How to setup Holding and Subsidiary LLC bank accounts

[Saran Mandhadapu]

Hi,

I have formed a holding/parent LLC company and a subsidiary/operating LLC company which is 100% owned by the holding/parent LLC. The idea is to buy rental property in the name of the subsidiary/operating LLC.

I was able to setup a business bank account for holding/parent LLC company, however when I tried to setup a bank account for the subsidiary/operating LLC company, it is asking for my information for the owner, SSN number etc. I tried to set up a CapitalOne Spark Business account. I called them and they said they cannot open a bank account in such a way that the owner of one bank account is another LLC entity (holding/parent), it has to be a person owning the account.

How do you open a bank account in this situation, which banks have you opened an account with the above setup?

Thanks in advance.

Saran

[David Ainger]

When you opened up the holding company LLC you obtained an EIN for that LLC. When you filed for the operating LLC you should have named the Holding company LLC as the owner of that new LLC. You are then Holding Co LLC dba as Operating LLC you will get two different Secretary of State filing numbers.

You would go to your bank and open up a second account under Holding Co LLC dba as Operating LLC. You would want to check with your CPA/accountant to see how he would like you to set up the second LLC. You can use 1 EIN for both since you are DBA under holding co LLC or if he believe you should get a second LLC EIN number for tax purpose.

The bank will need to add you as a signer just like they did for the original holding co LLC and used your companies EIN number not your SS #. All LLC companies should have an EIN number (not required but suggested) not your SS # and if a bank wants to use your SS # find a new bank.