So I set up an LLC for my online store last year. All the branding, trademarks, website, everything is under the LLC. But I just realized my personal name is still the one on the business bank account and the payment processor. Is this a big deal? Should I change it? I'm worried about liability if something goes wrong. Anyone dealt with this?
LLC
My LLC owns the brand, but my personal name is on the account
Yeah, that's a classic oops. The whole point of an LLC is separating you from the business. If your name is on the account, a lawyer could argue you're commingling assets. I'd fix it ASAP.
How long has it been like that? If it's only been a few months, you're probably fine. But the longer you leave it, the more it looks like you're ignoring the corporate veil.
About 8 months. I didn't even think about it until my accountant mentioned it last week. I'm not trying to lose sleep over it, but I also don't want to be dumb about it.
Not a lawyer, but I've been through this. You need to update the bank account to the LLC's name and get a new EIN if you haven't already. Also make sure the payment processor has the LLC's legal name, not yours. It's a pain but doaable.
Honestly, half the small businesses I know have this problem. Banks don't always make it easy to switch names. Just call them and ask what they need. Usually it's just a resolution form and your articles of organization.
Also, check your state's rules. Some states require you to file a DBA if you're operating under a different name than the LLC. But if your brand is already the LLC name, you might be fine.
The LLC name is the brand name, so I think thats okay. It's just the bank account and Stripe that have my personal name. I'll call the bank tomorrow.
Good luck. Banks are fun. They'll probably ask for a DNA sample and your firstborn.
One more thing: make sure your contracts with suppliers or clients are in the LLC's name too. If you're signing personally, that's another liability hole. But that's a bigger project.
I wouldn't panic. The veil isn't pierced just because of a bank account, but it's evidence. Fix it and move on. Most small businesses aren't targets for lawsuits anyway unless you're doing something risky.
Unless you're selling something that makes people sick or angry. Then you better Believe they'll dig into your paperwork.
I sell handmade candles, so hopefully not too risky. But I'll get it sorteD. Thanks for the kick in the pants.
Candles can be risky if they catch fire. Just saying. But yeah, update the account.