Open an LLC Bank Account in New York

Last updated on: July 28, 2021

What is a Business Bank Account?

Have you ever seen businesspeople lose everything including their homes? While it may seem impossible, it’s quite easy for everything to lose everything where the corporate veil is not clear. It must be easy for the law to differentiate your business and personal finances. Otherwise, if you ever get sued, the law will come after your personal items too. Other than forming an LLC, you can also protect yourself by Opening a Business Bank Account in New York State for the company. Not only does it make accounting easier but it comes with a hoard of benefits that we will later cover.

How to Open a Business Bank Account in New York State

Protecting yourself is easy and you can do it within even minutes. Some major banks will even allow you to complete the documentation completely online such that you don’t even have to show up physically. Let’s look at the major steps to follow and how to navigate each one:

1. Choose the Best Option

You will find that many businesspeople opt to have a checking account, which can be online checking account or accounts with traditional banks. If you will not be making cash deposits, you can base yours online, which comes with the added benefit of very low-to-no fees. Traditional accounts, on the other hand, are better for people who need a range of services. While at it, you may also want to open a business savings account to help your company save for future expansions. Business bank account for LLCs fall under:


Did you know that you can pay no monthly fees on some free business accounts as long as you’re meeting minimum balance requirements? Often, this works as long as you deposit a given amount of money each month. And you will not lose out on services such as writing checks or making electronic deposits. For a business that does not handle daily cash transactions, BlueVine is a good choice.


A traditional business checking account has low fees and comes with the advantage of a range of features plus a wide network of branches and ATMs. You can cash in on writing checks, debit card withdrawals and transfers as well as electronic money receipts and transfers. They also offer a ton of welcome bonuses. A good example would be the Bank of America.


For companies that do not handle cash on the daily or prefer to have their transactions online without going to a physical branch location, an online banking platform is ideal. First Internet Bank is a good option which offers an online application. Plus, most of these online business checking accounts do not charge maintenance fees as long as you meet the monthly minimum balance.


If you want to earn some interest on the side from money that is not immediately needed in the business, business savings accounts for LLCs can work. You can maximize your savings and use these to expand the business or cater to emergencies. Good Business savings accounts for LLC options include money market accounts, high-yield savings accounts and business certificate of deposit accounts.

Most institutions offer a hybrid in their accounts such that you can access two or more of these options e.g., you can have the option to transact online and physically.

2. Find the Right Bank

Finding the best bank for your LLC ultimately determines how much you spend on fees, how easy it is to access your money, the customer experience you will have and the range of services available. It’s often better to open an accountin in New York State where you already have a relationship with the management. It becomes easier to get in on perks that would otherwise not be available to you. When you choose the best bank for your business, you can also consider:

  • Is there a previous banking relationship? If you have had an account with a financial institution, you already have a solid foundation for future interactions. It will make it easier to open an account and will come with less hassle. You might even bypass some of the requirements.
  • What are the overall costs and fees? Compare the different institutions based on their monthly costs, how much you will pay for each service and overall value for your money.
  • Is the location convenient? Consider how easy it will be for you to access the institution and look into how wide the bank’s coverage is.
  • Can you bank online? Nowadays, having to go to the bank for minor transactions is inconvenient. Make sure you can handle most things via online or mobile including withdrawals and deposits to make your operations easy. Also look at the online banking experience.
  • How is the bookkeeping? You need to look into whether you can use software to integrate your income and expenses for easier accounting.
  • Can you get financial support? Look into if you can get a line of credit, a business loan and anything else you need to further your business. You never know how soon you will need to expand.

3. Check the Maintenance Costs

Banks charge fees on some transactions though you can bypass these by meeting some criteria. For example, if you transact money within a given threshold, you are subject to fewer or no fees. Even so, understanding the costs is important:

Checking Account

Generally, you will be subject to:

  • The monthly fee starts at $0 to $18 per month
  • The cash deposit fee ranges at 2% to 3% per deposit

Per transaction, expect to pay:

  • The transaction fee is often 40 to 50 cents
  • ATM fees start at $2 to $3
  • Wire transfer fees range at $15 to $45

You also have the option to open a free business bank account. That does not mean you won’t pay monthly service costs, but they might be much lower than what you would typically pay.

Savings Account

You will generally pay:

  • A monthly fee of $0 to $15 per month
  • A cash deposit fee of 2% to 3% per deposit

Each transaction attracts:

  • A monthly balance transfer fee of $5 to $20
  • Wire transfer fees of $10 to $45

4. Gather Your Documents

As part of opening a business accountin in New York State preliminaries, you have to verify the name and operations of your company. Additionally, where you hire employees, you will need to register with the IRS as well as other governing authorities. The bank will generally want paperwork to confirm what you tell it when submitting your application. Gathering the required documentation depends on the business type you choose:

Sole Proprietorship

You will need:

  • Personal ID: it can be anything from your SSN to your passport to your driver’s license
  • DBA certificate: if you run your business under another name, you will need a doing-business-as certificate (DBA certificate) to prove this.

Partnership Business

In this case, you must provide:

  • Business registration docs: not only will you need a federal Employer Identification Number (EIN) but your registration documents (copy an article of organization) too
  • Organization documents: present your business partnership agreement and any other documents made during the business formation
  • Other documents: you may have to provide business licenses, a signed declaration of unincorporated business and other permits

Limited Liability Company

You will need:

  • Registration docs: you need your registration documents (copy an articles of organization) and your federal EIN (for companies that need one)
  • Organization documents
  • Other documents: you need to show your business licenses and a signed declaration of unincorporated business

For Startups

The requirements are pretty much the same and you need to show:

  • Business ID: this includes your Social Security card or EIN or any other such documents
  • Organization documents: these include DBAs, LLC operating agreement and articles of incorporation
  • Other documents: you need to show license documentation where needed

5. Online vs. In-Person Opening in New York State

You can opt to go to the bank or apply online. Luckily, most institutions now offer both options. As long as you have the documents, you can work with any option. Either way, there will be a software or person to guide you through the process. Physical branches, though, are better for people who want more of a network of physical branch locations and face-to-face customer service as well as a phone number.

6. Deposit Your Funds

Depending on your choice of bank, you can deposit funds via check or an electronic funds transfer (for people with QuickBooks). Ask what depositing funds options are before choosing the right type of account. Some even offer check deposits without going to the branch. These are called remote deposits.

Should you open a business account?

  • Separate your business and personal bank accounts: it becomes easier to monitor your business cashflow and financial health.
  • Amassing savings: you can earn higher interest rates on your savings, enabling you to expand your operations
  • Easy accounting: you can integrate with the leading accounting software with your account to have an easy time during income tax seasons
  • Protecting your company: the divide between your funds will be clear, protecting your corporate veil for your limited liability operations.

Getting Other Business Products

Did you know you can get more out of your account by connecting it with other services such as merchant processing? You can do this for a company that deals with cash often. It makes monitoring easy when you link your business bank account with your business credit card. Plus, you can also register for a credit card in some banks.

Bottom Line

Do not forgo opening a business bank account in NYS; else, you run the risk of having your corporate veil pierced and losing your personal assets. Before you find the right bank for you, review all the available options and make an informed decision. Otherwise, the application process for a business account is relatively easy.

Senior Business Tax Writer, etc
Jean Wilson Murray
(323) 789-5289
Senior Business Tax Writer, etc
Jean Wilson Murray

In this IncFile vs ZenBusiness review, we're going to compare two of the most popular LLC formation services based on pricing, features, and drawing out differences and similarities to let you see which is most suitable for you and your business.

You can learn more about @Mike here.

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