One of the most significant rules in business is to keep your business finances separate from your personal finances. Keep the bank accounts completely separate. If you haven’t already done so, open up a business bank account for LLC (limited liability company).
Establishing an LLC offers protection against creditors, as the members of the LLC are not personally held responsible for the company’s debts and liabilities. You wouldn’t want creditors or plaintiffs trying to come after your personal money. While business insurance does offer some protection, it isn’t always enough.
You need to be able to provide proof of the separation between business and personal finances and expenses if your LLC gets sued, and having its own bank account helps you do just that.
Suppose your LLC gets sued, and you can’t show the separation between personal and business finances and expenses. In that case, the LLC members could be responsible for the company’s liabilities and debts. Having a bank account just for your LLC shows that none of the members’ personal finances are combined with the business finances. This separation adds an important layer of protection for the LLC’s members.
In addition to providing separation between your personal and company finances, having distinct bank accounts makes it easier to calculate your taxes. It also lowers your tax bill if you have an accountant since they won’t have to distinguish between your business and personal finances.
Having a business bank account for LLC will also enhance your reputation and credibility with vendors, customers, suppliers, etc. If you already have a bank account for business expenses but want to transition to an LLC, consider factors like interest, fees, minimum balance requirements, overdraft rules, and the bank itself.
Business Bank Account for LLC With Good Account Access
Think about how you will access your business account and how you will make the deposits. Being able to make deposits remotely is a critical factor for businesses these days. If a financial institution allows for mobile banking through an app or has its website with a user portal, such services are very beneficial.
Another good thing about having a business bank account for LLC with a good ban is that you will be able to develop a relationship with them that could make it easier for you to get approval for loans or business lines of credit in the future.
Since there are so many banks that offer LLC accounts, how can you pick the right one? First, find out how well particular banks do in your state. Then, if it’s strictly an online bank, what do other business owners in your area have to say about them?
Axos Bank is an excellent place to start looking into a business bank account for LLC. They offer helpful mobile banking tools and various commercial/business account types, from equipment finance to business interest checking.