Finding the best business bank accounts for LLCs may seem like a complicated task. But, in this article, we’re going to simplify the process for you.
This will include a detailed breakdown of the benefits, fees, deposits, and process to open a US bank account for your US LLC. In short, we’re going to share everything you need to know.
This article is part of our free series on US LLCs, including the steps for opening a business bank account for an LLC, which you can access here.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- What Are the Best Business Bank Accounts for an LLC?
- What Are the Benefits of Opening Business Accounts for LLCs?
- What to Know Before Opening Business Accounts for LLCs?
- How to Open a Business Bank Account for an LLC?
- Frequently Asked Questions
- Ready to Open Accounts With Banks in the USA?
What Are the Best Business Bank Accounts for an LLC?
The best business bank accounts for an LLC are available at a small number of US banks. These banks cater to small business owners, offer low-deposits, fee-free banking, and help business owners start accepting customer payments right away.
That said, business owners who do not reside in the United States and are not US citizens typically need to consider other banking options instead. Fortunately, there are several US banks that are willing to accept foreign non-resident business owners and non-resident US LLCs.
So, if you are looking to open accounts for your US LLC and want to explore the best business bank account options for your requirements, we would be happy to help. Just click on GlobalBanks USA in the top menu to learn how you can start opening today.
Alternatively, you can keep reading to learn more about business banking options for LLCs, and how to navigate your choices to find the best account possible. Additionally, business owners who are experiencing payment processing issues, such as PayPal money on hold, can access this link and follow the proper steps to release their funds.
What Are the Benefits of Opening Business Accounts for LLCs?
There is a wide range of benefits that business owners can expect when opening business accounts for LLCs in the USA. Of course, the specific benefits will vary depending on the bank that you are opening accounts with. But, in most cases, there are a number of consistent benefits you can expect to receive.
Benefits of Bank Accounts for LLCs
- The clear legal separation between business and member
- Extra credibility when sending and receiving funds to a business account
- Clear separation of financial records and accounting
- Low-cost ACH transfers to and from individuals and businesses in the USA
- International wire transfers to suppliers, employees, and contractors abroad
- Sophisticated online and mobile banking services
- Access to a wide range of value added merchant services
- Ability to unlock business financing for operations and capital expenses
- And much more…
What to Know Before Opening Business Accounts for LLCs?
Before opening a business account for an LLC, there are a few key factors that you should be aware of. These factors include who can open a bank account for a US LLC, the initial cash deposit requirements, and the fees that will be applied to the account. Of course, there are several other factors to consider, such as the process to open an account. So, we will cover these factors in the sections below.
Who Can Open Bank Accounts for a US LLC?
Not surprisingly, a US person residing in the United States can open a US bank account for their US LLC. However, what is less widely known is that any foreigner living outside of the United States can also open a US bank account for their US LLC. Importantly, foreign non-residents can even open a US bank account for their business remotely, without ever visiting the United States.
Initial Cash Deposits
When opening business accounts for an LLC, you will need to make a qualifying deposit. This means depositing an initial amount of money into the account. In most cases, this initial deposit is the same amount you will need to keep in the account to avoid any monthly fees for maintaining the account. Additionally, it’s important to note that while most US persons residing in the US will be able to open with a few thousand dollars, foreign non-residents typically need to deposit between USD 5,000 and USD 50,000, depending on the risk profile of the business.
Business Checking Account Fees
Unlike many other banking jurisdictions, most banks in the United States do offer “fee-free” banking options. Of course, to qualify for “fee-free” banking, certain conditions need to be met. In most cases, this means maintaining a balance of at least USD 1,500 to USD 2,500 for domestic applicants and a balance of at least USD 5,000 to USD 25,000 for international applicants. That said, this “fee-free” option is only referring to the maintenance fee for the account. Other fees will continue to apply regardless of the balance in the account. These fees include transaction fees, foreign currency fees, certain withdrawal and service fees, and more.
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How to Open a Business Bank Account for an LLC?
To open a business bank account for an LLC, you will first need to choose a bank with requirements you can meet that also provides the services you require. You will also need to ensure that the bank is willing to onboard LLCs that match your business profile. And, if you operate in a “difficult to bank” industry, you will also need to confirm that the bank is willing to onboard this type of business.
That said, regardless of the industry, the specific requirements you have, and the amount of money you are able to deposit, the requirements to actually open a US bank account for an LLC are often the same. With this in mind, here is a close look at the requirements you can expect.
Requirements for Opening Company Bank Accounts for LLCs
- Completed application form from the bank
- Copies of the corporate documents
- Employer Identification Number for the LLC
- Personal information for the LLC members
- Proof of business address for the LLC
- Proof of personal address for the members
In most cases, it is required for the member opening the account to have a US address, a US phone number, and be willing to show up in person.
However, our team helps foreign non-residents navigate their bank account opening options for US LLCs and open accounts 100% remotely without a US phone number, in-person visit, and with easy-to-obtain addresses like mail forwarding addresses.
If you would like to learn more about these options, click on GlobalBanks USA above to learn how you can start opening accounts now.
Frequently Asked Questions
Below are four of the most common questions we receive from people looking into the best business bank accounts for an LLC. If you have further questions you would like to ask our team, don’t hesitate to get in touch.
Should You Have a Business Bank Account for LLC?
Yes, it’s important to have a separate business bank account for your LLC. Mixing your business and personal finances can lead to serious consequences for your taxes and complicate your reporting. For these reasons, every LLC should have its own bank account. And, if possible, business owners should consider opening a second bank account for their LLC as a backup in case their primary account is frozen or closed.
What Are the 4 Most Common Types of Business Bank Accounts?
The four most common types of business bank accounts are checking accounts, savings accounts, merchant accounts, and money market accounts. These four accounts can be opened by a wide range of business entities, including LLCs, and corporations, as well as domestic, offshore, and foreign structures.
Can I Have Multiple Company Bank Accounts Under One LLC?
Yes, you can have multiple company bank accounts under one LLC. In fact, in almost all situations we strongly suggest opening multiple bank accounts per company. Having multiple bank accounts ensures that your business can continue meeting its financial obligations and receiving customer payments if your primary account ever shuts down,
How Many Bank Accounts Should I Have for My LLC?
You should have two bank accounts for your LLC, one main account and one backup account. However, depending on the industry, ongoing account balance, and where your clients are located, it can make sense to open additional bank accounts to offset risks and ensure operational continuity. In other words, have as many bank accounts as you need to make sure your business never faces a situation where it is unable to process payments and pay employees and suppliers.
Ready to Open Accounts With Banks in the USA?
If so, you can get access to GlobalBanks USA (our dedicated US banking service) in just a few clicks.
GlobalBanks USA is a 100% personal account opening solution. It provides direct access to our team of US banking experts.
When you join, you receive…
+ Expert suggestions on where to open US bank accounts.
+ Step-by-step support to navigate opening US bank accounts.
+ Direct introductions to helpful and responsive bankers.
+ Plus, detailed guides to maximizing the value you get from your new US bank account.
And “yes!” GlobalBanks USA helps foreigners and non-resident individuals open bank accounts.
In fact, GlobalBanks USA even helps non-resident US LLCs and foreign & offshore entities.
To learn more about GlobalBanks USA, visit the product page to see how our team can help you successfully open US bank accounts!
