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It’s essential for LLC owners to differentiate between their personal and business finances. By having a distinctive business bank account for LLCs, it’s easier to manage accounting, develop trustworthiness with customers and suppliers, and secure their personal properties from potential business responsibilities.
In this write-up, we examine the most suitable business bank accounts for LLCs and why they are the top choice. If you’re looking for a quick answer, you can straight-away take Bluevine as our top pick. It offers the best APY on checking accounts and charges 0 maintenance fees!
10 Best Business Bank Accounts for LLCs
- Bluevine – Best Business Bank Account for LLCs Overall
- Novo – Best Low-Fee Business Bank Account for LLCs
- American Express – Best for LLCs for Membership Rewards
- Capital One – Best for LLCs for Unlimited Transactions
- Bank of America – Best for LLCs for Traditional Banking
- Axos – Best Full-service Online Business Bank Account for LLCs
- Lili – Best for One-Person Businesses
- US Bank – Best for Lending Options
- Oxygen – Best for Freelancers
- Chase Business – Best LLC Bank Account for Merchant Service
To order business bank accounts for LLCs, we followed a ranking methodology that assessed multiple elements. Firstly, we examined the kinds of accounts provided, including checking, savings, and merchant services.
We also examined the charges connected with each account, such as month-to-month maintenance fees, transaction fees, and ATM fees. Moreover, we analyzed the bank's standing and customer service, including digital banking options and access to face-to-face help.
Lastly, we looked at any unique characteristics or advantages offered by the bank, such as incentives programs or overdraft protection. By bearing in mind all of these components, we were able to rank business bank accounts for LLCs in an inclusive and impartial manner.
|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 extensive network of branches and ATMs, 24/7 customer support||Bonus cash offers for new accounts, mobile banking app, fee-free ATM access|
Bluevine – Best Business Bank Account for LLCs Overall
Star rating: 4.9/5
Bluevine offers a comprehensive business checking account that is suitable for small businesses. You can pay bills, get quick startup business loans, and gain an attractive rate of interest without any monthly fees.
The application procedure is straightforward and can be finished in a matter of minutes, potentially allowing you to access your account on the same day. This makes BlueVine one of the finest choices for startups and companies.
In addition, you can create up to 5 sub accounts in order to better manage your business finances. Each sub account is allocated its own particular account number and you receive interest on all accounts (up to a total balance of $100,000).
Why we chose it: This is an uncommon benefit, since the majority of commercial checking accounts do not provide complimentary checks. It is super beneficial for those small enterprises that prefer to pay suppliers and staff members in a more traditional manner. Every account holder will be supplied with two free checkbooks.
- MoneyPass ATMs don't charge fees; the Green Dot network is used for cash deposits (fees and limits apply)
- Unlimited transactions without fees; no overdraft charges
- There are no ongoing costs or opening deposits required
- Cash deposits are restricted to $2,000 per day and $500 per deposit. The maximum service charge for a Green Dot deposit is $4.95
- No shared accounts
- Charge for using ATMs outside of the network
BlueVine stands out in the industry by not levying service, non-sufficient funds, or deposit fees. You'll never have to pay extra for more transactions than you need. Additionally, there are no minimum deposits or balance requirements with BlueVine.
Also, BlueVine provides its customers with a fantastic annual percentage yield (APY) on their checking accounts, which may reach up to 1.5% on balances ranging from $0 to $100,000. Account holders who make $500 in debit card purchases each month or receive $2,500 in client payments each month into their checking accounts are the only ones eligible for this.
Also, you may have access to commercial lines of credit with a maximum of $250 000 at 4.8% APR. You may often get a judgment in less than five minutes thanks to the quick and simple application procedure. For opening, maintenance, prepayment, or account termination, BlueVine levies no fees.
Novo Business Banking – Best Low-Fee Business Bank Accounts for LLCs
Star rating: 4.8/5
Novo's user-friendly interface, simple sign-up procedure, and streamlined digital payment options make it an excellent business bank for Connecticut. In less than 10 minutes, you may fill out and submit your application, and you'll get a prompt answer with any information that's lacking. You may use your checking account as soon as it has been authorized and you make your $50 minimum opening deposit.
You can combine your company checking with hundreds of applications, like Shopify, QuickBooks, and Slack, using the high-tech Novo account. You can control all aspects of your business life in one location. Keeping a handle on your finances is much easier when you have instant access to your banking information and recent activities. The software also provides you with 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 business bank account is a wonderful choice since it offers limitless integrated invoicing.
- Unlimited transactions without fees
- Worldwide refunds of all ATM costs
- No minimum opening deposit or monthly expenses
- No recurring payments allowed with bill pay
- Unable to deposit cash
- Cannot transmit wires internationally or domestically
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. Moreover, Novo reimburses all ATM costs and has FDIC protection via Middlesex Federal Savings, F.A.
Like Bluevine, Novo has no fees associated with its business checking account. Unfortunately, you'll have to forego interest in exchange. Your deposits in your checking account earn no interest from the bank.
No loan alternatives are provided by Novo. It just provides checking account services;lines of credit, no loans, or even business credit cards are available.
American Express Business Checking – Best LLC Bank Account for Membership Rewards
Star rating: 4.8/5
The American Express Business Checking account adheres to a more recent trend in business banking by providing its customers with a greater number of services that are free of charge and by eliminating the need for a minimum balance in the standard business checking account.
Via their payment services, you may also charge an infinite number of transactions. If you're searching for Kabbage business checks, you may be startled to learn that American Express bought Kabbage.
Company owners who wish to get a bank account and a line of credit can consider American Express Business Checking. Through Kabbage Financing by American Express, it provides quick loan approval for small companies for lines of credit 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 assist stop fraud and safeguard their customers' financial interests.
- Simple credit line; no prepayment fees
- Simple application procedure
- With no minimum balance
- Not supported for cash deposits
- Only accessible to American Express users
- Only iOS supports mobile check deposits
There are no monthly fees with American Express Business Checking. Both a minimum initial deposit and online transaction fees are not necessary. All MoneyPass ATMs are free to use, however using an ATM from a different network will set you back around $3. American Express does not support cash deposits.
Even though Bluevine offers a nice 1.5% return, this bank account boasts one of the best APYs, paying 1.30% on balances up to $500,000 instead. The APY for American Express Business Checking is the second-highest on our list, however it falls short of Bluevine's.
The benefit of creating an account with American Express is that Kabbage Financing also provides quick loan approval for credit lines up to $250,000, which is the finest feature. 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.
Capital One – Best LLC Bank Account for Unlimited Transactions
Star rating: 4.7/5
For business checking accounts, Capital One provides two alternatives. With no restrictions on electronic deposits, mobile and online banking, and a minimal minimum balance requirement to avoid penalties, the Basic account is exactly what it says it is. Those with more intricate company financial needs may benefit from the Unlimited Business Banking Package, which offers two separate Basic Accounts.
Cash back and travel rewards credit cards for businesses are also available from Capital One. It's fantastic if you travel internationally for work since none of their credit cards charge foreign transaction fees.
One of the bank's main attributes is its knowledgeable and attentive client service. If you're considering it, keep in mind that there are just a few states where Capital One offers business checking. To open a business checking account, you must also physically visit a branch.
Why we chose it: Similar in scope and cost are the services that Capital One provides to other major banks. If you like to handle your financial transactions in person, this is a fantastic alternative. The ATM network of Capital One is fairly extensive. There are over 70,000 fee-free ATMs in the MoneyPass and Allpoint networks available to you.
- Two Basic accounts are included with Unlimited Checking
- Seasoned assistance from a big bank
- Services for self-service escrow
- Must go to a branch to open an account
- Fees waived for high balances
- Only accessible in certain states
The $15 monthly cost for Capital One's Basic Checking account is high when compared to American Express's $0 maintenance fee. But, if your amount is more than $2,000, the charge may be eliminated. For deposits of up to $5,000 each month, cash deposits are free. For this product, standard wire transfer costs are assessed.
A minimum of $25,000 in the account is required to avoid the $35 monthly cost associated with the Unlimited Checking account. No restrictions apply to free cash deposits into this account. Incoming wires are all uncharged. Also, each month, you are entitled to five free wire transactions.
With its checking account, Capital One does not provide an APY. Yet, a savings account offers interest at a rate of 0.2%.
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. It also offers SBA 504 and SBA 7(a) loans if you choose a longer payback period, stable rates, and less equity required.
Bank of America – Best LLC Bank Account for Traditional Banking
Star rating: 4.67/5
The perfect example of a conventional bank is Bank of America. At any moment, you may choose between two distinct preferences inside your Business Advantage Banking account. This enables you to be completely adaptable as your company demands change.
Using programs like Google Analytics, Expensify, QuickBooks and others, you may link your bank account. This gives you a clear picture of your performance and enables 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 can help.
Why we chose it: A well-established selection of business banking alternatives is provided by Bank of America. It's a fantastic choice if your company deals with high cash flows.
- Connected with the money-transfer service Zelle
- Payroll solutions
- Accounting software and online accounts are integrated
- High supplemental costs
- Charge for using ATMs outside of the network
- There is no cost-free checking account available to businesses
Bank of America offers two different types of business checking accounts named Business Advantage Basics and Business Advantage Relationship Banking.
The Basics account requires a charge of $16 per month, but it can be bypassed if you have an average balance of $5,000, do at least $250 in new net eligible debit card transactions per statement cycle, or enroll in the Preferred Rewards for Business program.
The Relationship checking account has a fee of $29.95 each month, but it is waived in the event that the cumulative average balance across all accounts is more than $15,000. A $10 charge for establishing a savings account can be avoided if the daily balance is $2,500 or higher.
No interest is paid on Bank of America checking accounts. The business savings account's 0.01% APY yield is very low compared to Bluevine's 1.5% return, and it offers virtually little interest at all.
Bank of America has multiple financing options like business credit cards, loans from $25,000 to $250,000, and secured lines of credit beginning at $25,000. However, to be considered qualified for these opportunities, your credit score must be at least 700.
Axos – Best Full-service Online Business Bank Accounts for LLCs
Star rating: 4.61/5
Axos is a virtual bank since it doesn't have any physical facilities and solely provides online business banking. Unlike several of its rivals, it is 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 Checking Accounts" online.
Axos is an online-only bank that is simpler to use and navigate than the majority of conventional banking solutions. It takes great pleasure in providing a superior online appearance and service for its clients, making it a fantastic choice for online or small enterprises. Sadly, if you maintain a minimum balance of $5,000, you can only earn an APY of up to 1.01% for interest checking or 0.20% for basic 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 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.
- Greeting bonus for new clients (terms apply)
- No minimum opening deposit or monthly expenses
- 24/7 client assistance
- All ATM costs are automatically refunded (domestic)
- Unlimited transactions without fees
- Cash deposits made at AllPoint and MoneyPass ATMs
- No physical places
- Offers a lower APY than competitors
- Only a few integrations
Business bank accounts from Axos come in four different categories. Business checking accounts with no monthly service fees, business savings accounts,business premium savings and business interest checking. 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.
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 is no APY on the basic checking account. The interest-bearing checking account's annual percentage yield is 1.01%. When you choose to save with Axos, you will get a yield of 0.20% on either the Basic or Premium Business Savings account depending on which option you choose
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.
Lili – Best LLC Bank Account for One-Person Businesses
Star rating: 4.57/5
You may enjoy how straightforward Lili is to use if you just have a single-member LLC. It is a single platform with accounting, taxes and banking all rolled into one. 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: This system also produces expenditure summaries and fills out your yearly tax document for you.
- Provides a program to reduce tax payments
- Divide corporate and individual dealings in a straightforward manner
- Generate and distribute invoices
- Unfavorable to larger firms
- There is no provision of loans or business related facilities
- A financial service provided by Choice Financial Group that operates online
Lili supplies basic financial services at no cost, similar to Bluevine, the top business bank account for LLCs, with no monthly fees, overdraft fees, ATM expenses, or minimal balance needs. However, since you get more services with Lili Pro, there is a fee of $4.99 charged monthly.
On the regular plan offered by Lili, there is no annual percentage yield. If you upgrade to the Pro package, you can earn a maximum of 1% APY with a savings account. Additionally, the Automatic Savings feature allows users to establish an automatic transfer of no less than one dollar per day to their savings account.
Lili offers a relatively small selection of financing alternatives since it is not a conventional bank. To sum it all up, you can only make use of a $200 overdraft on debit card transactions without incurring any fees.
US Bank – Best LLC Bank Account for Lending Options
Star rating: 4.5/5
US Bank is one of the only big physical banks which provides a no-cost Business Bank Account for LLCs. The Silver Business Checking account has no charges for management or balance requirements, making it a suitable option for corporations with not many operations every month, such as a single major customer contractor.
US Bank has more than 2,000 offices primarily on the western side of the country. It is a great selection for minor local businesses that favor face-to-face banking and human support. When firms are prepared to expand their LLCs, US Bank also offers small business loans (including SBA).
Why we chose it: US Bank has a great selection of Business Bank Accounts for LLCs which make it a good choice for businesses with a limited number of transactions. Its lending options are particularly popular with customers and so it is recommended to sign up right away.
- There isn't a monthly service charge for the Silver Business Checking account
- You may create a business account totally online
- Mobile applications and in-store payment terminals are only two examples of optional payment processing services - extra charges are due
- Greeting bonus for new clients (terms apply)
- Fees for transactions
- Large penalty for early withdrawal from CDs
- Checking account APY is zero, while savings account APY is quite low
US Bank offers Business Bank Accounts for LLCs in three different packages. The Silver Business Checking Account has no monthly fee and 125 free transactions. Each additional transaction will incur a fee of fifty cents if the limit of 125 is exceeded.
The Gold package comes with a $20 fee for the month and forty-five cents per transaction once the total exceeds 300. The Platinum package is priced at thirty dollars for the monthly fee and forty cents for each transaction after 500. All of these fees are significantly higher than those offered by Bluevine, which have no fees at all.
For Business Bank Accounts for LLCs, deposits made into checking accounts with US Bank don't give any yields. You may open a savings account with it and deposit as little as $25 to start earning 0.01% APY.
This banking institution provides an assortment of Business Bank Accounts for LLCs, lines of credit, and credit cards for business use. US Bank credit cards include perks such as cash back, no yearly fees, small interest rates, and reward programs.
It also has a wide variety of small business loans for you to select from depending on your business's needs. With Fast Online loans, you can take out up to $250,000, and with loans backed by the government, you can borrow a maximum of $12.375 million.
Oxygen – Best LLCs Bank Account for Freelancers
Star rating: 4/5
At first glance, Oxygen's website may appear to be a fashion magazine or store, but it is actually an online-only business bank that offers Business Bank Accounts for LLCs. It has a free option, as well as choices with an annual fee. For freelancers who need to separate their personal and business finances, Oxygen is the ideal choice.
Oxygen offers four different tiers of business checking, depending on your monthly deposit and spend. The basic tier is gratis and doesn't have a minimum balance demand. Advanced tiers include methods to waive the yearly fee after the first year.
The accounts come with a number of benefits, such as cashback at partner merchants for items like meals, fuel, rideshare, and delivery. Plus, you can get a competitive interest rate on your savings goals. On top of this, you can also enjoy additional advantages, like cell phone protection, lost or delayed luggage coverage, and car rental waiver.
Why we chose it: Oxygen is using cutting-edge technology and a fashionable approach to redefine the banking industry for consumers and businesses by providing a wide range of profitable and feature-rich solutions, including Business Bank Accounts for LLCs.
- Make virtual, one-time use debit cards
- Get 5% Cashback on your purchases
- Savings for businesses with 1% AP
- Higher tier accounts have an enrollment fee
- No deposits in a virtual bank
- No possibilities for lending
Oxygen offers Business Bank Accounts for LLCs which are divided into four loyalty tiers. The Earth tier is the most basic and does not come with any fees, offering up to 0.50% APY on savings.
The Water tier has an annual cost of $19.99 and includes additional features in addition to 1.00% APY on savings. Finally, the Air and Fire tiers come at $49.99 and $199.99 per year, respectively, and feature APY of 2.00 and 3.00% on savings.
Oxygen is offering quite attractive interest rates with its Business Bank Accounts for LLCs. Depending on the tier, you can receive an annual percentage yield (APY) of 0.50%, 1.00%, 2.00%, and 3.00% in the Earth, Water, Air and Fire elements respectively.
These rates are more generous than those offered by Bluevine and American Express Business Checking, which max out at 1.5% and 1.3%, respectively.
Oxygen is a mobile banking application, not a complete bank, and therefore it does not offer any sort of loan services.
Chase Business – Best LLC Bank Account for Merchant Service
Star rating: 3.8/5
Chase Business Banking is one of the leading banking institutions in the United States, with a great selection of branches, products, and customer service. It offers an exclusive Chase Business Complete Banking account that encompasses both checking and payment processing - perfect for LLCs that accept credit card payments, as you don't need to open a separate merchant account, thus saving time and hassle.
Unfortunately, Chase is at the bottom of the list when it comes to potential fees and the app. However, it still has potential. Individuals who desire a more advanced online experience will find another option more attractive, while those who usually receive cash from customers and are required to deposit money into their accounts often will find Chase to be worth considering.
Why we chose it: Business Bank Accounts for LLCs such as the Chase Business Complete Checking account carry no limit on electronic deposits and offer a $300 sign-up bonus with a minimal $15 monthly fee. It also provides the ability to accept credit card payments with the Chase mobile app through Chase QuickAccept℠. If your LLC grows beyond the Chase Business Complete Checking account, you have the option to upgrade to either the Performance or Platinum Checking accounts..
- Globally distributed and international
- Protection against fraud
- Use the Chase mobile app to accept payments
- More costs
- Low minimum balance required to avoid costs
- In savings accounts, the APY is unclear
Chase has three kinds of business checking accounts to choose from - Chase Business Complete Checking, Chase Performance Business Checking, and Chase Platinum Business Checking. With a minimum daily balance of $2,000, the first option's monthly maintenance fee can be waived off.
The second option requires a combined average beginning day balance of $35,000 to waive off its $30 monthly fee, while the third option needs a combined average beginning day balance of $100,000 to get rid of its $95 monthly fee.
All of these banks for LLC accounts come with features like a business debit card and the ability to make cash deposits at their physical locations. However, unlike Bluevine, Chase does not provide a free monthly maintenance fee option.
Business Bank Accounts for LLCs do not have an Annual Percentage Yield (APY) associated with them from Chase Bank. Business owners may be able to earn interest on their funds through the Chase Business Savings account, but they must contact the bank to find out what APY they will receive.
Chase for Business provides numerous business bank accounts for LLCs, which include business credit cards, small business loans, and lines of credit. The lines of credit are available between $10,000 and $500,000, while loans start at $5,000.
Ranking Methodology for the Best Business Bank Accounts for LLCs
Assessing the best business bank account for LLCs necessitates taking multiple significant elements into account. The following outlines the procedure for ranking best business bank accounts for LLCs in detail:
- Fees—Transaction, Minimum Balance, Early Termination, Daily Batch: When deciding on Business Bank Accounts for LLCs, one of the primary concerns are the recurrent maintenance fees and other costs that can accumulate. Banks have tried to attract small business owners by waiving monthly charges or eliminating monthly fees completely. The right business checking account for your needs won't charge fees on essential aspects for your business, such as allowing unlimited transactions or free cash deposits each month.
- Interest Rate—APY on Checking and Savings Accounts: Business Bank Accounts for LLCs may offer an attractive APY on their checking accounts, with some banks offering up to 1.5%. However, it is important to be aware that some banks may offset your interest revenue by applying monthly maintenance or transaction charges. You can also gain interest on savings accounts, while you can make interest on your main checking with numerous of the best internet business bank accounts.
- Account Features—Online Banking, Mobile Banking, Bill Pay: There is a variety of accounts that provide dissimilar services, and LLCs should consider which services are most imperative to their organization. This encompasses web-based and portable banking, payment of bills, distant deposit, overdraft insurance, and other facilities that can assist the business in overseeing its finances more productively.
- Lending—Lines of Credit, Credit History: Every individual has a personal credit rating, however a small business requires to make its very own credit background too. Furthermore, entrepreneurs might require little loans for payroll, invoicing, or bigger loans for new machines or a bigger space.
It might be simpler to get a loan if you already have a business checking account with a certain organization. Creating a relationship with a certain organization can also increase the chances of obtaining a loan with bad credit.
It is important to note that while national and online banks are popular, local community banks and credit unions may also be a good option, especially if you anticipate needing a loan. Local banks typically have a personal connection which can be helpful, especially for those businesses with a more specialized focus.
- Security—Multi-factor Authentication, Encryption, Fraud Detection: When deciding on a bank, LLCs should evaluate its security measures, such as multi-factor authentication, encryption, and anti-fraud protection. Additionally, they should look into the bank's reputation and its compliance with industry regulations concerning security.
Best Business Banking Account for LLCs – Buying Guide
If you need further information, this portion is designed to answer any of your questions.
Why LLCS Need a Business Bank Account
Owners of LLCs must have a different business banking account from their individual checking account. Legally, LLCs are distinct from the proprietors. This implies you are safeguarded from individual liability for business debts and lawful claims. If you do not have this separation, the court can go after your personal assets if you are sued.
In order to preserve the legal distinction, you are legally obligated to divide business funds. If you intermix personal and business finances, a court may decide that the LLC is just an outward appearance and hold you personally liable.
How To Open a Bank Account As An LLC
If you choose to create a limited liability company (LLC) with multiple shareholders, it is critical to look for a financial institution that offers joint accounts. It is vital to supply the necessary information for this.
- State where your LLC is registered
- Personal information of the business owner (SSN, DOB)
- Date of LLC registration
- Primary business location
- Business name and address
- EIN (Employer Identification Number) or SSN if you’re a single-member LLC
What Other Documents Does the Bank Need to Open My LLC Bank Accounts?
The paperwork that is needed to be submitted to the bank for LLC Bank Accounts may differ from one institution to another, but here are the documents you should be prepared to provide.
- LLC Operating Agreement
- LLC Articles of Organization or Certificate of Formation
To be sure that you have all the necessary documents for opening an LLC Bank Account, it's best to contact the financial institution or check their website. This will stop you from having to deal with any inconvenience. It is possible that some banks will allow you to open a commercial checking account online as a limited liability company, while others may need all the proprietors to make an appointment with a bank representative.
Best Bank Accounts for LLCs - Frequently Asked Questions (FAQs)
Can I use my personal bank account for my LLC Bank Accounts?
It is technically possible to use your personal bank account for your LLC, but we strongly suggest that you do not. Establishing a Limited Liability Company is meant to safeguard your personal possessions if something goes wrong with your business. However, if you use your personal bank account for your LLC, there is potential for the authorities to pursue your personal assets, which defeats the purpose of LLC Bank Accounts.
Do I Need a Separate Bank Account For My LLC?
When you establish an LLC, it creates a divide between your individual and enterprise finances. After the development, a Limited Liability Company is viewed as a distinct legal entity from its holder. This is the main reason why it's suggested to open a distinct bank account for your LLC.
It is not legally required to open a separate LLC bank account, but to make financial management easier and to avoid issues in the future, it is wise to have different accounts. Additionally, you can quickly open a business account with free online banks like BlueVine and start taking advantage of the perks.
How Much Does It Cost To Open a Business Account?
The overall cost of an LLC Bank Account can differ depending on the financial institution. It is possible that you won't have to pay an additional fee for setting up the account. However, you may be charged on an annual or monthly basis. Additionally, some banks require an initial balance, which does not necessarily constitute a fee.
Why Does an Anonymous LLC Need a Separate Bank Account?
An anonymous LLC, also known as a "hidden" LLC, is an LLC that does not disclose its members' identities to the public. Although the specific requirements may vary depending on the state in which the LLC is formed, generally, an anonymous LLC must have a registered agent who is authorized to receive legal documents and other correspondence on behalf of the LLC.
One of the primary reasons why an anonymous LLC needs a separate bank account is to maintain the anonymity of its members. By separating the LLC's financial transactions from the personal finances of its members, the LLC can help ensure that its members' identities remain confidential.
Bottom Line on Best Business Bank Accounts for LLCs
Banking may seem like an intimidating task, but LLC Bank Accounts can help you gain back some control. When looking into your options, it's important to figure out which conditions best meet your needs. As a small company, you have the advantage in this situation.
The ideal bank accounts for LLCs may vary depending on the specific requirements of the company. Popular accounts such as Novo, Bluevine, and American Express are known for their affordable fees, borrowing rates, and amenities.