Is there another legal structure that would allow me to open a business bank account without having a registered LLC?

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Is there another legal structure that would allow me to open a business bank account without having a registered LLC?

I would like to open a business banking account in order to pool capital from several partners who want to explore a new business idea, and to later be able to claim expenses as business-related. However, I do not want to set up an LLC yet in order to avoid the yearly fees and the overhead of filing paperwork.

Asked on December 19, 2015 under Business Law, Connecticut

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

All business structures that would do what you want will involve some paperwork and fees: that is because you are creating and registering a new business entity. There is no way around that. The two best structures for your purposes are the LLC and the corporation, and of the two, the LLC is probably slightly better--it's involves somewhat less paperwork and formalities. As a practical matter, if the idea you have is not worth the fairly minor fees and paperwork involved in an LLC, it's probably not worth pursuing.


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