If you have recently set up an LLC (limited liability company), a business account should be one of your top priorities. Whether you are looking to deposit cheques or pay expenses, every transaction will require a business bank account for LLC’s.
If you operate a limited company, you will be legally required to open a business bank account for LLC’s. This legal requirement extends to limited partnership business bank accounts. When you set up an LLC or LLP, you become a separate entity from the business. This means your finances must also be separated, to ensure you benefit from limited liability protection.
The law does not extend to sole traders and those looking for a community business bank. If you are a registered charity, you will be eligible for a bank account designed specifically for community groups.
Whatever type of business or community group you run, there are many benefits to opening a designated business account. For example, it becomes easier to calculate your taxes, your credibility improves, and you can access business banking products.
While opening a business bank account for LLC’s isn’t as straightforward as a personal account, it doesn’t need to be complicated. With so many business accounts for LLC’s available, taking the time to compare will ensure opening an account is simple. Once you understand which features you require, it is possible to narrow down the options and open your ideal account.
For example, are you looking for a free account or a paid option, which offers a variety of business perks?
Do you need a cheque book and debit card? Are you looking for an online only account or a traditional high-street bank account? These are all questions which will help you find the bank account which will work best for your LLC.
To help you find the ideal account we have developed a quick bank account comparison tool. Simply use the filter tool to choose the ideal features and you will be provided with a list of potential accounts. Within this list you will be able to compare fees and the key features of the accounts.
Once you know which bank account you are looking to open, the next step is to apply for the account. This can be completed online or in branch, with the process depending on the type of account you are opening. If you are opening an online account, you will be able to complete the application online. However, for a traditional bank you will only be able to complete part of the application online.
You will need to provide a variety of documents, including:
A copy of your certificate of formation
Your Company Registration number
An LLC operating agreement detailing who can sign on behalf of your LLC
During the application you will also need to provide details such as your estimated turnover, business address and contact details. If you have this information to hand it will speed up the application process.
The time it takes to open your account will vary between banks, with some online banks opening accounts within days. If you are looking to switch to a new bank, your account could switch within just 7 working days.
If you would like to find out more about comparing LLC and LLP bank accounts, please contact our team today.