What you need before you walk into a bank
Opening a bank account for your LLC requires three things: an Employer Identification Number (EIN) from the IRS, your Articles of Organization (the document you filed to create the LLC), and a government-issued ID. Some banks also ask for your operating agreement, though not all require it. You cannot open an account without the EIN — the bank will not process the application without it.
If you do not have an EIN yet, you can get one free from the IRS website (irs.gov) or by calling 1-800-829-4933. The online process takes about 15 minutes and you receive your number immediately. If you apply by phone, you get it the same day. Do this before you contact any bank.
You will also need to decide whether you want the account in the LLC's name only or whether you want to be listed as a signatory. Most small LLC owners set up the account so they can sign checks and move money, but the account itself belongs to the business entity. This separation is what protects your personal assets if the LLC is sued.
Key Takeaways
- You must have an EIN from the IRS before any bank will open an account for your LLC, and you can get one free online in 15 minutes.
- Bring your EIN, Articles of Organization, government-issued ID, and initial deposit to the bank; some banks also ask for an operating agreement.
- The account belongs to the LLC as a legal entity, not to you personally, which is why the bank will not let you open it under your own name.
- Different banks charge different monthly fees, require different minimum balances, and offer different numbers of free transfers — compare these before you choose.
- Once the account is open, keep business money separate from personal money; mixing them can weaken the legal protection the LLC provides.
Which documents the bank will ask for
The bank needs proof that the LLC exists and that you have authority to open an account on its behalf. Bring a certified copy of your Articles of Organization — the document you filed with your state when you created the LLC. If you filed electronically, you can usually download a certified copy from your state's Secretary of State website. If you filed by mail, the state sent you a certified copy when they approved it.
Some banks ask for a copy of your operating agreement, which is the internal document that describes how the LLC is run and who can sign checks. If you do not have a written operating agreement, tell the bank that upfront. Many banks will still open the account, but a few require one. Calling ahead saves you a trip.
You will also need to show your government-issued ID — a driver's license or passport. The bank uses this to verify your identity and to comply with federal anti-money-laundering rules. Bring the original, not a copy.
How to choose between banks
Not all banks treat LLC accounts the same way. Some charge a monthly fee ($10 to $25 is common), some waive the fee if you keep a minimum balance, and some offer it free. Some limit the number of transfers you can make per month, and some do not. Some offer online banking and mobile check deposit, and some do not. Before you open an account, compare at least three banks on these points.
Community banks and credit unions often have lower fees than large national banks, but they may not have as many branches or as robust an online platform. National banks have more locations and better digital tools, but they charge more. Online-only banks usually have the lowest fees and the best rates on savings, but you cannot deposit cash in person.
Ask each bank whether they offer a business checking account, a business savings account, or both. Some LLCs benefit from keeping operating money in checking and reserve money in savings. Others do fine with checking alone. The bank can walk you through the options once you call.
What happens at the bank when you open the account
Bring your EIN, Articles of Organization, government ID, and your initial deposit. The bank will ask you to fill out a signature card, which is a form that shows who is authorized to sign checks and move money from the account. If you are the only owner, you will sign it. If there are multiple owners and you want more than one person to be able to sign, tell the bank and they will add the other signatories to the form.
The bank will also ask you to complete a W-9 form, which tells them how the LLC is taxed for federal purposes. If your LLC is taxed as a sole proprietorship or partnership, you will check that box. If it is taxed as a corporation, you will check that box instead. The bank uses this to report interest income to the IRS at the end of the year.
Once you sign the paperwork, the bank will give you a temporary debit card or checks, and you can start using the account right away. Permanent checks usually arrive in the mail within one to two weeks.
Why you cannot open the account under your personal name
The whole point of forming an LLC is to separate your personal assets from your business assets. If you open a bank account under your own name and use it for business, a creditor or lawsuit plaintiff can argue that the LLC is just a shell and that your personal assets are fair game. This is called "piercing the corporate veil," and it happens most often when business and personal money are mixed.
The bank will not let you open an account under your personal name for an LLC because it would violate federal banking rules. The account must be in the LLC's legal name. You can be a signatory — you can have the power to sign checks and move money — but the account itself belongs to the business entity.
Once the account is open, treat it that way. Do not deposit personal income into it, and do not use it to pay personal bills. The cleaner the separation, the stronger your legal protection.
What to do if the bank says no
Some banks will not open an account for an LLC if the business is brand new, if the owner has poor credit, or if the LLC operates in an industry the bank considers high-risk (such as cannabis, cryptocurrency, or firearms). If one bank declines, try another. Community banks and credit unions are often more flexible than national chains.
If you are having trouble because of your personal credit, ask the bank whether they will open the account if you bring a co-owner with better credit to sign the signature card. Some will, some will not. If you are having trouble because the business is new, ask whether the bank will open the account if you bring a business plan or a letter from a client showing that you have work lined up.
Online banks sometimes have fewer restrictions than brick-and-mortar banks, so if you are willing to do your banking online, that may be your fastest route. You can always move the account later once the business is more established.
How to keep the account separate from your personal finances
Once the account is open, set up a system to keep business money separate from personal money. If you take a salary or a draw from the LLC, transfer it to your personal account and then pay yourself from there. If you have business expenses, pay them from the business account. If you have personal expenses, pay them from your personal account.
At the end of the year, your accountant or bookkeeper will use the business account statements to calculate your business income and deductions. The cleaner the account is — the fewer personal transactions mixed in — the easier that job becomes and the less likely you are to lose deductions because the IRS questions whether an expense was really business-related.
Some LLC owners set up a separate business credit card as well, which makes it even easier to track expenses. The business account pays the credit card bill, and the credit card is used only for business purchases. This creates a clear paper trail and makes tax time much simpler.
Frequently Asked Questions
Do I need a separate business account, or can I use my personal account?
You can legally use your personal account, but it weakens the legal protection the LLC provides. If someone sues the business, they may argue that the LLC is not a real separate entity because you mixed business and personal money. A business account costs little or nothing and protects you far more. It is worth opening one.
What if I have multiple owners in my LLC?
All owners can be listed as signatories on the account, or only some of them can be. You decide. The bank will add whoever you want to the signature card. If you want to require that two people sign every check, tell the bank that upfront — some banks support this, some do not.
Can I open the account online, or do I have to go to a branch?
Some online banks let you open an LLC account entirely online by uploading your documents. Others require you to visit a branch or mail in your paperwork. Call the bank or check their website before you start the process. Online-only banks are usually faster, but you cannot deposit cash in person.
What if I do not have an operating agreement yet?
Most banks do not require one. Call ahead and ask. If the bank you want to use does require it and you do not have one, you can write a simple one-page operating agreement that describes who owns the LLC and who can sign checks. Your state's Secretary of State website often has a template.
How long does it take to open the account?
If you go to a branch with all your documents, it usually takes 15 to 30 minutes. If you apply online, it can take anywhere from a few minutes to a few business days, depending on the bank. Once you open it, you can start using the account the same day or the next business day.