If you’re wondering how to open a business bank account, this guide cuts straight to it. It tells you what you need, how to do it, what banks to look at, and where people trip up — as of mid-2025.
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Why get a business bank account?
You need one to:
- Keep personal and business money separate
- File taxes without a mess
- Accept payments in your company’s name
- Build business credit
- Limit personal liability if things go wrong
Trying to run a business through your personal account is risky and, in many cases, a mistake.
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Who qualifies?
You need to be:
- Age 18+
- Running a US-registered business — Sole Prop, LLC, Corporation, or Partnership
Some online banks accept non-US residents, but you’ll still need:
- A US-issued EIN (Employer ID Number)
- A virtual business address or registered agent
If your business operates in a regulated space (crypto, adult, cannabis), your options will be more limited.
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What you’ll need (documents & info)
| Business Type | Required Documents |
| Sole Proprietor | Driver’s license or passport, EIN (optional), business license (if required by state or city) |
| LLC | Articles of Organization, Operating Agreement, EIN, ID |
| Corporation / S-Corp | Articles of Incorporation, Bylaws, EIN, ID |
| Partnership | Partnership Agreement, EIN, ID of all partners |
| Non-US Resident | Passport, EIN, virtual US address or registered agent services |
Banks may also ask for:
- Proof of address
- Ownership info (if you own 20%+ of the business)
- Business website or service description (especially for fintech banks)
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Choosing the right account type
Pick based on how your business handles money.
| Account Type | Use Case |
| Checking | Your main account. Incoming payments, outgoing bills, employee payroll. |
| Savings | For tax withholding, reserve cash, or future equipment purchases. |
| Merchant | Only needed if you want to accept credit card payments directly. |
Avoid merchant accounts unless you need to process credit cards through your own terminal or POS system. Services like Stripe and PayPal often make these unnecessary.
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Watch for hidden fees
Some banks market “free” accounts, but the fine print hits you later. Keep an eye out for:
- Monthly maintenance fees unless you hold a minimum balance
- Per-transaction fees after a set monthly limit (e.g. after 200 payments)
- Wire transfer fees (domestic and international)
- ATM withdrawal limits and out-of-network charges
- Fees for cash deposits (yes, some charge you to put in cash)
Avoid accounts that penalize you for doing normal business tasks.
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Top U.S. bank options (June 2025)
Fintech / Online-Only
| Bank | Key Features |
| Bluevine | No monthly fee; 2.0% APY; free ACH and bill pay |
| Mercury | Built for startups; clean UI; free wire transfers |
| Relay | Great for managing multiple sub-accounts and user roles |
| Novo | Simple dashboard; syncs with Stripe, Shopify, QuickBooks |
These work best for online businesses, freelancers, and startups who don’t handle much cash.
Traditional Banks
| Bank | Key Features |
| Chase Business Complete | Big branch network; $300–$500 signup bonus; fee waivable |
| Bank of America | Fee waived at $2,000 balance; strong support & fraud protection |
| PNC | Good for high-volume businesses; tiered cash management |
Go this route if you need to deposit physical cash, prefer in-person service, or already use them for personal banking.
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Opening your account: step by step
- Choose your bank
Compare fees, digital tools, and whether you need in-person access. - Check eligibility and prep documents
Use the list above based on your business type. - Apply
- Online if possible. Most fintech banks and traditional banks offer this now.
- In-person only if required (foreign founders, cash-heavy businesses, etc.)
- Fund your account
- Online banks usually let you start with $0
- Big banks might need $100–$1000 to activate the account
- Set up features
- Mobile banking and alerts
- Link to bookkeeping software
- Add co-owners or employees as account users
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Common mistakes to avoid
- Using your personal account to take payments or send invoices
- Forgetting to get an EIN before applying
- Opening at a bank that charges high fees for things you do often (e.g. wire transfers, cash deposits)
- Picking a bank based only on brand or sign-up bonus
- Not checking compatibility with your accounting tools
If you're applying from overseas, don’t fake a US address — use a registered agent or virtual office legally.
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FAQs
Can I open an account without an EIN?
Yes, if you’re a sole proprietor — but you’ll still want an EIN if you plan to build credit or hire.
How long does it take?
- Online: 10 minutes to 3 days
- In-person: Same day if you have documents ready
What if I get denied?
- Check your ChexSystems record (kind of like a credit report for bank accounts)
- If denied at big banks, try fintech options like Bluevine or Mercury
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What to do next
Once your account’s open, link it to a basic invoicing or bookkeeping app. That’s usually the next step for small businesses — keeping your records clean from day one.
If you’re applying this week and comparing fintech banks, Relay and Mercury are getting the most positive feedback from early-stage founders. There are a lot of things to remember when opening a business bank account, so we’ve created this handy checklist so you can tick off everything you’ll need.
