How to Open a Bank Account for an LLC
Why Your LLC Needs Its Own Bank Account
An LLC provides limited liability protection, meaning your personal assets are shielded from business debts and lawsuits. But this protection only holds if you treat the LLC as a separate entity from yourself. If you run business revenue and personal expenses through the same bank account, a court can "pierce the corporate veil" and hold you personally liable for business obligations. Having a dedicated bank account in the LLC's name is one of the strongest forms of evidence that your LLC operates as an independent entity.
Beyond legal protection, an LLC bank account is required for practical business operations. Building business credit starts with a business banking relationship. Applying for business financing requires business bank statements showing revenue and cash flow. Filing taxes accurately requires clean financial records that separate business income from personal income. And receiving payment processor deposits in your LLC's name ensures that funds are properly attributed to the business entity.
Documents You Need
Articles of Organization
Your Articles of Organization, also called a Certificate of Formation in some states, is the document you filed with your state to legally create the LLC. This is the foundational document that proves your LLC exists as a legal entity. Banks need a copy of the filed articles showing the state's acceptance stamp, filing number, or electronic confirmation. If you formed your LLC through an online service, download the filed copy from your state's Secretary of State website. If you filed by mail, use the stamped copy returned to you by the state.
Operating Agreement
The Operating Agreement defines how your LLC is managed, who the members are, and what each member's ownership percentage and authority includes. Even single-member LLCs should have an Operating Agreement, and banks often require it. The agreement should include a provision authorizing the member or manager opening the account to conduct banking activities on behalf of the LLC. If your Operating Agreement does not include banking authorization language, some banks will ask you to provide a separate banking resolution or amend the agreement.
For multi-member LLCs, the Operating Agreement should specify whether any member can open bank accounts independently or whether all members must consent. Banks will follow whatever your Operating Agreement states, so make sure the authorization language matches your intentions before applying.
EIN Confirmation
Your Employer Identification Number (EIN) is the LLC's tax identification number issued by the IRS. Apply for free at irs.gov, and you receive the EIN immediately when completing the online application. The IRS issues a confirmation notice (CP 575 for online applications, or Letter 147C if you request a replacement). Banks accept either document, and some will accept the EIN number itself if they can verify it through IRS databases.
Single-member LLCs that do not have employees can technically use the owner's SSN instead of an EIN, but getting an EIN is strongly recommended. It prevents your SSN from appearing on bank documents, vendor applications, and W-9 forms, reducing identity theft risk and adding a layer of separation between your personal and business identities.
Photo Identification
Every person who will be an authorized signer on the account needs to provide a valid government-issued photo ID. A driver's license or passport works for US citizens and residents. Non-US citizens may need a passport along with visa documentation or permanent resident card depending on the bank's requirements. Some banks also require proof of address, such as a utility bill or bank statement, for each signer.
Additional Documents Some Banks Request
Beyond the core documents, some banks request a business license or permit if your city or county requires one for your business type. Some request a DBA (Doing Business As) filing if the LLC operates under a name different from its legal name. A few traditional banks request a business plan or projected revenue estimates, though this is more common for complex businesses or those in restricted industries.
Step-by-Step Application Process
Visit irs.gov and complete the online EIN application. The process takes about 10 minutes, and you receive your EIN immediately. Save or print the confirmation notice. Do not pay a third-party service for this, as the IRS provides it free.
Read through your Operating Agreement and confirm it includes language authorizing members or managers to open and manage bank accounts on behalf of the LLC. If it does not, add a simple banking authorization clause or prepare a separate banking resolution signed by all members. The banking resolution should state the LLC's name, EIN, and the specific individuals authorized to open accounts, sign checks, and manage the banking relationship.
Review the best business checking accounts and decide between a traditional bank and an online bank. For LLCs that need branch access, Chase and Bank of America offer nationwide locations. For LLCs that operate entirely online, Mercury and Relay offer fee-free accounts with strong technology. Consider whether you need cash deposit capability, which requires a traditional bank, or whether you prioritize zero fees and modern features, which favors online banks.
For online banks, visit the bank's website and select the business account application. Enter your LLC's legal name exactly as it appears on your Articles of Organization, your EIN, your registered address, the formation date, the state of formation, and your industry. Upload clear photos or scans of your Articles of Organization, Operating Agreement, EIN confirmation, and photo IDs. For traditional banks, either start online and finish in-branch, or bring all original documents to a branch appointment. The branch banker will copy what they need and return your originals.
Make your initial deposit via ACH transfer, wire, or in-person deposit. Then connect your payment processors to deposit into the new LLC account, link your accounting software for automatic transaction feeds, and order debit cards. Update your payment processor settings to deposit funds into the LLC account rather than any personal account you may have been using previously.
Single-Member LLC vs Multi-Member LLC
Single-Member LLC
Single-member LLCs have the simplest application process. You are the only member, so only your photo ID and signature are required. Your Operating Agreement can be a basic single-member document that you created yourself or through a template. The bank will verify your identity, confirm the LLC's existence through state records, and check the EIN against IRS databases. Most single-member LLC applications are approved within minutes at online banks and within one business day at traditional banks.
Multi-Member LLC
Multi-member LLCs require identity verification for each member who will be an authorized signer. The Operating Agreement becomes more important because it defines which members have banking authority. If all members need account access, all must complete the identity verification process. If only one member manages banking, the Operating Agreement or a separate resolution should specifically authorize that member to act on behalf of the LLC for banking purposes.
For traditional banks, all signers may need to visit the branch, though some banks allow signers to visit different branches or submit documentation by mail. For online banks, each signer typically completes an individual online identity verification step. Coordinate with your co-members in advance so everyone can complete their portion promptly.
Common Issues and Solutions
LLC name mismatch: The LLC name on your bank application must exactly match the name on your Articles of Organization. If your LLC is "Smith Ecommerce LLC" but you apply as "Smith Ecommerce," the bank may reject the application or require you to correct it. Include the full legal name with the entity designation (LLC, L.L.C., or Limited Liability Company) exactly as registered.
Recently formed LLC: Banks can verify your LLC's existence through state databases, but new filings sometimes take a few days to appear in these systems. If you formed your LLC within the last week and the bank cannot verify it, providing your stamped Articles of Organization directly usually resolves the issue. Online banks tend to be more flexible with new LLCs than traditional banks.
Different state of formation: If you formed your LLC in a state different from where you operate (common with Delaware and Wyoming LLCs), some banks require foreign qualification documentation showing your LLC is authorized to do business in your operating state. This is separate from and in addition to your Articles of Organization from the formation state.
Operating Agreement concerns: If the bank requests changes to your Operating Agreement or asks for a banking resolution and you are unsure how to proceed, most banks provide templates for the resolution document. Alternatively, many online legal services offer banking resolution templates for $10 to $50 that are specific to your state and bank requirements.
After Opening Your LLC Account
Once your LLC account is open, establish clean financial practices immediately. Route all business income into the LLC account and pay all business expenses from it. Never pay personal expenses from the business account, and never deposit personal funds without documenting them as member contributions. This clean separation protects your limited liability status and creates the financial records you need for accurate tax filing and future LLC credit building.
Consider opening a business savings account alongside your checking account to hold tax reserves, emergency funds, and inventory purchasing capital. Keeping operational funds and reserve funds in separate accounts prevents you from accidentally spending money earmarked for quarterly tax payments or seasonal inventory purchases.