Opening a separate business bank account is essential for your LLC. Here are the best options for small businesses in 2025.
Why You Need a Business Bank Account
- Liability protection — Mixing personal and business funds can "pierce the corporate veil" and eliminate your LLC's liability protection
- Tax simplicity — Separate accounts make bookkeeping and tax filing much easier
- Professionalism — Accept payments under your business name
- Credit building — A business account helps establish business credit history
Best Free Business Checking Accounts
| Bank | Monthly Fee | Free Transactions | Best For |
|---|
| Bluevine | $0 | Unlimited | Online businesses |
| Novo | $0 | Unlimited | Freelancers & startups |
| Mercury | $0 | Unlimited | Tech startups |
| Relay | $0 | Unlimited | Small teams |
| Chase Business Complete | $15* | 100/month | Brick-and-mortar |
*Chase fee is waived with $2,000 minimum balance or $2,000 in deposits.
Best for High-Volume Businesses
| Bank | Monthly Fee | Free Transactions | Best For |
|---|
| Chase Performance Business | $30* | 250/month | Growing businesses |
| Bank of America Business Advantage | $16* | 200/month | Multi-location |
| Wells Fargo Initiate Business | $10* | 100/month | Existing Wells customers |
*Fees waivable with minimum balances.
What to Look For
- Monthly fees — $0 is ideal; if there's a fee, can it be waived?
- Transaction limits — How many free transactions per month?
- ATM access — Important for cash businesses
- Integration — Does it connect with your accounting software?
- Mobile app — Check deposits, send payments, manage accounts on the go
- Cash deposit options — If you handle cash, check deposit fees and limits
Documents Needed to Open an Account
- EIN — Get one free from the IRS (EIN guide)
- Articles of Organization — Filed when you formed your LLC
- Operating Agreement — Your internal LLC rules
- Government-issued ID — Driver's license or passport
- Business license — If required in your city/state
Online Banks vs Traditional Banks
| Feature | Online Banks | Traditional Banks |
|---|
| Monthly fees | Usually $0 | $10-$30+ |
| Interest on balance | Often yes | Rarely |
| In-person service | No | Yes |
| Cash deposits | Limited/none | Easy |
| Tech/integrations | Excellent | Good |
| Best for | Online/service biz | Cash/retail biz |
Tips for Managing Your Business Account
- Never mix personal and business funds — Pay yourself a regular "owner's draw" instead
- Set aside money for taxes — Keep 25-30% of profit in a separate savings account
- Reconcile monthly — Match your bank statements with your accounting records
- Use accounting software — Connect your bank to QuickBooks, Wave, or Xero