How to Open an LLC Bank Account

By Ronna L. DeLoe, Esq.

How to Open an LLC Bank Account

By Ronna L. DeLoe, Esq.

You created a limited liability company (LLC), either by forming an LLC right away or by converting your DBA or sole proprietorship to an LLC. One of the first things you should do after establishing your LLC is to get a business savings account and checking account. Having an LLC bank account not only makes it easier to set aside money for the business, but it also enables you to pay vendors, landlords, and utilities.

Man and woman look over document in front of desktop computer

Opening up regular savings and checking accounts is usually easy, but there's a lot more that's required to open an LLC bank account.

Reasons for Opening an LLC Bank Account

There are many reasons for an LLC to have its own savings and checking accounts. Having LLC bank accounts:

  • Shows that the business is legitimate
  • Allows you to keep your personal accounts and business accounts separate
  • Allows you to have limited personal liability protection so long as you keep your personal accounts and business accounts separate
  • Makes it easy to calculate business expenses and income
  • Makes it easier to prepare your taxes

How to Open an LLC Bank Account

You need a lot of documents to start an LLC, but you likely already have all or most of them. Opening an LLC bank account requires that you do the following:

1. Shop around.

It's a good idea to start at the bank you already use for your personal banking because you have built up a relationship with bank personnel. That doesn't mean, however, that it's the best place for your business banking. Find a bank that has convenient locations and hours, where you don't have to wait on line, and where the bank personnel are personable and willing to help you.

2. Research bank fees.

You may even find a bank that doesn't have monthly fees. Beware of promotions that sound great, as banks may offer them to cover up unreasonable fees. Ask about the minimum balance fee, monthly service fees, ATM fees, wire transfer fees, deposit fees, and transfer fees between accounts. Make sure you're able to get at least one debit card for your accounts. Check the minimum balance requirements and get overdraft protection. Also check the interest rate.

3. Gather required documents.

Some banks require a few documents, while others require every document you used to open the LLC. Some banks want privileged information about your business, such as how much the business earns and the names of the LLC's vendors. If you're not comfortable with providing such information, find another bank.

Make sure you know what to bring to the bank before you get there. The last thing you want is to waste time going to your appointment without all the necessary documents. Some of the more commonly required documents and items include:

  • The LLC's employer identification number (EIN)
  • The articles of organization, which may be called articles of incorporation, depending on your state
  • The operating agreement
  • The LLC's business license
  • The certificate of formation
  • A copy of the original LLC application
  • The letter from the state approving the LLC
  • A letter on company letterhead
  • Any trademark or nonprofit documents
  • Information about the LLC's projected yearly sales, its employees, and its vendors
  • Contact information for the business, including primary place of doing business
  • The purpose of the business, such as manufacturing clothing or retail sales of gifts

4. Decide who will be the signers on the accounts.

Ensure that everyone who will have authority to sign comes to the bank with you. All signers should bring two forms of identification and their Social Security number or Social Security card. When in doubt, bring the card.

When you apply for LLC bank accounts, you'll be taking an important step towards getting your business off the ground.

This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not LegalZoom, and have not been evaluated by LegalZoom for accuracy, completeness, or changes in the law.