10 Best Business Bank Accounts for LLCs: 2024 Recommendations
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It’s essential to keep a clear distinction between your personal and company finances when operating an LLC. Creating a dedicated bank account specifically for your Limited Liability Company (LLC) can offer several advantages. These include simplifying your financial records, establishing credibility with clients and suppliers, and protecting your assets from potential business liabilities and legal actions.
In this article, we’ll explore the top business checking accounts available for Limited Liability Companies (LLCs) and the key factors that contribute to their superiority.
10 Best Business Bank Accounts for LLCs
- Bluevine – Best Bank Account for LLC Overall
- Novo – Best Low-Fee Business Bank Account for LLCs
- American Express – Best for Membership Rewards
- Capital One – Best for Unlimited Transactions
- Bank of America – Best for Traditional Banking
- Axos – Best Full-Service Online Bank Account for LLCs
- Lili – Best for One-Person Businesses
- U.S. Bank – Best for Lending Options
- Oxygen – Best for Freelancers
- Chase Business – Best LLC Bank Account for Merchant Service
Business LLC banking options were ranked using a process that took into consideration a wide range of criteria. We started by analyzing the available banking options, such as checking, savings, and business accounts. We also compared the costs of maintaining each account, making withdrawals, and using ATMs. We also checked the bank’s online banking and in-person assistance services to gauge its reputation and customer service.
We also looked at the bank’s other features and benefits, such as loyalty programs and overdraft insurance. As a result of weighing all of these aspects, we provided a thorough and impartial ranking of business bank accounts for LLCs.
| Bank Name | Types of Accounts | Fees | Reputation & Customer Service | Special Features & Perks |
| Bluevine Business Banking | Checking, Savings | No maintenance fee$4.95 per cash deposit | Online-only bank with mobile banking app and 24/7 customer support | High-yield savings account, fee-free ATM access |
| Novo Business Banking | Checking, Savings | No monthly fees, no transaction fees$50 required to open | Online-only bank with mobile banking app and 24/7 customer support | Integration with popular business tools, such as QuickBooks and Xero |
| American Express Business | Checking, Savings | $0-$15 monthly fee (waived with minimum balance or account activity)No maintenance fee | Established brand with extensive customer support options | Cashback rewards program, integration with accounting software |
| Capital One Spark Business | Checking, Savings, Merchant Services | Basic checking account – $15 monthly fee* | Established brand with extensive network of branches and ATMs, online and phone support available | Cashback rewards program, free transactions, and other perks |
| Bank of America Business Advantage | Checking, Savings, Merchant Services | $16-$29.95 monthly fee (waived with minimum balance or account activity) | Established bank with extensive network of branches and ATMs, online and phone support available | Cash rewards program, overdraft protection, mobile banking app |
| Axos Business Banking | Checking, Savings, Merchant Services | No monthly fees, some transaction fees may apply | Online-only bank with mobile banking app and 24/7 customer support | High-yield savings account, fee-free ATM access, remote deposit capture |
| Lili Business Banking | Checking, Savings | Standard – monthly fee-free, no overdraft fee, no ATM fee | Online-only bank with mobile banking app and customer support via chat or email | Cashback rewards program, expense categorization, tax preparation tools |
| US Bank Business Checking | Checking, Savings, | Silver – $0 monthly fee, $0.50/transaction after 125 | Established bank with extensive network of branches and ATMs, online and phone support available | Cashback rewards program, mobile banking app |
| Oxygen Business Banking | Checking | No monthly fees, no transaction fees | Online-only bank with mobile banking app and customer support via chat or email | Integration with accounting software, expense categorization, virtual debit cards |
| Chase Business Complete Banking | Checking, Savings, Merchant Services | $15 monthly fee (waived with minimum balance or account activity) | Established bank with an extensive network of branches and ATMs, 24/7 customer support | Bonus cash offers for new accounts, mobile banking app, fee-free ATM access |
Bluevine Business Bank Account
Bluevine – Best Bank Account for LLC Overall
Star rating: 4.9/5
When it comes to the best small business bank accounts in Indiana, most small companies may benefit greatly from the features offered by Bluevine. There are no recurring costs, and you may use it to make bill payments, apply for fast loans, and earn a respectable interest rate.
The application takes just a few minutes to complete, and if all goes well, you may have an active account the very same day. Bluevine is one of the finest banks for new companies because of its helpful features.
In addition, up to five more subsidiary accounts may be set up for further convenience in handling the business’s money. Each subsidiary account is assigned its unique identification numbers. Moreover, interest is accrued on all balances (up to $100,000) in your accounts.
Read more: Bluevine Review
Why we chose it: There are always two complimentary checkbooks included with each account. This is rare because most business checking accounts don’t give free checks. For small companies with a more conventional payment system, such as those that pay their suppliers and staff in person, this is fantastic news.
Pros
- There are no starting costs or required recurring payments
- Using the Green Dot network to deposit cash is free of charge, & MoneyPass ATM withdrawals are also free (fees and limits apply)
- No overdraft fees and no limits on the number of transactions you may make
Cons
- There are no starting costs or required recurring payments
- No overdraft fees and no limits on the number of transactions you may make
- Using the Green Dot network to deposit cash is free of charge, and MoneyPass ATM withdrawals are also free (fees and limits apply)
Fees
It’s unique in the market as it doesn’t impose any costs for routine maintenance, nonsufficient funds, or deposits. You’re free to make as many purchases as you like without being charged extra. There are no minimums, either in terms of balance or deposits.
Interest Rates
With a checking account, you may earn an attractive annual percentage yield (APY) of up to 4.25%. Only customers with a monthly debit card volume of $500 or more, or with a monthly customer payment volume of $2,500 or more, will be eligible for this perk.
Lending
Also, you may have access to commercial lines of credit with a maximum of $250 000 at 4.8% APR. The application takes less than five minutes to fill out and you’ll hear back quickly if you’re approved. There are no costs associated with creating, maintaining, prepaying, or closing an account.
Novo Business Banking – Best Low-Fee Business Bank Account for LLC
Star rating: 4.8/5
Novo’s user-friendly interface, simple sign-up procedure, and streamlined digital payment options make it a superb business checking account. In less than 10 minutes, you may fill out and submit the application, and they’ll get to you with any details they’re missing. In order to begin utilizing your checking account, you must first open one and deposit at least $50.
You can connect your company checking with hundreds of other applications with the help of Novo, like Slack, Shopify, and QuickBooks. Everything related to your professional life may be handled centrally. Your recent banking activities and account information are always only a click away, making it easier than ever to keep your financial life in order. The monthly income and expenses are summarized for you in a clear and useful way by the app.
Why we chose it: Novo’s business checking account is a perfect choice for sole proprietors, LLCs with just one member, and other types of independent workers since it comes with limitless integrated invoicing.
Pros
- All international ATM expenses are reimbursed
- Free and unlimited money transfers
- There aren’t any required payments or minimum deposits
Cons
- With bill pay, you can’t set up regular payments
- Inability to send either local or foreign wire transfers
- Unable to make a bank deposit
Fees
Novo’s checking account service is free of charge. You can activate your account with $50. Novo don’t charge any fees for cash deposits, wire transfers, or ACH withdrawals. Moreover, Novo is backed by Middlesex Federal Savings, F.A., which provides FDIC protection, and reimburses all ATM costs.
Interest Rates
Like Bluevine, Novo’s business checking account is free of charge. Unfortunately, you’ll not be able to collect interest on the money. Deposits in checking accounts earn no interest from the bank.
Lending
It’s not possible to get a loan from Novo. This service only provides checking accounts, no other forms of credit, such as loans or lines of credit, or business credit cards, are available.
American Express – Best LLC Bank Account for Membership Rewards
Star rating: 4.8/5
The American Express Business Checking account is in line with the latest fashion in business banking, which is to charge fewer fees to its customers and doesn’t demand a minimum balance for the basic business checking account.
Their payment processing services also allow for an infinite number of billing cycles. Kabbage business checking is no longer available since the company was bought by American Express.
The American Express Business Checking account is an excellent choice for proprietors of businesses who are interested in opening a bank account and a line of credit for their company. Through its partnership with American Express, Kabbage Finance makes it simple for small companies to get loan approval for lines of credit of up to $250,000.
Why we chose it: American Express provides flexible account choices so that companies may create a plan that works for them. In order to safeguard its customers’ funds from potential theft, American Express offers cutting-edge fraud prevention services.
Pros
- The absence of a required minimum balance
- No penalties for early repayment, simple credit line
- Quick and simple application procedure
Cons
- Deposits in cash aren’t permitted
- Only for American Express cardholders
- The only mobile platform that supports mobile check deposits is Apple’s iOS
Fees
With American Express Business Checking, there are no regular charges. There’s no required initial deposit and no charges for making deposits or withdrawals using the website. All MoneyPass ATMs are free to use, however, withdrawing funds from an ATM outside of the MoneyPass network will cost you around $3. American Express doesn’t allow cash deposits.
Interest Rates
Although the 1.5% APR offered by Bluevine is impressive, this account’s 1.30% APY on balances up to $500,000 is among the best available. While being lower than Bluevine’s APY, American Express’s Business Checking is still the second-best option here.
Lending
The benefit of creating an American Express account is that Kabbage Financing also provides quick loan approval for credit lines up to $250,000, which is the nicest part about it. Even if your credit isn’t perfect, this is still a fantastic choice. Your application will be accepted with a FICO credit score of 640.
Capital One – Best LLC Bank Account for Unlimited Transactions
Star rating: 4.7/5
Capital One provides businesses with two distinct checking account choices. The Basic account is exactly what it sounds like, a simple checking account that allows for unlimited electronic deposits, access from any device, and no monthly service fees. A firm with intricate financial needs may benefit from the Unlimited banking plan, which offers two separate Basic accounts.
Business credit cards from Capital One might earn you cash back or miles for your company’s spending. All of their credit cards are fee-free for international purchases, making them ideal for business trips.
One of the bank’s greatest strengths is its knowledgeable and helpful customer care staff. To open a business checking account, you must additionally make a personal visit to a bank.
Why we chose it: Capital One is competitive with other big banks in terms of price and variety of services provided. If you like to handle your financial transactions in person, this is a fantastic alternative. In terms of ATM availability, Capital One is second to none. You may use any ATM within the Allpoint or MoneyPass networks without incurring any fees.
Pros
- Automated escrow services that users can access on their own time
- Expertise in a sizable financial institution
- Two free Basic accounts are part of the unlimited package
Cons
- Available in selected states only
- In order to open an account, you must physically visit a branch
Fees
As compared to American Express’s free monthly maintenance cost, Capital One’s $15 price for its Basic Checking account is very high. If your account balance is more than $2,000, though, you won’t have to pay the cost. Up to $5,000 in monthly cash deposits are interest-free. This product comes with the customary wire transfer costs.
A $25,000 minimum balance is required to avoid the $35 monthly cost associated with the Unlimited Checking account. Cash deposits to this account are unlimited and completely free. Nothing is charged for any incoming cables. In addition, you may make five monthly free wire transactions.
Interest Rates
Capital One’s checking account doesn’t pay interest. A savings account, however, will allow you to earn interest at a rate of 0.2%.
Lending
You may get a small business loan or line of credit from Capital One if you already have a bank account there. One of the highest available loan limits is $5 million, making this one of the most generous credit facilities available. SBA 504 and SBA7(a) loans provide borrowers with a longer payback period, fixed interest rates, and lower equity requirements than conventional bank loans.
Bank of America – Best LLC Business Bank Account for Traditional Banking
Star rating: 4.67/5
When you think of a classic bank, what comes to mind is Bank of America. There are two distinct modes that may be used with your account, either of which can be toggled at any moment. When the demands of your company change, you’ll have complete leeway in how you handle them.
Several popular programs, like Expensify, Google Analytics, and QuickBooks, may be linked to your bank account. You can see exactly where you stand, allowing you to make more informed business choices.
Whether your company is just starting out or is well established, the small business professionals at Bank of America help you every step of the way.
Why we chose it: The commercial banking services provided by Bank of America are well-regarded in the industry. Consider this alternative if your company has frequent and large cash inflows.
Pros
- Consists of Zelle money transfer integration
- Providers of payroll services
- Your online banking system can sync with your accounting software of choice
Cons
- Using an ATM outside of your bank’s network will cost you a fee
- Fees that are astronomically high for every little thing
- There’s no cost-free checking account available for companies
Fees
Business Advantage Basics and Business Advantage Relationship banking are the two kinds of business checking accounts provided by Bank of America. If you maintain a combined average monthly balance of $5,000, make $250 in new net eligible debit card transactions each statement cycle, or sign up for the Preferred Rewards for business programs, the $16 monthly charge for the Basics account will be eliminated.
With a joint average monthly amount of $15,000, the $29.95 charge for the Relationship checking account is canceled. Opening a savings account will cost you $10 per month, however, this charge will be removed if you maintain a daily balance of $2,500 or more.
Interest Rates
A checking account at Bank of America pays no interest. As compared to Bluevine’s 1.5 percent return, the business savings account’s 0.01% APY is laughable.
Lending
Bank of America offers various loan options for businesses, such as a business credit card, and secured loans ranging from $25,000 to $250,000, and secured lines of credit beginning at $25,000. It has many loan options, but applicants must have a minimum credit score of 700 to be eligible.
Axos – Best Full-Service Online Bank Account for LLCs
Star rating: 4.61/5
As Axos lacks physical branches, it might be considered a virtual bank that caters to business customers only over the Internet. Yet unlike other rivals, it’s not dependent on any other bank. This establishment may be considered a bank on its own. As Axos offers such favorable conditions and features, it’s often included on “Best Business Checking Accounts” lists found all over the web.
Axos was designed from the ground up to be an online bank, making it more accessible and user-friendly than brick-and-mortar institutions. It takes great care in creating a fantastic presence online and experiences for its clients, making it an excellent choice for small or digital enterprises.
Even with a $5,000 minimum balance, the highest annual percentage yield (APY) you can earn with a checking account is just 0.20% with Basic Checking and 1.01% with interest checking.
Why we chose it: The Basic Business Checking account from Axos Bank allows for unlimited transactions and cash deposits at Allpoint and MoneyPass ATMs without a monthly charge or minimum initial deposit. The bank also provides free ATM withdrawals at any location in the country and will reimburse you for any costs you may incur from other banks or ATM providers in the United States.
Pros
- There aren’t any required payments or minimum deposits
- With MoneyPass and Allpoint ATMs, cash deposits may be made
- Freebies for new clients (terms apply)
- Service to customers around the clock
- All ATM costs are refunded instantly (domestic)
- Purchases with no limits on fees
Cons
- There are no actual sites
- Lacks the best annual percentage yields
- Reduced levels of integration
Fees
Axos provides its corporate clients with four distinct banking options. Accounts range from a simple business checking account to a business checking account with interest, a business savings account with premium savings, and a business premium savings account.
Although the standard business checking account is free, the business interest checking account costs $10 per month. The monthly price for Basic Savings is $5, whereas Premium Savings costs nothing.
Interest Rates
Customers of Axos have access to a variety of interest-bearing investment products, albeit the return rates are lower than those offered by competing financial institutions. There’s no interest accrued in the standard checking account.
An annual percentage yield of 1.01% is offered by the interest checking account. With either the Basic or Premium Business Savings account from Axos, you may earn 0.20 percent.
Lending
Centerstone SBA Lending is an Axos Bank partner that provides SBA loans to small companies. They provide convenient payment options and a federal government guarantee. Commercial Term Loans and Lines of Credit are also available, but only to very big businesses.
Lili – Best LLC Bank Account for One-Person Businesses
Star rating: 4.57/5
Lili’s simplicity might be appealing if you’re the only member of your LLC. You can do your banking, your bookkeeping, and your taxes all in one place. Those working alone or as solo entrepreneurs were Lili’s initial target audience. But, LLCs may now participate as well.
Your LLC’s money must be kept entirely separate from your own. You just need one bank account because of Lili’s convenient feature. Yet, the program allows you to partition your funds privately.
Why we chose it: It can prepare your yearly tax return and create spending reports automatically.
Pros
- No actual sites
- Reduced levels of integration
- Lacks the best annual percentage yields
Cons
- No legitimate banking or retail services
- The convenience of a virtual bank (through Choice Financial Group)
- No good for corporate giants
Fees
Lili doesn’t charge for basic banking services. Like the best business checking account for LLCs, Bluevine has no minimum balance requirement, monthly charge, overdraft fee, or ATM cost. Lili Pro, on the other hand, will set you back an extra $4.99 monthly because of the other features it provides.
Interest Rates
Lili’s regular products don’t come with an annual percentage rate. With Lili Pro, savers may earn up to 1% APR on their funds. With automatic savings, you may have at least $1 deposited daily into your savings account without lifting a finger.
Lending
In terms of access to credit, Lili is nowhere near a conventional bank and so has very few viable choices. To sum it all up, you can only make use of a $200 overdraft on debit card transactions without incurring any fees.
U.S. Bank – Best LLC Business Bank Account for Lending Options
Star rating: 4.5/5
Business checking accounts at U.S. Bank are free, making it one of the few major traditional banks to provide such a service. There’s no minimum balance and no monthly maintenance cost for the Silver Business Checking account. This solution might work well for companies that don’t conduct a high volume of transactions on a monthly basis, such as a sole proprietorship or a small firm that caters to a single significant customer.
The majority of U.S. Bank’s more than 2,000 branches are located in Western states. It’s an excellent choice for locally based small companies that value face-to-face banking and customer service. Small company loans (including SBA loans), cash management services, payroll, payment processing and more are available from U.S. Bank when it’s time to expand your LLC.
Why we chose it: The services offered by U.S. Bank are diverse and high-quality. The variety of loan programs it offers is one of its main draws. For companies with a modest volume of daily transactions, this is an excellent option. The time to join is now.
Pros
- The Silver Business Checking account is a free option for small businesses
- Transaction processing options are available as add-ons with (extra costs involved)
- Freebies for new clients (terms apply)
- Opening a company account is a completely digital process
Cons
- There are severe penalties for cashing out a CD before its maturity
- There’s no annual percentage yield (APY) on checking accounts, and only a negligible APY on savings accounts
- Costs money to make a transaction
Fees
There are three different types of checking accounts provided by U.S. Bank. There’s no monthly charge for the 125 monthly transactions included in the Silver Business Checking account package. If the total number of transactions is more than 125, a fee of $0.50 will be added to each one.
The Gold plan is $20 per month plus $0.45 for every transaction in excess of the first 300. After the first $500 in monthly purchases, the Platinum package’s per-transaction rate increases to $0.40. As compared to Bluevine, the best online bank, which has no costs, U.S. Bank’s fees seem excessive.
Interest Rates
There’s no interest in checking account balances at U.S. Bank. With a $25 first deposit, you may earn 0.01% APY on your savings.
Lending
This bank provides several forms of commercial financing, including credit cards, loans, and lines of credit. The business credit cards offered by U.S. Bank come with a variety of benefits, such as no annual fees, low-interest rates, cashbacks, and reward programs.
There’s a large selection of small company loans available to meet specific financing requirements. Fast online loans have a maximum loan amount of $250,000, whereas government-backed loans have a maximum loan amount of $12,375,000.
Oxygen – Best LLC Bank Account for Freelancers
Star rating: 4/5
With its online appearance, Oxygen may easily be mistaken for a stylish publication or hip store. Yet the bank’s online-only banking service includes a business checking account. There’s a no-cost alternative as well as the rare yearly charge options. For the sole purpose of keeping business and personal funds separate, Oxygen is ideal for the freelancer.
There are four distinct Oxygen business checking plans, each with its own set of benefits and fees based on your average monthly transactions. There’s no minimum deposit or monthly fee on the free, basic plan. After the first year, those in the higher categories have the option to have the yearly charge completely waived.
The perks in Oxygen’s bank accounts are extensive. You can get cash back on purchases from participating businesses including restaurants, gas stations, ridesharing services, and online retailers. To top it all off, your savings targets receive an attractive interest rate.
You also receive coverage for things like auto rentals, misplaced or delayed baggage, and mobile phones. Further perks (including free airport lounge access and Netflix reimbursement) are available to account holders at higher tiers.
Why we chose it: The Oxygen banking platform is a cutting-edge financial service that provides customers with a wide range of advantageous and feature-rich services and products.
Pros
- Generating one-time use, digital debit cards
- Discounts of 5% in Cash Value
- Including 1% AP into Corporate Budgets
Cons
- Registration costs more for premium accounts
- No-cash-required virtual bank account
- There are no financing options
Fees
Oxygen, intriguingly, separates its offerings into the aforementioned categories of Earth, Air, Fire, and Water. These loyalty levels are designed to facilitate the individual success of company owners.
Earth is the free, entry-level plan. At the Earth tier, savers may earn an APY of up to 0.50%. You may go up to the next tier for just $19.99 per year by upgrading to water. There are a number of perks, including a savings APY of 1.00%. The Air tier costs $49.99 per year and offers a 2.00% APR on savings, while the Fire tier costs $199.99 per year.
Interest Rates
Oxygen provides a savings option for all subscription levels, which has very attractive interest rates. For Earth, Water, Air, and Fire subscriptions, the APY is 0.50%, 1.00%, 2.00%, and 3.00% respectively. These rates surpass those provided by Bluevine and American Express, which present the highest rates of 1.5% and 1.3% respectively.
Lending
There are no loan products available via the Oxygen app since the company is not a traditional bank.
Chase Business – Best LLC Bank Account for Merchant Service
Star rating: 3.8/5
If you’re looking for a bank that offers a wide variety of locations, excellent services, and innovative products, go no further than Chase. A special Chase Business Total Banking account is available, which combines checking with other payment services. It works well for LLCs that take credit card transactions. No need to set up a different merchant account, saving you both time and effort.
Chase’s app and prospective costs put it last on our list, but the bank has promising future prospects. Traditional bank fans who receive cash from clients and need to deposit funds into their accounts frequently may find Chase to be worth looking into, but those who want a more complete online presence will find another alternative more attractive.
Read more: Chase Business Checking Review
Why we chose it: The Chase Business Comprehensive Checking account boasts a low $15 monthly cost, allows for unlimited electronic deposits, and comes with the chance to win a $300 sign-up bonus. Moreover, you may take credit card payments via the Chase mobile app by using Chase QuickAcceptSM. You may also switch to the Platinum or Performance Checking accounts if your LLC surpasses the Chase Business Comprehensive Checking account.
Pros
- Prevention of fraud
- Use the Chase mobile app to take payments
- Consisting of several sites across the globe
Cons
- Fee-free status requires a substantial minimum balance
- Variability in savings account interest rates
- More expensive prices
Fees
Chase provides three distinct business checking account choices:
- Chase Business Comprehensive Checking: $2,000 monthly minimum balance required to avoid $15 monthly service fee.
- Chase Performance Business Checking: With a combined average opening balance of $35,000 or more, the $30 monthly fee is eliminated.
- Chase Platinum Business Checking: The monthly fee is refunded if the average daily balance in the account is $100,000 or more.
Each provides business customers with various banking services, including checking accounts, business debit cards, and in-branch cash deposits. Unlike Bluevine, there’s a monthly maintenance cost.
Interest Rates
There’s no annual percentage yield (APY) on deposits made to a Chase Business Checking account. You can earn money on your business’s savings with Chase Business Savings, but the APY is something you’ll have to ask about.
Lending
Many different kinds of business loans are available from Chase. In addition to the business credit card options it provides, it also provides small company loans and credit lines that customers may use. Depending on the kind of loan or line of credit, businesses may borrow anywhere from $2,500 to $500,000.
Ranking Methodology for the Best Business Bank Accounts for LLCs
Bank accounts for Limited Liability Companies (LLCs) should be ranked according to numerous criteria to determine which account is the most advantageous for the company. The following is an in-depth explanation of the criteria used to rank LLC business bank accounts:
- Interest Rate — APY on Checking & Savings Accounts: This list includes several financial institutions that provide checking accounts with a competitive annual percentage yield. Regarding returns, some of the best banks in the country provide rates as high as 1.5%, making them a desirable choice for company owners. If you own a company, prioritize high APYs.
Remember, too, that the monthly transaction or maintenance costs charged by certain banks may more than cancel out whatever income you earn on your account. Although you may earn interest on your main checking account with many of the top business bank accounts available online, you can also earn money on savings accounts. A higher interest rate is always preferable.
- Lending — Lines of Credit, Credit History: While you could have a good credit score as an individual, your company will need to build up its credit profile to succeed. Little loans for things like payroll or bills, and bigger loans for things like expanding an existing facility or buying new machinery and furniture may all be necessities for some company owners.
Having a business checking account with a certain bank might make applying for a loan like that simpler. One other way to increase your chances of being approved for a negative credit business loan is to establish a track record with a financial institution. Personal connections typical of small banks may be useful, particularly for specialized enterprises.
- Account Features — Online Banking, Mobile Banking, Bill Pay: In deciding between business checking and savings accounts, LLCs should weigh how relevant certain account features are for their operations. Financial management tools such as bill pay, overdraft protection, remote deposit, and mobile and online banking are included.
- Fees — Transaction, Minimum Balance, Early Termination, Daily Batch: Maintenance costs and other recurring expenses often take center stage. Several financial institutions that provide LLC bank accounts have eliminated monthly maintenance costs in an effort to entice local entrepreneurs. When choosing a business checking account, choosing one that doesn’t charge you for using certain features is crucial. Unlimited monthly transactions and free cash deposits are only two examples.
- Security — Multi-Factor Authentication, Encryption, Fraud Detection: An additional critical aspect to think about is the account’s safety. LLCs should prioritize financial institutions that provide advanced security options including multi-factor authentication, data encryption, and fraud monitoring and prevention software. The safety of their money and the bank’s ability to adhere to regulations should also be considered.
Best Business Banking Account for LLCs – Buying Guide
Here’s some extra information to assist in answering your questions.
Why LLCs Need a Business Bank Account
Owners of Limited Liability Companies (LLCs) must keep their corporate finances and personal finances completely separate. A Limited Liability Company (LLC) exists independently from its owners for legal purposes. As a result, you won’t have to worry about taking on the business’s debts or legal claims personally. If you don’t keep these things separate, a judge might order the sale of your personal property to pay off a judgment.
Keeping personal and company funds apart is a legal need when you start an LLC with an LLC formation service. If you run the risk of a court deciding that your Limited Liability Company is nothing more than a front, it’s best to keep your personal and corporate money separate.
How to Open a Bank Account as an LLC
An LLC may be established with a member or many. Locate a financial institution that will accept joint accounts if there are many proprietors.
To proceed, you must provide:
- LLC formation date
- Owner’s private details (SSN, DOB)
- Company’s name and where it’s located
- Employee Identification Number (EIN) alternatively if you’re a sole proprietorship, SSN
- Locale of your Limited Liability Company’s incorporation
- Hub of operations
What Other Documents Does the Bank Need to Open My LLC Bank Account
While the specific documents needed vary by a financial institution, this is often what you can anticipate being requested.
- LLC operating agreement
- LLC articles of organization or certificate of formation
It’s always a good idea to double-check the bank’s requirements by calling or checking their website. You can prevent the problem by doing this. It’s possible to establish a business checking account for an LLC at several banks using an online application. Certain financial institutions may insist on an in-person interview with all the business’s potential owners.
Best Business Bank Accounts for LLCs – Frequently Asked Questions (FAQs)
Can I Use My Personal Bank Account For My LLC?
While it’s theoretically possible, you shouldn’t use your personal banking account for your Limited Liability Company (LLC). By establishing a Limited Liability Company, you may safeguard your personal assets against business debts and lawsuits. Although establishing an LLC may protect your personal assets, continuing to use your own bank account does quite the opposite.
Do I Need a Separate Bank Account For My LLC?
To maintain a wall between your company and personal funds, you establish an LLC. After an LLC is formed, it’s considered to be a distinct legal entity from its owner. This is why you should open a business checking account specifically for your LLC.
Both federal and state laws don’t mandate that an LLC have its own bank account. But, keeping your money in separate accounts might help you better manage your finances and prevent future arguments. Moreover, free Internet banks like to make it simple to create a business account and immediately begin enjoying the advantages.
Do Anonymous LLCs Need a Bank Account?
Yes, an Anonymous LLC is still required to have a bank account to conduct financial transactions and manage its finances. While an Anonymous LLC may be structured in a way that hides the identities of its owners, it’s still considered a separate legal entity and must have its own bank account.
When opening a bank account for an Anonymous LLC, the bank may require some information about the LLC’s owners or members for identity verification purposes. However, depending on the structure of the Anonymous LLC and the bank’s policies, the level of disclosure required may be limited.
How Much Does It Cost to Open a Business Account?
The fees may change from bank to financial institution. The creation of several business checking accounts may not incur any fees. It’s possible that you’ll have to pay a fee every month or every year. Moreover, some accounts have what is essentially a minimum balance requirement but are otherwise free.
Bottom Line on Best Business Bank Accounts for LLC
Although banks may seem intimidating, with their significant influence over a company’s success or failure, you have the power to regain control by exploring your options and finding the conditions that suit you best. There’s an age-old saying that goes something like this: “The customer is always right.” This maxim certainly applies to your role as a small business banking client.
Depending on the needs of your company, there isn’t a one-size-fits-all business bank account for LLCs. Some examples of banks offering accounts with favorable interest rates, low fees, and other benefits include American Express, Bluevine, and Novo.