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.

 

1. 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.

 

2. 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.

 

3. 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)

 

4. 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.

 

5. 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.

 

6. 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.

 

7. Opening your account: step by step

1. Choose your bank
   Compare fees, digital tools, and whether you need in-person access.
2. Check eligibility and prep documents
   Use the list above based on your business type.
3. Apply
   • Online if possible. Most fintech banks and traditional banks offer this now.
   • In-person only if required (foreign founders, cash-heavy businesses, etc.)
4. Fund your account
   • Online banks usually let you start with $0
   • Big banks might need $100–$1000 to activate the account
5. Set up features
   • Mobile banking and alerts
   • Link to bookkeeping software
   • Add co-owners or employees as account users

 

8. 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.

 

9. 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

 

10. 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.