Best Business Bank Accounts for LLC
Being a small business or an LLC can be a difficult task. As an owner of such businesses, it can be difficult for you to figure out all the possible tasks that you need to carry out while still somehow managing your personal life.
Taking care of your finances can become another huge task for small entrepreneurs. How, then, can you navigate the process of banking and finance in a simple and hassle-free way? Are there are modern solutions that can help and support you?
Luckily, yes, there are! There are now several online (and offline) banking solutions that can give you some account options that are accessible and flexible enough for you to handle.
Through such platforms, you can open a business bank account for LLC and choose a bank for startups that can genuinely understand your problems and offer you the necessary solution.
Through this comparison guide, we will take you through everything you need to know about a business account, including why you need one, things you should consider, the best banks and accounts for you and which one you can ultimately opt for.
Based on our reviews and all the options that we have tested, we recommend going with Novo for your requirements. You can find out why as you keep reading ahead.
Why Do You Need a Business Bank Account?
A business bank account can honestly make your life much easier through the benefits it can provide. It can provide you a way to keep your personal finances separate from your professional ones while also keeping you on top of important aspects that include monitoring your taxes, expenses, profits, savings and a lot more.
In addition, whenever you need to make professional ties with other companies, businesses and collaborators, having a business checking account can make it a lot easier for you to handle the money side of such professional relationships.
They can also certainly make it better for you to document the growth of your business. Ultimately, whenever your business starts growing, having this kind of account to rely on can make things convenient for you.
In a digital age, moreover, taking these financial aspects online can make most aspects of your business go a lot smoother.
As an LLC, moreover, this account can give your business the added flexibility it might need. It can help you provide the necessary proof whenever you encounter any kind of liability.
Things to Consider While Choosing a Business Bank Account for LLC
There are several things that you need to keep in mind while choosing a business bank account. Let’s take a look at some of these in further detail.
Services
The kinds of services that such banks or platforms can offer is important as it should be compatible enough with your business itself. For instance, services such as the kind of checking account, its balance requirements, integrations and more.
You should also look into the kind of customer service that they provide so that you can effectively solve all your queries.
Online Access
It is important to see the kinds of online facilities such platforms have and how easy it is to access them. You should also think about which services are present online and which ones you can access online.
Luckily, most of these banks and platforms are largely online, so you will definitely be able to access your account and make changes all from a single place.
Global Presence
As an LLC or small business, it is important for you to take your international presence and audiences into account as well. Does the bank allow you to make these kinds of transactions? What are the payment requirements, ATM compatibility and money transfer options?
Make sure you clarify all of these up before opting for a bank and bank account.
Integrations
Banks or online platforms like Bank Novo, Citi and Axos tend to provide several integrations that can make your business transactions much easier, allowing you to access several tools from a single place. For instance, tools like Shopify, Stripe, Slack, Zapier and more can be integrated through such platforms.
Benefits
What kinds of benefits can you receive from such platforms? Do they give you any bonuses or fee waivers? Are there any other kinds of support that they can offer you? Do you receive a credit card or other such documents and perks?
Knowing these can help make your decision easier.
Fees and Limits
Some banks tend to have a monthly fee to keep your account. They might also have transaction fees, ATM fees, minimum balance requirements, overdraft limits and a lot of other charges that you should be aware of.
Most of the banks mentioned here do not have a lot of these charges, but it is still important to consider what you can manage and what you cannot.
Best Banks for LLCs
There are several banks that you can consider for opening up a business bank account for your LLC. Since there are so many options out there, it can get confusing to figure out which one will work best for you.
Based on our findings, we can provide you with a thorough review of Novo, Citi and Axos as these have served us (and many others) quite well.
Through this section, we will give you some brief information about each of these platforms as well as some of their pros and cons so that you know what to expect from them.
You can then make an informed choice for your LLC. Let’s get started!
Novo — Best for Small Business Banking
Bank Novo is a business banking platform that specifically caters to freelancers and small businesses, making it an ideal choice for you if you are registered as an LLC. Novo itself integrates its advanced technology with the banking features that are provided and handled by Middlesex Federal Savings.
Novo offers several features that can benefit you and your business.
Pros
● Simple Setup Process: It only takes a few minutes for you to set up a business bank account with Novo. The approval process is short and you can also transfer your funds from different accounts in a convenient way.
● No Monthly Fees: There are no hidden charges or additional monthly fees that you need to pay to keep your account running. They provide unlimited transactions and also refund your ATM fees if any.
● No Minimum Balance: You do not need to keep a certain amount in your Novo bank account to keep your account valid. This can be quite convenient for you in case you need emergency funds or cannot make any deposits at a given moment.
● Online Support: Novo is an online platform, allowing you to conduct all your transactions online in a simple manner. The interface is also easy to use and quite accessible. Online customer support is also in place to help you out.
● International Compatibility: Novo allows you to withdraw money from ATMs all over the world with reimbursement for any such transaction fees. You can also make global transfers and access a card that you can use all over the world.
Cons
● No Physical Bank: Novo does not come with a physical branch in case you ever need to access this kind of support.
● Limited to Business Accounts: You can only open business checking accounts with Novo, requiring you to prove that you are a freelancer or a small business to be able to start using their services.
● Checks and Deposits: You can only make electronic check deposits with Novo. Cash deposits are also not available to you with Novo since the platform only works online.
Citi — Best for Different Business Sizes
Citi bank is a global bank that can cater to businesses of all sizes. It also has streamlined features for their checking account or a business bank account for an LLC. This bank has branches across the world and also offers four different checking accounts that you can choose from.
Pros
● Multiple Account Options: You can choose between four different accounts that include a Streamlined Checking Account, Flexible Checking Account, Analyzed Checking Account and Interest Checking Account. Each of these offers a different number of monthly transactions.
● Online Access: Citi bank offers an accessible online platform that allows you to carry out most transactions digitally. This online platform is also secure enough for you to use at any time.
● Physical Branches: Citi bank has many physical branches in the US as well as all over the world. This can allow you to reach out to them physically in case anything urgent or sensitive comes up.
● Debit Card: You can get access to a debit card that you can use for making deposits or withdrawals at ATMs across the world. You as well as your employees can use this card.
● International Compatibility: Since Citi bank has international branches, you can carry out your transactions internationally in an extremely convenient way.
Cons
● Monthly Fees: You will need to pay monthly fees for your business bank accounts. The amount you pay will depend on the kind of account that you opt for.
● Transaction Limits: Each checking account, no matter which one you opt for, comes with a limit on the monthly transactions, which can be inconvenient if something comes up beyond this limit.
● Minimum Balance Requirements: You will need to keep a certain minimum balance in each kind of checking account. This can prove to be difficult in certain emergency situations.
Axos — Best for Large Variety
Axos is another digital banking platform that falls under Axos Financial. It can offer a good number of solutions to small businesses while also having options for commercial banking. You can access a wide range of features that include insurance, reimbursements, an absence of monthly fees, a starting bonus and more.
Pros
● Simple Setup: The process of setting up an account is fairly simple with Axos once you decide which kind of checking account you need. The process only takes a few minutes to complete and get approved.
● Multiple Accounts: There are mainly two kinds of checking accounts for small businesses that you can choose from. You also have other options, such as savings and money market accounts, certificates of deposit and an account registry service.
● Online Accessibility: Being a completely digital banking platform, Axos has a seamless online interface in place along with good customer service. You can easily carry out all your transactions online in a secure way.
● Cash Deposits: You have the option of making cash deposits at Axos up to a certain extent. This can work well for you if you happen to live near the relevant ATMs.
● Reimbursements: Axos provides you with reimbursements in case you encounter any fees or charges in domestic ATMs. You can also make wire transfers internationally.
Cons
● No Physical Branch: Since Axos is a fully digital banking platform, it does not have any physical branches that you can access in case of an emergency or to discuss confidential or sensitive information about your business.
● Monthly Fees: While there are no monthly fees for the basic checking account, you will need to pay a certain amount of these fees if you opt for the interest checking account.
● Minimum Balance Requirements: You will need to maintain a certain minimum balance in your checking accounts to keep your account running properly. There is also a limit on the number of free checks that you receive.
Novo vs Citi
We have now taken you through all the relevant information that you need to know about Novo, Citi and Axos as well as each of their pros and cons. In case you are still confused about which bank to opt for, you can go through the following points that set them apart from each other.
Through these differences, it will become clear Bank Novo is ultimately the better choice for your LLC. Let’s see why!
● The setting up process is the simplest with Novo since all you need to do is fill up your details online and get the account approved immediately.
For Citi, you will first need to gather all the required documents and travel to a physical branch.
● Novo does not require you to maintain any minimum balance in its account except while making an initial deposit of only $50, which can be highly convenient in case you need to withdraw all your funds on an urgent basis.
Citi requires you to keep a certain minimum balance in place while also making an initial deposit.
● Novo does not require you to pay any monthly fees for keeping your account while Citi has this kind of requirement in varying amounts.
● Novo reimburses you on all your transactions, including your ATM transactions locally, nationally and internationally. Citi bank reimbursements depend on the location and ATM you use.
● Novo has a smooth online banking interface since it is a fully digital platform. Citi bank also offers several online transaction options, but you will need to visit a physical branch at several points.
● Novo allows you to make unlimited monthly transactions. For Citi, there is a limit on the number of monthly transactions that you can carry out.
Novo vs Axos
● Novo only requires you to take a few minutes to set up an account. For Axos, you have the additional step of picking an account for yourself in the first place. The online approval process also takes slightly longer.
● Novo does not have any minimum balance requirements while Axos has this requirement in place depending on the kind of account you choose.
● You do not need to pay any monthly fees to maintain your Novo account, but you will need to do this for Axos.
● Axos only provides domestic reimbursements whereas Novo reimburses you at all points.
● You can make unlimited transactions with Novo but not with Axos.
Citi vs Axos
● Axos has a simpler and fully digital setup process but Citi requires more documents and access to a physical branch.
● Axos has a seamless online banking platform. Citi only has this to a certain extent, requiring you to visit a physical branch at some point or another.
● Axos provides domestic reimbursements while Citi bank reimbursements depend on the specific ATM or location.
● The exact amount of fees and monthly transactions will differ in each bank based on the account you opt for.
Why You Should Choose Novo
You should choose Novo if you are a freelancer or small business looking for a streamlined business bank account that specifically caters to your requirements.
With a smooth setup process, no hidden charges, no minimum balance requirements and no limits on your transactions, Bank Novo can help you have a smooth digital banking experience along with great customer service.
Why You Should Choose Citi
Citi can work for you if you are looking for multiple options to choose from as a small, medium or large business. In particular, if you still need a traditional banking experience, then Citi can offer you that through its physical branches as well as online transaction options.
Citi is also well-established internationally, allowing you to carry out your business while traveling or while residing in a certain part of the world.
Having said that, Citi still doesn’t offer the ease of use and almost non-existent fees that Novo does.
Why You Should Choose Axos
Axos can work well for you if you want a greater variety in your checking accounts since you have the option of choosing between two. You can also access a variety of other services if your business is slightly larger in size as well.
Along with a primarily online banking platform that offers smooth services, Axos also lets you make cash deposits at certain limited ATMs in the United States.
FAQs
Is It Okay to Use a Personal Bank Account for the LLC?
You should not use your personal bank account for your LLC since you are required to keep your personal finances separate from that of your LLC. In this case, in particular, using a personal bank account for your LLC can prove to be counterproductive, since this can impact your limited liability status.
Apart from the legal reasons, it is also advisable to keep a separate account for your business as this can give you a greater amount of professionalism while also making it easier for you to monitor the growth of your business, make transactions and make payments to vendors and employees, among other benefits.
Can Anyone Open a Business Bank Account for an LLC?
If you are a sole proprietor in your business, then you do not need to open a business bank account. However, if you belong to an LLC, then you will need to open this kind of account for your business. This also applies to when you convert to an LLC.
The person who makes the application to open this kind of account must also own a certain amount of the business itself. They must also be able to present all the required documents of the business, such as tax IDs, formation dates, agreements, country of formation and more.
Is It Okay to Have More Than One Business Bank Account?
It is okay to have more than one business bank accounts in an LLC. Keeping the finances separate can actually provide a better way of keeping track of the finances and can work well for multiple members or owners of the LLC. Additionally, this can be a good way to separate the income from the expenses of the LLC.
When it comes to paying taxes, the income can then be added up and the required documentation can be filled up to ensure accuracy. Depending on the nature of your business, however, it might be more beneficial to stick to a single account.
Final Thoughts
Through this guide, we have taken you through most things you should know about opening a business bank account as an LLC, including why it is necessary and what you need to keep in mind while looking for an account to opt for.
We have also gone through three banking platforms, namely, Novo, Citi and Axis as well as their features on offer, pros and cons. This can allow you to make an informed choice that can work well for your LLC and meet all your account and finance requirements.
Overall, we recommend going with Novo since it not only offers affordable banking solutions without any limitations but also tries to give you a smooth experience without any hidden charges. You can also get streamlined features for your LLC.
Testimonials
Novo
● https://www.trustpilot.com/users/613046cfcfa5430013fe5665
● https://www.trustpilot.com/users/612ff212ff301c0013743c4b
Citi
● https://www.consumeraffairs.com/finance/citibank.htm
● https://www.quora.com/What-is-your-review-of-Citibank
Axos
● https://www.trustpilot.com/reviews/605eb4d1f85d75087037d543
