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Opening a business bank account for your LLC doesn’t just help streamline bookkeeping and operations (though it does that, too). A dedicated LLC bank account is an essential step to maintaining the legal distinction between the business and its owners, which is necessary to preserve limited liability protections. Even single-member LLCs should have one.
Follow these steps to open an account for your LLC.
1. Formalize your LLC
If you haven't legally established your LLC and obtained an employer identification number (EIN), this is likely your first step. An EIN will let you open an account in your LLC’s name, though single-member LLCs may be able to open a business account without an EIN at some financial institutions.
There are benefits to getting an EIN even if you don't need to, and you can receive one instantly by applying on the IRS website. Other methods, like sending an application by mail or fax, may take multiple weeks to process. International applicants must apply by phone.
Once you have that out of the way, the process is similar to how you’d open any business account.
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2. Choose a bank for your LLC business account
A business checking account is the default business account for most LLCs. You can use this account for day-to-day operations, including accounts payable and receivable.
Look for an account with low (or no) monthly fees that can easily integrate with your existing business tools and supports joint accounts, if your LLC has multiple owners. And factor in other useful account features, like cash deposits, free employee debit cards, ATM rebates, free wire transfer or cash back on business purchases.
A single business checking account may suffice for smaller operations or LLCs with no employees, but larger companies may want multiple business accounts.
Your LLC may opt to use one business bank account for payroll, for example, and another for your operating account. Or you may want to leverage a business savings account to earn a higher yield on any extra cash on your balance sheet.
🤓Nerdy Tip
Having multiple business bank accounts — at multiple banks — can also help maintain access to funds if an account is compromised or your bank shuts down.
3. Apply for an LLC bank account
Depending on the bank you choose, you can apply for an LLC bank account either online, in person or over the phone. Applying is pretty straightforward, so long as you come prepared with what you need to open a business account.
Check with your bank on exact requirements, but expect to provide the following:
Business documents:
Articles of organization/formation.
LLC operating agreement.
Business license.
EIN confirmation or verification letter from the IRS.
“Doing business as” (DBA) or assumed name certificate, if applicable.
Business details:
Business name, address, phone number and EIN.
Industry, type of business and date your business was established.
Annual revenue and type/volume of transactions expected.
Personal information:
Driver’s license or passport.
Date of birth and Social Security number.
Home address, personal email and cell phone number.
Multi-member LLCs need to provide personal details and identification for anyone with 25% or more ownership in the business.
4. Set up your LLC bank account
Once approved, it’s time to fund and set up your LLC bank account. If your account has a minimum opening deposit, you’ll make that right away.
From there, gradually move your business’s assets into your newly opened account. Business accounts typically have longer deposit hold times for new accounts (up to 10 business days), and some financial institutions will flag large transactions, including deposits, for fraud — so you don’t want all your funds temporarily tied up.
You also want to log in to the bank’s online banking platform to set any alerts or preferences. Decide who will be authorized to sign on the account. This is especially important for multi-member LLCs. Add any additional users, like an accountant or employee who handles the accounts payable, and set account permissions accordingly.
If your bank offers direct integration with any business tools, connect the accounts to streamline your bookkeeping. You’ll also want to establish any recurring bill payments or invoices and download the bank’s mobile app for easy banking access on the go.
Lastly, if your business account has a sign-up promotion, track the requirements to ensure you earn any potential bonus. You'll typically need to maintain a certain average balance for a set period of time, as well as potentially perform other qualifying activities (making a specific number of transactions with your linked debit card, for instance).
