the same owner. You may still open a business checking account, but the bank may use your personal legal name unless you have a DBA.

If you have an LLC, the account should usually be in the LLC’s legal name, not your personal name. The same goes for a corporation.

If you have a partnership, the bank will likely want the partnership agreement, EIN, and ownership information.

How to know this step worked: you can write your exact legal business name, business structure, state of formation, and owner list without guessing.

Step 2: Get your EIN or know when you can use your SSN

An EIN is an Employer Identification Number from the IRS. Think of it as a federal tax ID for your business.

Most LLCs, corporations, and partnerships should get an EIN before opening a business bank account. Many banks require it. Even if you are a sole proprietor, an EIN can help you avoid using your Social Security number in more places than necessary.

You can usually apply for an EIN directly through the IRS. If your application is accepted online, you may receive the EIN immediately. If there is an issue or you apply by mail or fax, it can take longer.

Do this now:

1. Confirm your legal business name and responsible party.
2. Apply through the IRS, if you need an EIN.
3. Save the EIN confirmation letter as a PDF.
4. Print a copy if you plan to visit a branch.

How to know this step worked: you have an EIN confirmation letter showing the business name and EIN.

Step 3: Wait for the right formation or DBA approval

Do not rush to open the account before your paperwork exists.

For an LLC or corporation, most banks will want proof that the state approved your business. Depending on the state, this may be called Articles of Organization, Articles of Incorporation, Certificate of Formation, or a Certificate of Organization.

If you are using a name different from your legal name or entity name, you may need a DBA, also called a fictitious business name, assumed name, or trade name.

Example:

• Your legal name is Maya Thompson.
• You sell candles as Desert Moon Studio.
• As a sole proprietor, you may need a DBA before the bank opens an account under Desert Moon Studio.

Another example:

• Your LLC is Desert Moon Studio LLC.
• You want the bank account under Desert Moon Studio LLC.
• You likely do not need a DBA just to drop the comma or punctuation, but bank naming rules vary.

How to know this step worked: your state or local filing office has approved the entity or DBA, and you have the approval document.

Step 4: Gather the documents banks usually ask for

Each bank has its own checklist, but these are the common requirements.

For a sole proprietor:

1. Government-issued photo ID.
2. SSN or EIN.
3. DBA certificate, if using a business name.
4. Business address, phone number, and email.
5. Business license, if your industry or location requires one.

For an LLC:

1. Government-issued photo ID for each signer.
2. EIN confirmation letter.
3. Articles of Organization or equivalent formation document.
4. Operating agreement, especially for multi-member LLCs.
5. Ownership percentages and personal details for owners.
6. Business address and contact information.
7. Any required business license, if applicable.

For a corporation:

1. Government-issued photo ID for each signer.
2. EIN confirmation letter.
3. Articles of Incorporation or equivalent.
4. Corporate bylaws.
5. Board resolution or authorization to open the account, if required.
6. Ownership and officer information.
7. Business address and contact information.

How to know this step worked: you have a folder with every document saved as a PDF, and the names on the documents match.

Step 5: Choose the right type of bank account

Most first-time founders should start with a business checking account. This is where customer payments come in and business expenses go out.

You may also want:

• A business savings account for taxes or reserves.
• A merchant account or payment processor connection for card payments.
• A business credit card later, once you understand your monthly expenses.

Keep it simple at first. Your goal is not to build a complex finance system. Your goal is to separate business money from personal money and make bookkeeping easier.

How to know this step worked: you know whether you are opening checking only, checking plus savings, or checking plus payment tools.

Step 6: Compare banks before you apply

Do not choose a bank only because it has a familiar name. Choose based on how you will actually use the account.

Compare:

1. Monthly maintenance fee.
2. Minimum balance requirement.
3. Opening deposit requirement.
4. Transaction limits.
5. Cash deposit options, if you take cash.
6. Wire and ACH fees.
7. Mobile deposit rules.
8. Bookkeeping integrations.
9. Customer support access.
10. Branch access, if you want in-person help.

Online banks can be convenient and low-cost, but they may not be ideal if you handle cash or need branch services. Local banks and credit unions can be helpful if you want a relationship with a banker. Large banks may offer broader services, but fees and requirements can vary.

How to know this step worked: you have picked one bank and one backup bank in case the first application is delayed or denied.

Step 7: Apply online or in person

Many banks let you apply online, especially for simple ownership structures. Others require a branch visit, particularly for multi-owner businesses, certain industries, or missing documents.

Do this now:

1. Use the exact legal business name from your formation or DBA document.
2. Enter the EIN exactly as shown on the IRS letter.
3. List all required owners and signers.
4. Upload clear, complete documents.
5. Review your business address, phone, and email before submitting.

If applying in person, bring originals or clean copies of your documents. If the business has multiple owners, ask the bank in advance whether every owner must attend.

How to know this step worked: the bank confirms your application was submitted, approved, or pending review, and you know what happens next.

Step 8: Fund the account and connect your tools

Once approved, fund the account if the bank requires an opening deposit. This amount varies. Some accounts have no minimum opening deposit. Others may ask for typically around $25 to $100 or more.

Then connect the account to the tools you use:

• Payment processor.
• Invoicing software.
• Bookkeeping software.
• Payroll provider, if you have employees.
• Tax savings account, if you use one.

Do not forget to update where money goes. If you already accepted customer payments into your personal account, switch future payments to the business account as soon as possible.

How to know this step worked: you can receive money, pay expenses, and see transactions in your bank dashboard.

Step 9: Keep personal and business money separate

Opening the account is only half the job. Using it correctly matters.

From now on:

1. Deposit business income into the business account.
2. Pay business expenses from the business account.
3. Avoid paying personal bills from the business account.
4. Avoid paying business bills from your personal account.
5. If you contribute money, record it as an owner contribution or loan, depending on your setup.
6. If you pay yourself, label it properly for your business structure.

This is especially important for LLCs and corporations. Mixing funds can create bookkeeping problems and weaken the separation between you and the business.

How to know this step worked: every transaction in the account has a business purpose and can be explained later.

Common costs and timing

Costs vary by bank, account type, and business activity. Use this table as a planning guide, not a promise.

When is the best time to open the account?

The best time to open a business bank account is before you accept meaningful business income or pay regular business expenses.

For an LLC or corporation, the cleanest order is:

1. Choose your business name.
2. Form the business with the state.
3. Get your EIN.
4. Create your operating agreement or bylaws.
5. Open the business bank account.
6. Connect payment and bookkeeping tools.
7. Start taking customer payments.

For a sole proprietor, the order may be:

1. Decide whether you need a DBA.
2. File the DBA if needed.
3. Get an EIN if you want or need one.
4. Open the business bank account.
5. Start using it for all business income and expenses.

If you already started selling, do not panic. Open the account now, move future activity there, and clean up past transactions with a bookkeeper or tax professional if needed.

Final checklist

Before you apply, make sure you can check every box that applies:

• I know my business structure.
• My business name is final.
• My LLC or corporation is approved, if applicable.
• My DBA is approved, if applicable.
• I have my EIN confirmation letter, if needed.
• I have photo ID for all required signers.
• I have my operating agreement, bylaws, or partnership agreement, if needed.
• I know who owns the business and in what percentages.
• I chose a bank based on fees, features, and how I actually get paid.
• I know how I will fund the account.
• I am ready to route business income and expenses through this account.

A business bank account is one of the first steps that makes your business feel real. If you want the rest of your setup steps in the right order, Stratify can help you build a personalized roadmap for your business.