Having separate financial entities make it easier for an accountant to calculate the taxes you owe. It lowers your tax bill and it won’t be hard for your bookkeeper to distinguish between your business and personal finances.
In addition, having a separate bank account projects a sense of being more professional that commands respect, establishes trust, and adds more to one’s credibility. This is by influencing the suppliers, vendors, and customers when you have a check in the name of the LLC.
Moreover, opening a bank account provides protection against creditors and lawsuits as members aren’t personally liable for company liabilities and debts. Here are the steps in opening an account.
Not all banks offer the same level of service and benefit due to a large number of bank account options that are available and each of them have similar structures with differing fees and service options, including overdraft protection, debit card to go and issue a check from the account to name a few.
It is also important to know the number of accounts you can have, average monthly payment charges, the minimum-balance requirement and analyzing which bank will work best with your setup for the business.
In addition, you might also look into other features that include 24/7 Customer Support and Cash Management
Choose the Best Option
Depending on the way your LLC is set up, choose the type of account that perfectly suits the company for the purpose of collecting or making payments, business expenses, and other similar or related transactions. Make sure to consider the following factors based on the needs of the business:
Minimum Balance Requirement
Other factors.that are important for the business
Prepare Required Documents
After weighing all of the options in considering the “Advantages” and “Disadvantages” that each of the banks would have to offer, you would most likely be required to bring the following documents in opening an account:
The LLC’s operating agreement or other documents specifying the authorized person to sign on behalf of your company.
A copy of the LLC’s articles of organization, certificate of formation or an equivalent document.Note that in some cases, the bank might require other documents as necessary. For this reason, it is important to call and consult with a banker to verify the required documents in opening an LLC account.