With the rise of Fintech solutions and digital affiliate banks, it is normal to wonder about whether an actual business bank account is still required. After all, the digital revolution has changed so many aspects of life.
The most suitable time to open your business bank account is as soon as you begin spending or accepting money for your business. A savings account, checking account, merchant services account, and credit card account are all examples of common business accounts. Merchant services accounts enable you to accept debit and credit card payments from customers. Once you’ve obtained your federal EIN, you can open a business bank account.
There are numerous benefits to opening a Wyoming LLC bank account. The primary benefit is that it provides legal liability protection. If you mix corporate and personal funds, the bank may conclude that you are not operating as an LLC. As a result, you may lose the legal protection of being a corporation. So, do you know all the requirements you have to meet to open your business bank account? Keep reading to find out!
Requirements for opening your business bank account in Wyoming
Your “business formation” documents.
If you create a business as a corporation, limited partnership, LLC, or another legal entity, the incorporation articles that you filed with the state will demand that you set up a bank account -especially if you are the sole owner. Your articles of incorporation demonstrate to the bank how your company is structured, and you use these legal documents to register your company with the state and other entities.
2. The initial resolutions.
The bank may require written resolutions from your company’s owners or directors to demonstrate that you can open the bank account on behalf of the startup or small business. It is especially true for companies that have multiple owners. While you can create those documents independently, having an attorney assist you is almost always better.
3. Operating Agreements or by-laws naming you as members.
An operating document is a document that establishes the structure and rules for the LLC. It’s very helpful in resolving any issues that may arise during business operations. As soon as it is signed, the document serves as a binding contract between the LLC’s members and between the member(s) and the LLC. As such, it serves as a useful reference point for members throughout the LLC’s life.
Many banks will also require a copy of your small business’s governing documents (corporate by-laws). These are the documents governing the operations of your company. These documents typically cover economic rights, voting rights, transfer restrictions, etc.
4. Certificates of membership.
Membership certificates (also known as membership interest certificates) are official documents issued to all company members. They function similarly to stock shares in that they serve as an official record of that person’s ownership percentage in the company, e.g., LLC.
5. If you formed a corporation, you would need corporate stock certificates.
Stock certificates are legal documents that confirm the legal ownership of some specific number of stock shares in a corporation. When a corporation is formed, the Articles of Incorporation usually allow for a certain number of shares of stock to be issued. The corporation will then issue some or all of these shares of stock to shareholders to fund the corporation. Individual shareholders’ shares can then be formally documented on the stock certificate.
6. Banking resolutions to open the bank account.
LLC resolutions to open a business bank account are documents specifying who has the authority to open an account on behalf of an LLC. If your operating agreement or Articles of Organization do not expressly authorize someone to open an account, your bank may require a resolution.
7. Your EIN
The IRS issues an EIN to each business. You will require this number even if you don’t intend to hire employees. Your EIN will be required by several government offices and some third parties to help track your business within their systems. It will also be required for tax purposes.
Furthermore, your bank will require an EIN (some banks may ask you to produce a physical copy of the EIN letter). Obtaining an EIN is a fairly simple process that you can complete on the IRS website; however, it is often best to have an accountant or small business attorney assist you in ensuring that you don’t make any mistakes when filling out the forms.
8. Certificate of doing business as (DBA).
If the name you use to advertise your company to customers differs from the company’s legal name, you will need a certificate of an assumed name, also known as a doing-business-as (DBA) name. When you open your account, your bank will also require a copy.
9. Business permit.
Before opening a business account, your bank must prove that your company has the necessary licenses. The requirements for obtaining a business license vary depending on your residence.
10. Identity verification.
A government agency must issue one piece of identification to each individual. The identity verification may be a passport or driver’s license in most cases. A birth certificate, Social Security card, utility bill with your address and name, and a lease or documentation of homeownership are usually accepted as your second form of ID.
Final Thoughts
The IRS recommends keeping separate business and personal accounts to ease record keeping. Since your company is a separate legal entity, opening a bank account allows you to keep track of your finances and avoid overspending. Depending on the type of business incorporation, you will need proper documentation. For more suggested tips, please visit this resource: https://wyomingllcattorney.com/Form-a-Wyoming-LLC/Open-a-Bank-Account. With the right information, you will quickly know more about opening your business bank account.
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