<\/span><\/h3>\n\n\n\nThe last step that you need to complete before you run headlong into the business world is to open an LLC bank account. <\/p>\n\n\n\n
A lot of people bypass this step and make things a lot more difficult on themselves than they need to be. Many people use their personal bank accounts for both business and personal use and then try to figure out which purchases were which when it comes time for federal tax filing. It seems easier to conduct business this way, but in the long run there are a couple of reasons you shouldn\u2019t. <\/p>\n\n\n\n
The first is that you may be able to easily determine the difference between business and personal transactions a few days after they were made. But when it\u2019s time for federal tax filing, it will have been months since these transactions were made and it will be a lot harder to try to remember what the purchases were for. Using your personal account makes filing taxes for your business unnecessarily complicated. <\/p>\n\n\n\n
The second reason is using your personal account for business transactions makes you vulnerable to personal lawsuits. Yes, even though you\u2019re awarded a certain amount of asset protection whenever you form an LLC, using your personal bank account eliminates some of that protection, which most attorneys will tell you. <\/p>\n\n\n\n
In order to start an LLC bank account, you\u2019ll need a bank kit. This includes certified copies of documents like your Articles of Organization, EIN, Operating Agreement and your initial resolution. <\/p>\n\n\n\n
This is yet another thing that an LLC formation service can do on behalf of your company. Bank kits generally come with LLC formation services, so they\u2019ll put together a kit containing all the necessary documentation (like your EIN and annual report) for you. <\/p>\n\n\n\n