I run a small landscaping business and applied for a business checking account at a local credit union. A week later I got a letter saying the application was closed due to 'unable to verify business information' with no other details. I've been operating for three years, have a registered LLC, and provided all documents. I called and they said they couldn't disclose more. Has anyone had this happen? How did you resolve it?
banking
My business account application was closed without a clear reason
Did they pull a ChexSystems report? Banks often clovse accounts based on that, and if there's a flag from a previous account you might not know about. I'd request your consumer report from ChexSystems to see what's on there.
Same thing happened to my bakery. They wouldn't tell me anything, so I went to another bank. Some institutions are Just like that. It took me three tries before one would open an account.
Could be an issue with the Secretary of State records. If your LLC's registered agent info is outdated or the state portal shows something different, that can trigger a verification failure. Worth checking your state's business search to see what's publicly listed.
The phrase 'unable to verify' is vague by design. They're not required to give a reason if they suspect fraud or if it's a risk decision. Your best bet is to get a copy of your business credit report and make sure there's nothing weird on it.
What documents did you provide? Sometimes they want a specific utility bill or a lease in the business name, and if the address doesn't match exactly they'll close it.
Try a smaller community bank or an online business account like Novo or Lili. They tend to be more Transparent and have simpler requirements. Credit unions can be stricter with business accounts since they're not their main focus.
Credit unions often use a shared verification service called Certegy or similar. If they couldn't match your EIN with IRS records, that could be The reason. You can call the IRS to confirm your EIN is correctly registered to your LLC.
I had this exact issue and it turned out my business address was flagged as a virtual office. The bank wouldn't accept it. I switched to my home address and it went through.
If they won't disclose, you you can file a complaint with the Consumer Financial Protection Bureau. That sometimes gets a more detailed response.
What type of landscaping? Sorry, just curious. I'm in a similar field and looking for a bank that doesn't mind cash deposits
Have you checked if your LLC is still in good standing with the state? If yu missed a franchise tax payment or annual report, the state might show it as inactive, which would fail verification.