How to Open an LLC Bank Account

Opening an LLC bank account.

A limited liability company (LLC) is a legal business entity. In some ways, it is similar to a corporation, yet it's more flexible and less expensive to operate. Members or owners of an LLC have limited personal liability for the business' debts and actions. When a business establishes itself as an LLC, its business checking account should be in the name of the LLC. Company expenses and income should not funnel through the personal checking account of the business owners, but through the LLC's bank account. When opening an LLC bank account, the process is generally the same for all states, yet some state or local bank requirements may vary.

Instructions

1. Obtain a business license. In most states, banks will require proof of a local business license prior to opening an LLC bank account. To obtain a business license, contact your local municipality.

2. Gather together the LLC documents you will need to show the bank when opening the bank account. They include proof of the business license, the tax identification number (or EIN number) of the LLC and the LLC Resolution, showing the authorized signers for the LLC.

3. Gather together the personal documents you will need to show the bank when opening the bank account. Each signer on the account should be present when opening the account and each will need to show two forms of identification. This might include a driver's license and Social Security number or a driver's license and a credit card.

4. Call the bank where you intend to open the LLC bank account. Ask if the bank requires an appointment for opening a bank account. Most banks welcome walk-ins when opening a new account, yet your bank may prefer an appointment or will suggest a more convenient time.

5. Meet at the bank to open the LLC bank account. All signers should be present. Funds to deposit in the new account will be needed; the minimum amount can vary from bank to bank.

Tips & Warnings

• Laws vary from state to state. Ask the bank ahead of time if any additional documents will be required.

References

• Companies Incorporated: Operating an LLC