How to open a business bank account for LLC: Guide & top tips

Opening a business account is an important task for any new LLC. It is typically one of the first things to do after forming a company.

The process and documentation required for opening a business account differ from a personal account. This short guide will help you prepare, and make account opening straightforward.

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How to open a business bank account for LLC

Required documents to prepare before starting

There are strict documentation requirements for opening an LLC business bank account.

With an active company, however, none of this should be difficult. The exact documentation requirements can vary between banks. However, it will usually include the following:¹

• Business and incorporation details. This includes basic information such as name and registered address. You should have the LLC Articles of Organization available (also known as Certificate of Organization or Certificate of Formation, depending on the state).

• LLC operating agreement. This will specify the members of the LLC and who is eligible to sign on the company’s behalf.

• Tax details. You will need the 9-digit Business Employer Identification Number (EIN) provided by the IRS. As proof of this, you may require the EIN Confirmation Letter (575 CP) or EIN Verification Letter (147C).

• Personal identification. Two forms of identity are usually needed (including one government-issued ID). This could be a passport or driving license. These will be required for each beneficial owner of the business.

How to open an LLC business bank account: Step-by-step

With proper preparation, it is not complicated to open a business bank account for an LLC. The following are the main steps to go through:

• Set up the new LLC. The LLC needs to be fully set up, and registered for tax, before opening a bank account. You will need the LLC details and documentation to apply for the bank account.

• Choose a bank. There are many banks offering accounts with different terms, features, and fees. This includes traditional banks and online banks. Wise has created a guide to some of the best small business checking accounts.

• Gather the required documentation. The list above shows the main documentation you will need. Some banks may verify some of this without the actual documents, but it is still good practice to prepare them if needed.

• Complete account application. With all the LLC and personal details (of all beneficial owners) to hand, completing the account application should be straightforward. This is often now online, but with traditional banks you can opt to do this in a branch if you prefer. For complex applications, or with foreign owners, this may be necessary. In any case, there may be a need for follow-up or to speak to the bank before the account is opened.

• Transfer funds to the new account. Once the account is opened, you will need to transfer money from another account to fund it.

Top tips for opening a business bank account for your LLC

• Be aware of account fees. When choosing a bank account, check the terms and account fees. Some banks charge a monthly fee for business accounts or have a minimum balance requirement.

• Stay aware of promotions. Many banks will offer special promotions to attract new customers. These might look good, but make sure you check the full ongoing account details. You don’t want to change banks later.

• Always use EIN for account opening. For a single-member LLC, some banks will allow the use of a Social Security Number (SSN) instead of EIN when opening the account. Using the EIN is better in the long term for personal privacy and record keeping.

• Change check starting number. If requesting checks for the account, ask the bank to start these at a higher number. By default, these will often be numbered from 001. That makes it very clear this is a new business.

• Decide who can sign for the LLC. For an LLC with multiple owners, you will need to decide who can sign (checks and other financial documents) on the company’s behalf. This could be all, or just some, owners. This should be specified in the LLC's operating agreement.

• Consider debit and credit card use. Most banks will issue a debit card for accounts. You may also be able to get a company credit card, but not all businesses want or need this.

Discover the Wise Business account: Easy to set up, easy to use

A business bank account has many advantages. It will make accounting, taxes, and audits simpler. Without a separate business account, you could also become personally liable for the company’s debts.

Wise Business is a smart online alternative to traditional banks. The Wise Business account is an easy to use online business account for LLCs and business of all sizes. Setup is simple, with an entirely online account application. There is no setup fee or ongoing monthly charge.

The account offers many valuable features for businesses. This includes multi-user access control, accounting software connections, and an open API.

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A Wise Business account is especially useful for any LLC that needs to make or receive international payments. Businesses can open local account details for a one-off fee to receive payments in 10 currencies (AUD, CAD, EUR, GBP, HUF, NZD, RON, SGD, TRY, and USD). You can also hold and spend in over 50 currencies. All currency conversions take place at the real mid-market exchange rate, with no markup.

All sources checked March 5, 2023.