1. Reasons to Create an LLC Bank Account
2. Choosing a Bank
3. Business Account Requirements

LLC bank account requirements are the guidelines a financial institution establishes for limited liability companies (LLCs) to open a business bank account. After you start an LLC and begin to get orders, you'll need to deposit funds and pay your suppliers and vendors. This requires a bank account in the name of your LLC, which also helps you maintain personal liability protection from financial obligations the business accrues. Keeping LLC funds in the same bank account as personal funds can be considered commingling assets, which negates the limited liability the LLC provides.

Reasons to Create an LLC Bank Account

Although it may seem easier to just use your personal bank account for LLC business, doing so is a violation of the terms of your LLC. This means you can be found liable for business debts and legal judgments if you mix LLC and personal assets. Other reasons to create a separate LLC account include:

  • Easier financial recordkeeping and tax preparation
  • Lower risk for an IRS audit
  • Higher professionalism and credibility in the industry, especially when working with new vendors
  • Establishing a banking relationship for your LLC, which will be valuable if you plan to seek future funding

Once you've established a business account, protect your limited liability by making business purchases only from your business account and personal purchases only from your personal account.

Choosing a Bank

Setting up a business account is relatively straightforward as long as you bring the correct paperwork to the bank. But first, research business bank accounts to figure out which is the right choice for you. You should consider:

  • Fee structure
  • Service options
  • Overdraft protection
  • Debit card availability
  • Minimum balance requirements
  • Initial deposit requirements
  • Other account features

Avoid banks with high monthly fees or the requirement to maintain a minimum balance. Promotions and incentives to open a new business account should be examined carefully for hidden fees. Some banks offer different service tiers for business accounts. However, you likely don't need the bells and whistles (and higher fees) of premium packages. Start with a basic business plan if it fits your needs and upgrade later if you need to do so as your LLC grows.

Business Account Requirements

When you've decided on a bank to use, review their requirements before opening your account. If your LLC is member-managed, all the members will typically need to be present to open an account. If you have an outside manager, that person can often take care of this responsibility. If a corporation is a member of the LLC, they'll need to send a representative. If you plan to have an authorized signer for your LLC, that person should also be present.

Each person will need to provide two forms of ID, including one form of a government-issued ID such as a:

  • Passport
  • Driver's license
  • State ID card
  • Permanent resident alien card

The second form of ID can be a utility bill, an employer ID, or a credit card. 

The bank will require your federal employer identification number (EIN) from the IRS. If you don't have an EIN, you can request one online at no charge. If you have a single-member LLC and do not employ others, you can use your Social Security Number or Individual Taxpayer Identification Number

You'll need to show the bank your Articles of Organization as well as your state registration if you're opening an account in a state other than where your LLC was formed. Although most banks don't require you to show additional LLC paperwork, you may want to bring other official documents just in case. 

You'll be required to provide the following information on your LLC bank account application:

  • Full name and residence of all members
  • Ownership percentage for each member
  • Legal business name and EIN
  • Business address and phone number
  • Number of business locations and nature of business at each location
  • Supplier and vendor locations
  • Annual sales figures
  • Number of employees
  • Expected volume of new bank account

If you want to provide certain employees the ability to use the account through a card, you can provide their full name, address, and date of birth. They do not need to be present.

If you need help with opening a bank account for your LLC, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.