How to Open a Business Bank Account as an LLC
KARTHIK PANDIYAN
Information Technology Manager @ Amazon Web Services (AWS) | Project Management Specialist
If you are the owner of an LLC and need to open a business bank account, you have come to the right place. In this article, we will provide you with a step-by-step guide on how to open a business bank account as an LLC. Having a separate business bank account is essential for keeping your personal finances separate from your business finances, and it also helps to establish credibility and professionalism.
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:
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 Wise , 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.
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Step 1: Choose a?Bank
The first step in opening a business bank account as an LLC is to choose a bank. It is important to choose a bank that fits your business’s needs and offers the services you require. Look for a bank that provides business banking services, including business checking and savings accounts, online banking, and mobile banking.
Step 2: Gather Required Documents
Once you have chosen a bank, the next step is to gather the required documents. Banks typically require the following documents to open a business bank account:
Step 3: Schedule an Appointment
After you have gathered all the required documents, the next step is to schedule an appointment with the bank to open the account. Some banks allow you to schedule appointments online or over the phone, while others require you to visit a branch in person .
Step 4: Complete the Application
Once you have scheduled an appointment , the next step is to complete the application. You will need to provide the bank with your LLC’s information, including its name, address, and EIN. You will also need to provide information about the LLC’s owners and authorized signers.
Step 5: Fund the?Account
After you have completed the application, the next step is to fund the account. You will need to deposit money into the account to activate it. Some banks require a minimum deposit to open a business bank account, so be sure to check with your bank for their specific requirements.
Step 6: Receive Your Account Information
Once your account has been opened and funded, the bank will provide you with your account information. This includes your account number, routing number, and any other login credentials needed for online banking.
By opening a Wise 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.
Opening a business bank account as an LLC is an essential step in running a successful business. By following the steps outlined in this article, you can open a business bank account and keep your personal and business finances separate. Remember to choose a bank that fits your business’s needs, gather all the required documents, schedule an appointment, complete the application, fund the account, and receive your account information. Good luck!
Are you an LLC looking to open a business bank account? It may seem daunting, but it’s a crucial step in managing your finances and keeping your personal and business expenses separate. Here are some tips to make the process smoother:
?? Make sure you have all the necessary documents, including your LLC formation documents, EIN, and identification documents.?
?? Research various banks and credit unions to find the best fit for your business needs and goals.?
?? Consider the fees associated with the account and any minimum balance requirements.?
?? Schedule an appointment with the bank and bring all your documents with you.?
?? Be prepared to answer questions about your business, including its purpose and financial goals.
Opening a business bank account as an LLC can seem overwhelming, but it’s a critical step in establishing your business’s financial foundation. Take the time to research and find the best fit for your company, and you’ll be on your way to financial success.
Have you opened a business bank account as an LLC? What was your experience like? Share your thoughts in the comments below!