So I applied for a business checking account with the same bank I've used for 12 years. Personal account? Approved instantly. My LLC? Rejected. No explanation beyond 'business profile doesn't meet requirements.' It's a single-member LLC, no employees, no revenue yet. What are they even looking for?
LLC Banking
I was approved for a personal account but rejected for my LLC
Banks hate the phrase 'no revenue yet' almost as much as they hate people who say 'it's just a side hustle.'
Same thing happened to me. Turned out my EIN letter had my old address, and the system flagged the mismatch. Took three calls and a branch visit to sort out.
Did you use your home address for the LLC? Some banks aauto-reject if the business address doesn't show up on Google Maps or whatever their verification tool uses.
The personal approval probably had nothing to do with the LLC rejection. Different underwriting, different rules. Personal is about yiur credit history; business is about risk they don't want to take on a brand-new entity. Not personal.
Not personal, says the guy to the person who just got rejected. Hilarious.
Address is current and matches the EIN letter. I checked that first.
What type of LLC? If you're in a 'high-risk' industry according to their internal list, they'll deny without telling you. Also some banks won't touch LLCs withou two years of business tax returns.
This. I'm in consulting and got flagged as 'professional services' which some banks consider high risk for money laundering. Never got a straight answer. Went to a local credit union and was approved in a day.
Credit unions are the move for new LLCs. They actually talk to you.
Also possible: ChexSystems. If there's anything weird in your deposit history, it can block business accounts even if personal went through. Might be worth pulling a report.
So basically the answer is: nobody knows, ask a magic 8 ball, or try a credit union. Love it here.
Seconding ChexSystems. Had a returned deposit from a client check five years ago and it still haunted my business application at two different banks. The personal side didn't care.
If the LLC is very new, sometimes just waiting 3-6 months and reapplying works. They want to see the business 'exist' in a way their systems recognize. Annoying but common.
Or use a business-friendly online bank. They're not all evil.