Find the Best Bank for Your LLC
Choosing the right bank is a big part of effectively managing your business and its finances. A good bank can streamline financial management, help you improve cash flow, and give you access to the necessary tools to grow your business. What should you prioritize when looking for a bank for your LLC? Let's look at the top questions to help you decide.
Can I Use My Personal Accounts for My LLC?
You can legally use your personal accounts if you are a single-member LLC. However, doing so means you could lose your limited liability because there isn't a clear separation of personal and business funds. There are many benefits to using a business bank account right from the beginning and little downsides other than keeping track of spending separately. Just a few benefits include:
- Credibility: A business account helps you establish a professional reputation with vendors and partners, and it will help them feel more comfortable dealing with a business that has separate business accounts
- Access special banking features: Many business accounts feature unique tools that can simplify processes, like creating invoices, creating sub-users with specific permissions, audit reporting tools, and much more
- Managing revenue: Separating accounts helps ensure business funds are used for business purposes and to track cash flow (spending and earning) effectively
- Simplified taxes and accounting: As your business grows, keeping track of all those transactions is easy with a separate account and helps simplify the accounting process, as well as tracking income, expenses, and tax deductions that come with running a business
- Future financing opportunities: A dedicated account shows your company's financial track record and can help you secure future funding like business loans or lines of credit to grow, buy equipment, and more
What Kind of Bank Account Do I Need for an LLC?: Best Bank Accounts for LLC
While there is no one-size-fits-all option, looking at all the accounts and services your choices offer is a good idea. Your business will have unique needs as it grows, so you want to choose a bank that can grow alongside you and your business. Consider tasks you want to automate or pain points and whether the bank offers tools and services to help. Lastly, look at where the bank has locations and ensure there's one nearby so you can get in-person help when needed.
| What You're Looking For | Solution |
|---|---|
| Low or no monthly maintenance fees and potential upgrades for higher account activity, interest, or added options like fraud prevention | Business Checking |
| Flexible savings accounts with competitive interest rates so you can save for your business's future | Business Savings |
| A lump sum of money to buy equipment or fund growth | Business Loan |
| Cash flow support for seasonal changes with a way to borrow and pay back as needed, plus the option to increase your credit limit over time | Business Line of Credit |
| Build business credit, earn rewards for purchases, and the ability for employees to make purchases without having to reimburse | Business Credit Cards |
| Simplify payroll processing, applicant processing, and other HR services | HR and Payroll Services |
| The ability to accept payments from clients, whether that's online, in person, or out and about | Payment Processing Services |
| Get your invoices paid in hours, not weeks | CollectEarly® |
| Open cash flow to seize growth opportunities, consolidate activity to see it all in one place, and better plan and project future business | Cash Flow Management |
| A way to easily monitor and manage sales and inventory | Point of Sale and Inventory Systems |
| Set up customized loyalty and gift card programs for customers to increase repeat business | Customer Engagement Services |
| Get better insights into your business' finances, simplify back-office processes, and reduce FTE | Accounting Automation |
| Set up customized loyalty and gift card programs for customers to increase repeat business | ACH Positive Pay and Check Positive Pay |
How to Open a Business Bank Account for an LLC
Opening a business checking account allows you to deposit funds, process payroll, pay for expenses by check, and much more. The process can take some time, so schedule a day you can go into the branch if you aren't able to open your choice of account online. Typically, opening a business checking account requires:
- Your EIN or SSN
- The legal name of your business
- Your business' DBA (doing business as) name, if it's different from the legal name
- Two sets of documentation:
- Legal formation verification including:
- A copy of your business license or business license number
- Print out from the Secretary of State verifying the active status of your business
- Formation documents such as:
- Articles of Incorporation
- Operating Agreement
- Articles of Organization
- Meeting Minutes
- Legal formation verification including:
WaFd Bank is Here to Help
Our knowledgeable business bankers are available to help you manage success and have the expertise to become a trusted advisor to you and your team. With products that grow with your business and comprehensive tools to seamlessly manage it all, WaFd Bank is built for business. After over 100 years, we know what it takes to help you succeed, from start to legacy. Visit your local branch or give us a call at 800-324-9375 to experience the difference WaFd Bank can make for you.
Loans subject to credit approval, terms and conditions may apply.
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