When managing an LLC, there is no shortage of tasks to look after. One of the most important is choosing the right business bank account.
The right bank account makes it much easier to look after your small business’s money management needs.
If you’re still in search of a business bank account for your LLC, you’ve come to the right place. In this article, we will explore some of the best accounts available today.
What Is A Business Bank Account For LLC?
Business bank accounts are designed to handle a business’s financial transactions. Though it’s not recommended, if you are a sole proprietor, you may get away with running business transactions through your personal account. But when you own a limited liability company (LLC), you have no choice but to create a business bank account, separate from your personal account.
When you open a bank account for your LLC, you can more easily separate your business and personal expenses. This separation is critical, especially if you have multiple owners within your LLC. It’s best for all of the business transactions to run through this dedicated business account.
The Importance Of Choosing The Right Business Bank Account
Opening a separate bank account for your LLC is critical, but opening the right account is just as important. The following business bank account benefits highlight this importance.
- Financial management: Different bank accounts offer different financial management tools for business owners. It’s helpful to select a bank account that offers tools that will make your life easier.
- Legal protection: Separating your personal financial transactions from your business operations provides a layer of legal protection for your personal assets.
- Business credibility: The ability to accept payments from clients can increase your business’s credibility.
Factors to Consider when Choosing a Business Bank Account
As you look for a business bank account, keep the following factors in mind:
- Fees: No one wants to pay high fees. Consider the fees of any bank account before you sign up.
- Customer support: When you have a question, you want to know that help is available without much trouble. Always confirm that the customer support channels you prefer to use are available.
- Online banking features: A good mobile banking app makes it easier to manage money. Make sure the business account offers all of the online banking tools you need.
- Perks: While it’s not the most important thing, a bank account with perks can add value to your business. Look for an account that offers perks you can get excited about.
- Account types: In many cases, you will need more than one bank account for your LLC to function efficiently. Look for a bank that offers all of the accounts you need.
Top 5 Best Business Bank Accounts for LLCs
Below is our list of the best business bank accounts for LLCs.The right account for your business will depend on your specific needs, but many business owners will find what they are looking for in the following accounts.
Bluevine’s no-fee business checking account is an attractive online banking solution for LLCs. Business owners will also appreciate the potential to earn interest. As of this writing, customers can earn up to 2.00% APY on balances of up to $250,000.
In order to unlock the interest-bearing feature, you must receive at least $25,000 in customer payments per month or spend at least $500 per month on the Bluevine Business Debit Mastercard. If your business deals with cash, you can make cash deposits at GreenDot locations. The cash deposit option comes with a $4.95 fee.
Learn more about Bluevine in our full review.
Novo is an online banking platform tailor-made to meet the needs of LLCs. The account has no monthly fees and comes with an extensive suite of software integrations. By taking advantage of these tools, Novo can help make your life much easier.
For example, Novo allows you to send invoices directly from their platform. Popular integrations include Stripe, Xero, Shopify, and Quickbooks.
It’s important to note that while Novo provides banking products, it is not a bank itself. The banking services offered on the platform are provided by Middlesex Federal Savings.
Learn more about Novo in our full review.
Chase Business Complete Banking
Chase Bank has thousands of branches nationwide, which many LLC owners will appreciate. But while Chase offers physical branches for cash deposits and other transactions, the Business Complete Banking account comes with a monthly fee of $15.
The fee is waived if you maintain a minimum daily balance of at least $2,000 in your account, receive $2,000 in deposits from Quick Accepts, make at least $2,000 in purchases on a Chase Ink Business credit card, link a Chase Private Client checking account, or provide proof of military status. If you want access to a physical branch, Chase might be the best option.
Chase also typically has business banking bonus offers for new customers.
Learn more about Chase in our full review.
Found’s business checking account is designed to simplify your financial life. Through the account, you can handle your bookkeeping, send invoices, and automatically transfer funds into a tax savings account. You can also earn up to 1.50% APY on balances of up to $150,000.
But some of Found’s features are only offered through the paid plan, which has a monthly fee of $19.99. Like Novo, Found is a fintech company, not a bank. Its partner, Piermont Bank, provides banking services.
Learn more about Found in our full review.
nbkc Bank offers a business checking account with no monthly, overdraft, incoming domestic wire, or online banking fees.
But while the fees are minimal, this account doesn’t offer many perks. You won’t find bookkeeping or invoicing tools available through this banking platform. However, If you have your own financial management system, this might not be an issue.
Business owners in the Kansas City area can make cash deposits at bank branches, but the physical branch network is limited.
Read our full nbkc Bank review here.
How to Open a Business Bank Account for Your LLC
If you are ready to open up a business bank account for your LLC, you’ll need to take the following steps:
- Gather your paperwork: Most banks require some legal documents before you can open a new account. Be ready to provide your EIN, business formation documents, business address, email, and primary contact information.
- Submit an application: After gathering all of your documents, the application process should be quick.
- Wait for approval: You might hear back about your application within a few minutes or a few weeks. Once the application is approved, you can start using it right away.
The Bottom Line
The right bank account for your LLC can help your business operate more smoothly. Take the time to explore all of your options and find a bank account with the features that will make your life easier.
If you haven’t found the perfect fit, take a look at our list of top business checking accounts.