Opening bank account with LLC [No Fluff]

Last updated : Sept 2, 2022
Written by : Ma Gamino
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Opening bank account with LLC

What kind of bank account should I open as an LLC?

Anyone who forms an LLC should get a business bank account to help maintain liability protection for the company's members. One of the pros of forming an LLC (limited liability company) is having the protection that this business structure offers against creditors.

Can I add my LLC to my bank account?

Your bank will likely require you to bring the following documents: A copy of your LLC's articles of organization, certificate of formation or an equivalent document, depending on the state in which you registered your LLC. Your LLC's federal taxpayer identification number (EIN, or Employer Identification Number)

Can I use a regular bank account for my LLC?

Yes, you can operate a sole proprietorship or an LLC using your personal bank account, but it isn't advisable. Sole proprietorships aren't required to have a separate business bank account unless they trade using a fictitious DBA name (doing business as).

Can I open LLC bank account without EIN?

Technically, single-member LLCs and sole proprietorships are not required to have an EIN as they are taxed as individuals. It might not be worth getting a unique business tax ID if that is the case. Instead, you can simply open a bank account without an EIN.

What documents are required to open a business bank account?

  • Employer Identification Number (EIN) (or a Social Security number, if you're a sole proprietorship)
  • Your business's formation documents.
  • Ownership agreements.
  • Business license.

How do you pay yourself when you own a business?

  1. Salary: You pay yourself a regular salary just as you would an employee of the company, withholding taxes from your paycheck.
  2. Owner's draw: You draw money (in cash or in kind) from the profits of your business on an as-needed basis.

Which bank is best to open a business account?

  • Best Overall: Chase.
  • Best for Online-Only Checking: Axos Bank.
  • Best Credit Union: Navy Federal Credit Union.
  • Best for Number of Branches: Wells Fargo.
  • Best for Business Analysis: M&T Bank.
  • Best Fee-Free Brick-And-Mortar Checking: US Bank.

How many bank accounts should an LLC have?

We recommend opening three accounts to help you stay on top of your small business finances: checking, money market, and high-yield savings.

What is it called when you put money into your own business?

When the corporation forms, the owner or owners will have to put money and assets into the business in order for the business to start to operate. This is called investment.

Can I put money in my business account from my personal account?

Can you transfer money from personal to business accounts? Yes, you can send money from your personal account to the business one. It is one of the primary ways business owners will fund the business over the long term.

How much money can you have in your bank account without being taxed?

A deposit over $10k is the amount to consider; amounts under that threshold may not have to be reported. There's a catch, though: If a customer makes several small cash payments or deposits within a 12-month window, filing Form 8300 might have to be done should the payments or deposits exceed $10,000.

Is it illegal to pay personal expenses from business account LLC?

Legal issues However, if you pay personal bills from your business account, you could negate that protection. This is known as piercing the corporate veil, and the court could order you to be liable for business debts.

Can I open a bank account with my business name?

Often, what you will need is a tax ID number. Banks will also often require a business license with both the business and owner's name, or a business name filing document.

Does a single-member LLC need an EIN?

An LLC will need an EIN if it has any employees or if it will be required to file any of the excise tax forms listed below. Most new single-member LLCs classified as disregarded entities will need to obtain an EIN. An LLC applies for an EIN by filing Form SS-4, Application for Employer Identification Number.

Can I open a bank account with tax ID?

Banks require you to have a taxpayer identification number to open an account. Political committees may obtain an “Employer Identification Number” online or by completing IRS Form SS-4. For questions about obtaining a taxpayer identification number, call the Internal Revenue Service, 1-800-829-3676.

How much money do I need to open a business bank account?

Generally, in order to get started, banks require an opening deposit ranges from $5 to $1,000. Others have no initial deposit and some have a monthly maintenance fee.

Can the government see how much money is in your bank account?

The federal government has no business monitoring small cash deposits and how Americans pay their bills and has no right to snoop around in private checking accounts without a warrant.

How much does a business bank account cost?

Monthly service fee: This is a fee you're charged monthly to cover the maintenance of your business checking account. It can be $8 to $30 a month. If you meet a certain balance requirement or spend over a specific amount each month on the bank's debit or credit card, this fee is often waived.

What can be written off with an LLC?

  • Car expenses and mileage.
  • Office expenses, including rent, utilities, etc.
  • Office supplies, including computers, software, etc.
  • Health insurance premiums.
  • Business phone bills.
  • Continuing education courses.
  • Parking for business-related trips.

How do I make money with my LLC?

  1. Pay Yourself as a W-2 Employee. For many LLC owners, the most advantageous way to receive payment is to treat yourself as an employee.
  2. Earn Profit Distributions.
  3. Pay Yourself as a 1099 Independent Contractor.
  4. Keep the Money in the Business.

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Opening bank account with LLC

Comment by Reita Emberger

is the business guy so how do you set up a bank account for an llc it's often a good idea to use the same bank account that you use for personal reasons that way you can easily move money from one bank account your business account to your personal account and it makes that process a whole lot easier so what do you need to do to open up a bank account in your llc or corporation for that matter let's talk about llcs here so what you need to bring to the bank they'll need to see your articles of incorporation something like this i've crossed out the names to protect the innocent a corporation it's called articles of incorporation and llc it's called articles of organization second thing you'll need to bring down in addition to your corporate kit is your tax id number if you have a letter from the irs you can bring that or just write down your tax id number usually either way will work when we set up an llc we give a very professional looking binder like this it's called the llc kit or corporate kit you'll find your corporate seal your membership certificates the minutes for the meetings and so on all the things you need to do to keep all the proper formalities for your corporation or free llc and when you go to the bank and you have a very professional looking binder you come off as very polished and professional and that's what we bring down to the bank you also need a document to show that you're associated with the lc you're a manager you're a member and they'll want to see your association with that company in florida or iowa for example they'll look online to see if you're listed as a manager of the llc if you're a manager of the llc they'll go to the next step they'll want to see your identification they'll want to know your social security number so they know it's you like if your name is john smith they want to know which john smith the john smith with this social security number they'll want to know that so that's what you'll need to do you'll need to provide the identification now what happens a lot of times is people will go down and they'll bring the proper documents but their body language is sending signals like they're nervous they're uncomfortable and they act like a kid with their hand caught in the cookie jar and they're sending off all kinds of signals well do you think that'll spook the banker the banker doesn't want to get in trouble by opening up a bank account for the wrong person so if you're acting like something's fishy then they're going to suspect something's fishy so just be calm cool and collected and the key thing is close your lips say a minimum number of words just say i want to open up a bank account for my llc and let them do the rest of the talking if you're jibber jabber and you're acting nervous you're going to spook them and they're going to get the supervisor and said this guy's actually this guy or gal acting kind of weird all you do is you bring in your proper papers and want to open a bank account for this llc then you shut up and just answer the questions so it's really quite simple you'll have online access you typically will want a debit card right you want to check books so you can pay bills and so on so the process is really quite simple the key thing is bring the proper documentation the articles of incorporation some proof that show you're associated with the company and you want to have your tax id number and that way you'll walk in you'll be all prepared if you have a professional looking binder like the one that we provide you'll come across as a lot more polished and professional we've helped set up thousands and thousands of corporations and llcs over the years i've been in the business since 1991 setting up corporations llcs trusts and so on we set them up in all 50 states internationally so we've set up literally thousands i mean i'm talking about tens and tens of thousands of companies and help people set up bank accounts by the thousands as well so that's how you open up a bank account you just bring in the proper paperwork tell them you want to open up a company bank account and then shut up and just answer their questions and once you do you'll walk out of there typically with a bank account and you'll be all set to go and you'll be in business so that's how you open up a bank account for an llc hope you enjoy this information please like subscribe share this video this is the business guy yes

Thanks for your comment Reita Emberger, have a nice day.
- Ma Gamino, Staff Member

Comment by Fiona

shauna i want to explain real quick how to open a business bank account but also how i use that opening a business bank account to my advantage and ultimately paid zero dollars for filing for my llc first thing first you're like well why would i even want to open a business banking i have a check in a checking account like a personal checking account domain the biggest you as a general notary or a loan signing agent understanding agent you're a business owner by being certified going out there doing this job you are your own business owner how about we like take it to the next level level up and actually turn your business into a company which is an llc i do have a video on how to like file for an llc and you're welcome to check the description box below but you won't win your business you want to keep your business money and your personal money completely separate it's the easiest and best thing for you because when you have everything mixed together doing taxes is a butt head like seriously which can also open you up to some legal issues or exposure type things that you don't really want to like go into because you're when you have your money mixed and then you're trying to file your taxes and you claim something that you're not supposed to claim or you didn't pay something you weren't supposed to pay because you don't know which one is your real money and which one is the business money you can just mess yourself all up and then you know you have the irs knocking at your door so that's the reason why you want to maybe open your business bank account to keep all your money that you get from your business side business over there so what do you need to open a business account it's simple you need a ein number which you can get for free i have a video and if you want to check it out below uh and then you need to actually have two forms id your forms id could be your passport your driver's license it can even be your bank card your personal bank card if you have a bank card with your name on it and you go into that bank it can even be that then a copy of your business license or your filing with the uh your business filing with the secretary of state the reason why you need this form is because the bank will check to see if your your business is active active at the secretary of state meaning it was filed and it's official the business and the business name belongs to you so the bank will ask for this to make sure you're active the reason why you need the ein if i didn't say it's because the ein is basically your business social security number the last thing you will need is your articles of organization that's just basically a document that shows how your business is structured basically who's the owner of the business how many members are in the business which will always just be you you you you you unless you like open the business up with your brother or your family member or your spouse or something like that you're gonna be the main sole proprietor of this business now when you're at the bank bank the bank rep will ask you questions like what's the business what services you provide now if you're a loan signing agent you're just being like i'm a a service provider for like notary work and another that i got you know she'll actually ask you if you're the primary member so say if you and your husband opened up this loan signing business together and your husband's at work but you're at the bank and you're like i want to open up this business account for us well guess what if he's also on the the llc filing paperwork as also a co-prime member owner he has to be at the bank with you you can't just do it by yourself so yeah then they'll ask you for like your business address and your business phone number your first things might be think okay if i work out i don't necessarily work out of my home but i leave my home use your your personal address your home address use your personal phone number i know i do have a video about when you sign up for your llc you get a registering agent where they accept your mail do not use your registered agent address use your personal address this is where they will send your business debit card to do not use i know i show you how to get a free business phone number don't use your free business number use your personal phone number because if there's ever an issue with your your account or with your card you want the bank to be called your personal cell phone number so when it asks you for business address or business phone number use your personal address your personal phone number unless you actually have like a storefront like you actually rented out a building space and and you know like that uh and then they might even ask you if you want to like open business credit now i say if you at the beginning of this opening business journey don't bother with that i'm not going to give you advice i'm going to let you like do that in your own time but i would recommend for myself and if you want to do what i did i recommend it for myself not to work focus on that right now business credit is business credit is some that is something you want to get to business credit is like once you get in the go once you step your foot into some business credit doors open for you son building your business credit is but for right now you have to begin on your journey why not chillax you got time later on to focus on that we just want to build the business right now i'm going to tell you real quick how i end up paying zero buckaroos zero buckaroos for my llc in a sense so i plan in another video again on how to open up a llc it's actually pretty simple process if you want to open up llc through a company i know one it's a link down below where filing through them you can pay zero dollars they'll be your registered agent they'll file your articles or notarize articles of organization the only thing you would have to pay is your state fee that's across the board no matter what state you live in but i'll tell you how i got around my state fee or not got around but recouped my state fee i think my camera's about to die so there are banks where they actually sign up bonuses when you sign up with the bank they actually pay you money ask to open a business bank account that's the reason why i'm talking about opening a business bank account because this is something i did so in texas the the state following fee in your state i might it might be as little as 50 bucks but in texas it was 300 to file my llc so what i did is i filed my llc and then i opened a chase total checking business account and what that is is that when i open a chase business banking account after a few months they gave me guess what a bonus of 300 here it is right here yeah i opened up this account right here and they gave me a bonus of 300 now here's the thing there's different banks that do this there's banks like uh chase actually got two different forms of this the reason why i'll explain a second but it's different banks all banks not all banks but a lot of banks do this they've got like suntrust region i think does this citibanks does this which proba

Thanks Fiona your participation is very much appreciated
- Ma Gamino

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