Opening an LLC bank account is more difficult than opening a personal bank account, but it is critical to the financial health of your business. Every business owner should open an account dedicated to their business as quickly as possible. If you are prepared with necessary paperwork and documentation, it can be a straightforward application process with the right banking partner. This post will show you how to open a business bank account for an LLC, the application process you can expect, and some FAQs about business banking.

What Is an LLC?

An LLC (limited liability company) is a type of business entity that offers limited liability to its owners. This means that personal assets and company assets are separate. An LLC can be formed in any state and can have any number of owners, who are referred to as members. The members can be individuals, partnerships, or other LLCs. The LLC is a popular choice for small businesses because it’s relatively easy to set up and offers limited liability to its owners.

Why You Need a Business Bank Account for Your LLC

Even if you’re the only owner of your LLC, you still need to open a business bank account. Here are just a few reasons why:

• It’s easier to track your expenses and income if they’re all in one place
• A business bank account looks more professional to potential clients and investors
• Separating your personal and business finances is essential for good record-keeping and tax deductions

You can also get discounts on banking products and services when you have a business account.

Documentation Required for the Account Opening Process

Contact your bank to find out what sort of paperwork is needed to create a business bank account for an LLC once you’ve decided what kind of account you want to open. As a general rule, you will likely need to present the following paperwork to your bank:

• A duplicate of the articles of organization, certificate of formation, or comparable document for your LLC, depending on the state where you registered it
• The federal tax identification number for your LLC (EIN, or Employer Identification Number)
• Your LLC operating agreement or another document defining the signers who are permitted to represent your LLC
• Driver’s license or personal identification

The application process is not the same for every bank, but these essentials will provide a good start to any application. Viably does not require a lengthy verification process. You can upload verification documents for a Viably account right from your laptop.

Frequently Asked Questions About Business Bank Accounts for Your LLC

When it comes to business bank accounts, there are no bad questions. Here are some of the most common questions:

Can I use my credit score to apply for a business bank account?

Typically, banks do not require a credit check to open a business bank account. Applying for a credit line or a loan is a different story. In that case, they will usually consider your business and/or personal credit reports.

Can I open a business bank account without being a U.S. Citizen?

Yes. You will need to meet the bank’s requirements and provide alternative identification, but it is possible to open a business account in the U.S. even if you’re not a citizen.

What’s the difference between a checking and a savings account?

Business checking accounts are used primarily for transactions—payments and deposits. Savings accounts might offer the opportunity to earn interest on stored money over a period of time. As you business saves for an emergency fund, a savings account might be a better place for it.

What are the requirements for maintaining a business bank account?

It varies depending on the institution. Some banks require a minimum balance and charge fees when the balance falls below the threshold. Some require transactions over a certain period of time. Confirm the requirements with your bank so there are no surprises. Viably charges no minimum balance fees, or any other fees for a business checking account.

Open a Business Bank Account for Your LLC with Viably

At Viably, we don’t think business banking should require stacks of paperwork or trips to a branch. There are no fees for money movement or account balances. Sign up for Viably for free to start setting up a bank account for your LLC today.