Opening a Business Bank Account? Here's What You’ll Need and How to Apply

Here’s what you need to open a business bank account

If you operate your business as a sole proprietor, a limited liability corporation (LLC), or as a corporation (S Corp or C Corp), you can apply for a business bank account in person at a branch or, in some cases (such as with BMO business checking accounts), online.

So, what do you need to open a business bank account? Regardless of your business’s legal structure, the type of bank account you need, or whether you apply in-person or online, there are three common requirements: identification verification, a tax identification number, and information about others closely involved in the business.

As the owner, you will need two forms of personal identification to open a business bank account, and one of these will have to be a government-issued ID, such as a driver’s license or passport. You’ll also need a taxpayer identification number. This is either your Social Security Number (SSN) if your business is a sole proprietorship with no employees, or an Employer Identification Number (EIN). You can find more information about EINs and how to get one by visiting the IRS website. Finally, if your business has multiple owners, shareholders, or outside decision-makers who control the business, they'll be considered "Beneficial Owners" of the business, and you’ll need photocopies of personal identification documents for all of them.

Other documentation required to open a business bank account may vary based on the structure of your business. Requirements may also differ from bank to bank. Here is an easy-to-use guide from BMO to illustrate the documents that may be required based on business structure. In addition, some of those documents are listed below.

While conversations about business bank accounts tend to emphasize business checking accounts for day-to-day transactions by a business, don’t overlook a business savings account. A business savings account, along with a business checking account, can help you manage your funds based on the goals and needs of your company. A business savings account lets you earn interest on your funds while maintaining access to them.

Requirements to open a business bank account  

You will need to fund your new account at some point before you can start writing checks or making withdrawals. Many banks allow you to open an account without an initial deposit, but you will need to fund the account soon after it is approved.

To open a business bank account, you will need to show evidence that your business is registered to operate in the United States. Be aware that banks may prohibit or restrict bank accounts for businesses engaged in illegal activities or activities considered high-risk, such as illicit drugs, adult entertainment, gambling, and firearms.

Whoever is authorized by the business to open the account must be a U.S. citizen and must be at least 18 years old. You must also show you are an owner of the business with the authority to make banking and credit decisions for this business. This requirement prevents people from opening a business account for a third party.

How to open a business bank account

Generally, you have two options for opening a business banking account: online or in-person at a physical bank location.

Some banks may require you to fund the account immediately, while others are more flexible on initial deposit timing.

Online

Many financial institutions now have the option to apply for a business bank account online. Just be aware that there may be some restrictions based on factors such as business structure and the type of bank account. You may be asked to verify your identification for an online application. BMO, for example, asks online applicants for a selfie from a smartphone. The application time online varies from bank to bank.  

In-Person

You’ll want to check with your bank if you need to make an appointment to open a business bank account. This will vary at different banks. At BMO, an appointment is not required to open a business bank account.

Be sure to bring the required documents to the branch when you’re ready to open the account. You can usually open an account at any branch, but it might be to your advantage to go to the branch that you expect to use most so you meet the team. You can use BMO’s handy branch locator. to find a convenient location for you and your business.

By phone

At BMO, you can also use Bank by Phone: 1-888-340-2265.

Setting up your account

Once you’ve opened a business bank account, there will be a few final steps to get it set up, such as getting and activating debit cards linked to the account, adding authorized users, and setting up online banking, among other tasks. Here are a few of the most common next steps to get a business bank account up and running.

• Log into the online banking platform, become familiar with site, and learn how to perform routine transactions and tasks.
• Find the account number and bank routing number on the online platform.
• Download and become familiar with the bank’s mobile app.
• Add authorized users and set up permissions.
• Set up account notifications or alerts, recurring payments for checking accounts, integrations with business software and tools, and account preferences, such as digital monthly statements.
• Consider linking your new account to other accounts within the same bank or with other financial institutions where you anticipate doing wire or ACH transfers.