Who do you use for your LLC checking account?

Question

Looking to open a business checking account in Southern California (Orange County, CA). We have our LLC set up and close on our first rental property tomorrow.

Looking  to establish a relationship with a smaller bank to be able to do  portfolio lending (or creative commercial financing) in 2-5 years based  on building a portfolio of high cash-flowing rental properties.

Who do you use for your LLC checking account, and how has your experience been?

Ryan Garoogian · Answer

I can only recommend using Chase as that is my bank for my personal use as well as my two businesses an LLC and S-Corp. I will be closing on my first property which is going in my name which will also be managed through Chase. I enjoy the convenience of their size and haven't had any problems yet but I do not plan to go down the unconventional lending scenarios anytime soon.

Cliff T. · Answer

Hey all - any update on this? Which bank do folks prefer for their business checking accounts?

John Lee · Answer

Thanks for all of the great replies. I have a business account for my primary business (non real estate) through Chase. They are OK right now, but when I opened the account 16 months ago, they had way too many restrictions. I also have personal accounts through USAA (great service, no fees) and Capital One 360 (great rates).

We ended up using Farmers and Merchants Bank. They are not a big bank (BofA, Chase, Wells), but not small either. Policies seemed pretty typical, we'll see how it goes. We have one property and another one closing this week. Will likely add two more properties within a month or so, and two after that before the end of the year.

We decided that it probably does not matter too much which bank we use for our business account. If our strategy pans out, if we have 2-5 years of strong financials (high cash-flow properties), I don't think we'll have any issues getting a portfolio loan from any bank that offers them. With the number of properties that we look to purchase, we may end up needing a second account in the future.

Jesse Sasomsup · Answer

@Andy Cross Union bank is more conservative and they like to see conventional applications, you have to show proof to everything unlike Chase bank & other big banks where you can set up your account with a couple of documents and signatures..

Peter Mckernan · Answer

@John Lee

Look into Kinecta Credit Union who are based in Orange County and LA County. They are a smaller bank, they accept business checking accounts, and they use those accounts to help people open the account for their LLC or S-Corp.

I opened my business checking through them for my S-Corp and they are great. They also also provide portfolio loans to their members. Check them out, I have been very happy!

Andy Cross · Answer

Hey Jesse...I'm considering Union Bank. What are they picky about?

Jesse Sasomsup · Answer

@John Lee I am banking with Union Bank. They are picky but really great if you can build relationship with them.