Business Bank Account

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Opening a Business Bank Account for an LLC

One of the first things to do after forming your LLC (and getting your EIN) is to open an LLC business bank account.

Not only does opening an LLC business bank account make life easier, it also helps you maintain personal liability protection (which is the main reason you formed the LLC).

Think of your LLC as being another person: it makes its own money, has its own bank account, and has its own expenses.

If you don’t create a separate bank account for your LLC (and you mixed your LLC funds with your personal funds), you would be “commingling” your assets and a court could “pierce your corporate veil”, which would then make you personally liable for the LLC’s debts and legal obligations.

Other reasons to have an LLC bank account are:

  • easier financial recordkeeping
  • easier to calculate and pay taxes
  • audit prevention
  • easy to track/deduct business expenses
  • professionalism and credibility (using business checks instead of personal checks)

In order to keep your personal liability protection:

  • don’t pay personal expenses out of your business account
  • don’t pay business expenses out of your personal account

What documents are needed?

You’ll need the following items to open your LLC’s business bank account:

LLC Approval
This will be your LLC’s approved Articles of Organization, which might be called something different in your state (Certificate of Formation or Certificate of Organization).

Federal Tax ID Number (aka EIN)
Make sure you’ve received your EIN from the IRS before heading to the bank. You’ll need to show them a copy of your EIN in order to open your account. If you need assistance getting your EIN, please see these video instructions.

2 Forms of Identification
You’ll need to bring in two forms of ID. One of these needs to be government-issued (such as a driver’s license). The 2nd ID could be any of the following: credit/debit card, passport, voter’s registration, or utility bill.

Operating Agreement and Additional Forms
Most banks don’t need a copy of your Operating Agreement or your Welcome/Approval Letter (if you received one), but some banks may require it. We recommend bringing all additional LLC documentation just to be safe.

Our Bank Recommendations

Here are some banks we recommend (and their locations):

Wells Fargo has the largest number of branches and they cover most of the US. They have excellent customer service. (map)

TD Bank has great hours and is open on Sunday. Their branches are located along the east coast. (map)

PNC Bank branches are found in nearly all states east of the Mississippi, except for New England. (map)

Chase branches are found in the more populated cities and not in small towns. (map)

Bank of America has branches in nearly all the states except for MT, ID, WY, ND, SD, NE, UT, and CO. Their service can sometimes be below average though. (map)

If you live in a smaller town, or don’t have access to the branches above, you can open a business bank account with your local bank. You can google “small business checking + {name of your town}” or review this map for options in your area.

Tip: Whichever bank you choose, they should have great customer service and be willing to answer all your questions. They should help educate you on their various products, like business loans, checking, savings, and investments. Finding a bank with great hours and a few branch locations is also a plus.

Non-US residents and non-US citizens

If you plan to visit the US to open your LLC bank account, you’ll need open a bank account in person. You’ll need to open a business bank account in the state where you formed your LLC. We recommend calling the bank ahead of time and making sure they are comfortable opening bank accounts for non-US residents/non-US citizens.

As an alternative you can open a TransferWise business account (called a “Borderless” account) and get a US bank account number and US bank routing number. You can receive US Dollars (USD) to your LLC bank account, exchange to your currency, and then withdrawal to your local bank account.

We also have another article for foreigners opening a US LLC bank account: how foreigners can open US LLC bank account.

All Members Most Likely Need to be Present

Most banks require all LLC members to be present when opening a bank account.

We recommend calling the bank ahead of time to double-check.

Don’t be confused if they ask for your DBA

A lot of people who work at banks are clueless when it comes to LLCs. Hopefully you don’t get one of these reps, but if you do, they may ask for your DBA (aka Fictitious Name) documentation.

You don’t need a DBA for your LLC, since your LLC operates under it’s own name. But often the reps get confused and think that the LLC needs one.

We can assure you, it does not, and the account will just go in the name of the LLC.

Having said that, if your LLC needs to operate under a name different than the one you registered with the state (and you have a DBA), make sure to bring its approval.

Call Ahead of Time

Call the bank ahead of time and ask to speak with the person who handles business accounts.

Check on the following:

  • what are the required documents?
  • what are the minimum monthly balance requirements?
  • what are the monthly fees, if any?
  • how much is needed for the initial deposit?
  • do all LLC members need to be present?
  • what’s the best time of day for quickest service?
  • what else do I need to bring that I forgot to ask?

Be Careful of…

Monthly Fees and Required Minimum Balances
A lot of banks charge monthly fees and require you to maintain a minimum monthly balance.

But many other banks don’t charge monthly fees, so we recommend calling a few and checking before going into the local branch.

Promotions
Be careful of promotions and incentives for opening an account. Although they may sound good, most are just temporary and usually lead to ongoing monthly fees.

Different Packages
Banks may have different packages/tiers of business accounts (like economy, gold, and deluxe, for example). Usually, the fancier sounding packages have crap you don’t need and higher fees.

We recommend going with the basic package and save yourself the money (and the hype). You can always upgrade later.

Debit Cards

You’ll also receive a business debit card after opening your account. Some banks will issue them right on the spot, others will mail them in a few days.

Having a debit card helps you keep track of business expenses with a dedicated card.

Most debit cards also have technology built in to prevent any fraudulent purchases.

Credit Cards

Besides a debit card, you can also get credit cards for your LLC to use for rewards, such as cash back or travel.

To see the top cards, check out business credit cards.

Tips when Ordering Checks

After your account is opened, you’ll be able to order business checks. Below are some helpful tips.

Don’t start your checks at #001
Most checks start at number 001. This could give your business an “amateur” feel. Just ask the bank to start your checks at #1000 or #5000 or whatever you please.

Don’t get super-sized checks
Most banks will try to sell you “special” checks that boost your ego. They are big business checks that come in a large, bulky binder. Unless you need to run checks through a printer (which is what they were originally designed for), you can save yourself some money by just ordering regular size checks.

Single Member LLCs: EIN vs. SSN?

Most banks will let Single-Member LLCs open a bank account with their SSN, and some might even suggest it. We recommend using your EIN instead of your SSN for privacy and easier record keeping.

If you formed your LLC through our courses, you should have obtained an EIN from the IRS.

Business Savings Account

Along with the checking account you open, your bank may also offer you a business savings account. If you prefer to keep all your banking under one roof, this might be a good idea.

However, if you prefer higher interest rates on your savings, we recommend setting up a business savings account with CapitalOne 360.

CapitalOne 360 also has no monthly fees and no minimum balance requirements.

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Matt Horwitz
Founder & Educator at LLC University
Forming an LLC shouldn't be so complicated. Our step-by-step guide will make the process a breeze – and no complex legal jargon! We teach people how to form an LLC for free in all 50 states. We hope you find our free guides and resources helpful in your entrepreneurial journey.

109 Comments

  1. Tracey March 31, 2017

    Hi,

    My husband and I have a construction company. I’m new to this and last year the first thing we did was go register the company in the office of deeds and quickly got the EIN number. My husband and I didn’t have any idea that we were going to need the company to be an LLC for our protection. I don’t know what to do now since we already have an EIN number but we have to get the company register as LLC. Will I have to get a new EIN number or is there any way I can still use that one? Please let me know how you can help? Thank you for your time.

    reply
    • Matt Horwitz April 5, 2017

      Hi Tracey, it sounds like you either registered a Sole Proprietorship or Partnership at the Office of Deeds and then obtained an EIN. In that case, although you can “transfer” an EIN from your existing Sole Proprietorship or Partnership, having to deal with the IRS on this (and hoping it’s done correctly) is a pain. Instead, we recommend forming an LLC and then applying for a new EIN from the IRS after the LLC is approved. Then, after you (or your accountant) files your final tax return for the Sole Proprietorship or Partnership, you can simply close the EIN with the IRS (instructions here). Hope that helps! Let me know if you need anything else.

      reply
  2. Kathleen June 21, 2017

    Hi Matt,

    I received a check in my name from a 403b. How exactly do I deposit this money into my LLC to help with fund the startup?

    reply
    • Matt Horwitz June 23, 2017

      Hi Kathleen, you can simply use the proceeds as a capital contribution and deposit them into the LLC’s bank account. We don’t have this form on our site, but you can find one here to document the transaction.

      reply
  3. Rachel June 27, 2017

    Hi,
    I have worked as a sole proprietor cleaning company for a while now and have just worked as a DBA. I have a license to do business from town hall, a license from DRS to collect sales tax and I also get vouchers from IRS for SE Payments. All under my name/SSN(since I was DBA).
    Recently I formed a Single member LLC under the some name but With LLC at the end.
    I am not sure what I need to do now. Do I have to get a new license to do business from town hall? Do I also have to register for sales tax license?. And do I have to change anything with IRS for SE vouchers? Will I still need them since I’m single?
    member llc.
    Thank you for your help.

    reply
    • Matt Horwitz June 28, 2017

      Hi Rachel, likely yes, you’ll need to change all that you mentioned, since the legal entity doing business (now your LLC, not you) has changed. Regarding the SE vouchers, please check with your accountant on this one. And regarding the business license, depending on the jurisdiction, you’ll either need to get a new one, or they’ll let you transfer your existing one. You’ll need to call and check.

      reply
  4. Andy Watson September 5, 2017

    Hi

    I opened a LLC 3 years ago but have never used but I am now starting a new business so propose to use the LLC. I have gone online and with your helpful tutorial changed the name appropriate to my new business. However my Certificate of Organization is in the old company name and the bank I am trying to open an account with won’t accept it. Should I apply for a new Cert of Organization or is there another way around?

    Thanks for your help!

    reply
    • Matt Horwitz September 6, 2017

      Hi Andy, after your LLC name change went through, you should have received back confirmation showing the new LLC name. Which state is your LLC in?

      reply
      • Andy September 8, 2017

        Hi Matt

        Thanks for your reply my LLC is in Pennsylvania I didn’t get a confirmation but I if I search the new name it does come up ok.

        reply
        • Matt Horwitz September 12, 2017

          Hi Andy, you should have received confirmation of the amendment that you filed. I recommend calling the Bureau of Corporations and ask for a copy, then bring that to the bank. You never need to form a new LLC in order to change the name of an LLC. That just doesn’t make sense if you think about it. Also, to save time, you can call the bank and see if they’ll accept the updated record on the state’s website. Depending on the bank, that just may be enough. Either way, I’d still get a copy of your amendment changing your LLC name. You will likely need that for other things.

          reply
  5. Dave October 20, 2017

    Hi Matt,

    Enjoyed the article. I was wondering do banks run a personal credit check on you when opening a bank acct. under an LLC?

    Secondly, does having a LLC acct. protect member/members from personal garnishment?

    reply
    • Matt Horwitz October 20, 2017

      Hey Dave, I’ve never run across a bank that runs credit to opening an account, personal or business. Regarding personal garnishment, that’s a great question, but I’m not sure about the answer. If you find anything out, feel free to keep me posted. Thanks.

      reply
      • Jay Pierce December 29, 2017

        This asshole at Chase asked me for my social security to tie it together with opening my LLC corporate business acct.
        I told him he was full of it and didn’t need my social for my LLC EIN # Is all that is needed, along with my two forms of Id.
        Am I wrong? Or am I correct and this guy I should want to punch in the face for being a BIG LIAR?

        reply
        • Matt Horwitz December 29, 2017

          Hey Jay, your buddy at Chase is actually correct. Think of it like this. The LLC bank account is registered to your LLC’s EIN. But someone as an agent of the LLC needs to do things on behalf of the LLC, and that’s you. This is often referred to as the Authorized Signer. Now as a part of the bank’s federal regulations, they need to adhere to Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance rules. As a part of that, they use your Driver’s License and Social Security Number to identify you and add you to the LLC’s bank account. Now… to take it one step further… you don’t HAVE TO give them your SSN. But they also don’t HAVE TO give you a bank account either. Hope that helps demystify things a bit ;)

          reply
      • Lonnie May 19, 2018

        Hello Matt,

        I have had several banks that run a credit check before opening an account Bank Of America is one of them…

        reply
        • Sonya May 20, 2018

          Yes, banks run your personal credit for individual accounts. However, rarely has a bank run my personal credit to open account for a S corp, C corp, LLC… There is a difference. I have refused to use B of A because many years ago they would not cash a check written to me by their customer. Why… not because I did not show 2 forms of ID… of course I had that ready…because I refused to give them my credit card to right my account info on the back for everyone to have….

          reply
          • Matt Horwitz June 17, 2018

            Thanks for the info Sonya. I had a BOA checking account many years back and just found it a big pain compared to my other banking experiences.

            reply
  6. Dan November 5, 2017

    Trying to open a business account at the bank pnc. I have an LLC business and a EIN# but the bank won’t open the account without my personal ssn.
    Is this right or even legal?
    Thanks!

    reply
    • Matt Horwitz November 8, 2017

      Hey Dan, this is very common when opening an account for your LLC. The account is still in the LLC’s name, but you are a signer (and the bank is federally required to verify your identity). You don’t have to give them your SSN, but they also don’t have to give you an account. Hope that helps.

      reply
      • Jay Pierce December 29, 2017

        Ok that answers my question.

        reply
        • Matt Horwitz December 29, 2017

          Hi Jay, I’ll expand upon this a little more in your original comment. Glad to hear it was helpful though.

          reply
  7. Kari November 16, 2017

    I used LLC University help me set up my LLC and you are very helpful and and I love the step by step instruction. Montana has gone to electronic file the articles, that was an easy fix- I mailed them in, they called me, walked me through the process and issued my LLC within 2 hrs, and I did not order expedited service. What a great service you have to offer!

    reply
    • Matt Horwitz November 16, 2017

      Hi Kari, thank you for your comment! So glad to hear that we were able to help :) We’ve actually been updating our Montana guide this week. They are getting more modern to streamline things and have done away with the paper forms. Apologies for any inconvenience we caused you, but glad to hear you got it all sorted and got your Montana LLC successfully formed! Congratulations!

      reply
  8. Michelle December 13, 2017

    I lvoe this site, thank you for all this information. I am interested in forming LLCs before I purchase rental properties, and I have a few questions if you could please answer?

    1) If a bank will not finance my rental property purchase to my LLC because it considers it commercial, is it true that I can create a Land Trust and fill out all of my mortgage paperwork under the name of my Land Trust, and then link my Land Trust to my LLC in order to get LLC protections? If I did this without telling the lender, and if the lender found out, could they call my mortgage due under the due on sale clause?

    2) Where can I find information on if Massachusetts LLCs offer inside and outside protections (charge-offs and anonymity)?

    3) If I’m understanding correctly, if I need to add money from a personal check or personal bank account to my LLC business bank account, I use a Capital Contribution deposit form to deposit that money into my LLC business account, right? Are there any special things I have to do in order to use my cash flow money, which will be in my LLC business bank account? Can I make personal purchases with my business account or how do I go about personally using the cash flow money that’s in my LLC business bank account?

    reply
    • Michelle December 13, 2017

      *love

      reply
    • Matt Horwitz December 22, 2017

      Hey Michelle, thank you for the kind words!

      1. I’m not 100% familiar with how land trusts work in MA, but I would use our “knights of the roundtable strategy” (found in this article) and call 5+ RE lawyers. That’s how I’d solve it. It’s require extra work to get anonymity with an LLC/trust (when financing), but there could be a way. Just requires effort + research on your part.

      Here’s where to find good lawyers: https://www.avvo.com/real-estate-lawyer/ma.html. They’ll all spend a few minutes on the phone with you.

      2. This should help:
      https://www.nolo.com/legal-encyclopedia/llc-asset-protection-charging-orders.html

      3. Yes, you’d fill out a capital contribution form for your own records (to be used in court, if ever needed, to show proof), but you’d make the deposits via regular deposit slips at the bank. You’re not supposed to pay business expenses with a personal credit/debit card (or vice versa), but you certainly could… there are no “police” monitoring this. But if you end up in court and your records get subpoenaed, it’ll come back to bite you.

      Just take capital distributions (the opposite of capital contribution… aka a documented withdrawal) from the LLC checking account and then do with it what you want. Just don’t start charging personal expenses to your LLC debit/credit cards (or checks for that matter). That’s the clean and proper way to do it. Hope that helps!

      reply
  9. Leyla H January 4, 2018

    Hi Matt,

    My husband is starting a single member LLC (disregarded entity) and we are confused on how to approach opening a business bank account. When applying online (Capital One Business Checking), it asks to provide either an EIN or an SSN. We’d rather provide an EIN to separate his identity from the business, but there is a note that says if anyone owns 25% or more of the business, you have to provide each person’s personal tax ID number (so SSN?). So sounds like we have no choice to but use his SSN instead of EIN… Also below that it asks for Legal Business Name, with a footnote of ‘This is the name on tax returns’. We’d want to put his LLC business name there, but the footnote is throwing us off because the name on tax returns would be his name, as he’s operating as a disregarded entity. Any insight you have would be much appreciated!!

    reply
    • Matt Horwitz January 15, 2018

      Hey Leyla, apologies for the slow reply. Please see my other comment on this page from December 29th (addressed to Jay). This briefly explains Know Your Customer (KYC) and Anti-Money Laundering (AML) policies. In short, the bank account will be set up with the EIN, your husband will be on file with his SSN, and you can list the LLC name for the Legal Business Name (even though there is that confusing footnote). Hope that helps.

      reply
      • Leyla January 16, 2018

        I gotcha, thanks a lot for your help Matt!

        reply
        • Matt Horwitz January 16, 2018

          You’re welcome Leyla!

          reply
  10. Jazz Iredia January 25, 2018

    I have filed the paperwork to open an LLC with LegalZoom. It says the paperwork takes 30 days to process. Am I not able to open a business and/or bank account until the paperwork has process? I’ve already signed the lease and I’m looking to get started within 2 weeks. Am I stuck until I actually have the documents?

    reply
    • Matt Horwitz January 25, 2018

      Hi Jazz, yes, the bank will need the LLC approval documents and your Federal Tax ID Number in order to open an account, so at this point, it’s the patience game ;)

      reply
  11. Alice February 8, 2018

    My friend has an LLC registered in SD. She lives in Chicago and wants to open a bank account there. Is that possible?

    reply
    • Matt Horwitz February 9, 2018

      She’ll need to open a “SD bank account”. However, instead of heading to SD to open the account, usually a “cross branch opening” can occur if you find a bank located in both states and you call them ahead of time to coordinate. Hope that helps.

      reply
  12. Joy February 12, 2018

    Hi Matt,
    I’m starting an ecommerce business and now have my LLC. However, my store will operate as a DBA to the LLC. My question is do I get my EIN and bank account under my LLC name, or must it be under the DBA name? Your guidance is appreciated.

    reply
    • Matt Horwitz February 14, 2018

      Hi Joy, you should get the EIN for the LLC, then when you open the LLC bank account, bring in your LLC approval documents, your EIN, and your DBA approval. The bank account will be setup with both the DBA’s info and the LLC’s. Hope that helps!

      reply
  13. Joy February 12, 2018

    Thank you

    reply
    • Matt Horwitz February 14, 2018

      You’re welcome Joy!

      reply
  14. Fabian February 15, 2018

    Me and my 2 friends have just registered an LLC. One of us is an us resident and has SSN, the rest of us are NRA (non-resident alien) – we don’t have any ITIN’s and any other tax identification numbers. We all are now in the USA, we have already EIN for the company and we would like to open a bank account for the LLC. Banks say, that all the LLC members have to be in the bank by opening the account, and all the members have to have a tax identification number (ITIN or SSN). Is there a possibility, that we can open a bank account for LLC in this situation? Any ideas or suggestions? I know we can apply for ITIN – we will do it this week, but it takes 4 to 6 weeks and we need a bank account now.
    Do you know how to convince any bank to open an account in this situation? And mayby I am too worried about it, and it’s not a problem at all? Thanks for any information.

    reply
    • Fabian February 15, 2018

      And one more thing. Each of us own 1/3 of the company – this is the case if it is relevant. thanks

      reply
      • Matt Horwitz February 21, 2018

        Hi Fabian, not all banks require a Tax Identification Number (ITIN or SSN), but many do, and banks can set their own rules (they don’t have to provide you a bank account). My best recommendation is to call 10-20 banks and ask to speak to the branch manager. The good thing is that you can all go in in-person and identify yourselves. Hope that helps. Feel free to keep me posted. I’m interested to hear what ends up happening.

        reply
  15. Sonya March 5, 2018

    Recently my partners and I started a LLC in the state of GA. We filed as a multi-member LLC with the state and received an EIN number. The Chief Executive Member opened a business checking account with a small bank had no problems. The CEM decided to open another account for the LLC with a larger bank that she has been a customer with almost 30 yrs. She provided the bank with 2 forms of ID, Articles of Organization, Articles of Operation and the EIN confirmation letter. The CME had no issues with the bank account screening(CRA) ChexSystems. No criminal background issues, and she is a licensed broker in the state. However, the branch manager refused to open the account unless the CME allowed a personal credit inquiry a “soft pull”. The branch manager requested the pin for Equifax and when she realized the account was frozen asked that the CME unfreeze her account before she would process our LLC’s application for a simple business checking account. The CME did not apply for credit lines or credit cards. The branch manager informed her verbally and by email that it was a new banking procedure for ALL commercial accounts. I do find that proclamation dubious…Is this a form of screening and does it follow the laws of the state relating to LLC’s? Should we consult lawyers?

    reply
    • Matt Horwitz March 10, 2018

      Hi Sonya, I’m really not sure about this and cannot comment about the laws. You can certainly get in touch with a lawyer, or also consider taking your business to another bank. Hope that helps.

      reply
      • Sonya May 13, 2018

        Hi Matt,
        Thank you for your prompt response. The bank manager did not express what were the guidelines for acceptance before running my credit, but did open the account, however, I have contacted her superiors and The Board of Governors for the Federal Reserve and filed a complaint. I have opened accounts with other banks using a D-U-N-S number to avoid this issue. It maybe legal to ask for my SS# number to open a business account for a LLC but I don’t think it’s ethical if your not asking every patron/customer opening an account.

        reply
        • Matt Horwitz May 16, 2018

          Hi Sonya, I understand. Glad you got to the bottom of things.

          reply
  16. Tiffany March 9, 2018

    Hi Matt,

    Your site has been very informative and helpful! I am forming different LLCs for three rental properties (to be purchased). I have a few questions and I’m hoping you could help me with them:

    1. Is it true that single-member LLC has higher possibility of being audited by IRS than two or more members LLC? What if single member LLC formally elected to be taxed as S Corporation? Does single-member LLC has less protection from liability than traditional LLC in NY?
    2. Do you know any banks in NY that only require the physical presence of the member with signing authority, as stated in Operating Agreement? If the other member is a non-US alien and can make it to the bank, but doesn’t have a SSN, how do we proceed with opening a business account?

    Thank you a lot in advance.

    Best,
    Tiffany

    reply
    • Matt Horwitz March 19, 2018

      Hi Tiffany, so glad to hear! 1. I’m not sure, but I wouldn’t worry too much if you’re filing and doing taxes properly. 2. Just call the bank ahead of time and check. With many banks, account signors don’t always need an SSN or ITIN. They’ll likely need 2 forms of ID with a photo though, such as a passport and driver’s license from their country of residence. Each bank is different though, so make sure to call around and takes notes. Hope that helps.

      reply
  17. Anne March 25, 2018

    Hi Matt,
    If you have a Business Checking account in 2 names…can 1 person close it and open a new business account in just 1 name. (It is a LLC company 79% woman owned and the other is 21 %… the one that I think that would close and open a new one is the 21%…) can they do that?

    reply
    • Anne March 26, 2018

      I received a email from you but the question shows it was from Aiga.. not the answer to my question… am I Missing something…
      Thanks,
      Anne

      reply
      • Aiga March 26, 2018

        Hi Anne, I have got the same email as you with your question. It seems that we will get an email with every post on this page.

        reply
        • Anne March 26, 2018

          H Matt…. can I get an answer for this question…If you have a Business Checking account in 2 names…can 1 person close it and open a new business account in just 1 name. (It is a LLC company 79% woman owned and the other is 21 %… the one that I think that would close and open a new one is the 21%…) can they do that?

          reply
          • Matt Horwitz March 26, 2018

            Hi Anne. Hi Aiga. Apologies about our comment notification emails. We’re still getting them setup correctly ;) Usually when closing a bank account, all signers need to be present. So I’m not sure that just 1 person can close the old bank account. And the same thing goes with opening an LLC bank account, although I can’t speak for every bank, as there are literally thousands, and many have their own set of rules. I recommend calling up the bank and asking if they allow it. Hope that helps.

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            • Anne March 26, 2018

              HI Matt,
              Thanks for your response. I will call the Bank.
              Anne

              reply
              • Matt Horwitz March 27, 2018

                You’re welcome Anne :)

                reply
  18. Aiga March 26, 2018

    Hi Matt,
    Your article is very helpful, thanks. Recently I have registered LLC and opened a bank account at Wells Fargo. The manager was new to opening a business account. She asked me what type of business S-corporation, C-corporation or Sole P. But there was not LLC. As I am new in this I could not answer for sure and said just S-corporation. Then I realized that it is wrong, but she said that it can’t be changed. I am wondering why I have to choose between S or C corporation if my business is LLC? And how it can affect my business? What type was I supposed to choose?

    reply
    • Matt Horwitz March 26, 2018

      Geez, apologies for that experience! Unfortunately, many people working at banks don’t know how LLCs and business entities work. Check out this article on how LLCs are taxed. It should have been opened under “Sole Proprietorship”, but really, it’s an LLC at the state level taxed as a Sole Proprietorship by the IRS. I would call back and speak with the branch manager. The person you were working with is new and she screwed up your account type. I would close that account and open a new one… possibly at another branch location, if only to make your life easier :) Hope that helps.

      reply
  19. Joe April 3, 2018

    I was told I should open a LLC bank account with only $25 ?

    reply
    • Matt Horwitz April 3, 2018

      Hi Joe, you’re question is phrased like a comment, not a question. I’m not sure what you’re asking. Can you please re-phrase with a more detailed question?

      reply
      • Joe April 3, 2018

        What would be the minnum amount of money needed to start an LLC bank account ? Was told, all I need is $25 ?

        reply
        • Matt Horwitz April 3, 2018

          Ah, I see. That all depends on the bank as there isn’t an industry-wide rule. You’ll need to call the bank(s) and ask. Typically for business accounts, the minimum deposit amount is either $100, $500, or $1,000. Sometimes I’ve seen $2,500, but that’s not very common. Also keep in mind that most banks will require you maintain a certain minimum balance at all times to avoid monthly “maintenance fees”. We have these details in the article above. Just make sure to ask about these things when you call around and shop banks. Hope that helps.

          reply
  20. Rachel April 5, 2018

    Hi Matt

    I have a question I don’t know if you can help me.i’m planning to buy houses to rehabe and flip.AND I’m also a Registered Nurse I’m also planning to open a mobile school to give classes for home health aid,CPR classes and medical administration assistance classes.for now my question is can I open just one LLC or do I need more?AND can someone open more than one LLC?
    And the other question is can I applied for the LLC and have The EIN number and open the business account before I start to buy houses and start the school?

    And I wanted to know even if i don’t start the business yet if I have the LLC license will I be able to start building my business credit if I buy online with the company that provide credit for business.do I need to have my business to start running first or can I still be able to purchase with my LLC license?

    In one more year I’m will open a ALF (ASSISSTED living facility)it’s a residential home for elderly.do I will need a different LLC or can I put it on the same for the other business.

    ANY advice will greatly appreciate
    Thanks

    reply
    • Matt Horwitz April 5, 2018

      Hi Rachel, since you are licensed by the Florida Board of Nursing (which is a part of the Florida Board of Health), you may need to form a Professional LLC (PLLC). Please see Florida Statutes 621.03.

      Can someone open more than one LLC?
      – Yes, there is no limit to the number of LLCs someone can own.

      Can I open just one LLC or do I need more?
      – You can open just one LLC, but it’s not recommended to mix those businesses up. Also, if you are required to form a PLLC, then that PLLC can only engage in the activities in which you’re licensed. So in that case, no you could not.

      Can I apply for the LLC, obtain an EIN for the LLC, and open a business account before I start the business?
      – Yes, that is the order in which it should be done.

      Building credit
      – Yes, you can start using the LLC to make purchases right away.

      LLC license
      – This term is not correct. I think you simply mean LLC.

      Hope that helps!

      reply
      • Rachele April 13, 2018

        Thank you Matt for responding back.i just read your message.And I will take the advice.and thanks for all you do.

        reply
        • Matt Horwitz April 14, 2018

          You’re welcome Rachele!

          reply
  21. Rachele April 13, 2018

    Hi Matt

    I have a situation I’m in Florida I was trying to get a EIN number but the application request for my personal social security.but it doesn’t ask for the LLC number which I already have.my question is do I have to putt it.cause I don’t want my sc to associate with the LLC.even I’m the owner.what do you think I should do.your advice will be greatly appreciated.
    Thank you

    reply
    • Matt Horwitz April 14, 2018

      Hey Rachele, to put it bluntly, the IRS doesn’t care about your Florida LLC’s Document Number. The Responsible Party (you) must enter a Taxpayer Identification Number in order to get an EIN. So that means either an SSN, ITIN, or existing EIN. Hope that helps!

      reply
  22. Rachele April 14, 2018

    Thank you Matt for your help.
    And I do have one more concern if you can help me clarify please I will really appreciate.
    So if I understand correctly even I put my sc to get the EIN number for the LLC if something happened with my business and someone trying to hurt me they can just go after my business only right? My sc it’s not connected to it and they can’t go after me personally right?

    Thank you

    reply
    • Matt Horwitz April 17, 2018

      Hi Rachele, yes, that is correct. Being the Responsible Party for your LLC’s EIN and using your SSN (which using a taxpayer ID is required) doesn’t remove your liability protection. Hope that helps.

      reply
  23. connie hardin April 19, 2018

    2 people are opening a business account for our LLC.
    my partner is one of them. she cant pass the banks rules , so they wont open an account for us. now what do we do ?

    reply
    • Matt Horwitz April 21, 2018

      Curious what banks rules she wasn’t able to pass? I’d try another bank.

      reply
  24. Niladri S April 19, 2018

    Hi Matt, your blog is very informative. I have a query – Can a non-manager/non-employee be a signer for an LLC’s business bank account?

    The detailed case is this: Person A, a foreigner, opens an LLC remotely (registers an LLC in one of the US states while he stays out of the US and never visited the US) and after that he gets an EIN. So, A is sole member cum manager of the LLC. Then can A issue a banking resolution wherein he makes person B (who is A’s friend and neither a member nor a manager/employee of the LLC) who is resident alien in the USA to open and be signer for the LLC’s business bank account? The main issue here is: Person B is on H1B visa working for her own employer and can not work for any other employer. Does being signer for A’s LLC make B necessarily an employee of that LLC? If yes, then it violates B’s visa status. But this arrangement may only work if B’s being signer for A’s LLC doesn’t constitute being employed by A or his LLC. Please provide your views on this possibility.

    Thanks and regards
    Niladri

    reply
    • Matt Horwitz April 21, 2018

      Hi Niladri, I’m not sure about that. I recommend getting in contact with the bank to see what their policies are. Best thing to do is be “boots on the ground”. Have the LLC Member visit the state where they LLC is formed and open the account in person. Hope that helps.

      reply
  25. Michael Rampa April 23, 2018

    I am starting a business in CA. I am going to be the only employee ( for a year or 2). I was wondering if I file as an LLC and open a bank account under the company name with me as an authorised card user does this make the money deposited into the account untouchable for personal depts? Also, when i deposite an initial amount, ($10,000 or more) will the IRS try to tax this? An help you could give regarding starting this business would be greatly appreciated.

    reply
    • Matt Horwitz April 29, 2018

      Hi Micahel, the IRS doesn’t automatically tax money in your account, but banks communicate with the IRS, so if the IRS sees something and they want to audit, then they will proceed. If you are running the LLC properly and documenting your capital contributions, your personal assets should be protected in the event the business gets sued. If you are sued personally, your personal assets (which include the LLC interest) could be at risk.

      reply
  26. Rachele Brutus April 23, 2018

    hi Matt

    i thank you sending the answers to the wrong person.i been received all the response from people that ask you question.:)
    thanks for all you do

    reply
    • Matt Horwitz April 29, 2018

      Hey Rachele, the comment notification system is a little funny. You can click “unsubscribe” at the bottom of the email that this comment generates. Thanks :)

      reply
  27. Charlene April 25, 2018

    Hi Matt,

    I have an anonymous LLC in one state and wish to use a fictitious business name (dba) in another state. I want to open a bank account in this new state where I will be using the fictitious name, but the application for Registration of Trade Name asks for an authorized Signature and Signer’s Name. The most important thing to me is anonymity: How do I remain anonymous when I need a signer? I need to get the DBA before I open the bank account, as I want the bank account to be listed under my fictitious name.

    Thanks!
    Char

    reply
    • Matt Horwitz April 29, 2018

      Hey Char, best thing is to hire a filing company to register the DBA. And reiterate your need for privacy so they do your filing correctly. This way, they’re signing the DBA registration as authorized signer. Hope that helps.

      reply
  28. Mike Rafe April 27, 2018

    Hello,

    i have LLC and EIN .. can i have my office manager to go in bank to open the account.. or i have to be present at bank to open bank account.?

    Thanks,

    -mike

    reply
    • Matt Horwitz April 29, 2018

      Hi Mike, I’d call the bank and ask, as each bank (and often each branch) does things differently. However, usually LLC Members must be present. Hope that helps.

      reply
  29. Leslie Basco June 6, 2018

    So in your non-lawyer opinion ( in know you are not a layer and so forth) a business license is not needed if you set up a single member Texas LLC and have obtained an EIN, correct?

    I have an EIN, I set up a Texas Limited Liability LLC (single member).

    I’m trying to open a business checking account with my credit union (I already have personal funds there and I think it should be easier). But, they tell me that I need an EIN and a business license.

    Yet, I don’t see that I need both in anything I have read. I’m just trying to start an online business, so my official place of work in my apartment, but I purchase a mailbox to have an official business address.

    They also tell me that my physical address needs to be my apartment. But, it’s an online business so I have no physical address, just a place to receive official corporate repeated communications.

    So, in your opinion, do I need both an EIN and a license and do I need to use a physical location?

    I think the people at the credit union are wrong and haven’t been properly trained, but I’m trying to confirm this.

    Thanks in advance.

    reply
    • Matt Horwitz June 18, 2018

      Hi Leslie, correct, Texas doesn’t have a state-level “general” business license. You may need a business license depending on two things. First, if your work is governed by a regulatory agency. You can check the Texas Department of Licensing and Regulation for details. Second, if a license or permit is required on the local level, like the county or city. You’d have to call the county/city/town to check on that since there’s 20,000+ local jurisdictions in the U.S. so I wouldn’t know off the top of my head. Having said all that, it’s still weird for a bank to ask for an LLC’s business license (especially if you don’t even need one lol!). I’ve never heard of that. However though, I’ve never worked with credit unions. And some banks are getting more particular regarding private mailboxes (PMBs) and commercial mail receiving agencies (CMRAs), so that’s their call. I think this bank is frankly a pain. Feel free to check out our LLC bank account article and then shop around and call other banks in your area. It’s not hard to open an LLC bank account without the need for a business license or using your home/physical address. Hope that helps!

      reply
  30. Doug June 27, 2018

    Hello Matt,

    I need to setup a business bank account for my Indiana LLC. Does this bank account (which is represented by its routing number and account #) need to be an Indiana bank account?

    I’m based in California and the local Wells Fargo branch can open an account for an LLC registered in Indiana but only with routing number based in CA. Does this matter to protect the corporate veil?

    Thanks in Advance.

    reply
    • Matt Horwitz July 31, 2018

      Hi Doug, to my knowledge, this doesn’t affect the corporate veil, but to open an account in California, the LLC usually needs to be formed in California or the LLC needs to be registered as a Foreign LLC in California. Hope that helps.

      reply
  31. Eric June 27, 2018

    Hi Matt, I created an LLC for use as a “self directed IRA” with the primary purpose of purchasing, holding and improving raw land. I hear some banks do not do LLC’s for these IRA’s and am looking for a good online bank for wire transactions that might also have checking to pay someone that works on the property. Do you have any recommendations or sage advise for me?
    Eric in Colorado

    reply
    • Matt Horwitz July 31, 2018

      Hi Eric, smaller banks and local community banks generally lend to LLCs more often. The name of the game here is to hit the phones. When looking for financing, I usually speak with 10-15 banks. Since the loan is made to the entity, it falls in the bank’s “commercial” lending department (even though the property is residential). Hope that helps.

      reply
  32. Beryl Chang July 12, 2018

    Hi Matt,

    Our company just formed an LLC, now we are going to open a back account with Chase.
    we registered the company in Delaware, and will be operating in CA,
    we have all the documents ready, but is it ok to open the bank account in NY? or has to be in the state where it will be operated?

    Thank you.

    Beryl Chang

    reply
    • Matt Horwitz August 12, 2018

      Hi Beryl, if you’re doing business in California, you’ll need to register your Delaware LLC as a Foreign LLC in California. You’ll need to open the bank account in California unless you can coordinate a cross-branch opening. Meaning, speak to a branch manager at the same bank (with a location in CA & NY) and coordinate the opening that way. Essentially, you’re opening a California bank account from New York. Hope that helps.

      reply
  33. Ginny July 30, 2018

    Hello,

    Your articles are very helpful. How long should it take for the new business account to be approved so you can start making deposits and withdrawals. My bank took 30 days for the business checking account. I opened a business savings account 7 business days ago and I’m still waiting for approval so I can use it. Is this usual? It’s a local bank in a big city that touts it’s small business services. My checking account has been there 2 years now and is in good standing. If not this is not usual, I may switch banks. The bank is fine once everything gets going, but the set up time seems very long and holds things up.

    Thank you.

    reply
    • Matt Horwitz August 14, 2018

      Hey Ginny, curious what bank this is and in what city? I’ve never heard of anything like that. Also curious about fees… do they charge monthly maintenance fees? Anytime I’ve opened business bank accounts for LLCs, they are opened the same-day, on the spot, while sitting across the desk from a team member at the bank. Hope that helps.

      reply
      • Ginny August 14, 2018

        Thank you for your reply Matt. I never have either. It’s Apple Bank for Saving in New York City. It was offering a free business checking account with free checks and deposit slips and touted itself good for small businesses. I want to find a more responsive bank for my small business. Any suggestions?

        reply
        • Matt Horwitz August 16, 2018

          Hey Ginny, we did some research on Apple Bank. Again, we don’t know much about it, however, the consensus online (via many different reviews) is not very positive. They seem to average less than a 3-star review. We recommend TD Bank or Wells Fargo since most have free business checking accounts (or very low monthly fees, if any) and both banks have small initial deposit requirements and small minimum balance requirements. So these accounts are great for businesses starting out. If you will regularly maintain balances over $5,000 to $10,000 (or more), then we recommend comparing the first banks mentioned with Chase or CitiBank. These business bank accounts are set up for more established businesses with more transactions and larger balances. Hope that helps!

          reply
          • Ginny August 26, 2018

            Dear Matt,

            Thank you for your reply about banks for businesses and feedback on general users ratings for Apple Bank for Savings. You have definitely helped me and I appreciate your recommendations and I will explore TD Ameritrade and Wells Fargo. As it turned out, Apple bank took so long on the account I the reason I needed it for evaporated due to the lengthy set-up time. I will be moving my business account to, and opening a SEP IRA at, one of the banks you suggest. I was going to open a SEP IRA at Apple Bank for Savings until one of the assistant managers told me she hadn’t opened one in all the 21 years of working there! I think that says it all.

            You have been so helpful on other occasions since forming my LLC. Thank you so much! All the best!

            reply
            • Matt Horwitz August 31, 2018

              Hi Ginny, thanks for the update and thank you for the kind words! Happy we could help :) Wow, 21 years!! Yea, I see what you mean lol ;)

              reply
  34. Mauricio August 28, 2018

    Hi Matt,

    Our company was formed as an LLC during 2017, we opened a bank account with Chase.
    we registered the company in Wyoming , and we live in FL
    Recently Chase closed our LLC bank account and sent us a cashier check payable to the company notifying us that they were not able to verify the physical address of the company.
    We need to open a new bank account for the LLC
    We operate an online retailer business and The Wyoming registered agents act as our physical and mailing address.
    Since we are living in Florida I was reading We have to qualify the company as a foreign LLC to open a bank account but the legal name of our LLC is now taken in Florida… If we have to request now and operate under a fictitious name or dba is the bank account open under both names? Or how do we deposit the funds we have under our legal name?

    Can a Wells Fargo branch in Florida open a bank account for the Wyoming LLC or are we have the same issue?

    Thanks in Advance

    reply
    • Matt Horwitz October 10, 2018

      Hi Mauricio, I would call a branch office in Wyoming and in Florida and see if you can coordinate between the branch managers a “cross branch account opening”. This would solve all the naming/DBA issues. Please feel free to comment back with an update as I’m sure this will help other readers. Based on some of our research, there were some minor updates made internally across a few banks where address verification is being taken more seriously. We’re curious to hear your findings. Thank you.

      reply
  35. Ken September 11, 2018

    I just started an LLC and went yesterday to open a bank account with the same institution I’ve used personally for over a decade, but the bank refused saying they don’t like the way the state of NM allows various designations other than LLC. (When forming NM allows you to choose between “Limited Liability Company”, ” Limited Company”, ” Limited Liability Co.”, ” Limited Co.”, ” Ltd. Company”, ” L.L.C.”, ” LLC”, ” L.C.”, ” LC.”, ” Ltd. Co.”, and “LC”)

    I chose to use the designation “LC” when I formed the company, the bank is insisting I go back to the state and change my company name to read “LLC”, I have no interest in doing so.

    Should I expect this warm welcome everywhere, or is this just idiocy from one particular bank?

    reply
    • Matt Horwitz September 11, 2018

      Hey Ken, that is ridiculous lol! We haven’t heard this one yet. Pretty stupid if you ask me. Can I ask the name of the bank? Try this: make an appointment with the branch manager and print out section 53-19-3 (Name) from LLC Act (http://www.sos.state.nm.us/uploads/files/Corporations/ch53Art19.pdf). Tell them that the designator has no bearing on the “accuracy” or legality of an LLC. If they still refuse, and you really want to stick with them, then I guess you need to amend your Articles of Organization and change the designator. Or check out a few other banks. Feel free to keep us posted on updates. I’m quite curious. Hope that helps!

      reply
  36. Frank September 29, 2018

    Hi Matt,

    I had made a call to Wells Fargo, the person I talked with told me that I must provide business license. But I am a foreigner, in this case what should I do?

    Best Regards,
    Frank Huang

    reply
    • Matt Horwitz October 25, 2018

      Hi Frank, do you know what type of business license they were referring to? This is very uncommon. I would call again and speak to the manager, call another Wells Fargo branch, or try another bank. Also check out the information we put together for foreigners and opening a US bank account: foreigners opening U.S. LLC bank account.

      reply
  37. Maida September 29, 2018

    Hello,
    I would like to know do I really need a DBA if my company is set as LLC. I am trying to open a business account at my bank and one person say that form is needed. Another person say I can open just with my LLC. So confusing, please advise!!! Thank you!

    reply
    • Matt Horwitz October 25, 2018

      Hey Maida, no, you don’t. This is SO common at banks, it’s ridiculous LOL! So many people at the banks have no idea how LLCs and DBAs work. You were told the incorrect information. If it helps, we’ve written more about this very thing in this article: Do I need a DBA for my LLC? Hope that helps!

      reply
  38. Caroline October 14, 2018

    I want to form a LLC that my son, who is 12, would be the owner of. So that he can start building an income for the future now. I would need to be the agent, is the correct or even possible?

    reply
    • Caroline October 18, 2018

      Hi Matt
      I got an email that you replied to my question but I still do not see a response.
      Thanks,
      Caroline

      reply
  39. Jorge October 16, 2018

    Hi,

    My wife and I are trying to establish an LLC in Florida. Now we should, to do things right, open an account in the name of the LLC, once it is ready, but like most banks ask for two forms of identification, how can we open it if we are not US citizens? Thank you so much !

    reply
  40. Jan October 16, 2018

    Hi Matt,
    After getting my business up and running, I realized that I had been taking care of personal items and business items out of the same account.

    I have been reading your comments and I feel I have really screwed up this account.

    Can I just close this account and start fresh with a new business account and make sure I never do this again?

    Thanks!
    Jan

    reply
  41. Linda October 30, 2018

    Hi!

    I registered an LLC a couple on months ago as a consultancy business, now I have changed my mind and want to be an importer and distributer of products, to sell both to retailers and directly via internet. Can I do that in the same business? I am thinking of register a DBA with another name that fits better with the import/sell business. I also need a Vendor license. Should I get the Vendor license in the LLC name or in the DBA name? If I have bank accounts and Credit/Debit card connected to the LLC, can I use them for the DBA or do they need to be separated? It is still the same legal entity, but do the financing need to be separated?

    //Linda

    reply
  42. Melissa Cole November 9, 2018

    my husband opened a business came home said sign these i did i trusted him the business is sole in my name but he opened the business bank acc without me but in the business name his name is nowhere on the liches from a different country so he had no soc so it is all in my name but when I went to the bank they wouldn’t allow me to get any info on it when I showed them its all in my name whats my rights to this or for this t get access

    reply
  43. Melissa Cole November 9, 2018

    my husband opened a business came home said sign these i did i trusted him the business is sole in my name but he opened the business bank acc without me but in the business name his name is nowhere on the liches from a different country so he had no soc so it is all in my name but when I went to the bank they wouldn’t allow me to get any info on it when I showed them its all in my name whats my rights to this or for this t get access so I know if it’s being run like he is saying the taxes were also in my name and he opened a credit at another store for supplies for the company in my name I was not present for this I just want to know my rights

    reply

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