Tax ID and identity
The bank may permit a sole proprietor to use a Social Security number or may ask for an EIN, depending on the product and circumstances. The IRS notes that many banks require an EIN for business accounts, and obtaining one directly from the IRS is free.
DBA or trade-name documents
If the business operates under a name that differs from the owner’s legal name, the bank may ask for a fictitious-name, assumed-name or DBA registration. Requirements vary by state, county and bank.
Keep business activity separate
A dedicated business account makes it easier to reconcile revenue, expenses, estimated taxes, merchant deposits and vendor payments. Even when the legal entity is not separate from the owner, operational separation can improve records and reduce confusion.
Choose features based on how you get paid
A consultant receiving ACH payments has different needs from a cash-based local business. Compare cash-deposit allowances, mobile deposit, ACH, wire capability, card access and branch availability based on actual activity.
Plan for growth
A sole proprietor may later form an LLC or corporation, hire employees or add payment systems. Consider whether the bank can support that next stage so the business does not need to rebuild its payment instructions and banking setup soon after opening.
Primary sources and reference material
Model the account around the way your business actually moves money.
Fees, balances, transactions, cash deposits, payment tools and controls should be evaluated together. A lower headline fee is not automatically the lower-cost operating account.