Banking & Switching
March 20268 minBusiness Bank Account Requirements: What You Need to Open One in 2026
Everything you need to open a business bank account in 2026: required documents (EIN, formation docs, ID), fee comparisons, what banks look for, and how to get approved fast.
What You Need to Open a Business Bank Account
Opening a business bank account is one of the first steps to legitimizing your business and separating personal from business finances. Here's exactly what you'll need.
Required Documents
For All Business Types
- Government-issued photo ID — driver's license or passport for all account signers
- Employer Identification Number (EIN) — obtained free from the IRS (Form SS-4)
- Business formation documents — varies by entity type (see below)
- Business address — physical address required; PO boxes may not be accepted by all banks
By Entity Type
| Entity | Documents Needed |
|---|---|
| Sole Proprietorship | DBA/fictitious name certificate, Schedule C from last tax return |
| LLC | Articles of Organization, Operating Agreement, EIN letter |
| Corporation | Articles of Incorporation, Corporate bylaws, Board resolution |
| Partnership | Partnership Agreement, EIN letter |
| Nonprofit | 501(c)(3) determination letter, Articles of Incorporation, Bylaws, Board resolution, EIN letter |
What Banks Look For
Banks evaluate business account applications based on:
- Business legitimacy — valid formation documents, active state registration
- Identity verification — all signers must pass KYC (Know Your Customer) checks
- Industry risk — some industries face additional scrutiny (cannabis, crypto, firearms)
- Credit history — some banks pull personal credit; others (like Holdings) don't
- Expected activity — anticipated transaction volume and deposit amounts
Common Reasons Applications Get Rejected
- Incomplete or expired formation documents
- Mismatched information between documents (name, address, EIN)
- ChexSystems flags from previous bank account issues
- High-risk industry classification
- Insufficient identification for all signers
How to Get Approved Fast
- Gather all documents before applying — missing a single document delays everything
- Make sure your state registration is current — expired registrations are automatic rejections
- Use consistent information — business name, address, and EIN should match across all documents
- Apply with a bank that serves your industry — if you're a nonprofit, use a bank that specializes in nonprofits
- Consider online-first banks — platforms like Holdings approve most applications in minutes, not days
Fee Comparison: What You'll Pay
| Bank | Monthly Fee | Minimum Balance | Transaction Limits | APY |
|---|---|---|---|---|
| Holdings | $0 | None | Unlimited | 1.75% |
| Chase | $15 | $2,000 to waive | 200 free/mo | 0.01% |
| Mercury | $0 | None | Unlimited | 0% (most) |
| Bank of America | $16 | $5,000 to waive | 200 free/mo | 0.01% |
| Novo | $0 | None | Unlimited | 0% |
How Holdings Makes It Easy
With Holdings, opening a business bank account takes about 5 minutes:
- No minimum deposit required
- No credit check — we don't pull personal credit
- Instant approval for most businesses
- All entity types supported, including nonprofits and churches
- Built-in accounting — no need for separate bookkeeping software
Your deposits earn 1.75% APY from day one, and there are no monthly fees, ever.
Open a free business account →