How to Open a Business Bank Account for Your LLC

Opening a dedicated business bank account is one of the most important steps after forming your LLC. Without one, you risk "piercing the corporate veil" — losing the liability protection that is the entire point of having an LLC. Here is what you need and how to get started.

Why a Separate Account Matters

• Liability protection. Commingling personal and business funds is the number one way courts justify piercing the corporate veil.
• Tax simplicity. A separate account makes tracking business income and expenses dramatically easier at tax time.
• Professionalism. Clients see "ABC Consulting LLC" on invoices and payment receipts, not your personal name.
• Bookkeeping. Every transaction in the account is a business transaction — no need to sort personal from business expenses.

What You Need to Open an Account

• EIN (Employer Identification Number). The IRS confirmation letter.
• Articles of Organization. The approved filing from your state.
• Operating Agreement. Many banks require this, especially for multi-member LLCs.
• Personal ID. Driver's license or passport of all members who will have account access.
• LLC formation certificate. Some states issue a separate certificate; others just stamp the Articles of Organization.

Best Banks for Small LLCs

Traditional Banks

• Chase Business Complete Banking: Largest branch network, $15/month fee (waivable with $2,000 balance).
• Bank of America Business Advantage: Good integration with QuickBooks, $16/month fee (waivable).
• Wells Fargo Initiate Business Checking: $10/month fee, low minimum balance.

Online-Only Banks (No Monthly Fees)

• Mercury: Free business banking built for startups. No fees, no minimums. Our top recommendation for most new LLCs.
• Relay: Free business banking with multiple accounts and profit-first budgeting tools.
• Novo: Free business checking with integrations for Stripe, Shopify, and QuickBooks.

Tips for Getting Started

1. Open the account before doing any business transactions. Your first dollar of income should go into the business account.
2. Get a business debit card. Use it for all business purchases to maintain clean records.
3. Set up automatic transfers to a separate savings account for quarterly tax payments (25-35% of income).
4. Connect your accounting software. QuickBooks, Wave, or FreshBooks can sync with your bank for automatic categorization.

Form your LLC with Sedes and get your Articles of Organization, EIN, and operating agreement — everything you need to walk into a bank and open your account.