How to open a business bank account: A step-by-step guide for US businesses

How do you open a business bank account

Here's how to create a business bank account in the US:

1. Form your business and get an EIN, unless you’re a sole proprietor using your SSN
2. Pick a provider that accepts your entity type and supports how you get paid
3. Apply online or at a branch with your formation documents, EIN, photo ID, and ownership details
4. Complete identity and ownership verification
5. Fund the account if the provider requires an opening deposit, then add users

Approval can take as little as 1 business day with some online providers, and longer when a bank asks for extra documents.

What to sort out before you apply for a business bank account

Your EIN, and the letter that proves it

Banks match the business on your application to IRS records using your EIN, and some ask to see the CP575 notice confirming it. If you’ve lost the original, you can download a digital CP575 from your IRS Business Tax Account, which the IRS says banks accept as written confirmation of your EIN.

How fast you get an EIN depends on how you apply:

If you apply for your EIN by fax or mail, it can take longer than the account application itself.

Sole proprietors without employees don’t always need one, and some banks accept an SSN instead of an EIN. The IRS requires an EIN once you hire employees or operate as a corporation or partnership.

A physical business address

Federal customer identification rules require banks to record a physical location for a business: a principal place of business, local office, or other physical address. A PO box doesn't meet that requirement. A registered agent's address shows where your company receives legal mail, so banks may not accept it as the place your business operates.

If you work from home, use your home address. If you run the company from outside the US, check whether the provider accepts a non-US business address before you apply.

Ownership details that match your company records

For LLCs, corporations, and partnerships, federal rules require banks to verify each person who owns 25% or more of the business, plus one person who controls it, such as the CEO or a managing member. Banks can set a lower threshold for businesses they rate as higher risk. Aspire, for example, collects details on anyone holding 10% or more in high-risk cases.

For example, take an LLC with 2 owners and a minority investor:

Whatever you list has to match your operating agreement or stock ledger. If an owner left or ownership percentages changed, update the records before you apply.

These checks are separate from BOI reporting to FinCEN. Since Mar 2025, companies created in the US no longer file BOI reports, but banks still collect ownership information when you open an account.

Business bank account requirements by business structure

What's required to open a business bank account depends mostly on your business structure. Every bank sets its own list, so your provider may ask for less, or for more.

How to open a business bank account, step by step

These are the same steps for how to open a business checking account at most providers, starting once your EIN and formation documents are in hand.

1. Pick an account that fits how you get paid

Start with business checking. Customer payments land there, and it funds your supplier payments, payroll, and debit card spend. Savings, merchant services, multi-currency, and treasury products are other types of business bank accounts that sit on top of it. Add them when you have a specific use, such as a tax reserve or customers paying in EUR.

2. Fill in the application

If you apply for a business account online, have your documents ready before you start the application. Enter your legal name exactly as it appears on your EIN letter, including "Inc." or "LLC". Expect questions about what the business does, where your customers and suppliers are, and how much money you’ll move each month.

Banks use these answers to build a profile of how you'll use the account, so mention any large inflows you expect, such as a loan disbursement or a major customer contract.

3. Verify identity and ownership

Many providers verify ID online, including Aspire, which uses Onfido. Others ask signers to visit a branch.

If you're not a US person, you may not need an SSN to verify your identity. Federal rules let banks accept a passport number and country of issuance instead. Each bank still sets its own eligibility rules, so confirm your provider accepts non-US applicants before you apply.

4. Fund the account

Some accounts need an opening deposit and some don’t. You can usually fund the account by ACH transfer or wire.

5. Set up users and payment details

When you set up a business bank account, turn on multi-factor authentication first, then add any co-owners and your bookkeeper, if you have one, with the access level each person needs. If your provider supports approval rules, you can require a second approver on payments above an amount you choose.

Then switch your payment details to the new account in:

• Your payment processor's payout settings
• Invoice templates
• Your payroll provider
• EFTPS, if you pay federal taxes through it

How long does it take to open a business bank account

Most of the waiting happens before you apply, while you get an EIN, or after, while the bank verifies you.

If you meet the IRS requirements to apply online, you get your EIN immediately. If you’re outside the US and applying by mail, it can take around 4 weeks. Once you’ve submitted a complete application, some online providers activate accounts within 1 business day. Applications that need branch visits or extra ownership documents take longer.

If you'll start taking card payments soon, work backward. The first payout often takes longer than later ones. Stripe, for example, typically schedules the first payout 7–14 days after your first live payment. Open the account before your first sale so it’s connected when that payout is scheduled.

Why business bank account applications get delayed or declined

Holds usually come from details the bank can’t reconcile.

If you’re declined, ask whether the issue is a document you can fix or a policy you can’t. A missing board resolution is fixable. An industry restriction means applying elsewhere.

How to choose the right business bank account

The monthly fee is only one part of what an account costs. Match the account to how you expect to use it.

The FDIC insures up to USD $250,000 per depositor, per ownership category, at each insured bank. A business that keeps USD $2 million in one standard checking account at one bank has USD $1.75 million uninsured. Some providers spread balances across partner banks to extend coverage, so ask how it works and what conditions apply. Yield products may not be FDIC-insured. Aspire Treasury, for example, isn’t.

For example, an account with no monthly fee that charges USD $25 per international wire costs USD $200 a month if you pay 8 contractors abroad, before any FX markup. Price the transactions you’ll make, then compare.

If you outgrow your first account, you can switch business bank accounts. The work is updating everywhere your details live: your payment processor, payroll, and recurring vendor payments.

How Aspire helps you open and run your business account

If you run a US company that pays or gets paid across borders, Aspire covers both sides from one account. You can open an Aspire Business Account¹ online in less than 10 minutes, and accounts are activated 1 business day after a complete registration.

From one account, you can:

• Receive customer payments and incoming wires, and send real-time transfers or same-day ACH and wires with zero fees
• Pay contractors and suppliers in 98+ currencies*
• Hold larger balances with FDIC insurance up to USD $100M¹
• Track spending and manage expenses from one dashboard
• Issue virtual cards2 instantly for software subscriptions and ad spend
• Sync transactions with QuickBooks, Xero, and other accounting platforms

Final thoughts on opening a business bank account

If you're working out how to open a business account for a new company, start with the paperwork. The application itself is quick with most online providers. The time goes into what feeds it: your EIN, a physical address the bank accepts, and ownership records that match what you put on the form. Sort those first, and open the account before your first customer payment.

When you compare providers, think about where your money goes over the next year: international payments, balances above the FDIC limit, or a team member who needs access. Choose an account that already supports those, so you don’t need to switch later.