Owning a business involves a lot of hard work, whether you have an LLC or any other business structure. There are so many things you need to be on top of in order for your business to run effectively and efficiently. You have payroll, taxes, inventory, accounts receivable, accounts payable, sales, marketing, customer relations and if you are running lean, most of these tasks may rest on your shoulders.
Another essential step you'll need to follow as a small business owner is to keep personal and business finances are kept separate. Having separate accounts will help protect your personal assets from any potential business liabilities, and the best way to do that is by opening a dedicated business account.
In an effort to help with your finances — and in case you are on the lookout for the best business checking account for LLCs offered in 2021 — we’ve compiled a list to help you best meet your needs. The five banks described here represent a mix of nationally recognized financial institutions and growing online banking providers that can be accessed from anywhere in the country.
1. Bank of America Business Advantage Fundamentals Banking
Bank of America is another huge bank with wide access, which gives it a place on our list of the best checking accounts for LLCs. If your business is doing well and you can keep $5,000 in the account, you can waive the $16 monthly fee.
Opening a Business Advantage Fundamentals Banking account will also provide access to useful digital tools, including the Cash Flow Monitor and Bank of America mobile app, which will allow you to access your account from anywhere, make mobile deposits, transfer funds, monitor pending transactions and pay bills directly from your smartphone.
In addition to a business checking account, Bank of America will also help you track your expenses and provide online statements 24/7 so you can monitor how your money is coming in and how it’s being spent. Incfile has partnered with Bank of America to offer a bonus when you set up a new small business account.
2. Chase Business Complete Banking
If you are looking into opening up a new business account and do not already have an account with JPMorgan Chase, this offer will pay you $300 just to get you started. Business banking with Chase combines online banking, mobile app and brick-and-mortar service with close to 5,000 branches and access to 16,000 ATMs across the country.
In order to qualify for the $300 bonus, business banking customers will need to deposit $2,000 in their new business account and maintain an average balance of that amount for 60 days. The final step is to make five transactions using your account within 90 days of opening.
Maintenance-free service if you keep a balance of $2,000 in your account or receive $2,000 in monthly deposits
If your business is running smoothly and bringing in revenue, the final bullet point should be a non-issue for you. And if you’re on good terms with Chase and you don’t meet these requirements one month, give them a call and plead your case — they might just waive the fee.
Depending on how your business accepts transactions, you may incur some fees with this account. There is a transaction fee of 2.6 percent plus $0.10 for all tap, dip and swipe transactions and a fee of 3.5 percent plus $0.10 for manual transactions.
3. Novo Online Business Banking
Unlike JPMorgan Chase, which has thousands of physical banks across the country, Bank Novo is an online bank ideal for ecommerce businesses. Known for integrating third-party programs like Xero, Slack, Stripe and Shopify, Novo makes it simple to get paid through money transfers, wires and card purchases. If you are working with cash, Novo may not be the best option for you. It is mainly preferred by ecommerce businesses that rely primarily on purchases made electronically. And if you do want to make cash withdrawals, all you’ll need is a Novo debit card. Just make sure your account is always funded since you will be charged a $27 fee for any overdraft.
100 monthly transactions free. There is a fee of $0.50 if you go over 100 per month.
No fee for the first $5,000 in cash deposits processed each month. After $5,000, there is a fee of $0.30 for every $100.
A monthly service fee of only $10 and the monthly fee is waived as long as you keep a $500 minimum daily balance.
The Initiate Business Checking account also provides support through online and mobile banking, including bill pay and mobile deposit, access to over 13,000 ATMs and support through their dedicated small business customer service center.
The fifth and final best 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.
Lili offers its customers an online business checking account that also includes a Visa business debit card that can be accessed for money at 38,000 ATMs. There are no added fees and no minimum balance requirements to meet. There are also no overdraft fees.
This banking option is also ideal for tax purposes, as it can track spending, money flow and generate quarterly or yearly reports when it comes time to report or file for taxes. It even sets aside money in “tax buckets” to make sure that you save enough.
Another perk offered by Lili is that money paid via direct deposit is available in a Lili account two days earlier than if you were banking with a traditional bank. Your funds are also FDIC insured through Choice Financial Group.
Whichever business checking account you choose, always make sure to do additional research when the time comes to open a business account, as offers may change and new promotions may be offered. And above all, make sure that you are comfortable with the services offered and happy with the customer support that your bank will provide.
Peter Mavrikis is an author and editor with over 25 years of experience in publishing. He has worked as the Editorial Director for Barron’s Educational Series, as well as Kaplan Test Prep, where he ran the test prep, foreign language, and study guide divisions. Peter has also written several books on history, exploration, science, and technology.