Opening a Business Bank Account for Your Texas LLC

Opening a dedicated business bank account is one of the first steps after forming your Texas LLC. Commingling personal and business funds is the fastest way to lose your LLC's liability protection — a concept called "piercing the corporate veil." A separate account creates a clear financial boundary between you and your LLC.

Why a Separate Bank Account Is Critical

Texas courts can pierce the veil of an LLC (holding members personally liable for LLC debts) if the LLC is treated as an "alter ego" of the owner. Commingling funds is one of the strongest factors courts consider under Texas's alter ego doctrine. Courts routinely find that the LLC's veil can be pierced where the owner uses the business account for personal expenses.

A separate account:

• Maintains the legal separation between you and your LLC
• Simplifies tax reporting (all business transactions in one place)
• Establishes business credit history
• Looks professional to clients, vendors, and lenders
• Is required for EIN-based banking transactions

What You Need to Open a Business Account in Texas

Most Texas banks require these documents:

Some banks also request:

• Texas Sales Tax Permit (if you have one)
• Business license (if required in your city)
• Corporate resolution or signed member consent authorizing the account opening

Choosing a Bank in Texas

Major Texas banks with business accounts:

• Frost Bank (Texas-headquartered, strong small business support)
• Texas Capital Bank (focuses on Texas businesses)
• Prosperity Bank (Texas-based community bank)
• Chase Bank (national, extensive Texas presence)
• Bank of America (national, many Texas locations)
• Wells Fargo (national, Texas locations)
• BBVA/PNC (extensive Texas presence)

Consider:

• Monthly fees (many banks waive with minimum balance of $1,500-$5,000)
• Transaction limits (some charge per transaction after a cap)
• Online banking capabilities
• Integration with accounting software (QuickBooks, Xero)
• Local branch access vs. online-only

Online-only options:

• Mercury (popular with startups, no monthly fee)
• Relay (designed for small businesses)
• Novo (fee-free business banking)
• Bluevine (offers interest on deposits)

Steps to Open Your Account

1. Gather documents — Certificate of Formation, EIN letter, operating agreement, personal ID
2. Choose your bank — Compare fees, features, and minimum balance requirements
3. Schedule appointment — Most banks require in-person visit for business accounts (bring all documents). Some online banks allow remote opening.
4. Complete application — Provide LLC information, member details, expected monthly revenue, and industry
5. Make initial deposit — Fund the account with your initial capital contribution
6. Set up online access — Enable online banking, bill pay, and mobile deposit
7. Order business checks/debit card — Optional but useful for vendor payments

Best Practices After Opening

• Never use the business account for personal expenses — not even temporarily
• Never deposit business income into personal accounts
• Pay yourself via scheduled transfers (owner draws) — not ad hoc withdrawals
• Keep sufficient records — maintain a paper trail showing business purpose for all transactions
• Separate accounts for separate purposes — consider a dedicated tax savings account where you set aside 25-30% of income for quarterly estimated taxes

FAQ

Can I open a business account without an EIN?

Most banks require an EIN for LLC business accounts. While some may accept a single-member LLC with just an SSN, it is not recommended — get your EIN first (free, immediate online).

Do I need a minimum balance?

Varies by bank. Most offer accounts with $0-$100 minimum deposit to open. Monthly fee waivers typically require $1,500-$5,000 in average daily balance.

Can a non-resident open a Texas LLC bank account?

Yes, but it may require an in-person visit to a Texas branch. Some banks accept non-residents with proper LLC formation documents and EIN. Online banks (Mercury, Relay) may be more flexible for remote account opening.

Should I get a business credit card too?

A business credit card helps build separate business credit and simplifies expense tracking. Apply once your LLC has an EIN and bank account established. Business credit cards do not typically require business revenue — personal creditworthiness is usually sufficient initially.

What if the bank requests a "corporate resolution"?

This is common for multi-member LLCs. A corporate resolution (or member consent) is a document signed by LLC members authorizing specific individuals to open and operate the bank account. Your operating agreement may cover this, or you can draft a simple standalone resolution.