Limited Liability Company, or LLC, is a form of company that combines significant characteristics of a partnership and a corporation. If you are opening a company or a business, you can choose among the following options on the type of business to open: a sole-proprietorship, a partnership, a corporation or an LLC. There are several types under partnership and corporation, however, the essence lies on the amount of liability you have. A sole-proprietorship means that only you, as the owner, will have the liability to creditors; and all your personal assets are deemed collectible. Partnership, as the name suggests, means that you can have one or more partners who will share the assets and liabilities of the company. A preferred choice is to form a corporation, since the liability of the members is limited to the extent of their investments.
LLC is a more commonly preferred type of business as it shares the elements of partnership and corporation. LLC allows a certain limitation in the liability to creditors yet can be easily formed due to the minimal paper requirements.
If you are settled on forming an LLC, then the next step you want to do is to set up your own LLC bank account. A bank account is essential to any business as this will be where you will draft payments and receive income.
- Check with the bank on the most convenient time to discuss about the account. While most banks accommodate clients without appointments, it’s always best to inform the bank on your meeting time; this can also save you the trouble of traveling to the bank without the necessary requirements.
- Check for the minimum amount for deposit. There is no standard amount so you really need to ask your bank representative about this. Prepare the amount so that you can submit the check alongside the other requirements. Once you have thoroughly discussed the account with the bank’s representative and have completed all the requirements, you need to set up an appointment with all the members from your company to be present at the bank. Banks require that all signatories are present so that you can sign the necessary papers.
As soon as the papers are processed and deemed complete, your LLC bank account is ready to be used.