Business Bank Account Requirements for Solos: The 4-Question Router (2026)

Verdict: What you actually need depends on your entity, not a universal checklist

Here is the clean answer upfront: LLCs and S-corps open a business bank account in the legal entity's name using an EIN and formation documents. Sole proprietors can often open with an SSN, personal ID, and DBA paperwork if operating under a trade name. You do not need payroll, employees, or an S-corp election to open a business bank account. The core requirements are identity verification, business structure verification, and a matching tax ID.

For most solos, the practical path looks like this: start as a sole prop with SSN or EIN if you are early and simple; open an LLC account with EIN once liability protection and client optics matter; treat S-corp banking as an entity-plus-payroll workflow after the tax election is real and a CPA is involved. A bank account alone does not create an LLC or preserve a liability shield — it supports financial separation, which is one piece of entity maintenance.

This guide routes you through a four-question decision tree to the right documents and the right account for your structure and workflow. It also maps six specific accounts — Found, Mercury, Relay, Chase, Bluevine, Novo, and Amex — to the stages where they actually fit.

The 4-question solo banking requirements router

Rather than a flat document checklist, walk this decision tree. Each question narrows both your required documents and the accounts worth considering.

Question 1: Are you operating under your own legal name or a separate business name?

Your own legal name, no trade name: you need personal government-issued ID, your SSN (or EIN if you have one), your business address, and a brief description of what you do. No DBA paperwork is required. Found and Chase both support this path explicitly for sole proprietors.

A DBA or trade name: add your fictitious-name certificate or assumed-name registration from your state or county. Chase says DBA or assumed-name documents may be required when doing business under a name other than the owner's legal name. Found says sole proprietors can add a trade name later after opening.

An LLC or corporation name: the bank will require your EIN, state formation documents (Articles of Organization for an LLC; Articles of Incorporation for a corporation), and identity documentation for owners and control persons. Mercury and Relay both require state-filed formation documents plus the IRS-issued EIN confirmation letter for entity accounts, as of June 2026.

Question 2: Do you have a formal legal entity?

No entity — operating as a sole proprietor: SSN-only signup is possible at some providers. Found explicitly allows sole proprietors to open without an EIN, using legal name and SSN verification. Chase also supports a sole proprietorship opening path. The IRS confirms that a disregarded single-member LLC without employees or excise tax liability does not need an EIN for federal tax purposes — but if you have formed an LLC, banks typically want an EIN regardless. Getting one is free at IRS.gov and takes about ten minutes online.

Single-member LLC: apply as an LLC, not as a sole proprietor, even if the LLC is tax-disregarded and you file on Schedule C. Banks verify the legal structure separately from tax classification. Bring your EIN, Articles of Organization, and ID. The IRS says an SMLLC may apply for an EIN when needed for banking, even if not required for federal tax filing.

S-corp or multi-member entity: apply as a corporation or LLC using EIN and formation documents. The S-corp election — filed on IRS Form 2553 — affects your tax filing, payroll obligations, and how you pay yourself. It does not create a different category of bank account. Importantly, the IRS says shareholder-employees who perform services must receive reasonable compensation before non-wage distributions, so your banking workflow needs to accommodate payroll. The deadline to elect S-corp treatment for tax year 2026 was March 16, 2026 — that election affects your 2026 taxes, generally filed in 2027. For future-year planning, confirm timing with a CPA well in advance.

Question 3: Do you need cash deposits or branch access?

Yes: prioritize Chase or another branch-network bank. Chase Business Complete Banking includes up to $5,000 in in-branch cash deposits per statement cycle at no additional charge and up to 20 qualifying teller and check transactions before extra fees apply, as of June 2026. The monthly fee is $15, waivable by criteria including a $2,000 minimum daily ending balance, $2,000 in eligible Chase payment deposits, $2,000 in eligible Chase business card purchases, a qualifying linked personal private-client relationship, or military banking. Additional paper and teller transactions are listed at $0.50 each effective January 1, 2026.

No cash deposits, digital-only: Mercury, Relay, Bluevine, Found, Novo, and Amex Business Checking are all viable depending on your entity type and workflow. Mercury does not support cash deposits. Novo's workaround is to buy a money order and deposit it via mobile check deposit. American Express Business Checking does not accept ATM cash deposits, as of June 2026.

Question 4: What financial job must this account do?

This is where most comparisons stop being useful. The right account for a $45,000 freelancer on Schedule C is genuinely different from the right account for a $180,000 S-corp consultant. Here is the mapping:

Account-by-account breakdown: solo lens

Found — best for SSN-only sole proprietors and Schedule C freelancers

Found is the most friction-free starting point for a sole proprietor who wants banking plus tax and bookkeeping tools in one place. Sole proprietors can open without an EIN, using their legal name and SSN verification, as of June 2026. The free base plan covers the basics. Found Plus costs $35/month or $315/year and earns 1.50% APY on balances up to $20,000. Found Pro costs $80/month or $720/year and earns 2.50% APY on all balances with no cap. Cash deposits cost $2.00; outgoing wires are $15 (or $10 on Pro); paper checks are $1 each (free on Pro). All figures from Found's published fee schedule, checked June 2026.

Honest limitation: the in-app tax-payment features are designed for Schedule C sole proprietors. Once you have an S-corp with CPA-run books and payroll, Found's core value proposition shrinks — you would likely migrate to a more accountant-friendly setup. APY requires a paid plan.

Skip it if: you have an S-corp with active payroll, you need branch banking, or your accountant runs your books in a platform that does not connect to Found.

Mercury — best for LLCs and S-corps with electronic-only payments

Mercury is the cleanest digital option for a formally organized entity. Business checking and savings are free. USD wires are free. The non-USD international wire conversion fee is 1%, as of June 2026. Mercury requires a U.S.-formed or registered company, state formation documents, an IRS-issued EIN confirmation letter, and ID for owners and control persons. See our full Mercury review for a deep-dive on eligibility and stack fit.

Honest limitation: Mercury is not a practical path for a casual sole proprietor without a formal entity. No cash deposits. No branches. Restricted industries are excluded. If your business involves physical cash handling of any kind, Mercury is not your primary account.

Skip it if: you are a sole proprietor without an EIN and formal entity, you handle cash, or you are in a restricted industry.

Relay — best for tax-bucket systems and multi-account LLCs or S-corps

Relay is purpose-built for organized cash-flow management. The Starter plan is $0/month and already includes up to 20 checking accounts per business — enough to run a full Profit First allocation without upgrading. Grow is $30/month and includes 1.75% APY on savings accounts; Scale is discounted to $90/month (from a listed $120) and earns 3.00% APY on savings, as of May 1, 2026 per Relay's pricing page — variable. Relay advertises up to $3,000,000 in FDIC coverage via Thread Bank's sweep program, subject to conditions; standard FDIC insurance is $250,000 per depositor per insured bank per ownership category.

Relay requires an EIN, business address, Articles of Organization, and operating agreement for applicable entity types. It integrates with QuickBooks and Xero, which matters once you have a bookkeeper or CPA who wants direct access. For S-corp operators, Relay's multiple-account architecture makes it easy to keep payroll funding, tax reserves, owner distributions, and operating cash visually separated.

Honest limitation: no branches, no 24/7 phone support by default, and the fintech pass-through banking model means your deposits sit at a partner bank rather than Relay itself. Verify specific cash-deposit and transaction fees on Relay's current support pages before making this your primary account.

Skip it if: you need branch access, you handle significant cash, or you prefer a direct bank relationship over a fintech layer.

Chase Business Complete Banking — best for local service businesses and cash handling

Chase is the right answer when branch access or cash deposits are non-negotiable. The $15 monthly fee is waivable under several realistic conditions, including maintaining a $2,000 minimum daily ending balance or running $2,000 in eligible payment deposits through the account. The $5,000 in-branch cash deposit allowance per statement cycle at no additional charge is a meaningful differentiator for retailers, contractors, and service businesses that still handle physical cash. Chase also provides entity-specific documentation checklists that make the onboarding process clear for sole props, LLCs, and corporations.

Honest limitation: the waiver game requires ongoing attention. If your balance dips or payment volume drops, you pay the fee. The account is less elegant for multi-account tax bucket automation than Relay or Found, and there is no meaningful APY on checking balances.

Skip it if: you are fully digital, want no monthly fee with no conditions, or need many sub-accounts for cash-flow systems.

Bluevine — best for digital LLCs with steady balances seeking yield

Bluevine's Standard plan has no monthly fee but a modest base APY. The Plus plan at $30/month (waivable with $20,000 average daily balance plus $2,000 card spend) earns 1.75% APY on balances up to $250,000. The Premier plan at $95/month (waivable with $100,000 average daily balance plus $5,000 card spend) earns 3.0% APY on all balances. Cash deposits through Green Dot cost $4.95 per deposit. All figures from Bluevine's published pricing, checked June 2026 — APYs are variable.

Honest limitation: the waiver thresholds are meaningful at solo scale. If you cannot comfortably maintain $20,000+ average daily balance, you will pay the monthly fee to access the APY that makes the account competitive. At low balances, Bluevine's case weakens.

Skip it if: you carry low balances, handle cash frequently, or do not want to monitor tier requirements to avoid monthly fees.

Novo — best for simple digital sole props and LLCs that want free, no-frills banking

Novo has no monthly service charge, no minimum monthly balance, and no overdraft fee, as of June 2026. For a solo operator who wants a clean free account for basic payment separation, it is straightforward. The cash deposit workaround — buying a money order and depositing it via mobile check — is clunky but functional for occasional needs.

Important note: Novo's official documentation contains a conflict on whether sole proprietors need an EIN to apply. One Novo help-center page indicates EIN is required for corporations, LLCs, and general partnerships but that sole proprietors only need ID. Another page lists EIN as required for all business types. Treat this as contested and verify directly during the application process before relying on either version.

Skip it if: regular cash deposits matter, or the EIN-requirement ambiguity creates onboarding friction you do not want to troubleshoot.

American Express Business Checking — best for Amex-ecosystem solos who want interest-bearing checking

Amex Business Checking earns 1.30% APY on balances up to $500,000, effective October 12, 2022 — variable, check the live rate. There is no monthly maintenance fee. Outgoing domestic wires cost $25; same-day ACH outgoing costs $10; the debit card foreign transaction fee is 2.7%; no Amex fee at Allpoint and MoneyPass ATMs. No ATM cash deposits accepted. The account requires a TIN or EIN, annual revenue, company structure details, DBA certificate if applicable, and owner information including SSN, date of birth, and current address. All figures from Amex's published rates and fees page, checked June 2026.

Honest limitation: the APY is below Bluevine Premier and Found Pro at comparable balance levels. Wire fees add up if you send wires regularly. No branches, no cash deposits.

Skip it if: free outgoing wires or cash deposits are a priority, or you want maximum APY and can qualify for Bluevine or Found Pro.

Solo-stage rule of thumb

These are generalizations — your situation may differ, and your CPA should weigh in on entity and tax choices before you make structural decisions based on banking convenience alone.

• $0–$60K, no LLC, digital payments: Found or Novo (confirm Novo EIN status during application); avoid entity-heavy accounts like Mercury that require formation documents you may not have.
• $60K–$150K, LLC, digital payments: Mercury if free wires, integrations, and a clean entity account matter; Relay if cash-flow buckets and multiple accounts are the priority. Both require EIN and formation documents.
• $150K+, S-corp or organized LLC: EIN and entity match are baseline requirements. Prioritize payroll compatibility, accountant access, multiple sub-accounts, APY on idle reserves, and FDIC or sweep coverage. At this stage, the account is part of a system — see how it fits your Financial OS layer and where it sits relative to your solo finance maturity model.

A note on 1099 reporting and income: do not conflate thresholds with taxability

Under the One Big Beautiful Bill Act (OBBBA), as of June 2026, the IRS notes that Form 1099-K reporting for third-party settlement organizations reverts to payments over $20,000 and more than 200 transactions. Also beginning in 2026, Form 1099-NEC and Form 1099-MISC information-reporting thresholds increased from $600 to $2,000 per recipient, with later inflation adjustments. These thresholds determine when a form is issued — they do not determine whether income is taxable. All business income is generally taxable whether or not you receive a 1099. If you have questions about your reporting obligations, consult your tax hub resources or a CPA or enrolled agent.

What about FDIC coverage and fintech banking?

Standard FDIC insurance is $250,000 per depositor, per insured bank, per ownership category, as of June 2026. Fintechs like Mercury, Relay, Found, Novo, and Bluevine are not banks themselves — they hold deposits at FDIC-member partner banks. This structure works well in practice, but it means your coverage depends on the partner bank's health and, in some sweep programs, on how deposits are allocated across network banks. Relay advertises up to $3,000,000 in coverage via its sweep program, subject to conditions. If you carry balances above $250,000 in any single account or at any single institution, verify the current sweep structure and insurance details directly with the provider before relying on expanded coverage claims. American Express Business Checking is issued by Amex National Bank, an FDIC-insured institution.

Where business banking fits your Financial OS

Business banking is a Foundation-layer decision in the Solo Financial OS. It is the infrastructure everything else runs on: tax reserve accounts, invoice payment collection, payroll funding, and bookkeeping reconciliation. The right account is the one that matches your current legal structure, handles your payment types cleanly, and connects to the next layer of your stack — whether that is accounting software, a tax-savings workflow, or eventually a payroll provider when you reach S-corp territory.

Opening the right account now also avoids the friction of migrating vendors, payment links, and accounting connections later. If you are a sole proprietor today but plan to form an LLC in the next 12 months, it is worth opening the account in a way that either transitions cleanly or starting with an entity-ready provider from day one.

Bottom line

The single biggest mistake solos make with business banking is applying with the wrong entity classification — either treating an LLC like a sole proprietor application or assuming a sole prop needs full entity documentation. Walk the four questions: name, entity, cash needs, and stack job. Match the account to your current stage, not the aspirational one. And if you are considering an S-corp election, make sure your banking, payroll, and bookkeeping workflows are set up before the election takes effect — the IRS's reasonable-compensation requirement for shareholder-employees makes the banking and payroll layer non-optional once you elect. A CPA or enrolled agent should be in your corner before that step.

Related Articles

• Mercury Business Checking Review
• The Solo Financial OS
• Solo Finance Maturity Model
• Tax Hub for Solos
• QuickBooks Review for Freelancers