Questions

Is it possible to open a business bank account for an LLC if you only own 1% and not the rest of the 99%?

Will an LLC member be able to open a business bank account if he has only 1% in this LLC and the one who has 99% won't be an authorized person?

2answers

Yes it is possible. It is not uncommon for an LLC to have a managing member that owns a nominal interest of 1% while the remainder of the LLC units are owned by limited members that do not have management authority or actively participate in the operations of the company. If the LLC member is authorized under the LLC operating agreement to manage the affairs of the company, then they should be able to open a business account on behalf of the LLC. The bank may request a copy of the LLC operating agreement to verify that you have the authority to act on behalf of the company.


Answered 3 years ago

Unlock Startups Unlimited

Access 20,000+ Startup Experts, 650+ masterclass videos, 1,000+ in-depth guides, and all the software tools you need to launch and grow quickly.

Already a member? Sign in

Copyright © 2022 Startups.com LLC. All rights reserved.