Best Business Bank Account for an LLC: What to Look For
If you formed an LLC and you are still running sales through your personal checking account, this guide is for you. That shortcut quietly weakens the very protection the LLC was supposed to give you. A dedicated business bank account is not a bureaucratic nicety; it is part of what keeps your liability shield standing.
Here is the bottom line: open a separate account under the LLC's name and EIN, choose between an online or traditional bank based on whether you handle cash, and keep every dollar of business money out of your personal accounts. Below you will find why that matters, what to look for, named accounts worth considering with their official sites, how the two bank types compare, and exactly how to open one.
This is general information, not legal, tax, or financial advice. Consult an attorney or accountant for guidance specific to your situation.
Key takeaways
- A separate account protects your liability shield. Mixing personal and business money gives the other side an argument to pierce the corporate veil.
- Compare on fees, minimums, integrations, and cash handling, not on brand. These are the factors that affect your bottom line.
- Online accounts fit digital businesses; traditional banks fit cash-heavy ones and owners who want financing or a human relationship.
- Confirm where your money sits. Most fintech accounts are not banks; they hold deposits at FDIC-insured partner banks, where coverage is $250,000 per depositor, per bank.
- Arrive prepared. An EIN, formation documents, and ID make opening the account fast.
Why an LLC needs a separate bank account
The legal benefit of an LLC is limited liability: in most cases, creditors and plaintiffs can reach the company's assets but not your personal house, car, or savings. That protection depends on you treating the LLC as a genuinely separate entity. When you mix personal and business money, a practice courts call commingling, you hand the other side an argument to "pierce the corporate veil" and come after you personally.
A separate account is the cleanest way to demonstrate that separation, and it makes everything else easier too. Bookkeeping becomes a matter of categorizing one stream of transactions instead of untangling business charges from grocery runs. Tax time gets dramatically simpler, and if you are ever audited, a clean business account is far easier to defend than a personal one with business activity sprinkled through it. It also looks more professional when clients pay your company rather than your personal name, and it lets you build a banking relationship and business credit history under the LLC.
What to look for in a business bank account
Business accounts vary more than personal ones, so compare on the factors that will actually affect your bottom line and your day-to-day operations.
Fees and how to avoid them
Watch for monthly maintenance fees, transaction fees once you exceed a monthly cap, cash deposit fees, wire fees, and overdraft charges. Many accounts waive the monthly fee if you keep a minimum balance or hit a spending threshold. Read the fine print on how the waiver works before you assume an account is free. A fee that looks waivable on the marketing page can still hit you in a slow month when your balance dips below the threshold.
Minimum balance and opening deposit
Some accounts require a minimum opening deposit or an ongoing minimum balance to avoid fees. If your cash flow is lumpy in the early months, a low or no-minimum account removes a recurring source of stress and surprise charges.
Integrations and tools
The account should connect cleanly to your accounting software, your payment processor, and your payroll provider. Native integrations save hours of manual reconciliation every month. Look also for features like multiple sub-accounts for setting aside taxes, virtual cards for online spending, and solid mobile check deposit.
Cash handling and branch access
If your business takes cash, you need a bank that accepts cash deposits conveniently and affordably. This single factor often decides whether an online-only account will work for you at all.
Accounts worth considering
No single account is best for every LLC. The four below cover the main shapes of small-business banking: lean online accounts for digital businesses, and a traditional bank for cash and credit. Confirm current terms on each provider's site before you apply, since fees and rates change.
1. Mercury: best for startups and digital-first businesses
What it is. Mercury is an online business banking platform aimed at startups and scaling companies. Mercury is a fintech company, not a bank; banking services are provided through partner banks that are Members FDIC.
The problem it solves. Founders who never want to visit a branch need checking, savings, cards, and payments in one fast, software-driven account. Mercury removes monthly fees and minimums and gets you running quickly.
How it works. You can apply online and open free checking and savings accounts with no minimums, issue virtual and physical cards, send USD payments, and connect accounting tools like QuickBooks, Xero, and NetSuite. Because deposits are spread across partner banks in a sweep network, Mercury advertises FDIC coverage well beyond the standard single-bank limit.
A concrete example. A two-founder SaaS startup opens a Mercury account the week it forms, spins up separate virtual cards for ad spend and contractors, and books every transaction straight into Xero, no branch visit required.
Best for. Digital-first startups, agencies, and e-commerce businesses that value software and speed. Not a fit if you regularly deposit cash.
2. Bluevine: best for earning interest on an operating balance
What it is. Bluevine is an online business checking account with a free standard plan. Bluevine is a financial technology company, not a bank; deposits are FDIC-insured through Coastal Community Bank, Member FDIC, and its program banks.
The problem it solves. Most free checking accounts pay nothing on your balance. Bluevine pays interest on operating cash while still charging no monthly fee, so your working capital is not sitting idle.
How it works. The Standard plan has no monthly fee, no minimum balance, and unlimited transactions, and pays a published APY when you meet a monthly activity goal (a set amount of card spend or incoming payments). It includes bill pay, sub-accounts, and debit cards, and it offers expanded FDIC coverage through a sweep program across partner banks.
A concrete example. A consulting LLC parks its tax reserve and operating float in Bluevine, meets the monthly activity goal through normal card spend, and earns interest it would have forfeited at a traditional free account.
Best for. Service and online businesses that carry a working balance and want it to earn. Like other fintechs, it is weak on cash deposits.
3. Novo: best for freelancers and very lean operations
What it is. Novo is an online business checking account built for freelancers, the self-employed, and small operators. Novo is a fintech, not a bank; banking services are provided by Middlesex Federal Savings, Member FDIC.
The problem it solves. Solo operators want a clean, no-fee account with light invoicing and budgeting built in, without paying for features a larger company needs.
How it works. Novo charges no monthly fees and no required minimum balance, includes free invoicing, lets you carve out funds with its Reserves budgeting tool, and integrates with common business apps. Deposits are FDIC-insured up to $250,000 through its partner bank.
A concrete example. A freelance photographer sends branded invoices from Novo, routes a slice of each payment into a Reserves bucket for quarterly taxes, and keeps the whole business cleanly separate from personal accounts.
Best for. Freelancers, consultants, and single-member LLCs that want simple, free banking. Less suited to businesses that need rich treasury features or cash handling.
4. Chase Business Complete Banking: best for cash deposits and a full relationship
What it is. Chase is a traditional, FDIC-insured national bank with a large branch and ATM network and a full lineup of business checking, credit cards, and loans.
The problem it solves. Cash-heavy businesses and owners who want in-person service or financing cannot rely on online-only accounts. A traditional bank handles cash and coin, lends, and gives you a banker to call.
How it works. Chase's small-business checking has a monthly fee that is waivable by meeting a balance or activity requirement, accepts cash deposits at branches and ATMs, and connects you to the same institution for cards and credit. Because Chase is itself an FDIC-insured bank, your deposits are insured directly, not through a partner.
A concrete example. A neighborhood bakery deposits daily cash at a nearby branch, runs its card processing through the same bank, and later applies for a line of credit with the banker who already knows the account.
Best for. Cash businesses, retailers, and owners who value branches, lending, and a one-stop relationship. Often paired with an online account for daily digital operations.
Online vs traditional banks
The biggest practical choice is between an online-first business account and a traditional brick-and-mortar bank. Neither is universally better; they suit different businesses. The table below lines up the tradeoffs.
| Factor | Online / fintech accounts (Mercury, Bluevine, Novo) | Traditional banks (Chase and peers) |
|---|---|---|
| Monthly fees | Low or none | Tend to be higher, often waivable |
| Onboarding | Fast, fully online | May require a branch visit |
| Software and apps | Slick mobile apps, built-in tools | Often clunkier |
| Cash deposits | Limited or none | Easy cash and coin handling |
| In-person support | No physical branch | Branches and in-person bankers |
| Loans and credit | Limited | One-stop relationship for loans and lines of credit |
| FDIC insurance | Through partner banks; often expanded via sweep networks | Direct, $250,000 per depositor per bank |
| Best for | Digital-first, service, and e-commerce businesses | Cash-heavy businesses and owners who want financing or a human relationship |
One important detail is the same everywhere: fintech platforms such as Mercury, Bluevine, and Novo are usually not banks themselves but partner with FDIC-insured banks to hold your deposits. The FDIC's standard insurance amount is $250,000 per depositor, per insured bank, for each ownership category, which is why sweep programs that spread money across several partner banks can advertise coverage above that figure. Confirm where your money actually sits and that it is insured before you fund the account.
Many owners end up with both: an online account for everyday operations and a relationship at a traditional bank for cash and credit. The right mix follows from the same lean operating mindset behind choosing the best AI tools for your business, where you pick for fit rather than brand.
How to open an LLC business bank account
Once you have chosen, opening the account is straightforward if you arrive prepared. Have your documents ready, apply online or in a branch, fund the opening deposit, and then set up your integrations.
The document checklist
- EIN (Employer Identification Number) from the IRS. This is the business equivalent of a Social Security number and is free to obtain directly from the IRS online. The IRS warns you should never pay a third party a fee for one.
- Articles of organization or your state's equivalent LLC formation document.
- Operating agreement, especially for multi-member LLCs, to show who has authority over the account.
- Government-issued photo ID for each owner or authorized signer.
- Business license or DBA filing, if your locality or business type requires one.
- Beneficial ownership details for owners with significant stakes. Under the federal Customer Due Diligence rule, banks must identify the people who own or control a legal-entity customer when you open the account, so expect to provide this for anyone owning 25% or more.
Single-member LLCs that have not obtained an EIN can sometimes open an account with a Social Security number, but getting an EIN first is cleaner and reinforces the separation between you and the business. If you are still in the formation stage, line up the account as part of the same push in which you start your business, so your finances are clean from the first dollar. Once you have staff, the same account becomes the source your payroll software draws from.
So which account should you open?
The "best" account is the one that matches how your business actually moves money. If you are digital and want speed, an online account like Mercury, Bluevine, or Novo will likely serve you well. If you handle cash or want a lender and a banker, anchor at a traditional bank such as Chase, and consider running both. The non-negotiable part, no matter which you pick, is keeping the account, and every dollar in it, separate from your personal finances.
Frequently asked questions
Is a business bank account legally required for an LLC?
No federal law requires one, but it is strongly recommended. Keeping business and personal money separate is one of the main ways to preserve the liability protection your LLC provides, and most accountants treat a dedicated account as a practical necessity.
Can I use my personal account for my LLC?
You can, but you should not. Commingling personal and business funds undermines your liability shield, complicates bookkeeping and taxes, and looks unprofessional to clients. The small convenience is not worth the legal and accounting risk.
Do I need an EIN to open a business bank account?
Usually yes, and it is the cleanest approach. Single-member LLCs can sometimes use a Social Security number, but an EIN is free directly from the IRS, reinforces the separation between you and the business, and is required once you hire employees.
Are online business bank accounts safe?
Reputable ones are, but confirm that deposits are held at an FDIC-insured bank, since many fintech platforms are not banks themselves and instead partner with one. The standard FDIC limit is $250,000 per depositor, per bank, so check the insurance disclosure and any sweep-network details before funding the account.
How much money do I need to open one?
It varies. Many online business accounts, including Mercury, Bluevine's Standard plan, and Novo, have no minimum opening deposit or balance, while some traditional banks ask for a deposit and may require an ongoing minimum balance to waive monthly fees. Always check the specific account's terms.
Which is better for an LLC, an online account or a traditional bank?
It depends on cash. If you rarely handle physical cash and value software and low fees, an online account usually wins. If you deposit cash regularly or want a lender and an in-person banker, a traditional bank fits better. Many owners use both.