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Best Business Checking Accounts for LLCs of 2022

Katie Stiner

Business checking accounts for LLCs help you separate personal and business finances to safeguard limited liability protections for your business. While it is not a legal requirement, many accountants and lawyers recommend that you have a dedicated bank account to manage your business finances. We reviewed the top options based on their features, fees, and overall quality. 

Built to optimize taxes and accounting

$0 - $4.99

Monthly Fee

0% - 1.00%

Est. APY

Overview

Lili’s business checking account was built for freelancers, sole proprietors, and single member LLC with or without a DBA. The account comes with features that help users keep their banking costs low, optimize their taxes, and manage their business’s finances.

What we like

  • FDIC insured, up to $250,000
  • Optimize taxes to pay less
  • Invoicing software included
  • No maintenance fees
  • Automatic transfers to emergency account

What we don't

  • Only for solopreneurs
  • No wire transfers
  • Interest on lili pro only

Manage funds easier with sub-accounts

$0

Monthly Fee

1.50%

Est. APY

Overview

Bluevine business checking comes with no monthly fees. Plus, the account provides an impressive list of benefits such as integration with online business tools, sub-accounts to help you manage your finances, and two free checkbooks.

What we like

  • Unlimited transactions
  • No monthly fees
  • High APY
  • Sub accounts for easier management
  • Integration with business tools

What we don't

  • No APY on balances over $100,000
  • International wire transfers not available
  • Cash deposit fee of $4.95

Business banking that streamlines bookkeeping

$0

Monthly Fee

0%

Est. APY

Overview

Relay offers a simple two-tier pricing plan. You can get started with no monthly fees and no account minimums. When you upgrade to the Pro plan, you’ll benefit from additional features such as free domestic and international wire transfers, or the ability to auto-import bills from QuickBooks and Xero.

What we like

  • Streamlines bookkeeping
  • No monthly fees
  • No minimum balance requirement
  • Seamless software connections
  • Set spending limits for employees

What we don't

  • No sign-up bonus or rewards
  • No physical branches
  • No interest earned on balances

Free unlimited transactions and invoicing software

$10

Monthly Fee

0%

Est. APY

Overview

NorthOne helps you manage your finances with its invoicing app, budgeting tool by creating an unlimited number of sub-accounts with the envelope functionality, and integrating with a suite of business tools and software.

What we like

  • Budgeting tool to help manage your finances
  • Smart integrations with business tools
  • Send invoices from the app
  • Low minimum deposit
  • No hidden fees
  • Unlimited transactions with no fee

What we don't

  • $10 monthly fee
  • No in persona customer support

Seamless integration with a wide range of business tools

$0

Monthly Fee

0%

Est. APY

Overview

Novo allows easy integration with third-party accounting software, including Quickbooks and Xero. You can also link your Novo debit card to your Google Pay or Apple Pay Wallet. Novo also syncs with your Stripe processing account and easily integrates with Slack to get automated updates on your bank account.

If you are looking for a business checking account that is easy to use and with almost no fees, you might want to consider Novo. The bank account is also accessible in the app store for both iOS and Android devices.

What we like

  • Free ACH transfers, mailed checks, and incoming wires
  • Minimal fees and ATM reimbursements
  • Backed by FDIC insured
  • Integration with other apps
  • Doesn’t check your credit score

What we don't

  • No APY earned on your balance
  • No cash deposit
  • No outgoing wires or checkbooks

Earn a competitive rate on your balance

$0 - $10

Monthly Fee

0.81%

Est. APY

Overview

Axos Bank business interest checking account earns a competitive rate for cash held within the account, and you'll get your $10 monthly fee waived by holding a minimum balance of $5,000. If you keep a decent amount of cash in your account, this could be an ideal account.

What we like

  • Earns a competitive interest rate
  • Unlimited domestic ATM reimbursements
  • 50 free checks when opening an account
  • Low minimum deposit to open account
  • Complete digital experience

What we don't

  • Monthly $10 maintenance fee
  • Limited integration with business tools
  • Limited fee-free transactions per month

What is a business checking account for LLCs?

A business checking account for LLCs provides a separate bank account for your limited liability company. In the event of a lawsuit, it is important to have a legal distinction between business and personal assets to protect yourself from personal liability. 

Provided that there is a clear distinction, creditors can look to your LLC for payment for any outstanding debts but will be unable to seek payment against personal assets.

Do you need a business checking account for LLCs?

Anyone who is looking to form an LLC should consider getting a business checking account. The majority of banks offer benefits for business checking accounts plus it will simplify the process of paying your taxes every quarter. 

What are the pros and cons of a business checking account for LLCs?

There are many pros and cons of opening a business checking account for LLCs. Here are a few for you to consider before applying:

Pros

  • Liability protection: Separation between personal and business assets can help preserve limited liability protections. 
  • Simplify taxes: Separate bank accounts help business owners to locate income and expenses faster and help your accountant make the relevant deductions. 
  • Business growth: Having a business checking account can give you more credibility and help you grow as a business. If you need access to business loans or credit cards, financial institutions are more likely to see you as a legitimate business. 
  • Interest: Some banks pay interest on balances. This can be advantageous if there is a high minimum balance requirement. 

Cons

  • Fees: Depending on the bank you choose, there can be additional fees when you run your business from a business checking account. For instance, transaction fees are likely to apply, and there may be a higher minimum deposit. 
  • Minimum requirements: You may be required to hold a minimum balance or spend a minimum amount with your debit card each month.
  • Business is a side hustle: If your business is a side hustle or gig that you are trying out, the cost of a business checking account may not be worth it yet.
  • Transaction limits: For the most part, business checking accounts impose transaction limits where a fee will be imposed per transaction after the limit is reached. If you have a higher number of transactions in your business, this can increase your overheads. 

What are the fees for a business checking account for LLCs?

When researching business checking accounts for LLCs, it’s important to consider the fees imposed and how they might affect you. Here are a few fees for you to consider when looking into an account for your business:

  • Monthly maintenance fees: Fees for business checking accounts are likely to be higher than personal checking accounts. Some banks require a minimum balance to waive the monthly maintenance fee.
  • Cash deposit limits: If your LLC primarily uses cash, you may reach cash deposit limits and need to pay a cash-handling fee for further deposits. 
  • Transaction fees: Many banks limit the number of transactions during a billing cycle. Once the limit is reached, a transaction fee will be imposed. Transactions can include ATM deposits, debit card payments, and check payments. 
  • ATM fees: Fees may apply to ATM withdrawals but some banks can reimburse you for out-of-network ATM fees. 
  • Overdraft fees: Accounts that provide overdraft protection may charge you a fee for withdrawing below your balance. 

While there can be multiple fees to consider, banks may have fee waivers if certain conditions are met or if services such as business credit cards are added. It’s a good idea to look out for these to lower your business checking account costs.

How to choose a business checking account for LLCs

When looking for the best business checking account for LLCs, here are some key factors to consider before you choose a bank:

  • Compare multiple providers: Fees and services can vary between banks. If you have a business that primarily handles cash, it’s a good idea to look for a bank that has high cash deposit limits. Or if you have a business that has a high number of credit card transactions each month, you’ll want to consider a bank that has high or unlimited transaction limits. 
  • Customer support: Banks that offer an account manager can build stronger and longer-lasting relationships with their clients. Convenient access to branches may be important to you as a business if you’re looking to take out additional financial products and loans. 
  • Interest on balances: If your business keeps high cash balances, look for a business checking account that pays interest as this can help offset some of the fees you have to pay. However, sometimes banks can provide rewards instead of interest.
  • Online account management: Online account services can help you manage your business finances daily and keep track of your incomings and outgoings. Banks that solely provide online services can also have lower fees.