What Do You Need to Open a Bank Account for a Single-member LLC?

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Steps to Open an LLC Bank Account:

  • The Operating Agreement gives the President power to open LLC bank accounts.
  • Opening an account for a single-member LLC is easy with doola Banking.
  • You need a few documents to open a corporate bank account so the bank opens the accounts you want.
  • Use a resolution to document important LLC actions like establishing a bank account.
  • Most banks require all LLC members be present when opening an account.
  • Open an LLC bank account in the state where you formed the LLC. With Mercury, you can open an account online without an SSN or ITIN.
  • Transitioning to an LLC from another entity? Open a new account for the LLC.
  • A separate account helps maintain legal distinction between the LLC and members.

Importance of Having an LLC Bank Account:

  • Does a single-member LLC need a separate bank account?
  • An LLC bank account separates your business and personal finances.
  • New LLC owners should know why having a business bank account makes life easier. It sustains liability protections forming an LLC provides.
  • To apply for a business credit card or loan, your LLC may need its own bank account first.
  • Customers also have more trust in companies with business accounts.
  • Sole proprietors only need a tax ID or Social Security number to open business bank accounts. Corporations submit more documentation.
  • Single-member LLCs provide direct control but potentially more personal liability than multi-member LLCs. As disregarded entities, their income and expenses flow through to owners’ personal tax returns.

Establishing an EIN for an LLC Bank Account:

  • Does an LLC need an EIN to open a bank account?
  • If you’re not a U.S. citizen and don’t have a Social Security number, banks may allow you to provide alternate information for identity verification.
  • You can apply for an EIN by mailing or faxing your completed Form SS-4 to the IRS.

In most cases, you’ll need an EIN (Employer Identification Number) to open a business bank account, especially for corporations, partnerships, and those with employees.

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