How to Open a Business Bank Account for an LLC
Opening a business checking account allows you to deposit funds, process payroll, pay for expenses by check, and much more. We've put together some common questions to help you prepare to open your own LLC bank account to help the process go smoothly. It can take some time, so schedule a day you can go into the branch if you aren't able to open your choice of account online.
Do You Need an EIN for an LLC to Open a Bank Account?
It depends on the structure of your LLC. If you have a single-owner LLC, you have the option to use your Social Security number for the business, but generally an Employer Identification number, or EIN, is chosen. If you have an EIN, you will need it to open a business account.
What is Required to Open a Bank Account for an LLC?
Typically, you'll need the following, in addition to being the primary owner or an authorized officer.
- Your EIN or SSN
- The legal name of your business
- Your business' DBA (doing business as) name, if it's different from the legal name
- Two sets of documentation:
- Legal formation verification including:
- A copy of your business license or business license number
- Print out from the Secretary of State verifying the active status of your business
- Formation documents such as:
- Articles of Incorporation
- Operating Agreement
- Articles of Organization
- Meeting Minutes
- Legal formation verification including:
Steps to Open a Business Bank Account for an LLC
- Form your LLC with your state: File your Articles of Organization or Certificate of Formation with your Secretary of State and wait for your LLC status to become officially active
- Get an EIN from the IRS: Apply for an Employer Identification Number with the IRS
- Draft an LLC Operating Agreement: Outline your ownership structure, management duties, and financial allocations; even if you have a single-member LLC this is often required
- Gather required business documents: Collect your EIN confirmation letter, active state filing, Operating Agreement, government-issued ID, and your business license (find more on what could be needed in our article What is Needed to Open a Business Bank Account)
- Determine authorized signers: If your LLC has more than one member or manager, choose who will have signing authority on the account and ensure all signers go with you to open the account to complete identity verification
- Choose the right business checking account and apply: Consider accounts that offer low monthly fees, cash management tools, and local branch support, then you can apply for a business account online or in person at your local WaFd Bank branch
How Much Money Should I Keep in My LLC Bank Account?
This depends on the business bank account you choose. Some have monthly requirements for minimum balances, so check to see what those are and remember to stay within that minimum. If you don't have that requirement, the amount of money you should keep depends on your business and how much you need to pay the bills each month. Remember your slow season if you have one, as you may need to save to keep the lights on until business picks back up.
What Bank Should I Use for My LLC
The right bank for you depends on your needs. Above all, you'll want a bank that will get to know you and your business, so that as your business grows you can get guidance and resources to help your business expand. Consider the following features as you look for a bank that fits your needs:
- Monthly service fees
- Account requirements, including minimum balance and transaction limits
- Interest rates
- Banking services and lending options (more on that in the next section)
- Technology integration, such as QuickBooks
- Nearby ATMs and branches, if you need quick cash or in person help
What Kind of Bank Account Do I Need for an LLC? Best Bank Accounts for LLC
While there is no one-size-fits-all option, looking at all the accounts and services your choices offer is a good idea. Your business will have unique needs as it grows, so you want to choose a bank that can grow alongside you and your business. Consider tasks you want to automate or pain points and whether the bank offers tools and services to help. Lastly, look at where the bank has locations and ensure there's one nearby so you can get in-person help when needed.
What You're Looking For | Solution |
|---|---|
Low or no monthly maintenance fees and potential upgrades for higher account activity, interest, or added options like fraud prevention | Business Checking |
Flexible savings accounts with competitive interest rates so you can save for your business's future | Business Savings |
A lump sum of money to buy equipment or fund growth | Business Loan |
Cash flow support for seasonal changes with a way to borrow and pay back as needed, plus the option to increase your credit limit over time | Business Line of Credit |
Build business credit, earn rewards for purchases, and the ability for employees to make purchases without having to reimburse | Business Credit Cards |
Simplify payroll processing, applicant processing, and other HR services | HR and Payroll Services |
The ability to accept payments from clients, whether that's online, in person, or out and about | Payment Processing Services |
Get your invoices paid in hours, not weeks | CollectEarly® |
Open cash flow to seize growth opportunities, consolidate activity to see it all in one place, and better plan and project future business | Cash Flow Management |
A way to easily monitor and manage sales and inventory | Point of Sale and Inventory Systems |
Set up customized loyalty and gift card programs for customers to increase repeat business | Customer Engagement Services |
Get better insights into your business' finances, simplify back-office processes, and reduce FTE | Accounting Automation |
Stop fraud on your business accounts | ACH Positive Pay and Check Positive Pay |
WaFd Bank is Here to Help
Our knowledgeable business bankers are available to help you manage success and have the expertise to become a trusted advisor to you and your team. With products that grow with your business and comprehensive tools to seamlessly manage it all, WaFd Bank is built for business. After over 100 years, we know what it takes to help you succeed, from start to legacy. Visit your local branch or give us a call at 800-324-9375 to experience the difference WaFd Bank can make for you.
Open a Business Checking AccountContent is provided for general informational purposes only and does not constitute legal, tax, financial, or business advice. Consult a qualified legal professional or specialist regarding your specific needs and circumstances.
