LLC Banking Resolution

When opening a bank account as an LLC, the bank representative may ask for your DBA (Doing Business As). You would only have to explain that your LLC is operating under its legal name, so it doesn't need a DBA. However, there is an exception in the event that your LLC is registered under one name but operates under another one, in which case you will need to bring the DBA approval when opening the bank account.

If you are only starting your LLC, you might think there is no need to open a business bank account. However, you have to do it as the LLC is a separate entity that provides you with limited liability protection. Using your personal bank account may blur the line and make it easier for claimants to go after your personal assets.
There are other benefits to having a separate bank account for your LLC, and the most important is credibility. Other companies may want to work with you more if you pay in your company's name. Also, keeping your business and personal account separate makes it easier to calculate taxes owed. If you are paying an accountant, the fees will be lower if the business account is separated.

If you represent a single-member LLC, you can use your SSN, and some banks will recommend that option. However, your LLC’s EIN is a better option as the record-keeping is easier, and it protects your privacy. To receive your EIN, wait for the approval of your LLC and then apply for one with the IRS or your state’s department of taxation and finance. This service is free of charge as you’ll need it to file taxes for the LLC or to collect sales tax (assuming that your state charges sales tax). If you are the only member of the LLC, you will be the person responsible for the EIN. If the LLC has more members, you have to decide who will be the EIN Responsible Party. Only one person in an LLC can be the EIN Responsible Party.

Every bank handles its business clients differently. That's why it's important to ask several questions before deciding to work with them. Ask the following for a start:

• What time of the day guarantees the quickest service?

• What documents are required to open the account?

• Should all LLC members be present when signing the contract?

• Are there any monthly fees?

• What is the minimum monthly balance?

• What is the minimum initial deposit?

• Is there anything else that I need to know?