After establishing an LLC, you should separate your business and personal finances, which is one of the most important things to do. Having a separate business checking account for your LLC is the best way to safeguard your personal assets from business debts.
Your LLC needs to open a business checking account to keep up with its expansion. The company should offer largely fee-free or waivable fees and provide excellent merchant services, lending products, and strong software integration.
You can form an LLC with the help of the resources provided by some of the listed financial institutions, which specialize in assisting LLCs. These banks may offer limited services but include a good enough checking account.
What is a Business Checking Account?
A business checking account functions similarly to an individual one. Both types of accounts typically allow for depositing and withdrawing funds, processing ACH payments, writing checks, and using a debit card at retail locations and ATMs.
The primary distinction between personal and business checking accounts is that the latter pay individual bills such as rent or mortgage, transportation costs, and household utilities. Banks typically charge higher fees for business checking accounts than personal checking accounts.
How Do Business Checking Accounts Work?
Opening a business checking account can benefit all businesses, regardless of their nature. Sole proprietorships, corporations, partnerships, and limited liability companies (LLCs) can open business checking accounts. Any organization, whether a one-person consulting firm or a multinational software corporation with tens of thousands of employees, can open a business checking account.
Do I Need a Business Checking Account?
Keeping your company’s finances distinct from yours is easy with a business checking account. Establishing a business checking account can streamline your accounting, make tax time a breeze, and help establish your company’s legitimacy. A business checking account can offer you a business credit card or a business line of credit. It can safeguard your assets from legal actions or debt collection related to your business.
Best Business Checking Accounts for LLCs in 2023
Bank of America has branches and ATMs all over the United States and is nationally recognized as a powerhouse. You can waive the monthly fee associated with the account by maintaining a balance of $5,000 or making monthly debit card purchases of $250.
The Cash Flow Monitor and the Bank of America mobile app are convenient digital tools for customers who sign up for a Business Advantage Fundamentals Banking account. With these tools, you can check your account balance, make transfers, view recent transactions, and even pay bills from the convenience of your mobile device.
Key facts about the LLC business checking account at Bank of America.
- BoA, with branches nationwide, is bigger than most U.S. banks.
- The bank refunds you the $16 monthly fee if you keep $5,000 in your account or make $250 in monthly debit card purchases.
- Useful digital tools are available for account alerts, cash flow projection, and transaction monitoring.
- Accounts for Business Advantage Basic can be accessed via a website or a mobile app.
Chase Bank offers extensive business banking services that companies of all sizes can use.
Chase’s starting business checking account is called Chase Business Complete Checking. It’s the easiest way for most companies to work with Chase.
You must maintain a minimum balance of $2,000 to avoid the $15 monthly service fee. Accepting Chase QuickAccept deposits or purchasing a Chase Ink Business credit card will also prevent the charge from being applied.
A Chase Business Complete Checking account allows unlimited withdrawals from a Chase ATM or debit card. You can deposit up to $5,000 each month without incurring any fees if your company operates on a cash basis. You don’t need to open a linked savings account and worry about the associated fee.
We highly recommend opening a new account. New customers who sign up for Business Complete Banking can currently receive a $300 sign-up bonus.
Chase provides comprehensive business banking services by combining online banking, mobile app banking on the go, and access to nearly 5,000 physical locations and 16,000 ATMs nationwide for convenience.
Key facts about Chase LLC business checking account
- Chase is the largest bank in the United States.
- You can waive the $15 monthly fee by keeping $2,000 in the account, making $2,000 in purchases with a linked debit card, or meeting one of the other criteria.
- You can access your funds the very same day with same-day deposits.
- Payments made via wire transfer are free to accept.
- You can accept card payments, and the account provides you with fraud protection tools.
- Chase Business Online and Chase Mobile Banking grant access to Chase Business Complete Checking accounts.
- To be eligible for a $300 bonus, open a new business checking account, deposit $2,000 within 30 days, and maintain an average balance of $2,000 for 60 days. As a final requirement, you must use your account five times within the first 90 days.
Novo caters to corporate financiers as an online bank. Novo bases all its actions on simplicity. That means an intuitive interface coupled with helpful automated features for your company.
Novo, like Bluevine, allows users to open an account online in just a few minutes and requires almost no fees. The Novo account packs in perks and offers free transactions, compensating for the limited account options compared to traditional banks.
For instance, you can use Novo’s Reserves feature to keep your finances in order. Setting aside money in up to five separate Reserves within a single account can help when budgeting for payroll, taxes, and other outlays.
Novo also supports a wide range of available add-on integrations. You can integrate your Novo account with various business apps, including QuickBooks, Stripe, and more. Additionally, Novo motivates its users to utilize these integrations by offering attractive discounts. If you need to stick to a strict budget, Novo might not be the best choice.
Key facts about Novo online business checking accounts
- There are zero recurring costs or fees.
- Put money in the bank right away.
- Novo can send payments directly.
Connect to a wide variety of third-party services used by major online retailers.
Novo’s services are geared toward online retailers that make most of their money from internet buyers. You can withdraw cash easily with a Novo debit card.
The Wells Fargo Initiate Business Checking account is another great option for LLCs seeking a business checking account. This financial institution offers benefits such as access to over 13,000 ATMs and a specialized small business customer service center when you open an account.
Key Facts about Wells Fargo’s Business Checking Accounts
- The American branch network of the multinational bank Wells Fargo is extensive.
- Get notifications of account activity through email or text messages.
- You will not incur any monthly service charges if your account balance is at least $500.
- Wells Fargo offers 24/7 fraud detection and liability-free debit card use.
- Wells Fargo grants its customers access to both online and mobile banking.
- The following are the account’s fees:
- The first 100 each month are free. We will apply a fee of $0.50 if you exceed a monthly usage of 100.
- The first $5,000 in monthly cash deposits are processed free of charge. We charge $0.30 for every $100 that exceeds $5,000.
- Waive the $10 monthly service fee by maintaining a daily balance of $500 or more.
Lili has now made her banking services available to any company. However, they were previously geared toward sole proprietorships and other small businesses, which is great because their numerous account tools would be useful to any business.
A tax savings account, invoice generator, and expense tracker are just some of the perks available. To rephrase, Lili provides the essentials for managing a small business without breaking the bank on accounting or invoicing tools.
Benefits include a high-yield savings account and cash back on debit card purchases, which are useful for any business. However, Lili’s premium features are only available through the Lili Pro plan, which costs $9 monthly. Therefore, many companies need help to use Lili as a fee-free bank.
Even though the free version of Lili is great, the paid version has more features and better account tools.
Small businesses that want to streamline their banking processes, keep track of their finances, and cut costs wherever possible can use Lili.
Key facts about The Lili business checking account
- They do not impose any minimum balance or service charges.
- Cash rebates for businesses that shop at specific stores.
- They don’t charge for overdrafts up to $200.
- They strongly cooperate with digital wallets and other web-based services.
- You can sort expenses into different categories and generate reports and tax brackets.
- ATMs allow free cash withdrawals.
- Lili gives its customers access to a Visa business debit card, a network of 38,000 ATMs, and a digital business checking account.
- This banking choice also offers convenience when reporting or filing taxes as it can monitor transactions and cash flow and generate reports on a quarterly or annual basis. Money is set aside in “tax buckets” to guarantee adequate savings.
- Money deposited into a Lili account via direct deposit is also available two business days sooner than at a conventional bank.
Bluevine focuses on making banking easier for entrepreneurs and is among the new generation of business checking accounts. Bluevine provides added peace of mind to customers by offering FDIC insurance and two-factor authentication on their accounts. This business checking option pays interest on your balance, making it unique among other accounts.
Key Facts about Bluevine Business Checking Account
- They never charge monthly or minimum balance fees.
- They do not apply service charges to ACH transactions, overdrafts, or incoming wire transfers.
- Deposits, payments, and withdrawals do not have bounds.
- Harmonizing the online version of QuickBooks.
- Separate your spending categories into different accounts..
Axos Business Account offers LLCs a tempting deal. Axos will give you a $200 startup bonus if you choose to incorporate after June 30, 2020. You can receive a $100 bonus regardless of when you formed your LLC.
Key Facts about Bluevine Business Checking Account
- They never charge minimum balance or maintenance fees.
- They offer unlimited reimbursements for domestic ATM fees.
- You can buy, sell, deposit, and credit without any limits.
- QuickBooks is compatible with accounting software.
- Users can deposit cash on multiple online banking platforms.
Furthermore, QuickBooks accounting software is fully compatible, and there are no subscription fees or limits on the number of transactions. Banking websites and mobile apps simplify checking your balance.
8. Capital One
Capital One provides a comprehensive banking solution for limited liability companies, although it is better known for its credit cards. You can avoid paying the monthly account maintenance fee and receive free debit cards and fee-free digital transactions by maintaining a balance of $2,000 or more.
Key Facts about Capital One Business Checking Account
- If your average monthly balance is $2,000 or more, the $15 fee is waived.
- You can deposit up to $5,000 in cash for free every month.
- They charge $15 for both incoming and outgoing domestic wires.
- Digital exchanges are always free of charge.
- You can overdraft and pay bills electronically.
- Capital One provides account access through both online and mobile banking.
- Linking a Capital One deposit account provides overdraft protection at no cost; you can pay all your bills online.
Grasshopper Business Banking offers several convenient digital tools to facilitate LLC funds and cash flow management. Use a check or an ACH transfer to remotely set up a payment schedule. Individual pricing and expedited payments are facilitated by simple, in-app invoicing.
Key Facts about Grasshopper Business Banking Account
- There are no costs for either outgoing or incoming wire transfers.
- The debit card offers rewards and cash-back.
- The system offers automatic bill pay and electronic billing features.
- They automate cash management and bookkeeping.
Furthermore, they do not charge for monthly maintenance or receive wire transfers or ACH deposits; they offer free rewards and cash-back debit cards. Thanks to the account’s compatibility with accounting software, one can complete bank reconciliations swiftly.
Each featured financial institution can offer your LLC a first-rate business checking account and other crucial business support products and services. First, prioritize the features your company considers most important, and then select a bank that provides those features.