When starting a Limited Liability Company (LLC), choosing the right bank account is crucial to the success of the business. A bank account for LLCs can help manage financial transactions, simplify accounting, and build a business credit history. However, with many options available, choosing the right bank account can be a daunting task for new business owners.
This article will provide an in-depth guide on how to choose the best bank account for your LLC. It will highlight the factors to consider when selecting a bank account, the top bank accounts for LLCs, and the steps to take to make an informed decision. With this guide, new LLC owners can make informed decisions when choosing a bank account for their business.
Factors to Consider When Choosing a Bank Account for LLCs
Choosing the right bank account for your LLC requires careful consideration of several factors. Here are some of the essential factors to consider when selecting a bank account for your LLC:
Fees: Bank accounts come with various fees, including monthly maintenance fees, transaction fees, and wire transfer fees. When selecting a bank account for your LLC, consider a bank that offers low or no fees to save money.
Transaction limits: Bank accounts come with transaction limits, which determine the number of transactions you can make per month. Ensure that the bank account you choose has a sufficient limit for the number of transactions your LLC expects to make.
Online banking: Online banking is a convenient way to manage your bank account, perform transactions, and check your balance from anywhere. When choosing a bank account, ensure that the bank offers a robust online banking system that allows you to manage your account online.
Integration with accounting software: Being able to easily integrate with accounting software platforms such as QuickBooks, Xero, or FreshBooks can save you time and money. Ensure that the bank account you choose offers integration with popular accounting software.
Customer service: Good customer service is crucial when selecting a bank account for your LLC. Choose a bank that offers excellent customer service and support to help you manage your account effectively.
Interest rates: If your LLC expects to have significant cash balances, consider a bank account that offers competitive interest rates. This can help your LLC earn more interest on your account balances.
Top Business Bank Accounts for LLCs
There are several bank accounts suitable for LLCs, each with different features, fees, and requirements. Here are some of the top bank accounts for LLCs:
Chase Business Complete Checking
Chase Business Complete Checking is one of the most popular bank accounts for LLCs. It’s a business checking account that provides unlimited electronic deposits, ACH, and mobile deposits. Features that benefit LLCs include:
- $300 bonus for new customers who meet certain requirements
- Access to over 16,000 ATMs and 4,700 branches nationwide
- Online banking with Bill Pay and account alerts
- Chase Mobile app for managing your account on-the-go
- Zero Liability Protection against unauthorized purchases and withdrawals
- 24/7 customer service and support
Chase Business Complete Checking has transaction fees for cash deposits and wire transfers. The account also has a monthly maintenance fee of $15, which can be waived by meeting at least one of the following requirements:
- Maintain a minimum daily balance of $2,000
- Spend at least $2,000 in purchases using your Chase Ink Business Credit Card
- Receive $2,000 in total incoming wire transfers per month
Overall, Chase Business Complete Checking is an excellent option for LLCs that need a reliable and feature-rich bank account. The account’s unlimited electronic deposits, mobile deposits, and ACH make it easy to manage your LLC’s finances.
Bank of America Business Fundamentals Checking
Bank of America Business Fundamentals Checking is another popular bank account option for LLCs. It offers 200 monthly transactions, online and mobile banking, and no monthly fee for the first two months. The account also comes with several other features that can benefit LLCs, including:
- Account alerts to help you manage your account balance and transactions
- Access to over 16,000 ATMs and 4,700 branches nationwide
- Bill Pay to easily pay bills online
- Online and mobile check deposit for added convenience
- Business debit card with chip technology for added security
- Fraud monitoring to protect your account from unauthorized transactions
While Bank of America Business Fundamentals Checking offers many benefits, it also has some fees and requirements to consider. The account has a monthly maintenance fee of $18, which can be waived by maintaining a minimum daily balance of $3,000, spending at least $250 in purchases using your Bank of America business debit or credit card, or enrolling in the Bank of America Preferred Rewards program.
The account also has transaction fees for cash deposits, wire transfers, and other services. If you need a checking account with basic features and access to a large network of ATMs and branches, Bank of America Business Fundamentals Checking is a good option for LLCs.
Capital One Spark Business Checking
Capital One Spark Business Checking features unlimited transactions and no monthly fee. The account offers a $500 bonus for new customers who meet specific requirements, and also comes with several other perks that can benefit LLCs, including:
- Free online bill pay and mobile check deposits
- Access to over 40,000 Capital One and Allpoint ATMs nationwide
- Ability to link your account to QuickBooks or other accounting software for easy recordkeeping
- Online and mobile banking with account alerts to keep you informed of account activity
- Free overdraft protection to help you avoid overdraft fees
Note that a Capital One Spark Business Checking account has a $15 monthly fee, which can be waived by maintaining a minimum balance of $2,000 or spending at least $2,000 in purchases using your Spark Business Card. It also charges transaction fees for cash deposits, wire transfers, and other services.
All in all, Capital One Spark Business Checking is a good option for LLCs that want a simple, straightforward checking account with unlimited transactions and easy online and mobile banking features.
Axos Basic Business Checking
Axos Basic Business Checking is a top online-only bank account option for LLCs. It offers 200 free transactions per month, unlimited domestic ATM fee reimbursements, and no monthly maintenance fees. The account can benefit LLCs in a number of ways, including:
- Online and mobile banking with check deposit, bill pay, and account alerts
- Free business debit card with rewards program
- ACH and wire transfer capabilities
- No minimum balance requirement
- Free first set of checks
Axos Basic Business Checking requires a $1,000 minimum opening deposit, which may be higher than other bank account options. In addition, the account has transaction fees for cash deposits and wire transfers, so you’ll want to review the account’s fee schedule beforehand.
Axos Basic Business Checking is a good option for LLCs that prefer to bank online and want a basic checking account with no monthly fees and free domestic ATM fee reimbursements.
Wells Fargo Business Choice Checking
Wells Fargo Business Choice Checking is another popular bank account option for LLCs. It offers 200 free transactions per month, online and mobile banking, and overdraft protection. The account can further benefit LLCs in the following ways:
- Access to over 13,000 Wells Fargo ATMs and 5,400 branches nationwide
- Business Bill Pay to easily pay bills online
- Business debit card with zero liability protection
- Option to add a savings account for overdraft protection and to earn interest
- Option to link your account to QuickBooks or other accounting software for easy recordkeeping
Like most business bank accounts, Wells Fargo Business Choice Checking has some fees and requirements to consider. The account has a $14 monthly maintenance fee, which can be waived by maintaining a $7,500 minimum daily balance or by having a total of $10,000 in qualifying linked business deposit accounts, business credit balances, and Merchant Services transactions. Plus, there are transaction fees for cash deposits, wire transfers, and other services.
Wells Fargo Business Choice Checking is a good option for LLCs that want a checking account with access to a large network of ATMs and branches and overdraft protection.
How to Choose the Right Bank Account for Your LLC
After you’ve narrowed down your bank account options, you can now go through each one and finalize your decision. Here’s a step-by-step breakdown of choosing which bank account to use for your business:
1. Analyze your LLC’s banking needs: Consider your LLC’s transaction volume, cash flow, and financial goals. Determine the services you need and the fees you can afford.
2. Compare and contrast bank accounts: Research different bank accounts and compare their features, fees, and requirements. Consider the bank’s reputation, customer service, and the ease of opening and managing the account.
3. Consult with an accountant or financial advisor: An accountant or financial advisor can offer expert advice on choosing the right bank account for your LLC. They can provide insights on tax implications, accounting integration, and cash flow management.
4. Make an informed decision: After considering your LLC’s needs, comparing different bank accounts, and consulting with an expert, make an informed decision that aligns with your LLC’s goals and objectives.
Choosing the right bank account for your LLC is crucial for managing your finances effectively. When selecting a bank account, consider the fees, transaction limits, online banking, integration with accounting software, customer service, and interest rates. Reviewing the top bank accounts for LLCs and taking the time to analyze your banking needs, comparing bank accounts, and consulting with an expert can help you make an informed decision. By choosing the right bank account, you can manage your finances more efficiently and help your LLC grow and succeed.