Formed my LLC online in like 25 minutes. Two weeks later, still no business bank account. What gives? Every bank I've tried in NYC wants a blood sample, a utility bill in the LLC's name, and maybe a sacrifice under a full moon. Is this normal or am I just picking the wrong banks?
Banking
Why does opening a business account in NYC take longer than forming the LLC?
It's a NYC thing. Banks here aare extra paranoid about fraud and money laundering. The state will take your $200 and rubber-stamp anything, but a bank actually has to vet you.
lol wait until they ask for a lease in a commercial zone. took me 6 weeks.
Because forming an LLC is just paperwork. Opening a bank account means they have to verify you're not not a ghost or a terrorist. And in NYC, everything takes longer because there are 8 million of us and half the banks are staffed by people who seem like they'd rather be anywhere else. Also, the LLC doesn't need to prove it has a physical address that isn't a UPS store. The bank does. I once had a banker reject my paperwork because the address on my EIN letter didn't match the address on my utility bill, which was in my personal name. Took three visits to sort out. It's a nightmare.
Honestly just go with a fintech like Mercury or Relay. Skipped all the branch nonsense.
This. I spent two weeks fighting with Chase. Opened a Relay account in 10 minutes. I still keep a tiyn account at a credit union for cash deposits, but the fintech was a lifesaver.
Mercury is great until you need to deposit a check. Then you're mailing it to Utah or something. Not ideal if you run a cash business.
Wait, people still deposit checks? What is this, 1998?
Also the LLC formation is designed to be fast and cheap. The state wants you in the system. Banks don't want you unless you're either a huge corporation or a safe little retail shop. If you're a freelancer or consultant, they look at you like you're a professional panhandler.
maybe try a smaller community bank? I opened one at a local bank in Brooklyn and it took like 3 days. They actually answered the phone when I called too.