How to Open a Bank Account for a Series LLC (Step-by-Step Guide)

Opening a bank account for a Series LLC can be more complex than opening one for a standard LLC. While a traditional LLC typically requires just one account, a Series LLC may need separate accounts for each series to maintain liability protection. Some banks do not recognize Series LLCs, and requirements vary depending on state laws and financial institutions.

This guide will cover:

• When each series needs its own bank account
• How to find a bank that accepts Series LLC accounts
• What documents are required to open an account
• How to ensure proper financial separation to protect liability shields

Understanding the banking process in advance can save time, prevent legal complications, and ensure smooth financial operations.

Step 1: Determine If Each Series Needs Its Own Bank Account

Before opening an account, it is important to decide whether each series will have a separate bank account or if the entire Series LLC will share one.

One of the main benefits of a Series LLC is that each series is intended to have liability protection from the others. However, in order to maintain this protection, each series should have its own financial records and transactions.

When Each Series Needs Its Own Bank Account

• The series owns separate assets, such as real estate properties or different product lines
• The series has different owners or members
• The series has elected a different tax classification
• The series operates in a state that requires separate financial management for liability protection

When One Bank Account Might Be Sufficient

• If the state where the Series LLC is formed does not treat each series as a separate legal entity for tax or liability purposes
• If all series share the same ownership, tax status, and business operations
• If the Series LLC is structured primarily for administrative convenience rather than legal separation

Even if a state does not require separate accounts, keeping each series financially distinct is the safest approach to maintaining liability protection.

Step 2: Choose a Bank That Accepts Series LLC Accounts

Not all banks recognize Series LLCs, and some may refuse to open accounts for individual series due to uncertainty about their legal standing.

How to Find the Right Bank

• Call banks in advance and ask whether they allow accounts for Series LLCs
• Ask specifically if they permit separate accounts for each series
• Choose a bank that offers strong business banking features, including online access, multiple accounts, and integration with accounting software

Best Banking Options for Series LLCs

National Banks (Chase, Bank of America, Wells Fargo, etc.)

Larger banks offer strong business banking features and multi-state support, but they often have stricter policies on Series LLCs.

Regional and Local Banks

Smaller banks are often more flexible in working with business owners and may have a better understanding of local regulations, but they may not offer as many online features.

Online Banks (Mercury, Novo, Relay, etc.)

Online banks provide easy account setup with fewer fees, but some do not support Series LLCs or may require each series to have a separate legal entity.

Calling multiple banks in advance will help determine which one best supports Series LLC accounts. Some banks will open accounts for each series, while others will only recognize the main LLC.

Step 3: Gather the Required Documents

Banks require specific documentation to open a business account, and for a Series LLC, the requirements may be more extensive than for a traditional LLC.

Essential Documents for a Series LLC Bank Account

• Articles of Organization or Certificate of Formation for the Series LLC
• Operating Agreement that outlines how the Series LLC is structured
• Employer Identification Number (EIN) for the parent LLC or each series
• Business licenses and permits, if applicable
• Statement of Authority, if required by the state

Additional Documents Some Banks May Request

• A Certificate of Good Standing from the state where the Series LLC was formed
• Proof that each series is legally distinct, which may vary by state

Some banks may not fully understand how Series LLCs work. Bringing a copy of the state’s Series LLC laws may help clarify the legal structure when meeting with a bank representative.

Step 4: Visit the Bank or Apply Online

Once the required documents are prepared, the next step is to open the account. Depending on the bank, the process may be completed online or require an in-person visit.

What to Expect During the Account Opening Process

• Who Must Be Present? Most banks require all LLC owners or the designated managing member to be present.
• Verification Process: The bank will review ownership details, business legitimacy, and compliance with state laws.
• Processing Time: Some accounts may be opened the same day, while others may require additional verification.

It is best to be prepared for additional questions, as some banks may not be familiar with Series LLC structures. Having all documents ready can help avoid delays.

Step 5: Set Up Proper Banking Practices to Maintain Liability Protection

Opening a bank account is only the first step. To preserve the liability protections of a Series LLC, financial separation between series must be maintained.

Best Practices for Managing Series LLC Finances

• Use separate bank accounts for each series to ensure clear financial separation
• Keep detailed records of income and expenses for each series
• Avoid transferring money between series unless documented as a loan or legitimate transaction
• Use bookkeeping software to track transactions independently for each series

If a court determines that a Series LLC is not maintaining proper financial separation, it may disregard the liability protections, putting all series at risk. Treating each series as its own independent business will strengthen its legal standing.

Common Challenges and How to Overcome Them

Opening a bank account for a Series LLC comes with unique challenges. Many banks are unfamiliar with the structure, and state laws vary in how they treat each series. Below are some of the most common obstacles business owners face and strategies to navigate them.

Some Banks Do Not Recognize Series LLCs

Many banks are unfamiliar with Series LLCs or do not fully understand how they operate. Some financial institutions may refuse to open accounts for individual series, treating the entire Series LLC as one entity.

How to Overcome It:

• Call banks in advance and ask if they allow accounts for Series LLCs.
• If a bank is hesitant, bring legal documentation from your state showing that each series is a separate entity.
• Consider working with a local or regional bank, which may be more flexible than a national institution.

Getting Separate EINs for Each Series

Some banks require each series to have its own EIN, even if the IRS does not mandate it. If a series has employees, elects a different tax status, or operates separately, an EIN is necessary.

How to Overcome It:

• Apply for an EIN online through the IRS website for any series that requires it.
• If a bank is unsure, provide IRS documentation that clarifies EIN requirements for Series LLCs.

Proving Legal Separation Between Series

Some banks will ask for additional proof that each series is legally distinct. This is because not all states provide clear-cut separation for liability purposes.

How to Overcome It:

• Ensure that the Series LLC operating agreement explicitly states how each series operates independently.
• Provide a certificate of good standing from the state where the Series LLC is registered.
• If necessary, obtain a legal opinion from a business attorney explaining the status of each series under state law.

Final Thoughts: Is a Series LLC Bank Account Right for You?

Opening a bank account for a Series LLC is a critical step in ensuring that each series maintains financial separation. Without proper separation, the liability protections offered by a Series LLC may not hold up in court.

For business owners managing multiple series, the best approach is to:

• Open separate accounts for each series to avoid mixing finances.
• Choose a bank that understands Series LLC structures and will support the required account setup.
• Maintain clear financial records to reinforce the independence of each series.

Before opening an account, consult with both a banking representative and a legal professional to ensure compliance with state laws and financial best practices.

FAQs About Series LLC Bank Accounts

Do I need a separate EIN for each series?

It depends on the structure of the Series LLC. If a series operates independently, has employees, or elects a different tax classification, it should obtain its own EIN.

Can I use one bank account for all series?

Technically, some banks allow this, but it is not recommended. Keeping separate accounts reinforces liability protection and ensures financial clarity for each series.

Which banks are best for Series LLCs?

Regional banks and credit unions are often more flexible in working with Series LLCs. Some online banks also allow multiple business accounts under one entity.

What happens if I mix funds between series?

Mixing funds, also known as commingling, can weaken the liability protections of a Series LLC. Courts may disregard the separation between series, making all assets vulnerable in a lawsuit.

Can a Series LLC have multiple bank accounts under the parent EIN?

Yes, but this may not be ideal. If each series operates as an independent business, it is best to obtain a separate EIN and bank account for each one.

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