So I opened a business checking account with a local Colorado bank last week. They said they need 'proof of physical address' for my LLC. I gave them my registered agent's address (one of those virtual mailbox services in Denver), and they rejected it. They want a lease or utility bill in the LLC's name. But I run my business from home and my HOA technically forbids business signage, though I don't have signage. Anyone dealt with this? Is this a Colorado thing or just this bank?
LLC Banking
Why did my Colorado bank ask for proof of my LLC's physical address?
Not a Colorado-specific thing, this is basically every bank post-2020. They want a physical address where the business actually operates because of FinCEN and AML rules. Virtual mailboxes and registered agent addresses are red flags for them.
Yeah, it's pretty standard. I had to give my bank a copy of my home lease and a utility bill showing my name, plus a resolution saying my LLC operates from my apartment. Annoying but doable.
Hm, so maybe I can just use my home address and give them a utility bill? I was trying to keep my home address off the LLC filings for privacy, but maybe that's not realistic.
What bank? Some are way stricter than others. I use a credit union in Boulder and they just wanted a piece of mail with the LLC name and my home address. No lease.
It's because of the Colorado Secretary of State requiring a registered agent address, but banks don't accept that as the principal place of business. They want the actual operational address. If you're home-based, just give them a utility bill with your name and a signed statement that the LLC operates there. That's what I did at Wells Fargo.
Also, if your HOA forbids business activity, you might want to check your covenants. Some HOAs don't care about a home office unless you have clients visiting. But the bank won't check HOA rules
Lol banks are ridiculous. They'll take a virtual address for a $500 million corp but hasle a solo LLC over a mailbox. Just give them a bank statement from your personal account showing your home address and call it a day.
DustyTrail_44 I wish. They specifically said 'proof of physical address for the business' and my personal bank statement wasn't enough. Might try the utility bill route.
One more thing: if you use a virtual mailbox, some banks will accept it if you provide a 'Form 1583' from the USPS and a notarized statement. But honestly, it's easier to just use your home address.
Wait, you can use a virtual mailbox for a bank account? I thought that was a no-go. Maybe it depends on the bank.
It's a no-go for most major banks. They want a physical location where they can send someone if needed. Virtual mailboxes are fine for mailing addresses, but not for 'physical address' verification.
Also, Colorado has a bunch of new LLC transparency rules coming down the pipe. Banks are just getting ahead of it. You'll probably need to provide a physical address to the state eventually anyway, so might as well get used to it.
Just wait until they ask for a selfie holding your Articles of Organization. Happened to my cousin in Fort Collins.