<\/span><\/h3>\n\n\n\nThe last step to forming strong business foundations for your LLC is to open a dedicated business bank account for your LLC. <\/p>\n\n\n\n
A lot of small business owners either forget this step or underestimate its importance. They think that running both business and personal transactions through one account is somehow more convenient. There are two crucial reasons you shouldn\u2019t conduct business in this way. <\/p>\n\n\n\n
Opening a business bank account will make filing your annual taxes easier. A lot of business owners assume that they will remember which transactions were for business and which were personal. These purchases are often made months before tax season rolls around, however, and remembering such things becomes quite difficult as time passes. So if you have a bank account specifically for business transactions, you can look at all those transactions and know that they weren\u2019t made for personal reasons. This makes filing taxes much simpler. <\/p>\n\n\n\n
The other reason you shouldn\u2019t use one bank account for business and personal purchases is you\u2019ll leave yourself vulnerable to lawsuits. When you make a business transaction on your personal account, your personal information is at risk, and so is everything in your bank account. This means that not even the asset and liability protection that you enjoy from forming an LLC can protect you. <\/p>\n\n\n\n
To save yourself time and energy, make filing your annual taxes easier, protect your personal assets, simply open a business bank account. <\/p>\n\n\n\n
You\u2019ll need what is known as a \u201cbank kit\u201d to open a business account for your LLC. This includes copies of many formation documents that you\u2019ve obtained when forming your LLC, like your Articles of Organization, the initial list of managers and resolution, EIN, state business license, and Certificate of Good Standing. <\/p>\n\n\n\n
You can collect these documents yourself or use an LLC formation service. LLC formation services in the state typically create a bank kit as part of their services. <\/p>\n\n\n\n