I recently started a small business with the support of my wife (feels weird to type that) When I formed it with my state (NJ) I created it as a single member LLC.
After trying to open a business checking account I have hit multiple road blocks because I have negative entries on Chex systems.
I need to convert the business to a Multiple Member LLC with my wife as a member so she can open the business account.
Anyone willing to share their experience doing this?
The best advice I can give is to contact a CPA who handles such things. They’ll know where the land mines are.
If you have a bad credit/banking history and have been flagged for bouncing checks etc. by Chex you’re just going to have her from an LLC individually without you and get her to put everything in her name, if she’s willing to do this. If your name is on the account anywhere you may still have problems.
If this happens you need to be aware that she will be in complete control of the cash flowing into and out of the account and she will also be liable tax wise for the profits (if any). If the business, and current financial risk is tiny, this is possibly something you can attend to later re adding yourself if the business flourishes.