We're a new LLC and I've been putting off opening the business checking account because of all the paperwork. The bank asks for the EIN, operating agreement, and some verification. Our formation documents came back from the state but the operating agreement still needs signatures. I don't want to wait another two weeks. Is there any way to open an account with just the EIN and formation certificate, or do I have to wait for the full packet?
Banking Setup
I don't want to delay opening my business bank account
Most banks will want the operating agreement if you're an LLC, but some online banks only ask for the EIN and and articles of formation. It depends on whether you're a single-member or multi-member LLC. If single-member, it's often easier. Which one are you?
I opened a business account with an online bank last year and they only needed my EIN letter and driver's license. The operating agreement wasn't requested. But I had to wait for the EIN letter in the mail, which took about a week. Worth calling ahead to ask exactly what they need.
Single-member LLC. I do have the EIN confirmation letter already, just not the signed operating agreement. I'll try calling a couple of banks tomorrow to see if they'll accept what I have.
You might consider just signing the operating agreement yourseLf if you're the only member. That's what I did. No need to wait for anyone else. Then you can open the account same day if you have an appointment.
Some banks are stricter than others. I had to bring a copy of the operating agreement and the formation certificate. It was a hassle but took maybe 20 minutes at the branch. The delay was mostly getting the dOcuments together, not the bank itself.
Also check if your bank requires a minimum deposiT. I got surprised by a $100 minimum that I didn't know about. Not a big deal but good to know before you go.
Have you considered a credit union? They sometimes have less paperwork for small businesses. Mine only asked for the EIN letter and a utility bill for address verification. No operating agreement needed.
BrambleFinch, I hadn't thOught of a credit union. I'll look into local ones. Thanks for the suggestion.
this is a common bottleneck. The truth is you don't need the bank account to start operating, but you do need it to get paid. If you can't wait, try a fintech like Novo or Mercury. They're designed for speed and often only need EIN and ID. But read the fine print about deposit insurance
I second the fintech suggestion. I use one for my LLC and it took about a day to get approved. The only downside is you can't deposit cash easily. If you need cash deposits, a traditional bank is better.
Wait, you said the operating agreement still needs signatures. If it's just you, sign it and you're done. If there are other memberss, you need their signatures. But many banks don't even ask for it. So just call and ask.
One more thing: some banks require a business license if your city requires one. Not all, but it's good to have it handy. I got turned away once because I didn't have mine.
BrambleFinch, which credit union was that? I'm curious because I might switch. The big banks have been annoying with fees.
It's a local one in my state, not a national chain. I'd rather not say the name since it's small. But look for credit unions that advertise small business banking. They're usually more flexible.
Also, don't forget that you'll need to provide your SSN or ITIN as part of the application, even with an EIN. That's standard. Just bring everything you have and they'll tell you what's missing.