Can I Open a Business Bank Account in Another State?

This is an important question business owners may ask when they have multiple locations in different state jurisdictions.3 min read

Can I open a business bank account in another state? This is an important question business owners may ask when they have multiple locations in different state jurisdictions. The short answer to the question is no. The bank account used for the business will need to be opened in the state where the business is operating and where at least one of the members of the LLC resides.

What If You Are Operating in More Than One State or Have Members That Reside in Different States?

When this occurs, it is best to select a national bank that has branch locations in the different states that you do business in. To open up a bank account for a business, the bank will often require a copy of your Articles of Incorporation, which can be printed out if you filed them online. If not, you will need to request a copy from the Secretary of State's office business division and might have to wait a few days to receive them. There are also some other considerations when opening your business bank account, such as:

  • You will need an Employer Identification Number.
  • Each person that will be authorized to have access and the ability to use the account will need to fill out a signature card.
  • Since co-signatories that live out of the state will also need to sign as account holders, you will have to coordinate.

How to Set a Bank Account Up Out of State

There may be a legitimate reason that you wish to keep your money in a bank that operates in a different state or even possibly overseas. This can be especially true if you have a business interest in the other state or country. Though it is important to note that moving your money to a different area, or offshore, does not mean the money would be protected from obligation or legal judgment. There are a few ways that you can go about creating an account in a different state.

Method 1: Consider Opening a Personal Account

One way to move money to a different state or even offshore is by opening a personal account in the other area. When considering this method, you should:

  1. Evaluate the available banks: Look at the banking options of financial institutions that are available for opening a personal account in the area. You might consider such things as online access or operating hours. Also, check into whether or not the bank has branches located in your home state.
  2. Review the needed account requirements: While most accounts require that you be 18 years of age and a U.S. citizen, there are other requirements that can be set forth depending on the type of financial institution. Be sure to inquire about all fees and minimum balances to avoid problems.
  3. Inquire as to if you can open your account online: The ability to open your account online can make it easier for you and prevent you from having to make a trip out of state.
  4. Contact customer service: You can ask any questions you may still have and possibly even open your account over the phone if you do not feel comfortable doing it online.
  5. Put funds into your account: The final step in opening a personal account is by actually funding the account. Most banks will require at least an initial deposit shortly after the initial setup to activate your account.

Method 2: Set Up a Business Bank Account

A second option is setting up a business banking account, which is also relatively easy with a few simple steps.

  1. Register to do business in the state: Most banks will require that your business have a physical location in the state for you to open a business bank account.
  2. Choose the bank you wish to use: Business banking options and incentives vary widely from bank to bank, so it is important to do your research so that you get the most out of your money and avoid any unnecessary or costly fees.
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  3. Speak to a bank representative: Contacting a business banking representative at each bank you have narrowed down your options to is a great way to get specific detail in what they can offer in terms of business accounts and also what steps you need to take to get the account open.
  4. Make your first deposit: As with a personal account, your business account will need funding to be activated.

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