Curious if others have had issues banking without an account "in your LLC name". I plan to at least create an entirely separate checking account for business purposes, but is it necessary (I know it's not legally necessary, but from a perspective of ease of doing business) to have a "business" account in the LLC name? I can't seem to find any banks that will allow me to open a business account online? They all want me to meet with a banker which is fine, I guess, but I know they're just going to pitch their small business loans, etc. Is this normal or is there some legalities as to why I can't do this online?
Seems to me I can just open a new checking account in my name, fund, and then only use for business expenses/purposes. I feel like if I get this thing going and I'm cranking out a ton of buying and selling and really cooking with gas, then it might make sense to get a banker involved. Right now I just have a piece of paper for my LLC and some cash, I don't see why they'd take me seriously at this point.
I'm aware of the "corporate veil" aspects and how theoretically an account in the LLC's name could be beneficial in the event of legal issues. Looking more for anecdotally, have buyers or sellers been wary of getting a check from a personal checking account vs. the LLC's name on the documents. Obviously want to avoid doing more work if all I need to do is go meet with a guy at the bank.
@maxhouseholder My guess as to why they would want you to come in is, because it takes a little more paperwork to open the business account as opposed to a personal account. When I opened up a checking account for my LLC I had to provide my drivers license, Certificate of Filing for my LLC, and the operating agreement for it. It took about 15 minutes to get. This was with a local bank where I already had accounts, and once it was set up I can do most things online with it. I'm sure you could do it the other way, but for me it's just cleaner this way. I close with title companies so for me I can just drive to the bank get my cashiers check and have them notarize my documents while I'm there.
@maxhouseholder I just opened one with NBKC - they have some branches, but also have a highly rated online business checking account. It was easy to get setup and I've been happy so far. And it's free!
@anjewlah Thanks! I actually found them right after I posted here, lol. I'm on the other side of the state, but they seem to have everything I need online. Waiting on approval right now.
I opened my business account in person. Was kind of nice actually-- I felt like a very important person, like Andy Dufresne withdrawing funds at the end of Shawshank (minus the money laundering aspect). Anyway… the one thing that annoys me about the small banks (or at least my bank) is that their website looks like it was created in a weekend by a college student and is pretty limited in function. Anyone use a bigger bank with a more robust portal that allows easy external account fund transfers and the like?
I’m not very educated on this stuff, so my apologies in advance-- My business bank account is under an LLC I used when I was just starting to look at buy-and-hold real estate. I’m going to be starting a new LLC for my land business. Will I start running into an issue if I’m trying to deposit a check from a land sale made out to X LLC but I’m depositing it in an account under Y LLC even if I own both companies?
@maxhouseholder A LLC bank account is troublesome to open because they do require lots of paperwork and they do ask a series of questions. They’ll most likely ask you for the tax ID and the LLC paperwork you filed with the Secretary of State. However there are some benefits, if you are ever audited, it will be easier to trace transactions and show you did your due diligence to not commingle funds. Also you can use this account for future deals as well. I always say never say never; having assets in your LLC at least in CA enables you to be protected from someone suing you and going after your personal assets. You do not want someone to find any excuse to include funds from that bank account. I personally try to protect myself as much as possible.
Also not sure if you have a US bank branch by you but they were easy to deal with.
@scottholmes Not sure if you’ll run into legal issues when mixing deposits but for bookkeeping purposes and tax filing purposes. I would not suggest doing so cause it may be a headache.
Suggest checking your local credit union. I found opening and account for my land LLC a very smooth and easy process at the credit union where I have done my personal banking for 30+ years. I stopped in one day and asked them what they had in the way small business checking. They told me what documents I’d need to bring back and gave me application to fill out in the comfort of my own home. I stopped back in a few days later and left with a book of temporary checks, an order placed for my permanent check’s and a business debit card. No money fee and on-line banking.