How to open a business bank account
What you need, where to go, and why separating your business and personal finances from day one saves significant time and money.
Direct answer
To open a business bank account you'll typically need: your EIN (or SSN for sole proprietors), state formation documents (for LLCs and corporations), a government-issued ID, and an initial deposit. Most banks can open a business account in 30–60 minutes in person, or online in some cases.
Simple explanation
Mixing business and personal money is the single most common bookkeeping mistake small business owners make. It makes taxes harder, makes audits more likely, and makes it nearly impossible to actually know if your business is profitable. A separate business account costs nothing extra and fixes all three problems.
How to open a business bank account
- 1
Get your EIN first
Most banks require an EIN for any business account. Apply directly at IRS.gov — it takes under 15 minutes and is free. Sole proprietors can sometimes use an SSN but an EIN is strongly preferred.
- 2
Gather your documents
EIN confirmation letter, state formation documents (Articles of Organization for LLCs), your government ID, and business name registration (if operating under a DBA). Call ahead to confirm the specific list your chosen bank requires.
- 3
Choose a bank type
Local credit unions and community banks often have lower fees and more flexibility for small businesses. National banks (Chase, Bank of America, Wells Fargo) offer extensive ATM networks and integrations. Online banks (Relay, Mercury, Bluevine) have no monthly fees and fast setup.
- 4
Set up direct deposit and payment routing
Once the account is open, update all clients and payment processors (Stripe, PayPal, Square) to deposit into the business account. Never deposit business income into a personal account after this point.
Summary
- •Get your EIN before visiting a bank — almost all business accounts require it.
- •Bring: EIN, state formation docs, government ID, initial deposit.
- •Online banks (Relay, Mercury) have no monthly fees and are easy to open.
- •All business income should flow through the business account from day one.