Sep 13, 2023

If you’re searching for the ideal business bank account for your LLC, we recommend accounts that can effectively streamline your finances. September 13, 2023 / 04:24 PM IST It's crucial to keep your individual and business funds separate if you own an LLC. Opening a company bank account for your LLC may help you streamline your bookkeeping, build trust with customers and suppliers, and safeguard any personal assets from future business obligations. The finest business accounts for Legal entities and the rationale for choosing them will be discussed in this post. 10 Best Business Bank Accounts for LLCs  Bluevine – Best Business Bank Accounts for LLCs Overall Novo – Best Business Bank Accounts for LLCs with low fees American Express – Best Business Bank Accounts for LLCs with Membership Rewards Capital One – Best Business Bank Accounts for LLCs for Unlimited Transactions Bank of America – Best Business Bank Accounts for LLCs for Traditional Banking Axos – Best Business Bank Accounts for LLCs with Full-Service Online Lili – Best Business Bank Accounts for LLCs for One-Person Businesses U.S. Bank – Best Business Bank Accounts for LLCs for Lending Options Oxygen – Best Business Bank Accounts for LLCs for Freelancers Chase Business – Best Business Bank Accounts for LLCs for Merchant Service We used a multi-factor technique to rate the best business bank accounts for LLCs. As a starting point, we assessed the many account kinds available, such as savings, merchant services, and checking. We considered each account's expenses, including monthly maintenance, transaction, and ATM charges. We also looked at the bank's standing and customer support, including its online banking capabilities and access to in-person assistance. Lastly, we looked at the bank's unique benefits or extras, such as loyalty programs or overdraft insurance. Considering all these aspects, we could comprehensively and objectively rate the best business bank accounts for LLCs. Bank Name Online-only bank offering mobile banking and round-the-clock client service Savings account with a high rate of return, free use of ATMs To open, a $50 deposit is needed. Online-only financial institution featuring a smartphone app for banking and 24-hour customer service. Connectivity with well-known software like Xero and QuickBooks With no monthly cost Cashback incentives system, accounting software integration $15 monthly charge for a simple checking account* A well-known company with a vast branch and ATM network, with excellent phone and online help Cashback incentives system, free transactions as well as other benefits $16 to $29.95 each month (waived with minimum balance or account activity) A well-known company with a vast branch and ATM network, with excellent phone and online help Cashback incentives system, a mobile banking app, overdraft protection Online-only financial institution featuring a smartphone app for banking and 24-hour customer service. High-yield savings account, fee-free ATM access, remote deposit capture Standard: No monthly fees, overdraft charges, or ATM fees Online-only financial institution featuring a smartphone app for banking and 24-hour customer service via email or chat Cashback incentives system, expense classification, tools for preparing taxes Silver: No monthly cost, $0.50 per transaction after 125 transactions A well-known company with a vast branch and ATM network, with excellent phone and online help Cashback incentives system, smartphone app for mobile banking Free of monthly and transactional costs Online-only financial institution featuring a smartphone app for banking and 24-hour customer service via email or chat Accounting software integration, virtual debit cards, expense classification A minimum amount or account activity will waive the $15 monthly charge. A well-known company with a vast branch and ATM network, with excellent phone and online help Offers include bonus cash for new accounts, a mobile banking application, and fee-free ATM access Bluevine – Best Business Bank Accounts for LLCs Overall Star rating: 4.9/5 For most small firms, a Bluevine corporate checking account offers a straightforward online company checking, highly well-rounded account choice. You may pay your expenses without any monthly fees, apply quickly for modest loans, and even earn a respectable interest rate. The application procedure is quick and easy, and your account may be operational the same day. Bluevine is among the best business bank accounts for LLCs and startups, thanks to all these characteristics. To further improve the management of your company's funds, you may add 5 sub-accounts. Each subaccount is assigned a unique account number. Even better, you get interested in every account (up to a cumulative amount of $100,000).Why we chose it: Two checkbooks are given out to all accounts. This is unusual because most company checking accounts don't provide free checks. This is excellent news for more established small companies who pay their suppliers and workers in person.Pros: There are no overdraft fees or transaction limits MoneyPass ATMs don't charge fees There are no ongoing costs or opening deposits required Cons: No shared accounts Fees Bluevine goes above and above what is expected in the sector by not charging deposit fees, NSF, or maintenance fees. You won't be charged more for more transactions than you need to finish. There are no minimum deposits or balance limitations at Bluevine. Interest Rates Also, Bluevine has a fantastic APY on its deposit account, offering customers a return of 1.5% on amounts up to but not exceeding $100,000. Account holders who make $500 in debit card purchases or receive $2,500 in client payments monthly into their checking accounts are the only ones eligible for this. Lending Also, you may have access to commercial lines of credit with a maximum of $250 000 at 4.8% APR . Thanks to the quick and simple application procedure, you may often get a judgment in less than five minutes. For opening, maintenance, prepayment, or account termination, Bluevine levies no fees. Star rating: 4.8/5 Because of its user-friendly interface, simple application procedure, and capability to make cashless transactions without delays, Novo is a fantastic checking account for smaller businesses. In less than 10 minutes, you may fill out and submit your application, and you'll get a prompt answer with any information lacking. You may use your checking account as soon as it has been authorized and you make your $50 minimum opening deposit. Using the high-tech Novo account, you can combine your company checking with hundreds of applications, like Shopify, QuickBooks, and Slack. You can control all aspects of your business life in one location. To help you keep track of your financial commitments, you always have access to your banking information and transactions. The software also provides a great snapshot of your monthly income and expenses.Why we chose it: For independent contractors, freelancers, and other company owners who have set up single-member LLCs, Novo's best business bank account for LLCs is an excellent choice since it offers limitless integrated invoicing.Pros: No transaction fees ever, ever All ATM service costs are refunded globally No ongoing costs or opening deposits required Cons: Bill Pay doesn't provide recurring payments Unable to deposit cash Fees No fees are applied to Novo's checking account service. To start your account, simply a $50 starting deposit is required. With this bank, there are no inbound wire fees, ACH fees, minimum balance restrictions, or costs for cash deposits. Besides being protected by FDIC insurance via Middlesex Federal Savings, F.A., Novo also reimburses all ATM expenses. Interest Rates Like Bluevine, Novo has no fees associated with its corporate checking account. You must, however, give up earning interest in exchange for it. Your deposits in your checking account earn no interest from the bank. Lending No loan alternatives are provided by Novo. No loans, credit lines, or even business credit cards are available. It just provides a checking account product. Star rating: 4.8/5 With additional free services and no minimum balance requirement for its fundamental corporate checking account, American Express Business Checking maintains a more recent trend in business banking. You may also charge an infinite number of transactions via their payment services. If you're searching for Kabbage business checks, you may be startled to learn that American Express bought Kabbage. American Express Business Checking would be a fantastic choice for company owners who wish to get the best business bank accounts for LLCs and a line of credit. Kabbage Financing by American Express provides quick loan approval for smaller businesses for credit lines of up to $250,000.Why we chose it: American Express provides flexible account choices that may be adapted to meet the unique requirements of various companies. American Express offers sophisticated fraud prevention tools to help stop fraud and safeguard their customers' financial interests.Pros: No required minimum balance Only iPhone users may deposit mobile checks Not supported for cash deposits Fees There are no monthly fees with American Express Business Checking. Online transaction fees are absent, as well as any minimum initial deposit requirements. All MoneyPass ATMs are free to use, however using an ATM outside of the network will charge you around $3 for each transaction. American Express does not support cash deposits. Interest Rates Even though Bluevine offers a 1.5% return, this bank account boasts one of the best APYs, paying 1.30% on balances up to $500,000 instead. While American Express Business Checking's APY isn't higher than Bluevine, it’s still the second-highest on our list. Lending The nicest part about creating an American Express account is that it also includes Kabbage Financing, which provides quick loan approval for credit lines up to $250,000 and other services. Even if you don't have an excellent credit score, it's a terrific alternative. A FICO score of 640 will get your application accepted. Star rating: 4.7/5 As one of the best business bank accounts for LLCs, Capital One provides two choices. With no restrictions on electronic deposits, mobile and online banking, and a minimal minimum balance requirement to avoid penalties, the Basic account is precisely what it says it is. Businesses with intricate financial structures may benefit from the Unlimited company bank account, which comes with two Basic accounts. Capital One offers a wide range of corporate credit cards offering cash back or travel benefits. Traveling internationally for work is fantastic since none of their credit cards charge foreign transaction fees. One of the bank's key attributes is its knowledgeable and attentive client service. If you're considering it, remember there are just a few states where Capital One offers business checking. To open a business checking account, you must also visit a branch.Why we chose it: If you like to do regular banking via physical branches, it's a fantastic alternative. The ATM network of Capital One is pretty extensive. Well over 70,000 ATMs in the MoneyPass and Allpoint networks are accessible to you paying no fees.Pros: Two Basic accounts are included with Unlimited Checking Seasoned assistance from a big bank Services for self-service escrow Fees waived for high balances Limited to certain states only Fees The $15 monthly cost for Capital One's Basic Checking account is high when compared to American Express's $0 maintenance fee. But, the charge may be eliminated if your amount is more than $2,000. For deposits of up to $5,000 each month, cash deposits are free. For this product, standard wire transfer costs are assessed. A minimum balance of $25,000 will waive the $35 monthly cost for the Unlimited Checking account. No restrictions apply to free cash deposits into this account. Incoming cables are all uncharged. Also, each month, you are entitled to five free wire transactions. Interest Rates With its checking account, Capital One does not provide an APY. Yet, a savings account offers interest at a rate of 0.2% . Lending Capital One provides lines of credit and loans for small businesses, but you may only use them if you already have a bank account there. One of the biggest lines of credit available is up to $5 million. There are also SBA 504 and SBA 7(a) loans available if you choose a longer payback period, fixed rates, and less equity. Star rating: 4.67/5 The perfect example of a conventional bank is Bank of America . You may alternate between two settings for any Business Advantage Banking account. This enables you to be completely adaptable as your company demands change. You may link your bank account using programs like Google Analytics, Expensify, QuickBooks, and others. This gives you a clear picture of your performance and enables you to make more informed business choices. No matter how big or small your company is, Bank of America has a community of Small Business Professionals to help you along the way.Why we chose it: Bank of America provides a well-established selection of business banking alternatives. It's a fantastic choice if your company deals with high cash flows.Pros: Apps for accounting are integrated with online accounts Payroll solutions Cons: No free option for a business checking account Large incidental costs Fees Business Advantage Relationship Banking and Business Advantage Basic are the two kinds of business checking accounts that Bank of America provides. The Basic account has a $16 monthly charge, but you may avoid it by keeping a combined average balance of $5,000, making a minimum of $250 in new net eligible debit card transactions each cycle, or signing up for the Preferred Rewards for Business program. A cumulative monthly average balance of $15,000 may waive the $29.95 monthly cost for the Relationship Checking Account. The $10 monthly charge for opening a savings account may be eliminated with a daily balance of $2,500 or more. Interest Rates The checking account at Bank of America doesn't pay interest. The business savings account's 0.01% APY is very low compared to Bluevine's 1.5% return, and it offers little interest at all. Lending Bank of America provides secured business credit cards, loans ranging between $25,000 and $250,000, and secured credit lines starting at $25,000. There are several funding alternatives available, but to be eligible, you must have a credit score of at least 700. Star rating: 4.61/5 Axos is a virtual bank since it has no physical facilities and solely provides digital business banking. Unlike several of its rivals, it’s independent of another financial institution. It operates as a bank on its own. As a result of its liberal terms and selection of services, Axos often appears on lists of the "Best Business Bank Accounts for LLCs" online. Axos is an online-only bank that is simpler to use and navigate than most conventional banking solutions. It's a fantastic option for startups or digital enterprises since it creates an excellent digital presence plus experience for its clients. If you maintain a minimum amount of $5,000, the APY you may earn is only up to 0.20 percent for basic checking and 1.0 percent for interest checking.Why we chose it: Basic Business Checking from Axos Bank comes with unlimited transactions, cash deposits using Allpoint and MoneyPass ATMs, and no monthly charge or minimum initial deposit requirement. The bank also provides free countrywide ATM access and limitless reimbursements for fees levied through other financial institutions and ATM companies in the US. These services are available 24/7.Pros: Cash deposits at Allpoint and MoneyPass ATMs New clients receive a welcome bonus (conditions apply) Free transactions without limits All ATM costs are automatically refunded (domestic) 24/7 client assistance No actual branches to visit Fees The best business bank accounts for LLCs from Axos come in four different categories. Business interest checking, Business checking accounts with no monthly service fees, business premium savings, and business savings accounts. Standard Business Checking is free each month. However, Business Interest Checking has a $10 monthly cost. Although its Premium edition has no monthly subscription, Basic Savings does. Interest Rates Although there are many interest-bearing choices available to Axos clients, the yield rates aren't as great as those offered by a few other banks. There’s no APY on the basic checking account. The best business bank accounts for LLCs with interest provide an annual percentage yield of 1.01% . You get a 0.20% interest on each of the Premium and Basic Business Savings accounts if you choose Axos' savings alternatives. Lending To help firms with SBA loans, Axos Bank collaborates with Centerstone SBA Lending. They provide flexible terms and a nationally backed guarantee. Also, it offers term loans and commercial lines of credit, however, they are best suited for big businesses. Star rating: 4.57/5 You may enjoy how straightforward Lili is to use if you just have a single-member LLC. Accounting, taxes, and banking are all included in this platform. Initially, Lili was created for independent contractors and business owners. But, LLCs may now use it as well. You must keep your personal and corporate money separate if you are an LLC. Lili enables you to continue using only one bank account. Yet, the software allows you to divide your funds.Why we chose it: It creates spending reports automatically and even fills out your yearly tax return.Pros: Produce and deliver invoices Easily distinguishes between personal and commercial dealings Cons: Fees Standard financial services offered by Lili are free. Similar to the best business bank accounts for LLCs, Bluevine, there are no monthly fees, overdraft fees, ATM fees, or minimum balance requirements. Lili Pro comes for a monthly fee of $4.99 due to the extra features you get. Interest Rates On Lili's regular products, there’s no APY. You can acquire a savings account with an APY of 1% if you choose Lili Pro. You may program a minimum daily deposit of $1 into your savings account using the Automatic Savings option. Lending Lili has extremely few financing possibilities since it is not a regular bank. Just a minimal overdraft of approximately $200 on debit card transactions is available. Star rating: 4.5/5 One of the few local banks that offer free business checking is U.S. Bank . There are no minimum balance restrictions or monthly maintenance fees for each Silver Business Checking account. This may work well for companies with few monthly transactions, such as contractors with a single important customer. There are more than 2,000 U.S. Bank locations, mostly on the Western Coast. Small local companies who favor in-person banking and customer service might consider it. When you're prepared to expand your LLC, U.S. Bank also provides payroll, cash management services, payment processing, and small company financing (including SBA loans).Why we chose it: There are many fantastic goods and services offered by U.S. Bank. The loan alternatives it offers are its main selling feature. Every firm with a modest transaction volume should consider it.Pros: You may create a business account online Mobile applications and in-store payment terminals are only two examples of optional payment processing services Welcome bonus (conditions apply). Cons: Imposes transaction costs Fees The three checking accounts offered by U.S. Bank. The Silver Business Checking Account bundle provides 125 free monthly transactions at no monthly cost. If the count exceeds 125, $0.50 is added to each transaction. After the first 300 transactions, the Gold plan costs $0.45 per transaction and $20 monthly. Beyond 500 transactions per month, the Platinum plan includes a $30 monthly fee and charges $0.40 for each transaction. Interest Rates For deposits made into checking accounts, the U.S. Bank doesn't give any yields. You may open a savings account with it and deposit as little as $25 to earn 0.01% APY . Lending This financial organization provides a selection of loans, credit lines, and business credit cards. Business credit cards from US Bank have various advantages, such as cashback, no annual fees, favorable interest rates, and incentive packages. It also provides a broad range of financing options for small businesses from which you may choose based on your company's requirements. With Fast Online loans, you may borrow up to $250,000 , and with government-backed loans, you can borrow up to $12.375 million. Star rating: 4/5 You may assume Oxygen is a chic magazine or hip store from its website. Yet, it does it through its online-only bank, which also provides a corporate checking account. Both cost-free and, uncommonly, choices with an annual charge are available. For a freelancer who only wants to keep their personal and professional income separate, Oxygen is ideal. Oxygen provides 4 distinct business checking accounts based on your monthly spending and deposit activities. With no required minimum balance, the entry-level tier is free. After the first year, higher levels offer options for the yearly charge to be waived. Benefits abound in Oxygen's accounts. For purchases of items like food, petrol, ridesharing, and shipping, you may get cash back from partner retailers. Also, you get a reasonable interest rate on the money you save. You also get additional advantages like rental waiver, lost or delayed baggage insurance, and mobile phone protection. Higher-tier accounts are eligible for greater cashback bonuses, savings APYs, and other incentives (including Netflix reimbursement and access to airport lounges! ).Why we chose it: For personal and commercial banking, Oxygen is providing very profitable and feature-rich solutions while introducing flair and ingenuity to the banking and financial services sector.Pros: Generate prepaid, one-time use credit cards online 1% AP savings for businesses No cash deposits are required with this online bank Fees It's interesting to note that Oxygen categorizes its services according to the elements Water, Earth,  Fire, and Air. These "loyalty levels" are designed to support company owners' success. The most fundamental product is the free Earth tier. You may get an APY of 0.50% if you choose the Earth tier's savings option. The subsequent tier, water, has an annual cost of $19.99. Besides several services, it gives a 1.00% APR on savings. The Fire and Air levels include yearly fees of $49.99 and $199.99 with an APY of 2.0% and 3.0% on savings, respectively.Interest Rates With each tier's choice for savings, Oxygen offers some sizable interest rates. With the elements of Water, Earth, Fire, and Air, you may earn an APY of 0.5%, 1%, 2%, and 3% , respectively. Lending As Oxygen is merely a mobile banking application and not a full-service bank, it doesn’t provide loan possibilities. Star rating: 3.8/5 Regarding its branches, offerings, and customer support, Chase ranks among the best business bank accounts for LLCs in the United States. It provides a Chase Business Complete Banking account, uniquely combining a checking account and payment processing service. For LLCs that take credit card payments, it's a fantastic option. You save time and effort by not having to set up a separate merchant account. Regrettably, Chase comes last on our list despite having good potential due to costs and the app. Another choice will be more tempting to those who want a fully online experience, but Chase is a viable option for those who like conventional banks and often need to receive cash from clients and deposit it into their accounts.Why we chose it: The Chase Business Comprehensive Checking account provides a low $15 monthly cost, unlimited electronic deposits, and the chance to win a $300 sign-up bonus. Moreover, it enables you to utilize the Chase mobile app to take credit card payments via Chase QuickAcceptSM. Also, you can upgrade to a Platinum or Performance Checking account if your LLC surpasses the Chase Business Comprehensive Checking account. Pros: Protection against fraud Cons: Uncertain APY for savings accounts Higher prices Chase offers three choices for business checking accounts: With a minimum daily balance of $2,000, Chase Business Comprehensive Checking's $15 monthly fee is eliminated. With a combined average balance of $35,000 on the first day, Chase Performance Business Checking's $30 monthly fee is eliminated. With a combined average opening balance of $100,000 or more, Chase's monthly Platinum Business Checking fee is eliminated. Every single one provides the best business bank accounts for LLCs with extras like a company debit card plus cash deposits via their various locations. Sadly, there are monthly maintenance fees. Interest Rates There’s no APY on deposits for Chase Business Checking accounts. Companies may use Chase Business Savings to earn money, but you must ask what APY it gives. Lending Several funding alternatives are available via Chase for Business. You may apply for small-business financing and credit lines from this company and its corporate credit card options. Commercial credit lines are between $10,000 and $500,000, while loans are available from $5000. Ranking Methodology for the Best Business Bank Accounts for LLCs Ranking corporate bank accounts for LLCs requires considering crucial elements to determine which account best suits the company's requirements. An explanation of how the best business bank accounts for LLCs are ranked is provided in the following note: Fees — Early Termination, Transaction, Minimum Balance, Daily Batch: The biggest issues are often the expenses that might build up, such as monthly maintenance costs. Several banks that provide LLC business bank accounts have tried to entice small company owners by reducing monthly fees sometimes or eliminating monthly costs. The best business bank accounts for LLCs won't impose fees for business-critical services. Providing limitless transactions or free monthly cash deposits, for instance. Interest Rate — APY on Checking and Savings Accounts: Several institutions on our list pay an annual percentage yield on checking accounts. Some of the best banks provide a dividend of 1.5%, making them a profitable choice for company owners. Your firm will benefit more from an APY that’s greater. Certain banks may negate your interest earnings by imposing a monthly maintenance or transaction cost. Several of the best business bank accounts for LLCs available online allow you to earn interest on your main checking and savings accounts. Likewise, the better the deal, the greater the interest rate. Account Features — Online Banking, Mobile Banking, Bill Pay: Various accounts have varying characteristics, so LLCs should think about which ones are most crucial to their operation. This includes services like remote deposit, bill payment, online and mobile banking, overdraft protection, and other tools that may help manage the company's finances more effectively. Lending — Lines of Credit, Credit History: While your small company has to have its credit history, you may already have an individual credit rating. Business owners may also need smaller loans to pay for payroll or bills, as well as substantial loans for new machinery or a larger facility. If you possess one of the best business bank accounts for LLCs, getting a loan of that kind can be simpler. The likelihood of approving a negative credit business loan may also be increased by building a history with the institution. On a side note, even though we've concentrated on big-name, online banks, your neighborhood credit union or bank could be an excellent choice, particularly if you expect to require a loan. The interpersonal connections that are typical of small banks may be beneficial, especially for specialized firms. Security — Multi-Factor Authentication, Encryption, Fraud Detection: Another crucial aspect to consider is the account's security. Corporations should seek financial institutions that provide advanced security options including multi-factor authentication, encrypted data storage, and fraud protection software. They should also consider the bank's security record and regulatory compliance. Here is a section to assist you with your questions if you need more information. Why Do LLCs Need a Business Bank Account? LLC owners must keep their corporate and personal checking accounts separate in the bank. Legally speaking, LLCs are distinct from their owners. This implies that any corporate debts or legal claims are not subject to your personal responsibilities. Without this separation, if you’re sued, the court may seize your personal assets. You must legally segregate corporate money to the legal difference. The LLC might be deemed a sham by a judge if you combine personal and corporate money, in which case you would be held personally liable. How to Open a Bank Account as an LLC? You may create an LLC with only one member or many owners. Find a bank that permits joint accounts if your business has numerous proprietors. You will have to give the: State where your LLC is registered Date of LLC registration Best Business Bank Accounts for LLCs: Frequently Asked Questions (FAQs) Can I Use My Personal Bank Account For My LLC? A legal entity such as an LLC may use a personal bank account, although this isn’t recommended. By establishing a Limited Liability Corporation, you can safeguard your personal assets if anything goes horribly wrong with your company. Yet, if you continue to use your private banking accounts for your LLC, it’d be simple for the government to seize your personal property. Do I Need a Separate Bank Account For My LLC? To keep your personal and company money separate, you create an LLC. A Limited Liability Corporation separates legally from its owner once it’s formed. For this reason, we advise opening a bank account for your LLC. You aren’t required by state or federal law to open an LLC-specific bank account. Separate accounts are a smart idea to simplify money administration and prevent long-term issues. Also, internet banks like Bluevine make it simple to register in one of the best business bank accounts for LLCs so you can start benefiting right immediately. How Much Does It Cost to Open a Business Account? The price varies according to the bank. It's possible that there isn't a clear fee associated with setting up a separate company checking account. You can be required to pay yearly or monthly fees. Also, while it isn't technically a charge, some accounts have a minimum balance requirement. Bottom Line on Best Business Bank Accounts for LLCs You may recover a lot of control by looking into your alternatives and choosing the conditions that best meet your requirements, even if banks can be scary organizations with a big say in whether a firm succeeds or fails. You are a bank client as a small company, and the maxim "the customer is always right" holds here. Based on the particular requirements of the firm, several of the best business bank accounts for LLCs would be ideal. Yet, other accounts, including Bluevine , Novo , and American Express stand out for their low fees, attractive interest rates, and unique features.