Got my LLC approval from the NC Secretary of State last week. Thought I was done with the paper chase. Went to open a business checking account at a local bank today and they handed me a checklist that might as well be a mortgage application. EIN, operating agreement (which I don't have), articles of organization, driver's license, proof of address... and they want a 'certificate of good standing' too? I've been in business for literally nine days. Is this normal or did I just pick the wrong bank?
Banking
My North Carolina LLC was approved, but the bank wants more paperwork
Operating agreement is the one that trips everyone up. NC doesn't require you to file one with the state, but banks love asking for it anyway. You can literally type one up yourself for a single-member LLC.
Nine days in and already hitting the paperwork wall. Welcome to small business ownership lol
Which bank? That matters a lot. Some of the big national ones are ridiculous with new LLCs. A local credit union or community bank will usually be way more reasonable about what they ask for. Also the certificate of good standing is like $10-25 from the SOS website, takes five minutes.
It's one of the bigger regional banks. Didn't want to name them and sound like I'm trashing them, but yeah. I'll look into the good standing cert now, didn't realize it was that cheap.
Banks ask for weird stuff because of KYC rules. They're not trying to annoy you, it's compliance. Annoying, sure, but not personal.
Compliance this, compliance that. Every bank blames the feds for everything. Meanwhile my credit union asked for my EIN and a pulse and that was it.
Credit union crowd is right. Switched mine over after Wells Fargo wanted three months of projected revenue for a brand new LLC. How do you project revenue for a business that hasn't sold anything yet?
the certificate of good standing thing always makes me laugh. "prove your business is real" sir it was approved nine days ago
You'll want the operating agreement eventually anyway, not just for the bank. Good to have it on file. Takes an afternoon, templates are everywhere online. Don't overthink it.
Appreciate all this. Sounds like I should: 1) grab the good standing cert, 2) write a basic operating agreement, 3) seriously consider a credit union instead. Going to try the credit union angle first honestly.
One more thing nobody mentioned — some banks want to see a business license depending on your county or city. Charlotte and Raleigh have their own privilege license stuff. What line of work are you in?
@ferret_king good catch, I forgot about local privilege licenses. Yeah OP depending on what you're doing you might need that too.
feels like every answer to a paperwork question is "oh and also you need this other paperwork." state motto should just be "more forms"
Honestly the bank stuff is the easy part. Wait until you do your first quarterly estimated tax payment and realize nobody told you about that either.
Ouch, dropping the estimated taxes bomb on day nine. Cold.