How to Open a Business Bank Account for an LLC

Learn how to open a business bank account for an LLC with the documents you need, how to choose a bank, and how to build business credit.

Why your LLC needs its own bank account

Opening a separate business bank account is one of the first things you should do after forming your LLC. It keeps your personal money separate from business money, which is the whole point of the LLC structure. If you mix funds, a court can pierce the corporate veil and hold you personally liable for business debts. A business account also makes tax time easier, because every business expense is in one place. Learning how to open a business bank account for an LLC takes about an hour once you have the right documents.

Documents you need to open the account

Banks ask for a standard set of documents. Bring your Employer Identification Number, or EIN, which you get from the IRS. Bring your Articles of Organization or Certificate of Formation, which proves the LLC exists. Bring your operating agreement, because the bank wants to see who has authority to sign. Bring a government photo ID for every owner who will sign. Some banks also ask for a resolution naming the authorized signers. If you do not have an EIN yet, see our EIN guide before you go.

How to choose a bank for your LLC

Compare fees, minimum balances, and features before you pick a bank. Look for a business checking account with no monthly fee or a low one, and check the cost of wire transfers and cash deposits. Consider whether you need a local branch, a business credit card, or a merchant account for card payments. Online banks often have lower fees, while local banks offer in-person help. Read the fee schedule carefully, because small monthly charges add up over a year.

Business account vs personal account

A business checking account is not the same as a personal one. Business accounts come with features like multiple signers, higher transaction limits, and merchant services. They also come with fees that personal accounts do not have. Using a personal account for business income is a mistake, because it muddies your records and weakens your liability protection. Open a real business account in the LLC's name, and use it for every business transaction.

LLC vs sole proprietorship rules

An LLC account is opened in the LLC's legal name and uses the LLC's EIN. A sole proprietor opens an account in their own name and can use their Social Security number instead of an EIN. The LLC structure gives you liability protection that a sole proprietorship does not. If you are a single-member LLC, you still open the account as an LLC, not as a sole proprietor. The bank treats the LLC as its own customer, which is exactly what you want.

How to build business credit

A business bank account is the first step toward business credit. Once the account is open, apply for a business credit card and pay it in full each month. Register with business credit bureaus like Dun and Bradstreet so your payment history is tracked. Keep your accounts current and your balances low. Over time, a strong business credit profile helps you qualify for loans, leases, and better terms. See our guide to paying yourself for how to move money out of the business properly.

What to bring on opening day

Call the bank first to confirm what they need, because requirements vary. In general, bring your EIN confirmation letter, your Articles of Organization, your operating agreement, a resolution naming signers, and photo ID for each signer. Bring your initial deposit, which can be as low as $25 at some banks. If your LLC is registered in another state, bring your foreign qualification certificate too. With the right folder, you can open the account in one visit.

Frequently Asked Questions

Can I open a business bank account without an EIN?

Most banks require an EIN for an LLC account. A single-member LLC can sometimes use the owner's Social Security number, but many banks still ask for an EIN. Get the EIN first to avoid delays.

What documents do I need to open an LLC bank account?

You need your EIN, Articles of Organization, operating agreement, and photo ID for each signer. Some banks also want a resolution naming the authorized signers.

Do I need a business bank account for a single-member LLC?

Yes. Even with one member, the LLC is a separate legal entity, and a separate account protects your liability shield and simplifies your taxes.

How much does a business checking account cost?

Many banks offer free business checking with no minimum balance. Others charge $10 to $30 per month unless you keep a minimum balance. Compare fee schedules before choosing.

Can I use my personal bank account for my LLC?

You can, but it is a bad idea. Mixing funds weakens your liability protection and makes tax time harder. Open a separate business account as soon as possible.