- Quick checklist
- Why you need a dedicated business bank account
- What banks require to open a business account
- Requirements by business structure
- Traditional banks vs. online and platform-based banking
- Platform-based banking: how it works
- Step-by-step: how to open a business bank account
- Common reasons applications get delayed or denied
- What to do after your account is open
- Cash management built for how finance teams actually work
Opening a business bank account is one of the first real steps in building a legitimate company. It’s also one of the easiest to delay if you don’t prepare.
Banks care about three things: identity, legality, and compliance. Bring the right documents, and you can open an account in as little as a day with online platforms—though traditional banks may still take 1-2 weeks. Miss one, and you're stuck in a loop of emailing PDFs back and forth.
This guide covers exactly what you need to open a business bank account, how requirements differ by business type, and how to choose the right account for your company.
Quick checklist
- Government-issued ID for all signers
- EIN or SSN
- Business formation documents
- Licenses or permits (if required)
- Proof of business address
- Initial deposit
- Ownership details for 25%+ owners
Get these right, and opening a business account is quick.
Why you need a dedicated business bank account
Even if you’re a sole proprietor, separating business and personal money isn’t optional if you want to grow.
Legal protection
For LLCs and corporations, commingling funds can jeopardize liability protection. If business and personal expenses mix, courts can hold you personally responsible for business debts.
Cleaner accounting
A single account for business income and expenses makes reconciliation, audits, and tax prep faster. No guesswork. No personal transactions muddying the books.
Professional credibility
Clients and vendors see your business name on payments—not your personal name. That matters when you’re negotiating contracts or getting paid faster.
Better cash visibility
When all cash flows through one place, you can track burn, spot issues early, and make smarter decisions about hiring, spend, and growth.
What banks require to open a business account
Most banks ask for the same core information. The differences show up by business structure and industry.
1. Government-issued photo ID
Every authorized signer must provide a valid ID, such as:
- Driver’s license
- State-issued ID
- Passport
Expired IDs will stall your application.
2. EIN (or SSN in limited cases)
An Employer Identification Number (EIN) is required for:
- LLCs
- Corporations
- Partnerships
Sole proprietors operating under their own legal name typically only need an SSN. However, if you're using a DBA (doing business as) name, you'll need an Assumed Name Certificate or similar documentation. Many banks still prefer an EIN regardless, as it provides cleaner separation and better protects your SSN. Applying is free and takes about 15 minutes on the IRS website.
3. Business formation documents
These prove your business legally exists.
- Sole proprietor: DBA certificate (only if operating under a name different from your legal name)
- LLC: Articles of Organization
- Corporation: Articles of Incorporation
- Partnership: Partnership agreement
Banks usually accept digital copies, but some require certified versions.
4. Business licenses or permits (if applicable)
Required in regulated industries like construction, healthcare, food service, and financial services.
5. Ownership information
Federal rules require banks to identify anyone who owns 25% or more of the business. Be ready with names, addresses, and ownership percentages. Note: This requirement does not apply to sole proprietors.
6. Initial deposit
Initial deposit requirements vary widely. Many modern business accounts like Ramp require no minimum deposit, while traditional banks typically ask for $25–$100 for basic accounts and higher amounts for premium services.
7. Proof of business address
Banks need documentation showing your business's physical location. This can be a lease agreement, utility bill, or business property deed.
Requirements by business structure
| Business type | Required documents | Tax ID |
|---|---|---|
| Sole proprietorship | ID, DBA (if applicable) | SSN or EIN |
| Single-member LLC | Articles of Organization, Operating Agreement (may be optional at some banks) | EIN |
| Multi-member LLC | Articles of Organization, Operating Agreement, member IDs | EIN |
| Corporation | Articles of Incorporation, Bylaws, Corporate Resolution | EIN |
| Partnership | Partnership Agreement, state registration (if required) | EIN |
Traditional banks vs. online and platform-based banking
You’re not limited to brick-and-mortar banks anymore. Each option has tradeoffs.
Traditional banks
Best if you handle cash or want in-person service.
- Physical branches and cash deposits
- Higher minimum balances
- Monthly fees are common
- Slower onboarding for complex entities
Online and platform-based banking
Built for digital-first teams.
- Lower or no monthly fees
- Faster account opening
- Real-time visibility and modern tools
- No branches, limited cash handling
Most platform-based solutions partner with FDIC-insured¹ banks to hold deposits while the platform provides software, controls, and automation.
Platform-based banking: how it works
Platform services like Ramp, Brex, and Mercury act as intermediaries between you and FDIC-insured¹ partner banks.
The structure:
- A partner bank holds your deposits and provides FDIC insurance¹
- Platform provides the software, interface, and financial tools
- You manage everything through the platform's app
Many platforms require linking an existing business account before or during sign up for:
- Identity verification (often through micro-deposits)
- Backup funding if platform account balance is low
- Initial funding of your new account
Best for:
- Digital-first businesses that rarely handle cash
- Teams that want expense management, cards, and banking integrated
- Companies prioritizing automation and real-time visibility
- Startups needing scalable solutions without branch visits
Not ideal for:
- Companies wanting face-to-face banking relationships
- Certain regulated industries (eligibility varies by platform)
Step-by-step: how to open a business bank account
Step 1: Gather documents
Have IDs, formation docs, EIN confirmation, and licenses ready before you apply.
Step 2: Choose your bank and account type
Refer back to the comparison table above. Look at fees, minimum balances, transaction limits, and integrations with your accounting stack. Choose based on your business model—not what worked for someone else.
Step 3: Apply online or in person
Online is faster for straightforward structures. In-person can help if your setup is complex.
Step 4: Fund the account
Fund the account if required, and maintain any minimum balance to avoid fees.
Step 5: Set up digital access
Enable online banking, two-factor authentication, and transaction alerts immediately.
Common reasons applications get delayed or denied
Incomplete documentation
One missing document can delay approval by days. Use a checklist. Make sure your business name matches exactly across all documents—mismatches between your EIN, formation documents, and application will trigger manual review.
Negative banking history
Banks may check ChexSystems or Early Warning Services. Online banks and credit unions are often more flexible.
High-risk industries
Expect extra questions about revenue sources, transaction volume, and compliance. Answer clearly and honestly. Faster responses mean faster approval.
What to do after your account is open
- Connect your account to accounting software
- Reconcile transactions regularly
- Store receipts digitally
- Avoid mixing personal and business expenses in your account
Clean records make it easier to raise capital, get financing, and close the books faster.
Cash management built for how finance teams actually work
You can open a business bank account anywhere. But for many teams, managing money still happens across fragmented systems. Transactions flow through multiple platforms, and month-end close often means reconciling activity across several tools.
Ramp Treasury brings cash management into the same platform you already use for spend. One login. One source of truth. Real-time visibility.
With Ramp Treasury, you can:
- Manage cash directly inside the Ramp platform
- Move money between accounts with built-in controls
- Set balance alerts and automation
- Pay bills instantly with free unlimited ACH and wire transfers through Bill Pay
- Keep payments, cards, and cash visibility in one place
- Sync activity automatically to your ERP
It’s a cash management solution built for teams that want fewer logins, fewer manual steps, and clearer visibility into where money is going.
¹ Ramp Business Corporation is not a bank. Bank deposit services are provided by First Internet Bank of Indiana, Member FDIC.
FAQs
Most LLCs, corporations, and partnerships need an EIN. Sole proprietors can sometimes use their SSN, but many banks still prefer an EIN because it keeps your SSN off business documents and creates cleaner separation. You can get an EIN free from the IRS in about 15 minutes.
At minimum: government-issued photo ID, EIN (or SSN for sole proprietors), and business formation documents (Articles of Organization for LLCs, Articles of Incorporation for corporations, or a DBA for sole proprietors). Some banks also require licenses, proof of address, and ownership details for anyone with 25% or more equity.
Traditional banks take 3–5 days. Online banks take 1–2 days. Platform-based services like Ramp may approve accounts the same day if your documentation is complete.
Legally, sole proprietors can—but it's a bad idea. Mixing business and personal money complicates taxes, hurts your liability protection if you're an LLC or corporation, and makes accounting messy. Separate accounts give you cleaner books, better credit access, and more credibility with vendors.
No. Online and platform-based banks offer full business banking without branches. If you rarely deposit cash and prefer managing finances digitally, online options are often faster and cheaper.
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