What Kind of Bank Account is Best for an LLC?
If you’ve just launched your LLC, congratulations — you’ve taken a major step toward building a legit business. But here’s the thing: where you put your money matters just as much as how you earn it.
The right bank account can help protect your personal assets, simplify your taxes, and streamline your day-to-day operations. The wrong one? It can lead to messy bookkeeping, legal risks, and major stress during tax season.
In this blog, we’ll break down:
- Why your LLC needs its own bank account (yes, even if you’re a solo founder)
- The different types of accounts available
- What features to look for
- The top online and traditional banks for LLCs
- How to actually open your business account
Let’s make your financial foundation as solid as your business plan.
Why an LLC Needs a Dedicated Business Bank Account
One of the biggest perks of forming an LLC is limited liability protection—but that protection can be compromised if you don’t keep business and personal finances separate. Here’s why a dedicated bank account is a must:
Legal Separation = Liability Protection
Your LLC is a separate legal entity. Mixing personal and business funds (aka “piercing the corporate veil”) can put your personal assets—like your house or car—at risk in the event of a lawsuit or debt.
Cleaner Books, Smoother Taxes
With a business account, all income and expenses are in one place. That makes bookkeeping easier and tax time less stressful. You’ll have the paper trail the IRS loves to see, which helps avoid audits and reduce errors.
IRS Compliance & Professionalism
Having a business bank account shows the IRS (and your clients) that you’re operating as a legitimate business—not just a side hustle. It also makes things like applying for loans or business credit much easier.
Types of Bank Accounts for LLCs
Different business goals call for different accounts. Here’s a quick breakdown of the most useful types:
Business Checking Account (Most Essential)
This is your LLC’s financial home base. Use it for:
- Paying vendors
- Receiving payments
- Handling daily transactions
- Managing bills and cash flow
Business Savings Account
If your LLC builds up cash reserves, stash them here to earn interest while keeping funds separate from your daily spend.
Business Merchant Account
If you want to accept credit or debit card payments (especially online), you’ll need a merchant account. These work with your checking account to process electronic payments securely.
Business Credit Card
Separate your purchases and start building credit in your business’s name. A credit card can also help cover short-term cash flow gaps and give you access to rewards and perks.
Top Features to Look For in an LLC Bank Account
Not all business accounts are created equal. Here’s what to prioritize when choosing the best one for your LLC:
- ✅ Low or no monthly fees
- ✅ No minimum balance requirements
- ✅ Competitive APY (interest rate) on deposits
- ✅ Mobile banking and online access
- ✅ Multiple subaccounts for budgeting or Profit First-style accounting
- ✅ Quality customer service—especially if you ever need to speak to a real human
- ✅ Access to credit or lending products for when you’re ready to scale
Top Recommended Bank Accounts for LLCs
Online Banks (Best for digital-first businesses)
- Bluevine – Best overall: No fees, up to 2.0% APY, and great lending options.
- Mercury – Best for startups: FDIC insurance up to $5M, 5.43% APY, and seamless payment tools.
- Novo – Best for solo owners: Fee-free and integrates with QuickBooks, Shopify, Stripe, etc.
- Relay – Best for budgeting: Create multiple subaccounts with unique routing numbers.
- Lili – Best for freelancers: No fees, no fuss. Lili Pro adds more features for $4.99/month.
Traditional Banks (Best if you need branches and cash deposits)
- Chase Business Complete Banking – Huge branch network and physical service.
- Bank of America Business Advantage – Broad feature set, great for growing businesses.
- Capital One Business Banking – Known for unlimited transactions and strong customer service.
- U.S. Bank Silver Business Checking – Solid, fee-free option with national access.
Other Notable Mentions
- American Express Business Checking – 24/7 customer support and strong brand trust.
- Grasshopper – Earn 2.25% APY with no monthly fees.
- LendingClub Tailored Checking – ATM fee reimbursements and integrations with financial tools.
How to Open an LLC Bank Account
Opening an account is easier than you think—but you’ll need a few key documents:
📄 Required Info:
- Articles of Organization (or Certificate of Formation)
- LLC Operating Agreement
- EIN (Employer Identification Number)
- Valid photo ID
- Business address
- State where your LLC is registered
Some banks may request additional details, so it’s smart to call ahead or check online.
Frequently Asked Questions
Can I use my personal bank account for my LLC?
Technically, yes—but it’s a bad idea. Mixing personal and business finances can put your personal assets at risk and cause major headaches during tax season. If you want to maintain liability protection and keep your books clean, open a separate business account.
What type of bank account is mandatory for an LLC?
At minimum, every LLC should have a business checking account. This is where all business income should be deposited and where expenses should be paid from. Depending on your business model, you might also want a savings, merchant, or credit card account.
Do I need an EIN to open an LLC bank account?
Yes. Most banks require an Employer Identification Number (EIN) from the IRS to open a business account—even if you’re a single-member LLC. The EIN functions like your business’s Social Security number.
Are online business bank accounts safe for LLCs?
Absolutely. Reputable online banks like Bluevine, Mercury, and Novo are FDIC-insured, just like traditional banks. Just make sure to choose a provider that offers secure login, fraud protection, and good customer support.
What happens if I don’t separate business and personal finances?
You risk piercing the corporate veil, which means the courts could ignore your LLC’s liability protection. In a lawsuit or debt collection, your personal assets—like your savings or home—could be fair game. Don’t take that risk.
