How to Open a Business Bank Account for Your LLC

Your LLC only protects your personal assets if it behaves like a real, separate business — and the fastest way to blur that line is running business money through your personal checking account. Courts call it "commingling," and it's the most common reason small LLCs lose their liability shield in a dispute. A dedicated business account is not paperwork for its own sake; it's the proof your LLC is real.

What banks will ask for

• Articles of Organization (the state-approved formation document)
• Your EIN confirmation letter from the IRS — not just the number
• Operating agreement — many banks require it, especially for multi-member LLCs, to verify who may open accounts
• Government ID for every owner of 25% or more (federal beneficial-ownership rules)
• Possibly a business license, if your city or industry requires one

Choosing the account

Traditional banks (Chase, Bank of America, local credit unions) offer branches, cash handling, and in-person service — expect monthly fees around $10–$30, often waived with a minimum balance. Online-first business banks (e.g. Mercury, Relay, Novo — for US businesses) typically charge no monthly fee and no minimum, with strong software integrations, but no branches or cash deposits. Choose based on one question: will you handle physical cash or need face-to-face banking? If not, online-first is usually the better value for a new LLC.

Five rules once the account is open

• Every dollar of business income lands here — never in your personal account.
• Pay yourself by transfer ("owner's draw"), with a memo. Never pay personal bills directly from the business account.
• Keep a cushion for taxes: many solo founders sweep 25–30% of each payment into a separate savings bucket for estimated taxes.
• Use the business debit card for business purchases only — it builds the paper trail that protects you.
• Connect the account to your bookkeeping software from day one; reconciling 12 months in April is a self-inflicted wound.

Timeline: with your Articles and EIN letter in hand, online banks open accounts in a day or two; traditional banks can take a week. Open the account before your first invoice — payment processors and clients will ask for the business name on the account, and it should match your LLC exactly.

Fees verified against official state sources — last checked October 26, 2026.