Open a Kraken business account for your LLC, deposit BTC, sell for USD and send the dollars to the company's bank by wire or ACH.
Intermediate
If an LLC owns your machines, the bitcoin they mine belongs to the LLC. The clean way to cash out is an exchange account in the LLC's name that pays into the LLC's bank account. Kraken is based in the United States, serves US residents in most states and opens business accounts. This guide covers the path from application to dollars in the bank.
Good to know: Cashing out as an individual in the US? Depositing, selling and withdrawing work the same on a personal Kraken account. Only the application is simpler: your ID and proof of address.
Documents to have ready
Formation documents: the Articles of Organization or Certificate of Formation filed with the state.
EIN letter: the IRS confirmation of the company's Employer Identification Number.
Operating agreement, or another document that shows who owns and controls the LLC, with percentages.
Beneficial owner IDs: a passport or driver's license for each person who owns a significant share or controls the company, and for anyone who will use the account.
Proof of address for the business: a recent business bank statement, utility bill or lease that shows the company name and its physical address.
A short description of the business and where the funds come from. For an owner, that is bitcoin mining with hosted machines. Your Firsthand Bitcoin purchase invoice and Hosting Agreement support it.
This is what is typically asked. The exact list depends on the type of entity and where it was formed, and Kraken may ask follow-up questions. Kraken's own page is the reference: How to get verified for a Business account.
Open the business account
Go to kraken.com by typing the address yourself and choose to create an account.
Select a Business account when asked for the account type. Use a company email address, not a personal one you may lose access to.
Fill in the company details exactly as they appear on the formation documents: legal name, state, date of formation, EIN, address.
List the beneficial owners and the people who will operate the account.
Upload the documents from the list above. Scans must be complete, in colour and readable.
Each owner and account user completes a personal identity check with ID and a selfie.
Answer any follow-up questions from Kraken's verification team by email. Reviews take several working days, sometimes longer.
Once approved, turn on two-factor sign-in for sign-in, funding and trading in the security settings.
Get a deposit address and fund the account
In Kraken, open Deposit (the exact menu name may differ between the app and Kraken Pro).
Choose Bitcoin (BTC) as the asset and Bitcoin as the network. Do not choose Lightning for a transfer from a regular wallet.
Generate a deposit address and copy it with the copy button.
In the LLC's wallet, choose Send, paste the address and compare the first six and last six characters.
Send a small test amount and wait until Kraken shows it as credited.
Send the amount you want to sell.
Careful: Kraken says business accounts must be funded from wallets and bank accounts that belong to the same business. Send from a wallet the LLC controls, and withdraw only to a bank account in the LLC's name. If you want mining payouts to arrive at Kraken directly, ask Kraken support first whether that is accepted for your account, and confirm that the deposit address will stay valid.
Sell BTC for USD
Open the BTC/USD market.
Choose Sell.
Pick the order type. A market order sells now at the current price. A limit order sells only at the price you set or better, and waits until the market reaches it.
Enter the amount of BTC to sell.
Review the estimated USD you will receive and the fee shown on the order screen.
Confirm the order. The USD appears in your Kraken balance once it is filled.
Fees depend on the order type, the interface and your monthly volume. Read the current Kraken fee schedule before your first sale instead of relying on a figure from someone else.
Withdraw USD to the LLC's bank
Open Withdraw and choose USD.
Choose the method: a bank wire, or ACH where Kraken offers it for your account. The screen shows the fee, the minimum and the expected arrival time for each.
Add the LLC's bank account. The account holder name must match the business name on the Kraken account.
Confirm the new bank account through the email Kraken sends.
Enter the amount, review the fee and confirm with your two-factor code.
Check the LLC's bank account. A wire usually arrives within one to a few working days. ACH can take longer.
Keep records for the accountant
The Kraken ledger and trade history export for the year (CSV), from the history or documents section.
For each sale: date, BTC sold, USD received and fee.
For each deposit: date, amount and transaction ID, matched to the wallet it came from.
Your Earnings history and Invoices from the Firsthand Bitcoin portal, which show what was mined and what hosting cost.
Good to know: How mining income and sales are taxed for an LLC depends on how the LLC is taxed and on your situation. Ask your accountant. Tax records for mined bitcoin lists what to hand over.