how to open a business bank account as an (LLC)
KARTHIK PANDIYAN
Information Technology Manager @ Amazon Web Services (AWS) | Project Management Specialist
It is important to have a bank account as an LLC, but it can be difficult to choose a bank that offers the services you need to prioritize. Below, we detail the steps in the process as well as some key things to consider.
Business owners can benefit greatly from opening a business bank account as an LLC.
With an LLC business bank account, your business will find bookkeeping and tax filing more straightforward due to the distinction between company members and the company itself.
Plus, your company will gain added legal protection. This means that business funds will be separate from all personal funds. In other words, individual company members will not be responsible for debts and liabilities. These benefits can be important in case of legal action.
So, if your firm is already registered as an LLC, you should strongly consider opening an LLC business bank account. Here’s how to do so.
Opening a business bank?account
Banks offer services and terms of conditions that vary between different types of account, and you should consider your options before you open an account.
You should first consider different fee structures and opt for a service that is affordable and convenient. You should also consider whether the bank requires you to maintain a minimum balance, offers interest on your balance, or provides overdraft protection.
Business bank accounts usually offer the same basic features as personal accounts — such as deposits, withdrawals, transfers, and lines of credit.
However, business bank accounts typically allow for more than one individual to act as a signing authority, meaning that more than one person can use the account in question. Additionally, business bank accounts often have higher fees than personal accounts.
Once you choose an account, your bank will guide you through the registration process.
What documentation does the bank need to open a business bank account as an?LLC?
To open a business bank account as an LLC, you may need to provide several pieces of information, including but not limited to:
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The exact information that you provide depends on the bank and service that you choose.
Requirements to open an LLC business bank account as a non-resident
Though LLCs only exist in the U.S., foreign businesses can establish an LLC and open an LLC business bank account even if they are based outside the country.
Yet it is comparably difficult to open an LLC business bank account if you are not located in the United States. You will likely need to obtain an Individual Taxpayer Identification Number (ITIN) in addition to your Employer Identification Numbers (EINs).
Some U.S. banks may refuse to open accounts for companies or individuals that are not based in the country.
However, other banks may allow this, and certain companies are specifically dedicated to helping non-U.S. entities access banking services.
Is opening an LLC business bank account online an?option?
Opening an LLC business bank account in the U.S. is possible, and this is an ideal course of action for any company that has established itself as an LLC.
At Payset, we offer affordable virtual multi-currency accounts that include many features found in standard bank accounts, including payments, global transfers, excellent reporting features, and currency exchange.
By opening a Payset account, you’ll gain access to a multi-currency IBAN account with support for 34 currencies including the U.S. dollar. You’ll also gain access to top payment networks such as SWIFT, SEPA, CHAPS, and several other global networks.
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