Today, more people are establishing small businesses than ever before, so finding one of the best banks for small business owners is crucial. If you’re already running a business, you must have known how important it is to find a banking partner that aligns with your day-to-day needs. In essence, setting up a separate small business bank account for your LLC will not only make it easier to manage your business but will also save you lots of time when you file your taxes. Read on to learn about the best business bank checking account for LLCs and credit unions and how to open a business bank account for Chase.
Best Business Checking account for LLC
The best business checking account for an LLC is there to support your business as it continues to grow. It should also be largely fee-free or have waived fees and provide excellent business support products. This includes merchant services, lending products, and strong software integration. However, while small businesses organized as sole proprietorships might be able to operate without a business bank account, an LLC should never operate without one. This is because it allows you to keep your business and personal finances separate, helps you build business credit, simplifies tax season, and lends credibility to your business.
The Top 13+ Best Business Checking account for LLC
Below are the best business checking account for LLC,
#1. BlueVine
This is an online banking platform founded in 2013, that offers the best business checking account for LLC and unlimited transactions with very few fees. BlueVine earns a very competitive 2.00% APY on balances up to and including $250,000. (Balances over $250,000 do not earn interest.)Also, They provide a mastercard business debit card to business owners with unlimited transactions to pay vendors and bills via ACH transfer, wire, or check.
#2. Bank of America
Bank of America is an excellent choice for a business checking account for an LLC. This is because it has ongoing rewards and a great entry-level checking product that has a slight edge over Chase. It also offers various business products, including savings, certificates of deposit (CDs), and lending products, and lets you access financial analysis through Merrill Financial Advisors. In addition, they provide payroll services, remote deposit, account management, and other flexible banking solutions to cover the needs of your growing LLC.
#3. Novo
For LLCs wanting faster access to funds and more rapid payment processing, Novo is a great choice for a business checking account. Novo Boost allows you to receive payments from your Stripe account faster than other providers, whereas Novo’s Express ACH enables you to accept or send same-day ACH payments. So, the combination of Novo Boost and Express ACH gives you access to your money faster than other digital-only providers. In addition, Novo refunds all ATM fees at the end of each month, making it an ideal choice for LLCs needing to make frequent ATM withdrawals.
#4. Relay
If you’ve got a big crew working for your LLC, check out Relay Financial. This business banking account is designed to grow with you, so you can keep crushing it without setbacks. Relay lets you open up to 20 individual business checking accounts and issue up to 50 debit cards – all without extra fees. Also, you can set user permission settings to make sure everyone has the right level of access and set spending limits for each debit card and team member. This lets you keep your costs under control and stay on budget.
#5. Wells Fargo
Wells Fargo offers more branch locations than any other brick-and-mortar bank. For those who are just getting their LLC off the ground, Wells Fargo’s Initiate checking account is a solid place to start. Because initiate comes with all the basics like a business debit card, online and mobile banking, bill pay, and a minimum opening deposit of just $25. There’s a $10 monthly fee, but you won’t pay it if you keep a daily balance of $500 or more. Also, once things pick up, you can upgrade to Navigate and Optimize, which are designed for higher-volume businesses.
#6. Lili
This business checking account for LLCs is not a major, nationally recognized bank, but a growing online financial resource specifically tailored to meet the needs of freelancers and solopreneurs. Lili is ideal for small businesses looking to simplify their banking needs, manage their business finances, and save on any potential expenses. This banking option is also ideal for tax purposes, as it can track spending and money flow and generate quarterly or yearly reports when it comes time to report or file taxes. It even sets aside money in “tax buckets” to make sure that you save enough.
#7. Grasshopper
Grasshopper business banking provides several helpful digital tools to help LLCs easily manage their finances and cash flow. You can make and schedule payments from any device via check or ACH. The app features easy, built-in invoicing for personalized billing and faster payments.
You also get a fee-free debit card that features rewards and cash back, and there are no monthly fees or fees on incoming wire transfers or ACH receipts. The bank account integrates with QuickBooks and Autobooks for fast reconciliation.
#8. Small Business Bank
Small Business Bank offers one of the best business savings accounts around. It always has the highest interest rates right now, which means you can earn between 1.7% and 4.48% APY at jaw-dropping rates. But even when its rates aren’t that high, the small business bank still offers more interest than any other business bank we’ve seen, and you get those rates without any monthly fee or minimum balance.
#9. NorthOne
If you run a service-based business that handles a lot of incoming and outgoing payments, NorthOne is a fintech company that offers powerful payment solutions built into its checking accounts. By partnering with Bancorp Bank, one of the country’s largest payment networks, they make it easy to send and receive payments directly into your business bank account. Their mobile app is very easy to use and is ranked five stars in the Apple App Store and Google Play Store.
#10. Cit Bank
The business checking accounts offered by CIT Bank can be opened for as little as $100. They don’t charge a monthly fee or overdraft fee, nor do they charge for online transfers or incoming wire transfers. Many customers appreciate the wide range of interest-bearing accounts that CIT offers, including money market and savings accounts that earn industry-high levels of interest.
#11. Capital One
Capital One is known for its large network of no-fee ATMs, and a good mix of online banking and physical branches. Even when they are not located in all states, they are a good option for LLCs located in the right states that need a good banking service that will support cash deposits. There are two options for a business checking account with Capital One, including the basic business checking account.
This option offers unlimited electronic deposits, online and mobile banking, and a low balance to waive fees. On the other hand, the Unlimited Business account includes two Basic accounts. So, this is a better match for businesses that have sophisticated banking needs.
#12. Axios
The online business checking account offered by Axos is one of the best available from a digital bank. Even though they don’t have physical branches, they can still be a good fit for LLCs that operate digitally. Axos is continually listed as one of the best providers of checking accounts for LLCs. Axos doesn’t use a banking partner to execute their services, rather, they are a full-fledged bank themselves. Also, they offer great services and have an easy-to-navigate platform that is easy for customers to use to manage their business finances, even if there is a better APY elsewhere.
#13. Oxygen
Oxygen’s business bank account is an affordable option for any LLC looking for a good banking solution that’s budget-friendly. Plus, you can form an LLC in the app through CorpNet before you open the account. Additionally, you can earn cash back on spending with the business debit card, and track your rewards through the app. Other features of this account include mobile check deposits, bill pay, cash flow projections, and temporary virtual cards.
Is it Difficult to Get a Business Checking Account?
Opening a business bank account is easy once you’ve picked your bank. Simply go online or to a local branch to begin the process. Here are some of the most common documents banks ask for when you open a business bank account. Some banks may ask for more.
How to Open a Business Bank Account For LLC Chase
You can open a Chase business bank checking account for LLC online if your business is a privately held sole proprietorship, corporation, or LLC (with one member or manager). All other business entities must apply in person at a local branch. Chase operates more than 4,700 retail branches across 48 states. Also, as a small business owner, it’s important to keep your business and personal banking separate so you can monitor the profitability of your business and avoid mixing transactions. But, before opening one, be sure you understand what you need to start making deposits and getting the most from your account.
How to Open a Chase Business Bank Account for LLC Chase
Business owners need to supply the following documents and information to open an LLC Chase business checking bank account:
- Two forms of identification, including a government-issued photo ID.
- Employer identification number (or Social Security number for single-member LLCs).
- Business documents, including an assumed name or DBA certificate, articles of organization or incorporation, a partnership agreement, and a business license, depending on your entity type.
- Business address and telephone number.
- Date of birth, Social Security number, and personal address for anyone with 10% or more ownership in the company.
- Number of locations, where your products or services are sold
- The anticipated number of transactions processed through your new account.
- Website Validation
Additionally, all members or managers of the LLC, plus any authorized signers, must be present when you want to open the business bank account for LLC chase.
How Long Does it Take to Get Approved for a Business Checking Account?
You can typically apply in minutes for a business checking account as long as you have the right details and documents, especially if you open an account online.
Business Bank Account For LLC Credit Union
The best credit unions for small businesses offer outstanding business checking and savings products that can earn interest on your business reserves. Unlike traditional banks, credit unions tend to have strict membership requirements. Hence, a business bank account for LLC credit union is a good choice for a business bank account if there are locations near you and you can qualify to join.
This is because these nonprofit, membership-based financial institutions often get high marks for customer satisfaction compared with banks. However, compare credit union business accounts with those at the best banks for small businesses to find a good overall fit. The right business account will ultimately offer your desired features, like high-interest rates or easy ATM access.
Business Bank Account For LLC Credit Union
Below are the best business bank account for LLC credit union,
Navy Federal is the largest business bank account for LLC credit union in the country, with eligibility open to servicemembers of all branches of the armed forces. This includes veterans, retirees, and Department of Defense civilian employees. Membership is also extended to family and household members. Their business services include savings and checking accounts. You can also bank online and use an app for convenience.
#2. Affinity Plus Credit Union
Affinity Plus Federal Credit Union is the best credit union for small businesses thanks to a wide range of business services and three interest-bearing account options. This is because it has a rewards program for debit card purchases, allowing you to redeem points for gift cards, travel, and more. It also has interest-bearing options for checking, savings, and CDs. While the checking and savings rates are low, it has CD rates that go up to 4.25% APY.
#3. First Tech Federal Credit Union
For businesses looking to secure insurance with the same company as their business checking, First Tech Federal Credit Union is an outstanding choice. It offers the following types of business insurance:
- Directors and officers (D&O) liability
- Inland marine policy
- Business umbrella policy
- Professional liability
- Workers’ compensation policy
In addition to its excellent insurance products, it has great checking and savings options, many of which are interest-bearing. What’s more, monthly fees are easily waived across its accounts.
#4. Consumer credit union
Consumers Credit Union is an Illinois-based credit union that anyone can easily join, making it one of the best credit unions overall. However, its business accounts have stricter qualifications. This means you must do business in Illinois or Wisconsin to be eligible and apply in person. Consumers Credit Union also offers four business checking accounts, including free and interest-bearing options. Its free community checking account is a strong option for eligible nonprofits, offering 300 fee-free transactions.
#5. America First Credit Union
America First is a federally insured credit union. It offers a range of business checking accounts and business services such as loans and credit cards. This credit union is also a good choice for organizations, associations, and non-profits. There is a non-profit business account available. Although the field of membership is somewhat narrow, America First is an interesting option for those eligible. This is due to the sheer range of product options as well as a decent online banking system.
Can an LLC Have Multiple Business Bank Accounts?
As the owner of an LLC or corporation, you will have to pay bills that you normally would not have to deal with as a sole proprietor. As a result, the law requires you to open multiple business bank accounts for each separate business. You may try to use the same account – but it will be against the law.
Best Business Bank Account for Small Business
A business bank account can serve multiple functions depending on your business’s size, needs, and stage of growth. A business checking account is often the first step. Hence, most companies build from there, opening a combination of business banking accounts to capitalize on interest, save for long-term goals, link to a merchant account, or tie to a small-business loan. Whether you’re just starting or have been in business for years, having the best small business bank account is essential. Additionally, the best small business bank account is important for proper bookkeeping, tax reporting, and various legal reasons.
Best Business Bank Accounts for Small Business: Examples
There is no perfect type of business bank account. What you need differs depending on what type of business you have, its size, and its complexity. Review this list of the best small business bank accounts to compare your options before making a decision.
#1. Lendingclub
LendingClub offers the same FDIC insurance as traditional brick-and-mortar banks and has over $8 billion in assets. Its tailored checking account for small businesses is designed to allow accountholders to accrue interest, similar to a savings account. With unlimited no-fee transactions, unlimited ATM surcharge rebates, and attached cash-back rewards, this account also comes with a full mobile money management system for business on the go
#2. Comerica
At Comerica, a small $50 deposit can grant you a no-interest account without a monthly maintenance fee or minimum balance requirement. You can also do without your activity fees with deposits up to $2,500 per month, or 75 or fewer transactions. Additionally, as your business grows, you can upgrade to another account using the same account number. Comerica is not a nationwide chain, but it does have locations in several states (though fees and conditions differ).
#3. CitiBusiness Flexible Checking Account
If your small business exceeds 500 transactions monthly and averages a monthly balance of at least $10,000, this business bank account is for you. This is because you will pay no fees if you meet the monthly minimum balance (otherwise, fees run between $22 and $30), and you can deposit up to $20,000 each month.
#4. Baseline
Built specifically for landlords and real estate investors, Baseline makes it easy to collect your rent. With this tech-forward option, you can use auto-categorization to allocate your income by property or sort it into various virtual accounts yourself. (Think of these as envelopes that help you stay organized.) You also get free wire transfers and ACH payments. Meanwhile, 5% cash back from Home Depot makes it easy to keep your tenants happy and your properties ship-shape.
#5. American Express
If you’re already a cardholder with an American Express personal or business card, this business checking account has a lot to recommend, with very few drawbacks. There is no minimum to open the account and no monthly maintenance fee. There are also no fees assessed for many everyday transaction types, such as ACH (a common type of electronic funds transfer), incoming wire transfers, and mobile check deposits. Moreover, you’re not forced to make a set number of free transactions per month, a relative rarity in this category.
In a Nutshell
Opening the best business bank account is a crucial step in the business formation process for an LLC. Because, without one you will have a very difficult time demonstrating that your personal and business assets are truly separate, which could lead to a court piercing your corporate veil and allowing creditors to pursue your assets.
References
- Fitsmallbusiness.
- Forbes.
- Nerdwallet.
- Investopedia.
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