Creating an LLC business account is one of the most important building blocks for a new small business owner. A limited liability business structure separates and protects your personal finances from those of your company — and your LLC bank account acts partially as the burden of proof.
A business bank account for LLC owners gives you the flexibility to deposit checks and process electronic payments. When you first start a business, having an accurate incoming/outgoing financial tracking system can make or break you. Your LLC business bank account serves as an automated option to monitor your bottom line.
Obviously, setting up a business bank account for LLC companies requires a little more than just your driver’s license.
Necessary LLC bank account requirements could vary depending on your chosen bank. You can call them to double-check, but when you start an LLC (limited liability company), you’ll need:
Additional documentation could be required depending on the bank, so it’s best to check the bank’s requirements before visiting them in person.
Learning how to open a business bank account for LLC companies starts with the right documents. Before starting the process, you’ll decide on the type of LLC bank account that’s best for your company. Some of your options include:
Opening an LLC bank account with us provides owners with an all-in-one solution for their banking and tracking needs.
It’s rare you can open an LLC bank account online — most banks or credit unions require an in-person process. The following steps outline how to open a bank account for LLC owners from start to finish. ZenBusiness helps take the hassle out of the time-consuming, in-person process with easy online account creation.
If you haven’t already created your LLC, now is the time to do it. It’s mandatory if you want to open a bank account for LLC purposes. Plus, it’s how you can get the necessary paperwork required by your financial institution. With ZenBusiness, we handle the LLC paperwork filing, so everything is already verified.
At this point, you’ll choose where to open your LLC bank account. This requires researching different banks and credit unions. You’ll need to be mindful of minimum deposits, monthly fees, and other charges — it can turn into a real headache. With the bank account option from ZenBusiness, owners receive a small business bank account plus bookkeeping solutions. Track your expenses and incoming revenue, and even tag your deductions for tax preparation.
After providing your documents and forms of identification, you’ll need to fill out a sizable application. In some cases, it could take several days for approval, depending on the bank.
The bank will probably require some form of the initial deposit plus a monthly minimum balance. In some cases, this can be a significant amount. If you’re already cash-flow positive, it’s no big deal. But for a new startup that hasn’t gotten the ball rolling, this can put extra stress on you as an owner.
With ZenBusiness banking, there’s no opening deposit required and no minimum balance or ACH fees — and we’ll mail your business debit card — all for $5 bucks a month.
Learning how to open a bank account for an LLC has several advantages. Consider the benefits of using a business bank account like ZenBusiness banking:
The ZenBusiness Money app gives you a dashboard for monitoring the financial well-being of your LLC in real-time. Our helpful tracking tools help you accurately forecast business trends and do more of what’s working and less of what’s not.
ZenBusiness Banking offers small business owners the tools they need to open an LLC bank account quickly with no stress. By using your debit card to make any transactions related to your business, all the tracking and bookkeeping is done for you.
Best of all, it allows you to save your most valuable asset as a startup business owner — your time. And, it makes it easier to focus on the most important elements of your company — your customers.
Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.
ZenBusiness is a financial technology company and is not a bank. Banking services provided by Thread Bank; Member FDIC. The ZenBusiness Visa® Debit Card is issued by Thread Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted. Your funds are FDIC insured up to $250,000 through Thread Bank; Member FDIC.
Unless you want to go through and itemize your business and personal transactions, you need an LLC bank account. You’ll also be further protected because it provides additional proof on paper that you and your business are separate entities.
By doing this, you put your personal finances at risk. If someone takes you to court to try to prove you and your LLC are the same entity, using your personal bank account for the business doesn’t look good.
This is a difficult question to answer — especially if your LLC isn’t profitable yet. With ZenBusiness, there’s no startup deposit required. Fund the money after you get the ball rolling and have a little breathing room.
This depends on the specifics of your business. If you have a lot of overhead or employees to pay, it’s a good idea to open a standard checking account with combined savings attached. This allows you to stash money away in case there’s a slow period, and you need to cover the bills and payroll. If you plan on taking credit cards, consider a merchant account.
If your LLC is set up the default way, as a pass-through entity, and you’re the sole owner, there’s no need to borrow. You can take money from the LLC as a draw. If the LLC has other owners, you’ll need to get their approval and make a record of it. It’s possible to take a loan from the LLC using a legally enforceable promissory note to repay it; an accountant or business lawyer can assist you with this. Be aware that the IRS may treat your loan as a distribution, meaning you’d be taxed as such. For more information, see our article on paying yourself as an LC member and how you can pay yourself as an owner-employee by applying for S corporation status.
Start an LLC in Your State
When it comes to compliance, costs, and other factors, these are popular states for forming an LLC.
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