The Best Business Bank Accounts for an LLC

Best Business Bank Accounts for an LLC

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Picking the right bank for your business banking needs can have a significant impact on the success of your business. But how do you choose the best business bank account for your needs?

In this article, we will outline some of the best business bank accounts currently available. 

All of the small business checking accounts that have made it onto our list have a few basic features, including mobile or online banking, bill pay services, and basic merchant services. 

The Best Business Bank Accounts for an LLC

The Best Business Bank Accounts Compared

Brand nameType of AccountSends Invoices?Overdraft Fees?
NovoCheckingYes$27
NorthOneCheckingYesNone
AxosChecking & SavingsNo$25 ($75 in one day)
BluevineCheckingNoNone
KabbageCheckingYes (waitlist)None
MercuryChecking & SavingsNoNone

Novo

Novo is an online banking platform with services dedicated to small business owners. They offer a small business checking account backed by Middlesex Federal Savings. 

  • Monthly Fee: None
  • Minimum Deposit: $50 
  • Minimum Balance: None
  • ATM Fees: Refunds all fees charged by ATMs (unlimited)
  • Interest Rate: 0%

The account also comes with several additional perks and features, including:

  • Free mailed checks and incoming wire transfers
  • A virtual debit card and a physical card
  • Exclusive savings with their partners, i.e., 40% off 6 months with QuickBooks
  • Integration with commonly used business apps like Stripe, Shopify, etc. 

Novo also offers two additional self-branded features, Reserves and Novo Invoicing. 

Novo Reserves allows you to set budgets and allocate funds for specific uses such as payroll, taxes, etc. 

Novo Invoicing is a feature that will enable you to send professional invoices to your customers/clients. There is no limit on the number of invoices you can send, and this service is 100% free. 

While Novo does not charge fees for most of its services, they do charge a $27 overdraft fee. This fee applies when you have insufficient available funds. 

Novo is great for freelancers and online businesses. If you have a brick-and-mortar business or deal a lot in cash, Novo probably isn’t the best fit. 

Novo makes getting a small business bank account easy, quick, and free. If you just need a simple small business bank account, this is the company to go with. 

Try Novo

NorthOne

NorthOne is another company that offers dedicated services to small business owners and freelancers. 

They provide business owners with a single deposit account that works like a business checking account. The funds in your account are FDIC-insured through The Bancorp Bank. 

  • Monthly Fee: $10
  • Minimum Deposit: $50 
  • Minimum Balance: None
  • ATM Fees: Free ATM services through MoneyPass
  • Interest Rate: 0%

In addition to the basic features of the account, NorthOne offers additional mobile banking services with your account setup. These include:

  • A free invoice app for creating and tracking invoices
  • An impressive integrations list with other business apps for e-commerce, accounting, and more
  • Virtual envelopes for budgeting your taxes, rent, and more

Another standout feature is that NorthOne is unusually accessible for an online banking platform. They offer customer services through live chat, phone, and email in both the US and Canada. 

There are a few fees to be aware of with the NorthOne deposit account. 

All incoming and outgoing wire transfers incur a $15 fee. 

If you can stick to the MoneyPass ATM network, you can avoid ATM fees. However, you may incur ATM fees if you use an out-of-network ATM. These fees are not reimbursed. 

NorthBank is the best online banking platform if you use ATMs and deal with cash. The MoneyPass network includes traditional bank ATMs such as US Bank and also many credit unions. It also includes the ATMs in the convenience store 7 Eleven.

This is a big deal because most online banks use the AllPoint network, which is pretty much limited to stores like CVS, WalGreens and Target. In other words, they are stores (not standalone ATMs) where you have to get cash at the cash register – awkward! 

The obvious downside to NorthOne is that they charge a monthly fee. 

For some small business owners, it may be worth it for a great ATM network, phone support, and a rich list of financial software integrations.

Try NorthOne

Axos

Axos is an FDIC-insured institution with a full range of personal and business banking products. 

To help serve small business owners, they offer two different business checking accounts and two different business savings accounts. 

Basic Business Checking

  • Minimum Deposit: $0 
  • Minimum Balance: None
  • ATM Fees: ATM fee reimbursement (unlimited)
  • Interest Rate: 0%

Business Interest Checking

  • Minimum Deposit: $100 
  • Minimum Balance: $5,000 average daily balance
  • ATM Fees: ATM fee reimbursement (unlimited)
  • Interest Rate: up to 0.81% APY

Business Savings

  • Minimum Deposit: $1,000 
  • Minimum Balance: $2,500 average daily balance
  • Interest Rate: 0.20% APY

Business Premium Savings

  • Minimum Deposit: $25,000 
  • Minimum Balance: None
  • Interest Rate: up to 0.20% APY

Many of Axos accounts come with added features including

  • Sign-up bonuses
  • Initial Free checks
  • Overdraft protection (with a linked account)
  • Support of QuickBooks

Axos also offers small business owners the opportunity to provide affordable banking service to their employees through their Workplace Banking program. 

And, if you are looking for a small business loan (SBA loan), Axos can help you find financing for your launch, growth, and daily operations. 

Try Axos

Bluevine

Bluevine is backed by the Coastal Community Bank and offers FDIC-insured small business checking accounts. 

The one checking account they offer comes with various cost-saving and money-making features. 

  • Monthly Fee: None
  • Minimum Deposit: $0 
  • Minimum Balance: None
  • ATM Fees: Free ATM services through MoneyPass
  • Interest Rate: 1.5% APY

Earning interest on your checking account does come with conditions. You’ll need to spend $500 a month on your debit card or receive $2500 a month in customer payments. And interest earnings are limited to a $100,000 account balance. 

Additional features of the account include:

  • Two free checkbooks
  • An unlimited number of transactions
  • Integration with QuickBooks
  • Like NorthOne, Bluevine uses the esteemed MoneyPass Network

Bluevine also provides a unique budgeting resource with the creation of sub-accounts. You are limited to two sub-accounts, each with its own account number. This allows you to track your spending and limit access to your main account. 

While Bluevine does not charge overdraft fees, account maintenance, etc., there are three fees to be aware of:

  1. $15 outgoing wire fee
  2. $4.95 cash deposit fee
  3. $2.50 out-of-network ATM fee
Try Bluevine

Kabbage

Kabbage is backed by none other than American Express and provides small business owners with lines of credit and checking accounts. 

Their checking account, FDIC-insured through Green Dot Bank, was designed for small businesses. 

  • Monthly Fee: None
  • Minimum Deposit: None
  • Minimum Balance: None
  • ATM Fees: Free ATM services for in-network ATMs
  • Interest Rate: 1.10% APY

There are no hoops to jump through to earn the interest rate. However, earnings are capped at a $100,000 account value. For instance, if you have a $150,000 account balance, you will only earn 1.10% on the first $100,000. 

Additionally, the Kabbage business checking accounts offers features for

  • Sending professional invoices
  • Creating up to five reserves/sub-balances
  • Making deposits at retail stores (i.e., CVS)

When it comes to fees, there are a few hidden ones to watch out for. 

  • Out-of-network ATMs – These come with a per-usage fee. Kabbage uses the AllPoint network. As mentioned earlier, this is the network of stores like CVS and Walgreens.
  • Cash deposit fee – up to $4.95, though this varies with location
  • Cash withdrawal fee – $3 per transaction
  • Foreign transaction fee – 3% of transaction total
  • Outgoing domestic wire transfer – $25 for each transfer
  • Checks – $20 for 100 checks

The credit lines that Kabbage offers work a bit like loans, in that they have set repayment terms. And these credit lines are backed by American Express and are reported to the business credit bureaus.

Try Kabbage

Mercury

Mercury is structured a little differently than the other options on this list. They offer a variety of banking products geared towards startups. And many of their features are customizable. 

  • Monthly Fee: None
  • Minimum Deposit: $0 
  • Minimum Balance: None
  • ATM Fees: Free ATM services in the Allpoint Network

As part of their package, they offer a business checking account and savings account. Neither of these accounts charges any kind of fee. 

There is only one fee Mercury charges; a 1% currency exchange fee. All ACH deposits, checks, wire transfers, etc., are free. So this is a totally free business checking account. It is worth noting that cash deposits are not currently supported. 

The package Mercury offers also comes with various other useful resources and tools, including:

  • API access
  • Integration with common business-related apps including Shopify, Amazon, and more
  • Enhanced account security
  • Access to investors and guidance on pitching (through Mercury Raise)

Mercury provides all customers with their cash management tool. This dashboard allows you to quickly view your balance, transaction history, and more. 

You can even view and manage the debit cards on your account. This includes adding cards, canceling cards, adjusting credit limits, etc. 

Furthermore, you can fully customize your account settings. This includes creating a team with various access levels, setting up notifications, managing your integrated apps, fine-tuning your account security, and more. 

Check out this demo Mercury has provided for more information on how the dashboard works.

Try Mercury

Traditional Banks

Traditional banks like Citi, Chase, and Wells Fargo also offer a wide variety of business banking services. This includes not just business checking accounts and loans but also business credit cards, lines of credit, and more.

Big banks also offer a variety of personal credit cards and accounts, as well as account features such as bill pay, merchant services, and more. But these features often come at a higher cost when compared to accounts offered at online banks and credit unions. 

If your business involves retail locations and physical cash, then you probably need to go with a traditional bank (or credit union). This is because making daily physical cash deposits to an ATM probably isn’t going to cut it. 

That being said, traditional banks don’t usually offer the best deals to small businesses.

Chase, for instance, offers different levels of business checking accounts. But as with most large banks, the premium account is geared toward large businesses. And even the basic account has balance requirements that you have to meet to waive the monthly fee.

Wells Fargo also offers several levels of business checking accounts, all with minimum balance requirements or monthly fees. And their base account, Initiate, comes with a $25 minimum deposit. 

Citi’s Streamlined Checking has a $15/month fee and limits you to 250 transactions a month. And you can only waive the fee if you have an average daily balance of $5,000.

Bank of America has its Advantage Relationship account with customizable features for managing access, integrating with QuickBooks, and more, but the monthly fee is $29.95. 

Their Fundamentals business checking account is only $16/month. Still, you have to pay fees for incoming wire transfers, and you are limited to 200 transactions a month. 

They do have ways to avoid the fee as well through becoming a Rewards member or having a certain amount of money if your account each month.

How We Rated These Bank Accounts

Fees were definitely an important consideration in how we rated these banking service providers. Overdraft fees, transfer fees, check fees, ATM fees, and more were all researched. 

After all, what is the point in forking over your hard-earned money to the bank in the form of ‘maintenance fees’ when there are other banks that won’t charge you? 

Access to business-related tools and resources was also considered. 

All of the banks on our list have at least basic mobile banking services, with many offering advanced options. In fact, all of our mobile-only banks offer integration with QuickBooks. 

Account types offered was another consideration. While a few of the banks on our list only offer checking accounts, the rest offer a range of small business accounts including savings accounts, money market accounts, loans, and more. 

Account features were also weighed. Most of the banks we presented have little or no minimum deposits or daily balance requirements. And a few even offer interest-earning potential.

Conclusion

When shopping around for the best business bank account, you want to look at all the fees and features that both the bank account and the bank/credit union offer. 

Perhaps you only need a basic business checking account with online banking and bill pay services. Or maybe you are looking for a whole suite of business checking accounts, business savings accounts, credit cards, merchant services, business credit lines, and more. 

While the option you choose could have a huge impact on your business operations (good or bad), your choice is not set in stone. As your business grows and evolves, you always have the opportunity of selecting a new banking services company to meet your needs. 

FAQs

Which Bank Account is Most Suitable for a Business?

This depends on the size of your business, your industry, and your personal preferences. 

For instance, many banks don’t offer banking services to select industries, i.e., cannabis or gambling. In this case, you may need to find a bank that specifically serves your industry. 

Convenience is also something worth considering. Suppose you already have a well-established relationship with a large bank, like Chase. In that case, it may be easier to go to them for your business banking and lending needs. 

When it comes to account types, you’ll need accurate expectations of your profitability. 

The interest rate on premium business accounts may be attractive. But if you can’t meet the minimum balance requirements, you’ll be stuck paying a monthly maintenance fee. 

If your business is small or still in the startup phase, going with an online-only banking service may be your best bet. Their low/no fee structure and integration with e-commerce and accounting platforms make these accounts an ideal all-in-one option for your fledgling business.

Can I Use My Personal Account for My Business?

You can use personal accounts for your business, but we highly recommend that you don’t

Having your personal finances and business finances managed in one account can create an organizational disaster. How can you track which expenses are personal versus which ones are business-related? 

This organizational mess will likely create a headache come tax time. 

And, if you or your business ever get into trouble (i.e., bankruptcy, being sued, etc.), you’ll have difficulty proving to the courts which income is personal versus business. 

Additionally, many lenders and vendors require you to provide them with a dedicated business banking account. This helps prove that you and your business are separate entities. 

When you are first launching your business, there may be a period where your personal and business finances overlap. This is okay, but you should work on separating them as soon as possible.

How Much Money Should a Small Business Have in the Bank?

This will partly depend on what type of business you have and what kind of expenses you expect to have. 

The general rule of thumb is to have three to six months’ worth of operating expenses in your bank account. 

If your business has very few expenses, you may be able to get away with having $1,000 or less in your business checking account. 

On the other hand, if your business has high vendor or payroll costs, you may need $10,000 or more readily available in your business banking account. 

And don’t forget to consider your salary in the equation. If you are currently taking a salary from the business, you’ll want to plan accordingly for this. Either by having enough reserve in your business account or by building up your personal savings.

Other things worth considering include:
1. Upcoming large purchases– you’ll need more money to cover the purchase and associated costs (i.e., insurance).
2. Stage of your business– if you are expanding, you’ll need more cash on hand.
3. How long will it take to earn more– if your business is seasonal, you’ll want to have extra cash on hand to cover your slow periods.

What is the Minimum Amount to Open a Business Account?

This varies from bank to bank and even from account to account within a bank. 

Most basic business checking accounts, especially those offered by online-only banks, have minimum deposits ranging from $0 to $100. 

Business checking accounts provided by larger banks and accounts that have premium features like interest-earning potential may have higher minimum balance requirements. 

These accounts will also likely have minimum balance requirements. So while you might only need $100 to open the account, you may need to deposit $1000 or more to avoid the monthly maintenance fees. 

Check with your bank or credit union to see what the minimums are, and be sure to read all of the fine print on balance-related fees.

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