How to Open an LLC Bank Account?

14 Min Read
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Last updated December 14, 2023
Written by Dmytro Kondratiev
Editor, lawyer
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In today's economic arena, the US market is the largest and most attractive. Moreover, regardless of the area of ​​business - the sale of goods, the provision of services, e-commerce, etc. -  American companies occupy the leading positions all over the globe.

It follows that creating an LLC is a great opportunity to multiply your profits. Moreover, American companies are known to be one of the best in the world. There are lots of reasons for that.

  • LLC is one of the most convenient ways of doing business. Creating such a business structure provides access to all the benefits of jurisdiction, such as banking, payment processing, and low taxes;
  • Banks and payment systems in the US are very fast and useful;
  • America has one of the largest and most influential economies in the world. 20% of the total world economy is controlled by the United States.

Benefits and Drawbacks of Opening an LLC Bank Account

LLC is one of the most spread forms of business. This is a perfect choice for everyone who wants to start a small or medium-sized business. The second important point, LLC in certain states is a tax haven.

When you open your LLC, there are still some organizational issues to do. This includes registering your business as well as creating a bank account. Opening a bank account for an LLC has a plethora of pluses and minuses for any business owner:

Additional protectionA lot of work during tax season
Simple bookkeepingAssociated Fees
Manageable tax time


  • Additional protection. One of the main benefits of opening an account for your company is the opportunity to maintain legal documentation. In such a way, the owner can show that they and their business are two separate units;
  • Simple bookkeeping. Having opened a separate banking record for your business, the way of processing the numbers and paying taxes will be much easier. In addition, there is an option of 24/7 online banking;
  • Manageable tax time. Tax season will be easier to navigate when all the transactions are in one place. What's more, for LLC owners, the procedure of paying taxes is more transparent;

Moreover, the owner has an opportunity to make convenient payment operations. US bank accounts make it easy to receive payments from customers and make disbursements to suppliers.

  • Professionalism. Colleagues and customers can make a revision to a person's business rather than to the person, with an opportunity to pay with a credit or debit card provided having an LLC bank account. This simplifies your finances and gives your business a more professional image.


  • A lot of work during tax season. There are some crucial mistakes made by newly-born LLCs. When the time comes to file, you will have to file two sets of taxes, including your business and personal accounts. This is why it’s pivotal to have 2 accounts: one for the company and one for yourself;
  • Associated Fees. There are several fees that the owner of an LLC must pay during opening an account. One of them is paid during registration and may vary from $40 to $500 (it all depends on the state and a particular financial facility).

However, in the long run, the owner of the business pays for their financial protection.

Once set up your company, there are a few steps a person should do to register it. One of them is opening a bank account for an LLC.

It is a necessary asset for entrepreneurs who want to be part of an attractive commerce landscape. Next, you will learn the features of obtaining a company account as well as the rules of getting it.

What Kind OF Bank Account to Open as an LLC?

In order to successfully conduct business in the United States, you will undoubtedly need a US bank account. An LLC relieves its members of the company's liabilities and debts.

The company's bank account helps prove the business and the owner/members are separate entities. This is particularly important if a legal suit arises. Of course, none of us wants to think about our business being involved in a legal suit, however, it’s beneficial to be prepared just in case.

Additionally, exploring offshore accounts can offer benefits like tax efficiency and increased confidentiality for international financial dealings.

What Do You Need To Open a Business Account?

  • First of all, you should discuss your needs with a number of banks in order to better understand their services, terms, and conditions;
  • Once you have chosen a bank, you can begin the process of opening a corporate account in the United States. Each bank has its own requirements, but new customers are usually asked to come to the branch and provide documents;
  • A lot of facilities require a minimum deposit to open an account with a company in America. It may vary from $40 to $500 depending on a chosen state and financial institution;
  • Data on the corporate account will be extremely confidential, the information about LLC owners is also kept in a closed register as well.

Moreover, you can manage your tax payments quite flexibly. Taxation varies from state to state, so it’s better to think over this question in detail.

Can I Use a Personal Bank Account for My LLC?

Although it may seem inconvenient to open two bank records, it's not recommended to use a personal one to operate one's business finances. As long as your business is a separate unit, the person has to open a special bank account for their LLC.

Once you register your company, the owner receives limited liability protection, which is an important part of LLC registration. A separate corporate bank account is a requirement for your LLC to ensure the “corporate veil”.

Having an account will help you with many practical aspects of running your business, such as making track of expenses, paying your business bills, and making customer remittances. What's more, there are some practical aspects of using separate accounts for different needs.

  1. Firstly, it will be easier for the owner of the business to calculate and pay taxes without hiring an accountant;
  2. Secondly, the company will act as a professional by paying with a check in the business name. Hence, suppliers and other people you contact will respect such a business;
  3. Finally, it's a perfect way to build a reliable relationship with a bank with an opportunity to get a loan in the future.

What Documents Are Needed to Open a Business Bank Account?

The laws governing bank accounts for people are federal, but their application is local. Therefore, the number of documents required to open an account may vary from bank to bank, from state to state, and even from branch to branch.

Hence, it's beneficial to call and clarify all the details before visiting the bank. As a rule, the documents for obtaining a business account include:

  • Articles of Organization (also known as Certificate of Organization, or Certificate of Formation in different states);
  • EIN Confirmation Letter or EIN Verification Letter from the IRS;
  • LLC Operating Agreement;
  • Form of identification (passport and/or driver's license).

Additionally, you may need:

Address Confirmation and a Phone Number

At some banks, you can use your LLC's address on your administration documents and the EIN letter from the IRS. However, other banks may require a lease, utility bill, or phone bill.

Beneficial Ownership

In 2018, the Financial Crime Enforcement Regulation (FinCEN) on “Customer Due Diligence Requirements” came into force. This rule (also called the Beneficial Ownership Rule) is required for all banks that open commercial bank accounts.

They must identify the true owners of the business before they can open a bank account. The bank will provide you with a Declaration of Beneficial Ownership form that you must complete before they can open your account.

LLC Banking Resolution

A Banking Resolution is a document that describes which members of an LLC are eligible to open a bank account. The financial institution will provide you with its own decision form, so you do not need to prepare it in advance.

Keep in mind that US bank accounts are governed by federal laws, and their application is determined by local laws. Therefore, the list of requirements and documents will depend on the selected American bank and state.

Additionally, you will need to provide a Certificate of Good Standing, provided that the company is registered more than a year ago.

Final Thoughts

Eventually, opening at least one LLC bank account that is separate from the person's personal finances is more reasonable.

Such a solution gives a vivid variety of pros: making it easier to track business expenses as well as presenting a more executive image for your company.

Finally, you are able to take advantage of tax deductions and credits available to small business owners while avoiding other tax problems!


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