LLC stands for Limited Liability Company. It is a business structure that is highly popular in the US that protects and prevents business owners from being held personally responsible for the liabilities and debts of the company. So it is understandable that a business owner needs to have a separate personal account and another one for the business.
Specific bank accounts have been made available for LLCs that help the owner easily separate personal and professional finances. The practice of LLC bank accounts is a good habit for business owners to get on board with, but they can choose a different option.
Requirements For A LLC Business Bank Account Application
There are many benefits to separating your business finances from your ones through an LLC bank account creation. The finances are categorized into separate accounts, streamlining taxes and books and marking a financial presence for the company.
The LLC can indeed apply for business credit cards or an LLC business loan only if the LLC happens to have a dedicated bank account. An LLC bank account owner has the authority to go to digital banks and open a business bank account. They can also open regional or national bank accounts with local brick & mortar institutions. The process of opening a bank account as an LLC owner is described as follows:
- Staying on the safe side, the business must compare multiple options. For choosing the right card option, they need to consider a few factors, such as ATM access, cash deposits, fees, transaction limits, and other features that might benefit the company.
- Next, you will be required to gather all your documents in one place. The original documentation needed for each instance may vary depending on the different banking institutions or the government they work under. The required documents may include LLC operating agreement, business license, business tax ID, employee identification number, business articles, and a fictitious name certificate or DBA.
- We all know that personal information is required in creating a business bank account, whether it is done in an online process or offline. The business must provide information about the company, its owners, and managers with complete transparency. Personal and business identifications may also be included in the list.
5 Best Business Bank Accounts For LLCs
So, as we have discussed how LLC bank accounts are established and used in the business world, it is now time to talk about the various bank accounts that have so far met business owners’ expectations in numerous ways. So, without further ado, let us have a comparative glance at the 5 Best Business Bank Accounts For LLCs.
Blue Vine offers a basic online business checking account with features beneficial to small businesses being included. For example, they charge no opening fee, minimum deposit, or maintenance fee. In addition, you can apply for loans in minutes, pay bills and acquire decent interest rates.
Who doesn’t like free services, right? On a similar note, Kabbage is known for its free services coupled with the business checking account without requiring a minimum account balance. Furthermore, unlimited transactions are also allowed under payment services. Therefore, it best serves other Kabbage services.
NOVO stands apart from its peers based on its easy usage, transparent process, and primarily for allowing seamless digital transactions without a miss. The application process is quick enough to conclude within a mere 10 minutes. Though the account requires a minimum deposit as soon as it is created, the rest of the functions makes up for it.
If you are solely interested in online banking, AXOS should be your LLC banking partner. Even though it is a digital banking facility, it does not rely on other financial institutions. In addition, AXOS is considered one o the best business checking accounts due to its vast range of generous terms and services.
One business checking accounting option is not enough? Well, Capital One comes with two offers. The Capital One basic account offers online and mobile banking facilities coupled with unlimited electronic deposits. In addition, two basic accounts are included in the case of unlimited business bank accounts. This is specifically designed for managing complicated business finances.
As we have been saying, business bank accounts for LLCs have great diversity in today’s time. However, the variety can also be confusing for owners who are not knowledgeable about financial matters. We have tried to explain as much as possible. So you can positively choose the best option for your LLC.