Starting and managing a business as an LLC (limited liability company) comes with various responsibilities and tasks, including opening a business bank account.
Having a separate account for your business transactions helps keep your personal finances separate, simplifies tax reporting, and ensures that you remain compliant with state and federal regulations. With numerous options available, choosing the right business bank account can be overwhelming.
In this guide, we’ll explore the top five best business bank accounts for LLCs and what sets them apart. From fees to features, we’ll provide all the information you need to make an informed decision for your business.
What is Business Bank Account for LLC?
A business bank account for LLC is a specialized type of bank account designed for limited liability companies (LLCs). It is a separate account from the owner’s personal account and is used to manage the finances of the LLC.
A business bank account for LLC allows LLCs to separate their business finances from personal finances. This separation is important for maintaining the limited liability protection that LLCs offer. If an LLC owner uses personal funds to pay for business expenses or commingles personal and business funds, it could put the limited liability protection at risk, which means that the LLC owner’s personal assets could be at risk in the event of legal action against the LLC.
A business bank account for LLC typically comes with features such as checking accounts, savings accounts, debit cards, and online banking services. These accounts often have higher transaction limits and can handle larger volumes of transactions compared to personal bank accounts. Additionally, some business bank accounts for LLC may offer services such as online invoicing, bill pay, and integration with popular accounting software.
5 Best Business Bank Accounts for LLCs
Mercury Banking
Mercury Banking is an online-only banking platform designed specifically for small businesses, including LLCs. It was founded in 2017 and is headquartered in San Francisco, California. The bank is FDIC-insured through Evolve Bank & Trust, which means that deposits up to $250,000 are protected.
Here are some of the features that make Mercury Banking a great option for LLCs:
- No fees – Mercury Banking does not charge any monthly maintenance fees, transaction fees, or other hidden fees. This is particularly beneficial for small businesses with limited cash flow.
- User-friendly interface – The bank’s online platform is easy to use and navigate, making it simple for business owners to manage their finances.
- Integration with accounting software – Mercury Banking integrates with popular accounting software like QuickBooks, Xero, and Wave. This makes it easy to manage finances and keep track of expenses.
- Access to a dedicated account manager – Mercury Banking provides each customer with a dedicated account manager who can help with any questions or concerns.
- Mobile app – The bank’s mobile app allows users to manage their accounts on-the-go, including depositing checks, transferring funds, and viewing transaction history.
- Competitive interest rates – Mercury Banking offers competitive interest rates on its checking and savings accounts, which can help businesses earn more on their deposits.
- Security – Mercury Banking uses industry-standard security measures to protect customers’ data and transactions. The platform also offers two-factor authentication and fraud monitoring.
Mercury Banking appears to be an excellent option for LLCs looking for an online-only banking platform with no fees, a user-friendly interface, and integration with accounting software.
Relay Business Banking
Relay Business Banking is an online platform that offers banking services specifically designed for small businesses, including LLCs. The platform offers a suite of banking services, including checking accounts, savings accounts, debit cards, and online payment processing.
Here are some of the features that make Relay Business Banking a great option for LLCs:
- No monthly fees – Relay Business Banking does not charge any monthly fees for its checking or savings accounts, making it an attractive option for small businesses with limited budgets.
- Easy account setup – Setting up an account with Relay Business Banking is straightforward and can be completed entirely online.
- Integration with popular accounting software – Relay Business Banking integrates with popular accounting software like QuickBooks and Xero, making it easy for businesses to manage their finances.
- User-friendly interface – The platform’s online dashboard is user-friendly and easy to navigate, allowing business owners to manage their accounts with ease.
- Mobile app – Relay Business Banking offers a mobile app that allows users to manage their accounts on-the-go, including making deposits, sending and receiving payments, and viewing transaction history.
- Online payment processing – Relay Business Banking offers online payment processing services, allowing businesses to accept payments directly through their website.
- FDIC-insured – Relay Business Banking accounts are FDIC-insured up to $250,000 per account, providing peace of mind for businesses.
Relay Business Banking appears to be an excellent option for LLCs looking for an online platform that offers easy account setup, no monthly fees, and integration with popular accounting software.
Wise
Wise, formerly known as TransferWise, is an online platform that offers international money transfers and multi-currency accounts for individuals and businesses. The Wise Business Account is designed specifically for small and medium-sized businesses, including LLCs.
Here are some of the features that make Wise Business Account a great option for LLCs:
- No hidden fees – Wise Business Account does not charge any hidden fees, including monthly fees, transaction fees, or annual fees. The platform offers transparent pricing, which is particularly beneficial for small businesses with limited budgets.
- Competitive exchange rates – Wise Business Account offers competitive exchange rates for international money transfers and allows businesses to hold and manage funds in multiple currencies.
- Integration with accounting software – Wise Business Account integrates with popular accounting software like Xero and QuickBooks, making it easy for businesses to manage their finances.
- User-friendly interface – The platform’s online dashboard is user-friendly and easy to navigate, allowing business owners to manage their accounts with ease.
- Multi-user access – The Wise Business Account allows multiple users to access and manage the account, which can be helpful for businesses with multiple employees or team members.
- Mobile app – Wise Business Account offers a mobile app that allows users to manage their accounts on-the-go, including sending and receiving payments, viewing transaction history, and managing currencies.
- Security – Wise Business Account uses bank-level security to protect customers’ data and transactions. The platform also offers two-factor authentication and fraud detection.
Wise Business Account appears to be an excellent option for LLCs looking for an online platform that offers competitive exchange rates, transparent pricing, and integration with accounting software.
Must Read: Mercury vs Wise: The Battle for Smart Money Management
Payoneer
Payoneer is an online platform that provides international money transfers, cross-border payments, and multi-currency accounts to businesses and individuals worldwide. The Payoneer Business Account is specifically designed for small and medium-sized businesses, including LLCs.
Here are some of the features that make Payoneer Business Account a great option for LLCs:
- Multi-currency accounts – Payoneer Business Account allows businesses to hold and manage funds in multiple currencies, which can be helpful for businesses that operate in different countries.
- Competitive exchange rates – Payoneer Business Account offers competitive exchange rates for international money transfers and payments.
- Integration with popular marketplaces – Payoneer Business Account integrates with popular marketplaces like Amazon, Etsy, and Upwork, making it easy for businesses to receive payments from these platforms.
- User-friendly interface – The platform’s online dashboard is user-friendly and easy to navigate, allowing business owners to manage their accounts with ease.
- Mobile app – Payoneer Business Account offers a mobile app that allows users to manage their accounts on-the-go, including sending and receiving payments, viewing transaction history, and managing currencies.
- Security – Payoneer Business Account uses bank-level security to protect customers’ data and transactions. The platform also offers two-factor authentication and fraud detection.
- Customer support – Payoneer Business Account provides dedicated customer support to help businesses with any questions or concerns they may have.
Payoneer Business Account appears to be an excellent option for LLCs looking for an online platform that offers multi-currency accounts, competitive exchange rates, and integration with popular marketplaces.
Try Novel
Try Novel is an online banking platform that offers banking services specifically designed for small businesses, including LLCs. The platform offers a suite of banking services, including checking accounts, savings accounts, and debit cards.
Here are some of the features that make Try Novel a great option for LLCs:
- No hidden fees – Try Novel does not charge any hidden fees for its banking services, making it an attractive option for small businesses with limited budgets.
- High APY on savings accounts – Try Novel offers a high annual percentage yield (APY) on its savings accounts, allowing businesses to earn more on their deposits.
- Integration with popular accounting software – Try Novel integrates with popular accounting software like QuickBooks and Xero, making it easy for businesses to manage their finances.
- User-friendly interface – The platform’s online dashboard is user-friendly and easy to navigate, allowing business owners to manage their accounts with ease.
- Mobile app – Try Novel offers a mobile app that allows users to manage their accounts on-the-go, including making deposits, sending and receiving payments, and viewing transaction history.
- Instant funding – Try Novel offers instant funding for deposits and transfers, allowing businesses to access their funds immediately.
- FDIC-insured – Try Novel accounts are FDIC-insured up to $250,000 per account, providing peace of mind for businesses.
Try Novel appears to be an excellent option for LLCs looking for an online platform that offers no hidden fees, high APY on savings accounts, and integration with popular accounting software.
Factors to Consider When Selecting a Business Bank Account for Your LLC
Choosing the right business bank account for your limited liability company (LLC) can be crucial to the success of your business. The right bank account can help you manage your finances efficiently, save money on fees, and keep your business transactions separate from your personal finances.
However, with so many options available, it can be challenging to determine which account is best for your business. In this article, we’ll discuss some of the key factors to consider when choosing a business bank account for LLC.
Fees
One of the most critical factors to consider when choosing a business bank account for LLC is the fees associated with the account. Some accounts may charge a monthly maintenance fee, transaction fees, or ATM fees. It’s essential to understand the fees associated with each account, as they can add up quickly and eat into your business’s profits.
When comparing different accounts, look for accounts that offer low or no monthly fees and transaction fees. Many banks offer free business checking accounts, which can be an excellent option for small businesses that have limited budgets.
Minimum balance requirements
Some business bank accounts for LLCs require a minimum balance to open and maintain the account. If your business has limited funds, a bank account that requires a high minimum balance may not be the best option. Look for accounts that have low or no minimum balance requirements.
Access to credit
Access to credit can be essential for small businesses that need to borrow money to grow. Some banks offer lines of credit, business credit cards, or small business loans to their business account holders. It’s essential to research the credit options available to you and determine which account can offer the most favorable terms.
Integration with accounting software
Keeping track of your business finances is critical, and integrating your bank account with accounting software can make managing your finances much more manageable. Many banks offer integration with popular accounting software like QuickBooks or Xero. This integration can help you track expenses, create invoices, and manage your business finances more efficiently.
Customer support
When you have an issue with your account, you need to know that you can rely on your bank’s customer support to help you resolve the issue quickly. Look for banks that offer reliable customer support via phone, email, or online chat.
Interest rates
Some business bank accounts offer interest on deposits, which can be an excellent way to earn some additional income on your account. However, the interest rates offered by business bank accounts are typically lower than those offered by personal savings accounts. It’s essential to compare interest rates among different accounts to find the best option for your business.
Online and mobile banking
Online and mobile banking services can make managing your account much more convenient. Look for banks that offer robust online banking services, including the ability to transfer funds, pay bills, and view account balances and transactions. Mobile banking can also be helpful, as it allows you to manage your account on-the-go.
FDIC insurance
The Federal Deposit Insurance Corporation (FDIC) insures deposits up to $250,000 per depositor, per insured bank. FDIC insurance can provide peace of mind that your funds are protected in the event that the bank fails.
Business structure
The structure of your business can also impact the type of bank account you need. LLCs, for example, may need to open a separate bank account to maintain their limited liability status. If you’re unsure which account is best for your business, it’s always a good idea to consult with an accountant or financial advisor.
Choosing the right business bank account for your LLC can be crucial to your business’s success. When selecting an account, consider the fees associated with the account, minimum balance requirements, access to credit, integration with accounting software, customer support, interest rates, online and mobile banking, FDIC insurance, business structure, location, and accessibility.
Conclusion
Choosing the right business bank account for your LLC is an essential decision that can have a significant impact on your business’s financial success.
With so many options available, it’s crucial to consider several factors, such as fees, minimum balance requirements, access to credit, customer support, interest rates, online and mobile banking, and FDIC insurance.
Each of the top five business bank accounts for LLCs discussed in this guide has its unique features and benefits, so it’s essential to evaluate them based on your specific needs and preferences. By choosing the right account, you can simplify your business’s financial management, save money on fees, and keep your personal and business finances separate.
