Q: I’m trying to get a bank account in Utah for my Wyoming LLC, but I’m having trouble. Do I need to get a bank account in Wyoming?
Thank you to the owner of Mr. Fancy Pants LLC for that great question! If your business operates in multiple states, or if you live somewhere other than where your business is based, you might need to open a business bank account in a state other than the one in which you formed your business. Some banks will allow you to open a bank account if you don’t live in the state, while others won’t. We’ll tell you everything you need to know about opening a business bank account in another state.
Do I Really Need a Business Bank Account?
Almost definitely. If you own an LLC or corporation, having a separate bank account for your business finances is crucial to maintaining limited liability. If you put your company’s money in your own personal bank account, a court could rule that your business is not actually separate from you, and you could be held personally liable for business debts or damages.
Sole proprietors and general partnerships aren’t required to have a business bank account, but doing so will make it a lot easier to keep track of your profits and expenses, which will make tax season less of a headache.
Learn How to Open a Business Bank Account.
How to Open Your Business Bank Account
If possible, it’s best to open your business bank account in the state where a member of your business actually lives and where your business is based. However, that’s not always possible. If you need to open a business in another state, here are some tips:
Get an EIN Number
To open a business bank account, you almost always need an EIN. This is a tax identification number for your business, similar to a social security number. You can apply for an EIN directly from the IRS for free. It’s fastest to apply online. However, if you don’t have a social security number, you’ll need to apply with the paper form or by phone.
Find out How to Obtain an EIN.
Choose a national or online bank
Find a national bank that has branches in all the states where you plan to do business, or choose an online bank where you won’t need to walk into a physical location at all.
Contact the bank to find out their requirements
Each bank has its own requirements for opening a business bank account. Before you try to open your account, speak to a bank representative and ask what they offer for business bank accounts and whether it will be a problem that you live in a different state and/or that your business is located in another state. If the bank doesn’t offer what you need or won’t open a bank account for out-of-state clients, you’ll just need to find another bank.
Provide the necessary documents to open the bank account
Once you’ve found the bank where you’d like to open your account, ask the bank representative what documents you will need. Here’s what you typically need to open a business bank account:
- Proof of identification, such as a driver’s license or passport
- Business formation documents (commonly LLC Articles of Organization or Articles of Incorporation)
- LLC operating agreement or corporate bylaws
- EIN
- Business address
- Resolution to open a bank account
Check out our LLC Resolution to Open a Bank Account and Corporate Resolution to Open a Bank Account free templates.
Make an initial deposit
Once you’ve successfully opened your bank account, you’re ready to make your first deposit! Most banks require you to make a deposit to activate your new bank account.
Don’t live in the US? Read How to Open an LLC Bank Account as a Non-US Resident.