How to Open a Business Bank Account for Your LLC

Opening a business bank account is one of the first things you should do after forming your LLC. It's essential for protecting your liability and managing your finances.

Why You Need a Separate Business Account

Using personal accounts for business is one of the biggest mistakes new LLC owners make. A separate business account:

• Protects your liability shield: Mixing personal and business funds can pierce the corporate veil, putting your personal assets at risk
• Simplifies accounting: All business transactions are in one place
• Makes tax prep easier: Clear records for deductions and reporting
• Looks professional: Clients and vendors see your LLC name, not your personal name
• Enables business credit: Builds your business credit profile separate from personal credit

What You Need to Open a Business Account

Banks typically require:

• EIN (Employer Identification Number) from the IRS
• Articles of Organization or Certificate of Formation
• Operating Agreement
• Government-issued ID for all signers
• Proof of business address (utility bill, lease)

Some banks may also require:

• Business license (if applicable)
• Certificate of Good Standing (for established LLCs)
• Meeting minutes authorizing account opening

Choosing a Bank

Traditional Banks

Pros: Branch access, full services, established reputation
Cons: Higher fees, minimum balances, less tech-friendly

Good options: Chase, Bank of America, Wells Fargo, local credit unions

Online Banks / Neobanks

Pros: No fees, no minimums, great apps, integrations with accounting software
Cons: No branches, limited cash handling

Popular options: Mercury, Relay, Bluevine, Novo

Comparison Factors

Opening Process

1. Choose your bank: Based on your needs (fees, features, accessibility)
2. Gather documents: EIN, formation documents, ID, Operating Agreement
3. Apply: Online or in-person at a branch
4. Complete verification: Bank verifies your identity and business
5. Fund the account: Make your initial deposit
6. Set up online banking: Enable digital access

Online banks can approve accounts in minutes to a few days. Traditional banks may take 1-2 weeks for full setup.

Features to Look For

• Free transactions: Some banks limit monthly transactions
• Integration: Connect with QuickBooks, Xero, or your accounting software
• Sub-accounts: Separate funds for taxes, savings, operations
• Debit cards: Physical and virtual cards for expenses
• ACH and wire transfers: For payments and receiving funds
• Check deposit: Mobile check deposit capability

Frequently Asked Questions