What is the best business bank account for LLC businesses? We are here to review the best available right now.
Shrewd entrepreneurs know that one of the smartest moves a business owner can make is to open a business bank account. Why? — Separating personal finances and business finances helps business owners control their business expenses and income. As such, they can evaluate their cash flow and make smart money moves to increase business success.
Having a business bank account also makes it easier to keep track of your company’s interest and borrowing fees for bookkeeping and tax purposes. Unfortunately, most business owners use their personal bank accounts to run their business, not knowing that this could be the very thing slowing them down.
The stakes are higher when your business is a registered Limited Liability Company (LLC). This is because opening a corporate bank account can help you establish a legal separation between your company and your personal finances. In this sense, even when the company goes into debt, the owner’s assets are safe, not unless they choose to pledge their assets as collateral.
Without a company bank account, it will be more difficult to establish credit or acquire a loan as an LLC. As such, loans will have to be acquired with the owners’ personal accounts which puts their personal assets at risk since they will be personally liable for the debt if the LLC defaults. By opening a business bank account, therefore, the proprietors of an LLC are considered to be independent entities from the LLC.
The benefits of opening an LLC business account are quite innumerable, to say the least. Apart from the aforementioned ones, bookkeeping and taxes become less complicated. In addition, you can use your account for much more than just business transactions. You have the freedom to use your account as you wish to, as long as you maintain it separately from your assets.
That said, if you and your partners have established an LLC, make a trip to a commendable bank and open an account. From local to national, regional, and digital banks, the options for business bank accounts are endless. Financial institutions like E.T. Money LLC offer checking accounts for businesses in the United States and Canada while proprietors can open their individual bank accounts with companies like brick-and-mortar banks or even online-only institutions.
View our guide to what is a (LLC) limited liability company?
What Exactly Is a Limited Liability Company (LLC)?
A Limited Liability Company (LLC) is a corporate structure that shields its owners from personal liability for the company’s liabilities and debts. LLCs are a hybrid form that has aspects of both a partnership and a corporation.
LLCs, like corporations, limit their owners’ liability in the event the company fails. More so, LLCs, like partnerships, allow money to flow directly from the business to the people. In other words, LLC profits “pass-through” to the owners’ personal income and are taxed accordingly.
Which Are the Best Banks for a Business Bank Account?
Here are our top picks for the best business bank accounts for your limited liability company.
- Chase Business Banking
Once you open such an account, you can use the QuickAccept mobile app to accept payments anywhere in the United States. You may also use the Chase mobile app to track complaints and give reimbursements. The service is quite fluid and transparent without any monthly commitments or hidden costs.
When using the QuickAccept contactless mobile card reader, transactions cost a mere 2.6% plus 10 cents whenever there is an issue while manual transactions cost 3.5% and an additional 10 cents each time an issue occurs. The company also levies a $15 monthly service fee, but there are a lot of discounts and methods to avoid paying it entirely. For a $0 LLC checking account, only one is required each month:
• Maintain a daily balance of $2,000 or more.
• Use a Chase Ink Business credit card to make $2,000 in purchases.
• Use QuickAccept or Chase Merchant Services to make a total of $2,000 in deposits or transactions.
• Create a link to your Chase Private Client Checking account
Chase Bank provides different ways to send and receive money. Some of these include online bill pay, Chase QuickDeposit, and wire transfers. The bank also includes Fraud Protection Services and insures all its accounts with the Federal Deposit Insurance Corporation (FDIC).
• In-app credit and transaction acceptance are now supported by QuickAccept.
• Deposits can be made the same day if they are confirmed by 8 p.m.
• You can send and receive money in a variety of methods without being physically present in the bank.
• There are no limits on how many e-deposits you can make.
• A two-year contract and a monthly maintenance fee of $25 or $50, depending on the account, are required for Chase QuickDeposit.
• A $15 monthly fee is charged although it can be waived by linking your account to a debit card from another bank or making qualifying transactions.
- Spark Business Unlimited Checking
Looking for a new bank account? Capital One offers a variety of banking options, including in-person visits and internet banking. There’s particularly a lot to gain from a Spark business account. First, free inbound domestic wires per month, second, $0-fee cash deposits, unlimited business transactions, $0 monthly fees, 5 free international wires, and many others.
If you open a business bank account for your LLC, you’ll also get two free basic checking accounts. A $35 monthly fee is charged, although it can be avoided if the account has a minimum 30-day average balance of $25, 000. The Spark Business account also has a $15 monthly charge but this can be eliminated if you keep a minimum 90-day average balance of $3,000 or a minimum 30-day average amount of $2,000.
Because every business bank account with Capital One is FDIC-insured you can bank with them knowing your money is safe. Each business account is insured up to $250 000. To open a Spark Business Unlimited Checking account, all you need is $250 and you can access over 40, 000 fee-free Capital One and Allpoint ATMs.
• There are no limits to the number of monthly commercial transactions that can be made.
• Incoming domestic phone connections are free.
• Free business debit cards
• It’s never been easier to pay your bills online.
• 2 free basic checking accounts
• Overdraft cost of $35 (Could be waived with linked small business deposit account).
• $35 monthly fee (can be waived as above).
• Designed for businesses with cash deposits of less than $40,000 per month.
- Bank of America Business Fundamental Banking
Bank of America is the third-largest bank in the United States in terms of branch locations, and it’s a great option for LLC owners who want to contact their clients more. The Business Advantage Fundamentals account contains features like a virtual financial advisor, digital debit cards, Zelle, and QuickBooks, all of which help you run your business more efficiently.
A Bank of America credit card can also provide several perks, including fraud protection and transaction security. Each business debit card from Bank of America comes with a $0 liability guarantee. With the Business Advantage Fundamentals account, you may enjoy up to 200 teller transactions for free as well as a $0 liability guarantee and 24/7 access to Bank of America’s fraud department.
Capital One’s Preferred Rewards for Business is an account is for small and medium-sized enterprises with a checking account and a three-month combined daily average balance of $20 000 or more. If you keep a $5,000 monthly average amount or make at least $250 with your debit card each month, you can avoid a $16 monthly charge. Moreover, if you maintain a monthly average balance of at least $15 000, you can avoid the charges by upgrading to a better business account.
• In-person banking is available in every state in the United States.
• Integration with QuickBooks.
• Zelle is a prepaid card company that accepts both business and electronic debit cards.
• The fraud department is available 24 hours a day, 7 days a week.
• You can apply for an account in person, over the phone, or online.
• Incoming wires and stop payments may incur additional charges.
• The primary disadvantage is a $16 monthly fee, which is removed if you use the debit card at least $250 per month or keep a combined average monthly amount of $5000.
- BlueVine Business Checking
A BlueVine Business checking account comes with FDIC insurance of up to $250 000 per account through The Bancorp Bank, 0 monthly fees, no insufficient funds fees, and unlimited transactions. With such an account, you can make an unlimited number of transactions without any monthly fees or overdrafts. BlueVine offers a 1.0% interest rate on the first $100,000 in your account, which is one of the best rates for business checking accounts.
It also gives you two free checkbooks and requires no minimum deposit or balance. Despite the lack of physical locations, you may use the mobile app to deposit checks and cash them at over 90,000 Green Dot retail locations. Payments and external account transfers can be made through the BlueVine web dashboard, but outbound wire transfers are expensive, going for $15 per transaction. Furthermore, there is currently no option to receive incoming wire transactions.
Thanks to a relationship with MoneyPass, however, BlueVine checking account customers can withdraw money for free from over 38,000 ATMs around the country. Out-of-network ATMs may be charged a fee that is determined by the proprietor even if the transaction is not completed.
• (2) Checkbooks are free.
• There are no monthly fees with this free business checking account.
• The first $100,000 in your bank account earns 1% interest.
• There is no requirement for a minimum deposit or balance.
• Only available on the internet.
• Incoming wire transfers will not be accepted.
• The charges for outgoing wire transfers are $15.
• There aren’t any physical locations.
• Out-of-network ATM costs may apply.
- Wells Fargo Initiate Business Checking Account
For businesses looking to grow exponentially, this checking account is an excellent option. Business owners can continue to grow with Wells Fargo by upgrading to the Navigate and Optimize accounts, which offer better future benefits. Wells Fargo also has the most branch locations of any brick-and-mortar bank, so if you like to handle your business accounts in person, this is the bank for you.
The $10 monthly fee for the Initiate business checking account can be removed if you keep a daily amount of at least $500 or an average monthly level of at least $1,000, which is on the lower end of the banks examined here. Moreover, to open an account, all you need is $25.
Wells Fargo also offers fraud monitoring and no-Liability debit card protection and for illegal or unauthorized purchases. Better yet, there are no charges for in-cash deposits worth $5,000 for every fee period just as there are no fees for the first 100 transactions.
ATMs that accept digital wallets are included in the card-free ATM access program. However, non-Wells Fargo ATMs charge a $2.50 processing fee. Incoming wire transfers, electronic direct deposits, and even cash can all be received the same day, saving businesses time and money.
• Complete purchases and receive support through the mobile app, online, or physically.
• Fraud detection and prevention
• You’ll be able to upgrade your checking account as your company expands.
• Free online and mobile banking technologies.
• Each charge period’s price per transaction is $0.50 after the first 100 transactions.
• If you deposit more, the cost is just 0.30% of your total amount, up to $5,000 per year.
• Each cash withdrawal made at a non-Wells Fargo ATM is subject to a $2.50 fee.
What Makes These Business Banking Accounts Recommendable?
To find the finest business checking accounts, we tested hundreds of online, regional, local, and national banks. When comparing the various checking accounts, the following variables were taken into account:
• ATM networks
• Balance requirements
• Customer feedback
• Rates of interest and fees
• The possibility of obtaining a credit card number
• Bonuses and special discounts
The bulk of the business checking accounts on this list are either insured by the FDIC or are FDIC members. Even if your bank falls bankrupt or insolvent, your company is secure since you may be covered by the Federal Deposit Insurance Corporation up to $250,000 per person.
Note that this information is for educational purposes only and may be out of date. Fees and rates are also subject to change at any time, and current information may not be available. Deposits may also be required, amongst other criteria before creating an account for your LLC. Earnings also differ from bank to bank and are determined by bank balances and associated costs.
What Type of Business Banking Account Is Right For You?
The first step in choosing the best business bank account is to determine what you consider to be the most important features. Understanding your non-negotiables will help you decide which bank account is right for you, whether it’s free ATM access, support resources for small and medium-sized enterprises, mobile banking features, or easy account access.
Compare your selections when you’ve narrowed your choices down to three or fewer banks. The advantages of one bank may make it preferable to the others. Alternatively, you might phone instead of going through automated hurdles to speak with a real person. Comparing and contrasting each company may assist you in determining which business checking account is best for you.
Finally, if you haven’t already done so, compare client comments and user reviews to select a company checking account winner. Reviews can reveal how banks handle and resolve issues, as well as estimated wait times if you have to call in. Because there are so many options, finding the right business bank account may take some time. If you must change, though, you will have a wide range of options to choose from.
Frequently Asked Questions (FAQs)
- Does an LLC need a business bank account?
A firm that is incorporated or registered as a limited liability company (LLC) should have a separate bank account from the owner’s personal account, but it is not necessary to do so. The LLC’s name must match the name of the corporate bank account.
- Is it possible to open an LLC with a personal checking account?
If you open a business checking account for your LLC, keep it separate from your personal accounts and use it just for business purposes. Instead of a personal checking account, open a business bank account.
A corporate banking account has several advantages over a personal checking account, including purchasing power, access to loans and lines of credit, professionalism, and different financial protection.
- What are the requirements for an LLC to open a bank account?
You’ll need the LLC’s employer identification number (EIN) or tax ID, formation papers, ownership agreement, and a current business license to open a business bank account.
Additional documents may be required by some institutions and states, so bring your own driver’s license, name, birth date, and social security number as the account holder.