A Bank Account for your Wyoming LLC
A Wyoming LLC’s employer identification number (EIN number) is akin to an individual’s social security number. However, it is issued by the IRS rather than the Social Security Administration. The EIN is also known as a federal taxpayer identification number or TIN, and is used to identify a business entity. An LLC of which you are the sold member and that has no employees is not technically required by the IRS to have an employer identification number. However, most banks require you to give them an EIN in order to open a bank account.
After you have completed your internal paperwork, obtained your tax ID number and any necessary business licenses, the next step is to open a business bank account in the name of your Wyoming LLC. All banks will want a copy of your articles of organization. All banks will need a copy of your Tax ID or EIN number. Don’t waste your time and that of the bank officer unless you have these copies with you. You will also have to provide signature samples for all individuals who will be authorized to sign on behalf of the company (i.e., write checks). Be careful to whom you give this privilege.
Common sense dictates the imprudence of having too many authorized check signers. However, beyond common sense it is important to know that the bank will run every signer’s name through their databased to check for red flags, such as bounced checks and other financial history, your account could be denied. Another potential roadblock comes from the Patriot Act. Introduced after 9/11, the act makes it difficult for foreign residents to open bank accounts. For these reasons we commend using a heightened level of discretion when authorizing signers.
A big Wyoming LLC no-no is commingling funds. If your personal bank account is a little low one month and you need to write a check or can’t wait for funds to clear, do not ever, no matter what, write a check or withdraw funds from your business account to cover personal obligations.
As well do not pay for personal obligations through your business bank account. Your business account is not yours – it is that of your business. If you start treating that account as your own, a court may someday treat everything that is yours as that of your business. Commingling of personal and business assets is a sure way to have your entity veil pierced and personal liability imposed. You will lose both your business and personal assets.