<\/span><\/h3>\n\n\n\nThe last step you\u2019ll need to take to ensure that your LLC has the proper foundations to operate and function as a business is to open a bank account that is strictly dedicated to business transactions. <\/p>\n\n\n\n
A lot of business owners skip this step and underrate its importance, but it\u2019s an important step nonetheless. Many small business owners choose to use their personal bank accounts for both personal and business transactions, believing that having one account for both purposes is less complicated. But there are two very good reasons you shouldn\u2019t do this. <\/p>\n\n\n\n
The first is that when you have a bank account used only for business transactions, filing taxes becomes a lot easier. A lot of people assume that they\u2019ll be able to remember what each transaction was for and be able to discern the difference between a personal and a business transaction. But tax season typically rolls around several months after these transactions took place and the passage of time makes remembering these details much more difficult. <\/p>\n\n\n\n
The second reason is your personal liability and asset protection. If you run business transactions for your LLC through your personal bank account, you leave your personal information vulnerable as well as all the funds in your bank account. So even though you enjoy some level of personal information and personal asset protection because you\u2019ve formed an LLC, that protection is negated when you conduct business this way. <\/p>\n\n\n\n
If you want to make filing your taxes easier and ensure that your personal information and assets remain secure, open a dedicated bank account for your business. <\/p>\n\n\n\n
You\u2019ll need what\u2019s known as a \u201cbank kit\u201d to open an LLC bank account. This kit contains copies of many of the formation documents I\u2019ve discussed here, like your Articles of Organization, Certificate of Organization, Certificate of Good Standing, Operating Agreement, EIN, and initial resolution. <\/p>\n\n\n\n
Of course you can collate all these documents yourself. But if it sounds like too much trouble to gather up all these documents and get copies of them, LLC formation services will typically create a bank kit for you as part of their services. <\/p>\n\n\n\n