The first step in opening a bank account for your LLC is to apply for an EIN Number. An EIN is a government-issued identification number. Obtain a copy from the IRS. Some banks also require you to present a person in person at the bank to open the account. If you do not have one, you will need to open one before you can begin using it for your business.
You should close your sole proprietor bank account when you open the new business account. If you have pending payments, you should wait until they are cleared. Change your banking information with clients and payees. Also, make sure to notify them of the change in business name. Once the paperwork is complete, you can open your LLC checking account. You can then use this account to receive payments for your business.
To open an LLC bank account, you must apply for an LLC DBA (doing business as) certificate. This paperwork will help you separate your personal finances from your business. A limited liability company (LLC) requires a separate bank account than a sole proprietorship or partnership. A business bank account with DBA protection will prevent you from being held personally responsible for any transactions that occur in your company.
A business checking account is a great option for an LLC. It will offer you a variety of features that a non-business bank account may not offer. Many of these accounts include a debit card to make paying expenses easier. You can assign a member or hired manager to sign for the account. Make sure you assign rights to these individuals in your operating agreement. You may even need to have a second owner sign for the account.
