We do not believe that an LLC can open a “NOW account,” but you may allow the business to open an ordinary interest-bearing account. The Federal Deposit Insurance Act authorizes NOW accounts (accounts which allow for withdrawals and on which you pay interest) only when “the entire beneficial interest is held by one or more individuals or by an organization which is operated primarily for religious, philanthropic, charitable, educational, political, or other similar purposes and which is not operated for profit.” 12 USC 1832(a). This has been interpreted to allow sole proprietorships to hold NOW accounts, but it would not extend to LLCs. See Federal Reserve Board Letter dated August 23, 2006. However, note that Dodd-Frank removed the prohibition on paying interest on ordinary demand deposit accounts held by businesses. Dodd-Frank Act, § 627.