How to Open a Business Bank Account for an LLC

A dedicated LLC bank account is an essential step to maintaining the legal distinction between the business and its owners, which is necessary to preserve limited liability protections. Even single-member LLCs should have a business bank account.

Before you open a bank account for your LLC, you'll want to formalize your limited liability company and obtain an employer identification number (EIN) for it — you can receive one instantly by applying on the IRS website. Once you've done that, here are the steps to take.

Almost all business banks accounts require LLCs to provide formation documents and an organizing agreement, along with other business and personal details. Check with your bank on exact requirements, but expect to provide the following:

» MORE: Checklist: What you need to open a business account

Look for a business checking account with low (or no) monthly fees that can easily integrate with your existing business tools. You should also factor in account features, like cash deposits, ATM rebates, unlimited transactions, free wire transfers or cash back on business purchases. Few accounts deliver all those features, so prioritize those most important to your business.

Access to customer support should also be a top consideration. Some online business bank accounts default to email or in-app chat to resolve account issues. That might be ideal for business owners who prefer to handle things async but can be frustrating if run into serious complications, like fraudulent charges or frozen funds.

Other business accounts offer around-the-clock support or a dedicated business relationship manager. And brick-and-mortar banks give you the option to talk to your banker face-to-face.

How many bank accounts should an LLC have?

A single business checking account may suffice for smaller operations or LLCs with no employees. Otherwise, your company will want multiple business accounts that each serve different purposes — payroll, operating expenses and business taxes, for example. You can also leverage a high-yield business savings account to earn 4.00% APY or more on any extra cash on your balance sheet. Having multiple business bank accounts — at multiple banks — can also help maintain access to funds if an account is compromised or your bank shuts down.

» MORE: See our picks for best business savings accounts

Here are a few of NerdWallet's top-rated business accounts for LLCs, which are rated on fees, perks and accessibility, among other factors. To view the full list, see our roundup of best business bank accounts for LLCs.

Once approved, gradually move your business’s assets into your newly opened account. Business accounts typically have longer deposit hold times for new accounts (up to 10 business days), and some financial institutions will flag large transactions, including deposits, for fraud — so you don’t want all your funds temporarily tied up.

You also want to log in to the bank’s online banking platform to set any alerts or preferences. Decide who will be authorized to sign on the account. This is especially important for multi-member LLCs. Add any additional users, like an accountant or employee who handles the accounts payable, and set account permissions accordingly.

If your bank offers direct integration with any business tools, connect the accounts to streamline your bookkeeping. You’ll also want to establish any recurring bill payments or invoices and download the bank’s mobile app for easy banking access on the go.