As most entrepreneurs start out, they establish sole proprietorships because they’re the simplest business structure; no paperwork to set up. But, once their businesses take off, they prefer to change their business structure from a sole proprietorship to a limited liability company.
There are numerous reasons to switch from sole proprietorship to an LLC, but one of the most important is a limited liability; it protects your personal assets such as your house, car, and your personal bank account in the event of business liability.
If your purpose for forming the LLC is also limited liability, you should open a separate business bank account for your LLC rather than using your personal account.
There is no shortage of banks for U.S. residents, but if you live abroad and do business in the United States, finding the right bank may be more challenging since most U.S. banks require you to visit your local branch to open a business bank account.
Don’t fret! This guide will provide you with the five best business bank accounts for LLCs and also some basic information about opening a bank account in the United States as a non-resident.
5 Best Business Bank Accounts for LLCs: The Ultimate Guide
- 1 How to Open Business Bank Accounts for LLCs in the United States as a Non-Resident
- 2 What is the Process to Open your Bank Account
- 3 How to Choose Right Business Bank Accounts for LLCs
- 4 5 Best Business Bank Accounts for LLCs
- 5 Mercury
- 6 Brex
- 7 Relay
- 8 Novo
- 9 Try Novel
- 10 Our Favorite (Mercury)
- 11 Conclusion
How to Open Business Bank Accounts for LLCs in the United States as a Non-Resident
Most U.S. banks require you to visit the branch to open a business bank account, but there are some banking services (Which I have included in this guide) that allow you to open your bank account remotely.
But to open your bank account in these banks, you will also need to provide some documents. No one can say that these banks will ask for exactly these documents because each bank has different requirements but they may ask you for these documents:
- LLC Articles of organization
- Employer Identification Number (EIN)
- Individual Taxpayer Identification Number (ITIN)
- LLC Operating Agreement
- DBA, or fictitious name certificate, if applicable
- Certificate of Good Standing
- Business License
- US Mailing Address (If you are a non-US resident)
What is the Process to Open your Bank Account
There is no hassle in opening a bank account in any of the banks I have included in this guide. All you need to do is provide basic information about yourself and your business.
In addition, you may need to provide the documents we discussed above: your LLC formation documents, your Employer Identification Number, and some other documents.
How to Choose Right Business Bank Accounts for LLCs
In this guide, I’ve included five bank accounts that are providing the best service to their customers. But I can’t say which one is better for you—every business has its own requirements.
There are some factors business owners keep in mind when choosing business bank accounts for LLCs:
- Monthly Fee or an Opening Deposit
- Transaction Limits
- Document Requirements
- Customer Reviews
5 Best Business Bank Accounts for LLCs
By comparing these banking services with the five factors we gave you above, we will help you choose the best bank account for your LLC.
Mercury topped our list of the best bank accounts for LLCs. Mercury Online Banking helps startups and small businesses manage their cash flow.
- Cost: Mercury doesn’t charge any monthly fees or transaction fees, has no minimum opening deposit, or maintains balance requirements.
- Features: It offers a variety of features for small business owners like bank-level security, spending management, team collaboration and management tools, analytics tools, and Physical and virtual debit cards.
- Integration: It integrates with Stripe, PayPal, Amazon, Shopify, Quickbooks, and Zapier.
- Transaction Limits: There is no limit for transactions.
- Document Requirements: To apply for a mercury account, you will have to provide your LLC Article of Organization, your Employer Identification Number, and a picture of your Passport.
- Customer Reviews: They have received a 3.9-star rating from more than 350 reviewers on Trustpilot.
Brex offers small businesses a simple alternative to traditional banking—a bank account that can be accessed fully online.
- Cost: Brex is free to use — no annual or account fees, and you won’t pay for employee cards. Plus, the card has no foreign transaction fee. That makes it great for business trips abroad.
- Features: Brex empowers you to manage your business finances with a suite of tools, including a mobile app, free secure transactions, expense tracking and analytics, and unlimited users in virtual cards.
- Integration: It has integrations with Quickbooks, Slack, Gusto, Expensify, and some other useful applications for small businesses.
- Transaction Limits: Brex customers enjoy unlimited transactions.
- Document Requirements: To open your Brex account, you have to provide your LLC formation documents and your Employer Identification Number, and you must operate a business in the United States.
- Customer Reviews: Brex has a 4.3-star rating with almost 500 reviews on Trustpilot.
Relay Financial, a fully online business banking platform, offers small businesses a proper alternative to traditional banks. It provides many of the services traditional banks do with some other great features.
- Cost: Relay offers free business checking. It has no minimum balance requirements, transaction limits or overdraft fees, and free incoming wire transfers. The paid plan is $30, but the free plan is enough for small businesses.
- Features: It gives small business owners a place to manage their finances in one convenient location, including FDIC-insured bank accounts, spending management, team collaboration, and virtual and physical master debit cards.
- Integration: It has integration with Xero, Quickbooks, Plaid, and Gusto.
- Transaction Limits: There is no limit for transactions.
- Document Requirements: To apply for a Relay account, you will need to provide your LLC Article of Organization, your Employer Identification Number, and your LLC Operating Agreement.
- Customer Reviews: Relay Financial has a 4.5-star rating with over 350 reviews on Trustpilot.
Novo is an excellent alternative to traditional banks. It is an online banking platform that helps global small businesses manage their finances in one place.
- Cost: Novo does not charge you any monthly fee, but you need to pay $50 as the minimum opening deposit requirement.
- Features: It offers online access from anywhere, Bank-level security, the ability to create and manage invoices, and virtual and physical debit cards.
- Integration: It integrates with your Wise account, Stripe account, Slack account, Xero file, Shopify store, and QuickBooks accounting software.
- Transaction Limits: Novo offers Unlimited transactions with its online banking platform.
- Document Requirements: To open a Novo account, You have to provide your Formation Documents, Social Security Number (If you are not eligible for SSN, you can use your ITIN instead), US phone number, and a US address.
- Customer Reviews: They have received a 3.7-star rating from more than 1k reviewers on Trustpilot.
Trynovel offers the best business accounts for LLCs. It enables you to start, run, and grow your company with a host of powerful features.
- Cost: TryNovel offers two plans, Standard and Plus. Standard is the perfect fit for you if you’re just getting started, but if you’re part of a growth team looking for a financial management solution that scales with your business then our Plus plan is what you need to take your business to the next level.
- Features: Trynovel offers a great number of features for small companies. These features include FDIC-insured bank accounts, top-notch security, access from anywhere globally, unlimited transfers free of charge, not to mention that minimum balance is not required, payouts in more than 135+ currencies, and Virtual & Physical debit cards.
- Integration: It has integration with multiple payment processors such as Stripe, Amazon, Paypal & Shopify.
- Transaction Limits: They offer Unlimited transactions.
- Document Requirements: To open a Trynovel account, you will need to provide your LLC Article of Organization and your Employer Identification Number. Additionally, you must have a working website, active social media profiles, and a US address.
- Customer Reviews: Trynovel has only 42 reviews with a 4.7-star rating on Trustpilot.
Our Favorite (Mercury)
The factors we considered to determine which best business bank account for LLC, Mercury checks all the boxes, including no fees, convenient online banking tools, integration with useful third party applications for small businesses, easy to get started with, and satisfied customer reviews.
While the other four banks did not score as well in at least one of these factors.
After reading this guide, you will definitely be able to decide which is the best bank account for your LLC.
But if you do not have an LLC yet and are thinking about forming one with the help of a professional service or an attorney, you’ve come to the right place.
Micahguru Formation is a U.S. incorporation company that helps founders and entrepreneurs globally to launch and manage their U.S. businesses remotely.
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