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Keeping your personal and business finances separate is essential if you have a limited liability company (LLC). Doing so makes accounting easier at tax time and, more importantly, protects your personal assets from business liabilities. Opening a business bank account for your LLC is essential to ensure that those funds aren’t commingled. The best business bank accounts for LLCs offer flexible account minimums, low fees, competitive rates, and top-notch customer service. Here are five LLC-friendly bank accounts to consider.
Axos Bank’s Basic Business Checking account has no monthly maintenance or overdraft fees, a 0 minimum deposit, and no minimum balance requirements. You’ll also get unlimited transactions, access to a free nationwide network of ATMs, and unlimited ATM fee refunds. The Business Interest Checking account offers similar features but pays up to 1.01% APY when you maintain a 5,000 minimum average daily balance.
Lili’s Basic Business Checking is its entry-level account with no minimum balance or deposit requirements, no overdraft fees, and no ATM fees at 38,000+ MoneyPass locations. The account comes with a Visa business debit card that offers cash back from participating merchants. You can make unlimited transactions for free and access money from your payers two days early, thanks to Lili’s early payment feature.
The Chase Business Complete Banking account has a 0 minimum opening deposit and unlimited electronic transactions. There is a 15 monthly service fee, though you can avoid it by maintaining a 2,000 minimum balance or meeting other criteria. There is also a 34 overdraft fee if you overdraw the account by more than $50, but Chase gives you until the end of the next business day to correct your balance before the fee kicks in. A valuable account feature is Chase QuickAccept, which lets you accept credit card payments in person and over the phone.
U.S. Bank’s Silver Business Checking account comes with zero monthly fees, a 100 minimum opening deposit, and up to 125 free transactions per statement cycle. There are no overdraft fees if you overdraw the account by 50 or less—otherwise, you’ll pay $36. The account comes with a Visa debit card to pay for business purchases and use at 13,000 fee-free ATMs nationwide.
| Account | APY | Minimum deposit | Monthly fee | Overdraft fee | Offer |
|---|---|---|---|---|---|
Axos Bank Basic Business Checking | N/A | $0 | $0 | $25 | Up to $700 when you open a business checking account and a high-yield rewards checking account |
Live Oak Bank Business Savings | 3.70% | $0 | $0 | N/A | N/A |
Lili Basic Business Checking | N/A | $0 | $0 | $0 | N/A |
Chase Business Complete Banking | N/A | $0 | $15 (waived with $2,000 minimum balance) | $34 | $400 when you open a new account with qualifying activities |
U.S. Bank Silver Business Checking | N/A | $100 | $0 | $36 | $800 when you open a new account and complete qualifying activities |
We evaluated more than a dozen bank accounts from traditional and online banks offering business accounts suitable for LLCs. We compared APYs, fees, minimum opening deposit requirements, transaction limits, Apple Store and Google Play ratings, customer service availability, and access to fee-free ATMs and in-person branches. Accounts with competitive APYs, lower fees, easier account minimums, and flexible customer service options made our list of best business bank accounts for LLCs.
Once you decide to open a business account for your LLC, consider the following to ensure you select one that suits your needs:
An LLC bank account is a business bank account opened specifically for a limited liability company. A key benefit of forming an LLC is its liability protection. LLC members aren’t personally liable for the company’s financial obligations. A business bank account for an LLC helps ensure the LLC members’ finances aren’t commingled with the company’s finances, thereby preserving the limited liability protections.
Having a bank account for your LLC helps to avoid mixing your personal and business finances. The LLC provides you with liability protection. To benefit from those protections, you have to keep your personal and business accounts completely separate. Otherwise, you could be personally liable for your company’s financial obligations.
While the requirements for opening a business bank account vary by financial institution, the bank may ask for any of the following:
Any LLC owner (member) or authorized manager can open a business bank account on the LLC’s behalf. You’ll need to provide personal information (e.g., SSN and date of birth) for everyone on the application, including the controlling manager and anyone with 25% or more ownership in the company.
Establishing credit is an essential part of growing your business. Credit improves your chances of being approved for loans and other forms of financing. It also helps build credibility and demonstrates to lenders, vendors, and suppliers that your company is reliable and reputable.One way to build business credit is by opening a business bank account. Establishing a credit history for your business also makes it easier to access financing with better rates and repayment terms so you have more money to invest in your business.
Having a dedicated LLC bank account separates your personal and business expenses. This helps preserve the limited liability protections the LLC provides, safeguarding your personal assets from business liabilities. Having a business bank account for your LLC will also help make accounting much easier when it's time to pay taxes.
Usually, you’ll need to provide business documentation proving you have an established, legally registered business to open a business account. However, some banks may allow you to open an account with your personal details (e.g., Social Security number and a government-issued ID) if you operate as a sole proprietor under your name.
The requirements vary by bank, but the most common documents banks ask for include your company’s EIN (or SSN if you’re a sole proprietor), formation documents, ownership agreements, and a business license.
You’ll need cash for rent, supplies, salaries, and other day-to-day expenses. While needs vary by business, keeping three to six months’ worth of operating expenses in your bank account is a good starting point.
Many business bank accounts can be opened without making an initial deposit. However, some banks require a minimum opening deposit ranging from $25 to $100 or more.
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