Completing an online business checking application can take about 10 minutes if your documents are ready, but approval timing depends on the provider, entity type, and review requirements. The harder part is figuring out which documents you need. Federal law drives most of the list, and the specific paperwork depends on whether the business is a sole proprietorship, an LLC, or a corporation.

Requirements shift based on your entity type, your ownership structure, and the type of provider you choose.

What Are the Business Checking Account Requirements?

Two federal rules drive many business checking account requirements: the Customer Identification Program (CIP) and beneficial ownership rules. That is why the document lists look similar across Chase, Bank of America, and online-first platforms like Novo. The differences are usually in how each provider verifies documents and whether it asks for additional forms, signatures, or branch visits.

Almost every provider asks for the following documents:

• Personal ID for every signer and anyone owning 25% or more of the business
• Social Security Number (or passport and ITIN for non-U.S. owners)
• Employer Identification Number (EIN) from the IRS, or your SSN if you are a sole proprietor with no employees
• Formation documents that match your entity type (Articles of Organization for an LLC, Articles of Incorporation for a corporation, and so on)
• Business address, phone number, and industry code
• Beneficial ownership disclosure listing every 25%+ owner plus one control person

Federal Customer Identification Program (CIP) rules require banks to collect ID information on all account signers. Banks must collect beneficial ownership information for each person who owns 25% or more of a legal entity customer and identify one control person with significant management responsibility. These are not provider-specific policies; they come from the Bank Secrecy Act and are enforced by FinCEN.

Online-first platforms can verify most of this digitally. Novo runs identity and entity checks during the application without a branch visit, and there is no minimum opening deposit.

What Personal ID Do You Need to Open a Business Checking Account?

CIP rules require four pieces of information for every signer and beneficial owner: name, date of birth, residential address, and an identification number. In practice, here is what you will need to upload or show:

Government-issued photo ID. Most providers accept a current U.S. driver's license, state ID, or passport, but accepted ID types vary by institution. Some accept military IDs. Most do not accept work badges, library cards, or expired documents.

Social Security Number. Required for U.S. citizens and resident aliens. Providers use your SSN to verify your identity under CIP rules. Some may also review consumer banking history or perform a soft credit inquiry, depending on their policy.

Date of birth and home address. Your home address, not your business address. Providers need this to confirm your identity under CIP. If you have moved recently and your ID still shows the old address, bring a utility bill or lease.

For non-U.S. owners. Non-U.S. owners may need to provide a passport, ITIN, foreign identification number, or other documentation accepted by the provider. Some serve non-U.S. resident owners, but many traditional banks require a U.S. address or additional documentation.

What Business Information Do Banks Require?

Providers also require documentation to confirm your business entity exists:

Employer Identification Number (EIN). The IRS issues EINs free at IRS.gov, and the online application takes about 15 minutes. You will get the number immediately and a confirmation letter (CP 575) within minutes. Sole proprietors without employees can open a business checking account using their SSN instead of an EIN, but getting an EIN anyway is worth the 15 minutes because it keeps your SSN off vendor paperwork and W-9s.

Legal business name and DBA. The legal name is whatever appears on your formation document or, for sole props, your own legal name. A DBA (doing business as) is the trade name you operate under if it is different. If you registered "Smith Holdings LLC" but operate as "Brooklyn Bagel Co.", you will provide both, plus the DBA certificate from your county or state.

Business address, phone, and NAICS code. A residential address is fine for most online-first providers. The NAICS code is a six-digit industry classifier. You can look up NAICS codes through the U.S. Census Bureau's NAICS search tool. Providers use it to flag higher-risk industries like cannabis, adult content, money services, and certain crypto businesses.

Estimated monthly volume and source of funds. Expect a question like "How much do you expect to deposit each month?" with ranges. Be honest. If your real volume comes in 5x higher than your estimate, the provider's anti-money-laundering system will flag it and you will get a request for documentation.

What Formation Documents Do Different Business Entity Types Need?

Providers require different documents depending on your entity type to prove the business exists and you are authorized to open an account.

Sole Proprietor

• SSN or EIN (either works)
• DBA certificate if you operate under a name other than your own legal name
• No formation documents required, because sole proprietorships exist by default when you start doing business

A sole prop application is the fastest path to an account. Many online-first providers can approve it the same day.

LLC

• Articles of Organization (the document you filed with the state)
• Operating Agreement (even single-member LLCs should have one; some providers require it, others just ask)
• EIN confirmation letter from the IRS
• Certificate of Good Standing if your LLC is more than a year old (some providers)

Required documents vary by entity type: LLCs need an Operating Agreement and Articles of Organization, corporations need bylaws and Articles of Incorporation. If your LLC has multiple members, the Operating Agreement tells the provider who can sign on the account.

Corporation (C-Corp or S-Corp)

• Articles of Incorporation
• Corporate bylaws
• EIN confirmation letter
• List of officers and directors
• Corporate resolution authorizing the account (some providers provide a template)

Partnership

• Partnership agreement
• EIN confirmation letter
• State registration (for limited partnerships and LLPs)
• Fictitious business name filing if applicable

Nonprofit

• 501(c) determination letter from the IRS
• Articles of Incorporation and bylaws
• EIN confirmation letter
• Board resolution authorizing the account

What Is Beneficial Ownership and Who Gets Reported?

The Beneficial Ownership Rule went into effect in 2018 and requires covered financial institutions to collect ownership information for many legal entity customers at account opening. Two categories of people get reported:

Ownership prong. Anyone who directly or indirectly owns 25% or more of the business. If four people each own 25%, all four get reported. If one person owns 100%, just that one.

Control prong. One individual with significant responsibility to control or manage the business, typically the CEO, CFO, managing member, or general partner. Even if no single person hits the 25% threshold, you still report one control person.

For each beneficial owner, the bank collects:

• Full legal name
• Date of birth
• Residential address
• SSN (or passport number for non-U.S. persons)

This is a federal requirement, not a provider-specific rule, so you should expect U.S. financial institutions to ask for this information. The form is usually a single page. The time-consuming part is collecting names, addresses, dates of birth, and ID numbers from co-owners before you apply.

Beneficial ownership reporting rules under the Corporate Transparency Act have changed in recent years. Check FinCEN.gov or a legal adviser to confirm whether your business has a separate BOI filing obligation in addition to what your provider collects.

What Are the Minimum Deposit and Age Requirements?

Traditional banks usually require an opening deposit between $25 and $100. Some basic business checking accounts at large banks let you open with $0 but charge a monthly fee unless you meet activity or balance minimums.

Novo has no minimum opening deposit and no monthly fees. You can open a Novo account with $0 minimum opening deposit and no monthly fee.

Account signers must be 18 or older in most states. Age and contract rules can vary by state and provider policy. Minors can sometimes be listed as beneficial owners on a parent-controlled account, but they generally cannot be signers themselves.

How Do You Apply Online vs. In Person?

For sole proprietors and single-member LLCs, online applications take about 10 minutes if your documents are ready. The application asks for your personal info, business info, EIN, and uploads of your ID and formation docs.

Novo's online application verifies identity and entity digitally, with no branch visit required. Approval timing depends on entity type, document quality, and review requirements. Multi-member LLCs and corporations usually take longer because the underwriting team reviews the Operating Agreement or bylaws to confirm signer authority.

Traditional banks may require an in-person signature for certain entity types, particularly corporations and partnerships with multiple signers. Some start the application online and then route you to a branch to finalize a corporate account. If branch access is inconvenient, compare online-first providers that can verify your documents digitally.

Documents you will upload:

• Photo ID (front and back)
• EIN confirmation letter
• Formation document (Articles of Organization, Incorporation, etc.)
• Operating Agreement or bylaws if applicable
• Proof of address if your ID is out of state

Have these files ready as PDFs or clear phone photos before you start, so you do not need to pause or restart the application.

Why Do Business Checking Applications Get Denied?

Denials happen, and most are fixable. The five common causes:

Business name mismatch. Your IRS records say "Smith Holdings LLC" and your state filing says "Smith Holding LLC" (missing the s). The provider's automated check flags it. Fix: pull your CP 575 EIN letter and your stamped Articles of Organization, confirm which one is wrong, and amend with the appropriate agency before reapplying.

Incomplete beneficial ownership. You listed yourself as 100% owner, but the provider's records show your business partner from a previous filing. Or you forgot to add a control person. Fix: redo the beneficial ownership form with every 25%+ owner and one control person, even if that control person is the same as an owner.

ChexSystems flags. ChexSystems is the consumer banking version of a credit bureau. Unpaid overdrafts, suspected fraud, or a closed account in bad standing can follow you. Some providers pull ChexSystems for business applications, especially if you are the sole signer. Fix: request your free ChexSystems report at chexsystems.com, dispute errors, and pay off any legitimate debts. If ChexSystems is a concern, ask each provider what consumer reporting agencies it uses before you apply.

High-risk industry. Cannabis, adult entertainment, firearms dealers, money service businesses, and certain crypto operations sit outside many providers' risk policies. Fix: look for specialty providers that serve your industry.

Address or identity verification failure. Often a recent move or a name change after marriage that has not propagated to all your records. Fix: update your ID, then reapply with matching documents across IRS, state, and personal records.

What Should You Do Before You Apply?

Preparing your documents before you apply can prevent follow-up requests and delays. Follow these steps before applying:

1. Form the entity with the state. File Articles of Organization (LLC) or Incorporation (corp) with your Secretary of State. State filing fees vary widely, so check your Secretary of State's current fee schedule. Keep the stamped filing receipt; the provider will ask for it.
2. Get your EIN from the IRS. Apply free at IRS.gov, online, weekdays 7 a.m. to 10 p.m. Eastern. Takes about 15 minutes. Save the CP 575 letter as a PDF immediately. The IRS only issues it once, and getting a replacement (147C letter) requires a phone call.
3. Write or download an Operating Agreement if you are forming an LLC. Single-member templates are free at most state bar association sites. Multi-member agreements should be reviewed by a lawyer if there is real money involved.
4. Gather all required documents: personal IDs, EIN letter, formation documents, Operating Agreement, and the name, DOB, residential address, and SSN for every beneficial owner.
5. Decide on signers and beneficial owners before you start. Adding a co-signer after the fact often requires reopening the application.

What Questions Do Business Owners Ask About Checking Account Requirements?

Can I open a business checking account without an EIN?

Yes, if you are a sole proprietor with no employees. You can use your SSN instead. Single-member LLCs technically can too, but most providers will ask for an EIN anyway because the LLC is a separate legal entity. Getting an EIN is free through IRS.gov and usually takes about 15 minutes, so many sole proprietors choose to get one before applying.

Do I need an LLC to open a business bank account?

No. Sole proprietors can open business accounts at many major banks and online-first providers, including fintechs like Novo. An LLC can help separate personal and business liability, but the protection depends on state law and how the business is operated. It is not a banking requirement.

Can I use my home address as my business address?

Yes, at most online-first providers including Novo. Some traditional banks will ask for proof that you operate from a commercial address if your industry suggests it. A manufacturing business at a residential address may trigger a question. For freelancers, consultants, and online sellers, a home address is standard.

How long does approval take?

Sole proprietors and single-member LLCs are often approved quickly on online-first providers once documents are verified. Multi-member LLCs and corporations typically take longer because the provider's team reviews the Operating Agreement or bylaws. Traditional banks that require a branch visit take longer still, usually a week or more by the time you book an appointment.

Does Novo accept cash deposits?

No. Novo does not accept cash deposits, so cash-heavy businesses should factor this in. If your business regularly receives cash, choose a provider or business account service that supports cash deposits directly. For businesses that take card, ACH, and check payments, this is not an issue.

What if my business is brand new with no revenue yet?

Providers do not require revenue history to open a business checking account. They require entity documentation. A pre-revenue startup can usually apply with formation documents and an EIN, but approval still depends on the provider's review. Novo and most online-first providers are explicit about welcoming new businesses.

Do I need a separate business account if I am a sole proprietor?

Legally, no. Practically, yes. The IRS expects you to keep business and personal finances separate for accurate Schedule C reporting, and commingling personal and business funds can weaken the liability separation an LLC is meant to provide. A business account also lets you accept payments under your business name, connect transactions to accounting tools like QuickBooks, and keep clearer records for vendors and taxes.

Can I open a business account fully online?

Yes, with online-first providers. Novo runs a fully digital application, and some other online-first providers do the same. Larger banks may start online but route corporate or partnership accounts to a branch.

Disclosures

Novo Platform Inc. ("Novo") is a fintech, not a bank. Banking services provided by Middlesex Federal Savings, F.A., Member FDIC. Eligibility subject to final Novo determination.

Novo Platform Inc. ("Novo") strives to provide accurate information but cannot guarantee that this content is correct, complete, or up-to-date. This page is for informational purposes only and is not financial or legal advice nor an endorsement of any third-party products or services. All products and services are presented without warranty. Novo Platform Inc. does not provide any financial or legal advice, and you should consult your own financial, legal, or tax advisors.