Opening a business bank account for your LLC can help you streamline your bookkeeping and operations (but that's not all).Dedicated LLC bank account This is an important step in maintaining the legal distinction between a corporation and its owners, and is necessary to maintain limited liability protection. Even single-member LLCs must have one.
To open an LLC account, follow these steps:
1. Formally establish an LLC
If you have not legally formed an LLC and have not yet obtained an Employer Identification Number (EIN), this may be your first step. An EIN allows you to open an account in your LLC's name, but your single-member LLC may also be able to open an account. Open a business account without an EIN At some financial institutions.
There is Benefits of obtaining an EIN Even if you don't need it, you can receive it immediately using the following methods. Apply on the IRS website. Other methods, such as submitting your application by mail or fax, may take several weeks to process. Foreign applicants must apply by phone.
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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. This account can be used for day-to-day operations such as accounts payable and receivable.
If your LLC has multiple owners, look for an account with low (or no) monthly fees that easily integrates with your existing business tools and can support joint accounts. Also, consider other useful account features such as cash deposits, a free employee debit card, ATM rebates, free wire transfers, or cash back on business purchases.
A single business checking account may be sufficient for small businesses or LLCs with no employees, but may be necessary for larger businesses. multiple business accounts.
An LLC may choose to use one business bank account for payroll and another bank account for operating accounts, for example. or Business savings account You can earn higher yields from the extra cash on your balance sheet.
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Having multiple business bank accounts at multiple banks can also help you maintain access to your funds if your accounts are compromised. your bank closes.
3. Apply for an LLC bank account
Depending on the bank you choose, you can apply for an LLC bank account online, in person, or over the phone. Applying is very easy if you are prepared. What you need to open a business account.
Check with your bank for exact requirements. However, the following will be provided:
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Articles about organization/formation.
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EIN confirmation or confirmation letter from the IRS.
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“Doing business as” (DBA) or pseudonym certificate (if applicable).
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Company name, address, phone number, and EIN.
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Industry, type of business, and date of establishment of the business.
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Annual revenue and expected transaction type/volume.
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Driving license or passport.
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Date of birth and social security number.
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Home address, personal email address, and mobile phone number.
Multi-member LLCs must provide personal information and identification of anyone who owns 25% or more of the business.
4. Set up an LLC bank account
Once approved, deposit funds and set up your LLC bank account. If your account has a minimum deposit amount, you can deposit immediately.
From there, you can gradually move your business's assets into the newly opened account. Business accounts typically have long new account deposit hold periods (up to 10 business days), and some financial institutions flag large transactions involving deposits as fraud. Therefore, you don't want all your funds to be tied up temporarily.
You'll also need to log into your bank's online banking platform to set alerts and preferences. Decide who will have permission to sign your account. This is especially important for multi-member girlfriend LLCs. Add additional users, such as accountants or employees who process accounts payable, and set account permissions accordingly.
If your bank offers direct integration with your business tools, connect your accounts to streamline your bookkeeping. You can also download your bank's mobile app to make regular bill payments, create invoices, and easily access your bank on the go.
Finally, if you Business accounts have sign-up promotions, track your requirements to ensure you qualify for potential bonuses. They typically require you to maintain a certain average balance over a period of time, and may also require you to perform other qualifying activities (such as making a certain number of transactions with a linked debit card).
