Best Business Bank Accounts for LLC in 2022

Our List of the Top-3 Best Bank Accounts for LLC in 2022

Best Overall - Editor’s Choice — Chase Business Complete Checking

Let’s start our review with one of the best business bank accounts for LLC by Chase Banking. You can open a checking account online or by visiting one of the Chase and JPMorgan branches around the country. 

Quite a few things make Chase Checking accounts one of the best picks. For example, the bank has a 0% opening deposit and provides six different business credit cards with a reward system. There are no hidden fees: you only pay 2.6% + 10 cents for transactions through QuickAccept and 3.5% + 10 cents for manual transactions.

Note that Chase takes a $15 monthly service fee, but there are several ways to waive it, such as:

• making a $2,000 in purchase using one of the Chase business credit cards;
• maintaining a minimum $2,000 daily balance;
• linking a Private Checking account to your LLC account.

Plus, the Chase online banking is effortless to use and features round-the-clock customer support for any questions.

Why Do You Need a Business Bank Account?

You need a business bank account for legal reasons:

A state views each business, regardless of its structure, as a separate entity from its owner. It means that your assets will be protected should the company get in trouble. And as a separate entity, it should have a different bank account to perform the financial operations, pay taxes, and maintain your savings.

Aside from legal reasons, having a business bank account also gives you these advantages:

• Better financial management. Having all your business financing in a particular place allows you to track all the transactions more efficiently. Also, you can set up your business account to remind you about important things, such as tax returns and reports.
• An additional layer of privacy. When using a business account, you operate under your company’s name, which keeps your personal data protected from possible fraud.
• Extended features. Business accounts often have extra features that aren’t common in personal accounts. These can include delegating authority to the third party, for example, to an accountant or other LLC member, allowing wire transfers or ACh payments, lower interest rates, etc.

Also, you can change or remove an authorized signer from your business account without closing it.

Note that transaction fees or monthly maintenance tend to be higher for business accounts than for individual ones.

What do You Need to Open a Business Bank Account?

Opening a business account usually requires more paperwork than a personal one. If you own a limited liability company, the required documents typically will include:

• Employer Identification Number (EIN). It is your federal tax ID, and IRS requires any business, regardless of the structure, to have it (1). You can obtain an EIN online by filling the SS-4 form on the IRS website or use one of the business formation services: they often offer this service.
• Articles of Organization. Articles of Organization show the main building blocks of your business, such as name, address, contacts of your registered agent, duration, and management structure.
• Operating Agreement. The Operating Agreement specifies the duties of every member of the LLC. If you assign one of the members as your accountant, you should give this information to the bank.
• Banking resolution. Along with the Operating Agreement, Banking Resolution provides the bank with the information about the person authorized to open a business bank account.
• Business license. Certain businesses, such as beauty, healthcare, and HoReCa industries, might also need a valid business license.

Note that most banks require a minimum initial deposit to fund the account once it’s been opened. These requirements may vary from bank to bank, so it’s always better to contact the bank’s representative.

Once you have gathered all the docs, you can open a business account in any brick-and-mortar bank you choose to, or even online.

How to Choose the Right Bank for Your LLC?

Finally, let’s see what you need to consider when looking for an excellent bank to open your business account.

Because there are quite a few essential things:

• Account fees. Business accounts have monthly service fees ranging from $10 to $100, depending on the bank’s account type. Some banks allow you to waive a fee, for example, by maintaining a certain daily balance for a certain period or linking your other accounts to the checking account.
• Transaction fees and limits. Again, depending on the account type, you might have unlimited transactions per month or get a limit of debits, payments, and transfers and pay a small fee for each transaction beyond that limit. Generally, limited transactions are good for new businesses with small amounts of money per month.
• Interest earning plans. Those who want to multiply their savings passively should consider opening an interest-earning account. Some banks offer interest-earning depositing accounts as a separate option to link to your business account and start saving.
• Acceptable payment methods. Your customers should feel comfortable purchasing your services, so obtaining a business account that supports different payment methods is desirable. 
• Online vs. offline banks. It usually boils down to personal preference, as you can equally easily open a business account both offline and online. However, it’s worth noting that online banks may have smaller fees since they don’t have to maintain physical branches, but they rely on internet connection.
• National vs. local banks. National banks have a well-established reputation and can operate with large amounts of money, which is great for startups and expanding LLCs. Plus, they typically have an extensive ATM network. However, working with a local bank or a credit union might be a more desirable option (2).