Opening a business bank account is the first thing most new owners do after filing their LLC — and the decision usually gets made on whichever bank they already use personally. That is how people end up paying $180 a year in maintenance fees on a $3,000 balance.
Business checking splits into two camps: online providers that charge nothing per month, and traditional banks that charge a waivable fee in exchange for branches, cash handling and a lending relationship. Which camp is right depends on one question — do you take cash?
$0
Typical online monthly fee
$10–$30
Traditional bank monthly fee
$250K
Standard FDIC per bank
~20 min
Online application time
On the numbers below: fees, interest rates and FDIC arrangements were checked against each provider's published pricing in August 2026. Business banking terms change often — especially interest rates and sign-up bonuses. Confirm on the provider's own disclosures before you apply.
Start With One Question: Do You Handle Cash?
Almost every other feature can be changed later. Cash cannot. Most online business banking providers either refuse cash deposits outright or route them through a retail network — Green Dot locations in drugstores and supermarkets — with a fee per deposit and a daily ceiling.
If your business takes cash regularly, open at a bank with branches near you and stop reading comparison tables. If it does not — most service businesses, consultants, online sellers, trades that invoice — the no-fee online accounts win on every measurable dimension.
Cash-heavy businesses in our data
Food trucks, coffee shops, barber shops, hair and nail salons, laundromats, ice cream shops, market vendors. These take enough cash that branch access is worth a monthly fee.
Cash-light: cleaning, lawn care, pressure washing, handyman, photography, personal training, web design, bookkeeping, consulting. These bill by invoice or card and rarely see a bill.
"Bank" Usually Means Fintech — Here's Why It Matters
Novo, Relay, Bluevine, Mercury, Found and Lili are financial technology companies, not chartered banks. Your money sits at a partner bank that holds the charter and the FDIC membership. Novo's partner is Middlesex Federal Savings. Bluevine works through Coastal Community Bank and a network of program banks. Relay's is Thread Bank.
This is a normal, legal structure and your deposits are insured — but the insurance attaches to the partner bank, not the app. Three practical consequences:
- Know the partner bank. It is named in the footer of the provider's site and in your account agreement. If you already bank at that institution directly, your $250,000 of coverage is shared across both, not doubled.
- Sweep networks raise the ceiling. Providers that spread deposits across many partner banks advertise coverage of $3 million to $5 million or more. That is real, but it is a program feature — read how it is structured if you hold large balances.
- Treasury products are not FDIC insured. Money market and treasury accounts offered alongside checking carry SIPC protection instead. Different protection, different failure scenarios.
Standard FDIC coverage is $250,000 per depositor, per bank, per ownership category. Your business is a separate depositor from you personally at the same bank, which most owners do not realise.
Nine Accounts, Compared
| Provider | Monthly fee | Cash deposits | Best for |
|---|---|---|---|
| Novo | $0 | Retail network only | Freelancers, online sellers |
| Relay | $0 | Retail network only | Envelope budgeting, teams |
| Bluevine | $0 standard | Retail network only | Interest on checking, credit line |
| Mercury | $0 | None | Tech startups, treasury |
| Found | $0 free tier | Retail network only | Solo owners who want tax tools |
| Lili | $0 free tier | Retail network only | Mobile-first freelancers |
| Chase Business Complete | ~$15, waivable | Branches | Cash businesses, lending |
| Bank of America | Waivable fee | Branches | Branch access, card rewards |
| Local credit union | Often $0–$10 | Branches | Relationship lending |
Sign-up bonuses appear and disappear constantly and are usually tied to a deposit and balance requirement held for several months. Do not pick an account for a $300 bonus you may not qualify for.
Which One, By Situation
Solo service business, no cash: Novo
One plan, no monthly fee, no minimum balance, no overdraft fee. Built-in invoicing and reserve buckets for setting aside tax money, plus fast payouts if you sell through Stripe. Nothing to outgrow for the first year or two.
Anyone who keeps taxes in a separate pot: Relay
Up to 20 checking accounts and two savings accounts under one login, each with its own debit card. If you follow Profit First or simply want payroll, taxes and operating money physically separated, this is the account that does it without opening 20 bank relationships. Free plan, no maintenance charges, role-based access for a bookkeeper.
Holding real cash, or want a credit line attached: Bluevine
Pays interest on checking balances for eligible accounts — the advertised top rate depends on plan tier and monthly activity, so treat it as a range rather than a promise — and offers a business line of credit through the same login. The standard plan has no monthly fee. Worth it once your average balance is high enough that yield is more than rounding error.
Cash over the counter: Chase Business Complete Banking
Around $15 a month, waived by keeping a $2,000 minimum daily balance, spending $2,000 on linked Chase business cards, or taking $2,000 in card deposits. For a business doing real volume the fee waives itself; for a side business at $500/month revenue it does not, and you will pay it. Branch network, cash handling and an existing relationship if you later want an SBA loan.
Venture-backed or software business: Mercury
Built for startups: no monthly fee, API access, sub-accounts, extended FDIC coverage through a sweep network, and treasury products for idle runway. No cash deposits at all, and little reason to care if your revenue arrives by wire and card.
Not sure which business you are starting yet? The business quiz matches your budget and working style against 53 business types, and each one has a cost breakdown for your state.
The Fees Nobody Compares (And Should)
Monthly maintenance is the headline number and often the smallest one. These are the charges that actually add up:
| Fee | Typical range | Who gets hit |
|---|---|---|
| Cash deposit over the free limit | $0.20–$0.30 per $100 | Retail, food, salons |
| Outgoing domestic wire | $0–$35 | Anyone paying suppliers |
| Incoming wire | $0–$15 | B2B, larger invoices |
| Transactions over the monthly cap | $0.40–$0.50 each | High-volume traditional accounts |
| Out-of-network ATM | $2.50–$5 | Owners drawing cash |
| Overdraft / NSF | $0–$34 | Thin-margin, seasonal businesses |
Add up the ones you will actually trigger. A restaurant depositing $8,000 in cash a month can pay more in deposit fees than a consultant pays in a year of maintenance. Work out your real monthly outgoings first with the monthly expense calculator.
What You Need to Open One
Have these ready and an online application takes about twenty minutes:
- EIN confirmation letter — free from irs.gov, issued immediately online. Ignore any service charging $50–$100 to file the same form.
- Formation documents — articles of organization for an LLC, articles of incorporation for a corporation, stamped by your state.
- Operating agreement — asked for by most banks even in states that do not require one.
- Photo ID and SSN for every owner holding 25% or more, plus anyone with signing authority.
- DBA certificate if you trade under a name different from the registered one.
- Business address and description — some high-risk categories get declined at this step, so answer accurately rather than optimistically.
Not formed yet? Costs and steps by state are in the LLC formation guide, and the naming side is covered in how to register a business name.
Five Expensive Mistakes
- Running the business through a personal account. For an LLC this is the fastest route to losing liability protection, and it turns tax season into a forensic exercise. Open the account the same week you file.
- Picking your personal bank by default. Consumer loyalty earns you nothing on the business side. The account terms are what they are.
- Choosing on APY. Advertised top rates are tiered and conditional. At typical early-stage balances, a single avoided wire fee beats a year of yield difference.
- Ignoring cash deposit rules until the first deposit. Find out the fee and the daily limit before you open, not after your first busy Saturday.
- Opening five accounts to chase bonuses. Each one is a credit and identity check, another set of statements to reconcile, and another dormant-account fee waiting to appear.
What to Set Up Alongside It
A checking account is one piece. Three things belong next to it in the first month:
- A separate savings or sub-account for tax. Move 25–30% of every payment across as it lands. Providers with sub-accounts make this a rule rather than a good intention.
- Bookkeeping connected to the account from day one, so the first year does not need reconstructing. Free tools for startups covers the no-cost options.
- A card in the business name to build a credit file separate from your personal one — which matters when you later apply for a loan or a line of credit. Business credit cards for startups covers what a new business can be approved for, and financing options covers what lenders look at.
For everything else that needs doing in month one, work through the first 30 days checklist.