Wells Fargo's LLC bank account Sherlock Holmes (Utah)

9 Replies

I just got off the phone with a very smug account Wells Fargo business checking associate who was very proud of discovering my registered agent's address (used on LLC filing) on the state website listed for other LLCs. The associate wanted to know where I will be doing business and wouldn't accept that registered agent's address. Well, mostly from my rental car and the hotel room, but that probably wouldn't be an acceptable answer. When I gave another address over the phone as a backup, I was told that would only be accepted with some correspondence (utility bill, invoice etc) that had the new address and the LLC's name. This is because this "new" address isn't on the official state filing.

How the heck is someone supposed to start a business, and enter into contracts with a utility company or customers without first having a bank account?  What planet is Wells Fargo on?

I had read many threads about going with a local bank for the LLC, and now I know why. Does anyone have a recommendation for a bank account in Utah that will allow me to use my registered agent's address?

In the future I plan to have an LLC that is wholly owned by another LLC. Have people on bigger pockets been able to get bank accounts for this kind of LLC (wholly owned by another entity)? I had no idea setting up the bank account would be harder than finding the deals.

I will be investing in Utah and South Carolina.

I had no problem opening my LLC bank account with Wells Fargo. My business didn't exist beyond paperwork then either. Try going into a branch if you can, or call again and hope to get a different associate. You might have gotten someone who didn't know what he was doing.

Okay - so you should know that Utah is a pretty big state for LLC's, due to low costs and similar / comparable protections as other state's LLC's. There are a lot of shells that run through UT LLC's, and a lot of fraud runs through those shells. I can't say for sure (because I honestly don't know) but it seems like Wells Fargo has a special due diligence process for UT corps that are owned by non-UT residents.  You're not the first person I've heard of that has had this issue, so probably just time to change banks.

Wells has always been a pain in the buns to work with. I closed my last account there when they arbitrarily put a 30 day fraud hold on a incoming $40k wire transfer - that was originated from a national title company's account at the same freaking bank.

You could try Zions Bancorporation which is everywhere here in in UT and operates several brands throughout the country, or US bank has branches in UT and SC.

My lawyer is my registered agent. He is going to be agent on lots of LLC's. It's common to have an attorney as registered agent. Can you just get a EIN from feds after registering with state? My banks just need articles of organization, operating agreement and EIN...

P.S.  There are tens of thousands -probably hundreds of thousands - of corps that use the same registered agents here.  I know of 2 attorneys that are primarily RA's and it's not uncommon for them to get 5000 pieces of incoming mail every day,

@Blair Poelman it sounds like Wells just can't get out of its own way right now.  

I applied as an existing customer, having 2 other accounts and a mortgage that are 5 years old, all linked through the same beneficiary SSN. I have no problem providing the underlying beneficiary SSN because the application has a specific entry for the EIN.

I don't even want to begin to imagine how someone would open a bank account with Wells for an LLC wholly owned by another entity. They would probably lose their mind... then hop into the system and open a bunch of bogus accounts for you that you DON'T want, haha.

@Marques J. what bank do you use?

EIN was no issue, and I am familiar with the Registered  Agent industry, hence my frustration with Wells.  

Just out of curiosity, do other Big Pocketers use the registered agent's address for the EIN? It is my understanding that this address is on file with the IRS, but nobody else can get that information without a subpoena or hacking into the IRS. It isn't public in the same way that the address on the state filing is. I'm not looking to hide my identity from the IRS; they are going to get their due. So, I had no problem putting my home address on the EIN. I am going to file a tax return that shows every LLC I own anyways. However, this might create issues with future banks if the EIN address doesn't match the state filing address (my registered agent).

I opened my LLC account with my home address and the LegalZoom agent address. I was an existing customer with several accounts with them.

Two comments - I have bank accounts, a line of credit, and a credit card for my single member LLC with Wells Fargo. No issues (and I use a P.O. Box). You might go into a Wells Fargo Branch that is in the local area where your LLC was formed (I'm gathering it is a foreign LLC in Utah and a domestic LLC in South Carolina?).

Second, I have a single member LLC that is wholly owned by another single member LLC. Quite honestly, all this will do is complicate things for you (as it did for me)...essentially, since they are both single member LLCs, you'll basically have to report the separate activities on two separate Schedule Cs for income tax purposes...

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