You just formed your LLC. Congratulations. Now comes the part nobody warns you about—finding a business checking account that won’t drain your profits with monthly fees when you’re only processing a handful of transactions.
I’ve watched too many new LLC owners open the first business account they find, only to get hit with $15-30 monthly maintenance fees, per-transaction charges, and minimum balance requirements that feel absurd when you’re barely getting started. One client came to me in 2022 paying $25 monthly for an account she used maybe three times a month. Over a year, that’s $300 gone for essentially nothing.
The truth? Most traditional business checking accounts are designed for high-volume businesses. If your LLC handles 10-30 transactions monthly—maybe you’re a consultant, freelance designer, small property owner, or side business operator—you need something different entirely.
What you’re about to read comes from helping dozens of LLCs navigate this exact problem. I’ll show you which accounts actually make sense for low transaction volumes, what fees to watch for, and how to avoid the mistakes that cost people hundreds annually.
Why LLCs Need Separate Business Checking Accounts (Legal and Practical Reasons)
When I set up my first consulting LLC back in 2011, I briefly considered just using my personal checking account. Seemed simpler, right? Wrong move. And I’m glad I caught myself before making it permanent.
The IRS doesn’t explicitly require LLCs to have separate business bank accounts, but they strongly recommend it for record-keeping purposes. More importantly, mixing business and personal finances can destroy your liability protection—the main reason you formed an LLC in the first place.
This concept is called “piercing the corporate veil.” If you’re ever sued and a court sees that you treated your LLC like a personal piggy bank, they can decide your LLC isn’t really separate from you personally. Suddenly, your personal assets are fair game. I’ve seen this happen, and it’s devastating.
Beyond legal protection, separate accounts make your life dramatically easier:
Tax time becomes manageable. Every business expense and income is in one place. Your accountant won’t charge you extra hours to sort through mixed transactions.
You look professional. Clients paying “John Smith LLC” instead of “John Smith” signals you’re a legitimate business. Some clients won’t work with you otherwise.
Tracking profitability actually works. When business money mixes with grocery runs and Netflix subscriptions, you have no idea if you’re profitable. I learned this the hard way in my early days.
The Small Business Administration explicitly recommends separate business banking as a fundamental practice for all business entities, including single-member LLCs.
Keep in mind, some banks require LLCs to use business accounts per their policies, regardless of transaction volume. Using a personal account for business purposes can also violate your personal account agreement.
What to Look for in a Business Checking Account When You Have Low Transaction Volumes
Not all business checking accounts are created equal. And when you’re running lean with minimal transactions, certain features matter way more than others.
Monthly maintenance fees—or lack thereof. This is your biggest concern. A $25 monthly fee on an account you barely use is absurd. I prioritize accounts with $0 monthly fees or fees that waive easily with minimal requirements.
Many banks waive fees if you maintain a minimum daily balance, but be realistic. If that requirement is $5,000 or $10,000 and your LLC operates with $500-2,000 in the account, you’ll never qualify. That’s not a “waivable” fee for you—it’s a permanent monthly charge.
Transaction limits and fees. Some “free” accounts include 20-50 transactions monthly, then charge $0.35-0.75 per additional transaction. For low-volume LLCs, this often works perfectly. But read the fine print about what counts as a transaction—some banks count deposits, withdrawals, checks, ACH transfers, and even mobile deposits separately.
When I helped a small property management LLC in 2023, they chose an account with “100 free transactions” thinking they were safe. Turns out, each rent check deposited counted as a transaction, each vendor payment counted, and they blew past 100 within weeks. Always calculate your actual monthly transaction count first.
Digital banking capabilities. If you’re low-volume, you probably don’t want to visit branches regularly. Mobile check deposit, easy ACH transfers, and solid online banking aren’t luxuries—they’re necessities. Some digital-only banks excel here while offering better fee structures than traditional banks.
Cash deposit access (if you need it). Many online business checking accounts have zero physical branches. If your LLC handles cash, this becomes a problem. I generally recommend traditional or hybrid banks for cash-heavy businesses, even at slightly higher fees.
Integration with accounting software. Direct connections to QuickBooks, Xero, or FreshBooks save massive time. Not critical for everyone, but worth considering.
FDIC insurance. Non-negotiable. Your deposits should be insured up to $250,000 through the Federal Deposit Insurance Corporation. Most legitimate banks clearly display FDIC membership, but always verify, especially with newer digital banks.
Top Business Checking Accounts for LLCs with Low Transaction Volumes (Detailed Reviews)
Based on working with low-volume LLCs across different industries, these accounts consistently deliver the best value. I’m not getting paid to recommend any of these—they’re just what actually works in practice.
Novo Business Checking
Novo has become my go-to recommendation for solopreneurs and minimal-transaction LLCs, and for good reason.
Monthly fee: $0. Period. No minimum balance requirements, no hidden catches.
Transactions: Unlimited free transactions. You can process 5 transactions or 500—same $0 cost.
What I like: The interface is clean and actually designed for small business owners who aren’t financial experts. Free ACH and wire transfers (outgoing wires cost $25, but incoming are free). Solid mobile app with quick mobile check deposits. They integrate with Stripe, PayPal, and major accounting platforms seamlessly.
What’s missing: No physical branches and no cash deposit options. If you handle cash, Novo won’t work. Also, no interest on your balance, but honestly, business checking interest rates are terrible everywhere right now.
Best for: Consultants, freelancers, online businesses, service providers, digital agencies—basically any LLC that operates primarily online without cash transactions.
Relay Business Checking
Relay is what I recommend when LLCs need multiple checking accounts for different purposes (maybe separating operating funds from tax savings).
Monthly fee: $0 for up to two checking accounts. You can add up to 20 checking accounts total if needed.
Transactions: 50 free ACH transfers monthly, unlimited debit card purchases.
What works well: The multiple account feature is genuinely useful. I have a client who uses one account for income, one for operating expenses, and one for quarterly tax savings—all free, all under one login. Physical debit cards for each account. No minimum balances required.
Limitations: No physical branches or cash deposits. Limited customer service hours compared to major banks. Some users report slower customer support response times.
Best for: LLCs that want to separate funds internally without opening multiple bank relationships. Great for businesses implementing profit-first accounting methods.
Bluevine Business Checking
Bluevine stands out because it actually pays interest on your business checking balance—a rarity.
Monthly fee: $0 with no minimum balance requirement.
Transactions: Unlimited transactions. No per-check fees, no ACH fees, no wire transfer fees (incoming; outgoing domestic wires are $10).
The interest advantage: Bluevine pays up to 2.0% APY on your checking balance (rate varies based on market conditions). Most business checking pays 0%. If you keep $5,000 in your account, that’s roughly $100 annually in free money versus competitors.
What’s convenient: Mobile check deposit with fast availability, solid integrations with QuickBooks and Xero, 24/7 customer support. Offers a business credit card too if you want everything in one place.
Drawbacks: No physical branches or cash deposits. The interest rate can change, though it’s been competitive since they launched this feature.
Best for: LLCs that maintain a reasonable cash reserve in checking and want that money working a bit. Service businesses with irregular income who keep buffer cash.
Axos Basic Business Checking
Axos Bank offers a truly free business checking option that works for low-transaction LLCs.
Monthly fee: $0 with no minimum balance or transaction requirements.
Transactions: Unlimited electronic transactions. 50 free paper checks deposited monthly (then $0.25 each after that).
Why it works: No surprise fees, straightforward account structure, decent mobile banking app. Free incoming and outgoing ACH transfers. Free cashier’s checks.
What to know: Limited customer support compared to major banks. No physical branches. Outgoing domestic wires cost $25. Some users report average mobile app experience compared to newer fintech options.
Best for: Simple LLC needs without frills. Businesses that primarily use electronic payments and rarely write or deposit physical checks.
LendingClub Business Checking
LendingClub (formerly Radius Bank) quietly offers one of the better business checking accounts for low-volume users.
Monthly fee: $0 with no minimum balance requirements.
Transactions: Unlimited transactions including ACH transfers, mobile deposits, debit purchases, and checks.
Unique benefit: Reimburses up to $10 monthly in domestic ATM fees, which is useful if you occasionally need cash access. They also pay interest on checking balances (rates vary but typically 0.50-1.00% APY).
Solid features: Strong mobile banking, quick customer support, no hidden fees on most standard activities.
Considerations: No physical branches. Less known than some competitors, though they’re FDIC-insured and established.
Best for: LLCs wanting a no-fee account with occasional ATM access and some interest earnings.
Traditional Bank Options (With Caveats)
If you prefer a traditional bank with physical branches—maybe you handle some cash or just like in-person service—these can work but require more careful navigation.
Chase Business Complete Banking
Chase is everywhere, which matters if you need branches. But their fee structure requires attention.
Monthly fee: $15, waived if you maintain a $2,000 minimum daily balance OR have $2,000 in deposits monthly.
For many low-volume LLCs, hitting $2,000 monthly deposits is realistic, making this effectively free. I’ve had multiple clients successfully use Chase this way.
Transactions: 20 free transactions monthly (deposits and withdrawals count), then $0.30 per transaction after.
If you’re truly low-volume—maybe 10-15 transactions monthly—this works. But track carefully. Mobile check deposits, ATM deposits, ACH payments, and debit purchases all count.
Why people choose it: Branch access everywhere, robust online banking, integrates with major accounting software, business credit cards available, and name recognition that some clients/vendors appreciate.
Bank of America Business Advantage Fundamentals
Bank of America offers another traditional option with nationwide branches.
Monthly fee: $16, waivable with $5,000 combined average balance across eligible accounts OR enrollment in their Business Advantage Relationship Rewards program.
Transactions: 200 free transactions monthly, then $0.45 each after.
The 200 transaction limit is generous for low-volume LLCs. Where this account struggles is the fee waiver requirements—maintaining $5,000 may not be realistic for many starting LLCs.
When it makes sense: If you have existing Bank of America personal accounts and can meet combined balance requirements, or if you absolutely need branch access and cash handling capabilities.
Mercury Business Checking
Mercury has gained serious traction with startups and tech companies, but works well for any online LLC.
Monthly fee: $0, no minimum balance.
Transactions: Unlimited ACH transfers, wire transfers, debit card transactions. Outgoing domestic wires are free (unusual), international wires cost $25.
What’s different: Built specifically for startups and online businesses with features like virtual debit cards, integration with startup tools, and a modern dashboard. FDIC-insured through their partner banks.
Trade-offs: Application process can be selective—they review your business and don’t approve everyone. No physical branches or cash deposits. Best suited for tech-savvy businesses.
Best for: Tech startups, online businesses, e-commerce LLCs, SaaS companies, digital-first businesses.
How to Choose the Right Account for Your Specific LLC Situation
I wish I could tell you “Account X is best for everyone,” but your ideal choice depends on your specific situation.
Calculate your actual monthly transactions first. Spend 10 minutes listing every deposit, withdrawal, check, ACH payment, and debit purchase you make in a typical month. Be honest. Add 20% for unexpected activity. That’s your real number.
If you’re consistently under 30 transactions monthly, almost any account on this list works. Between 30-100, watch transaction limits carefully. Above 100, you might need a higher-tier account despite “low volume” in revenue terms.
Consider your cash needs realistically. I see this mistake constantly—people choosing digital-only banks when they handle cash 2-3 times monthly. Then they’re hunting for workarounds or paying fees at retail locations to deposit cash.
No cash ever? Digital banks (Novo, Relay, Bluevine, Mercury) offer better features and zero fees. Regular cash? Traditional banks or hybrid models are worth the slightly higher fees.
Think about your banking habits. Do you like visiting branches for complicated issues, or do you prefer handling everything from your phone at 11 PM? Neither is wrong, but it affects which account you’ll actually enjoy using.
In my experience working with LLC owners, the ones who hate their business bank account tend to avoid logging in, miss important transactions, and sometimes let problems build until tax time. Pick an account that matches your natural habits.
Account for growth (but don’t overbuild). Maybe you’re low-volume now but planning to scale significantly. Some business owners choose accounts with room to grow. But others pay for features they won’t use for years, if ever.
My take? Start with what fits your current reality. Switching business checking accounts is easier than people think—I’ve done it multiple times. Don’t pay extra monthly fees for hypothetical future needs.
Test customer support before you commit. Call or message the bank’s business support line before opening your account. Ask a specific question about fees or transaction limits. Notice how long you wait, how knowledgeable they are, and whether they actually help.
This 15-minute test tells you what support will be like when you have an actual problem at an inconvenient time.
Common Mistakes LLC Owners Make When Opening Business Checking Accounts
These mistakes cost people real money and frustration. I’ve seen all of them multiple times, and made a couple myself early on.
Choosing based on your personal banking relationship without comparing options. Your personal bank isn’t automatically your best business bank. I had a client paying $30 monthly at the bank where she’d had personal accounts for 20 years. Switching to Novo saved her $360 annually—meaningful money for a part-time LLC.
Banks count on this loyalty. Don’t let comfort cost you hundreds of dollars.
Ignoring the true monthly fee. A bank advertises “$10 monthly fee, waivable!” You think “waivable” means achievable. But the waiver requires maintaining a $10,000 daily balance or processing $15,000 monthly in credit card payments.
That’s not waivable for most low-volume LLCs—it’s a permanent $10 monthly charge disguised as optional. Always read how fees actually waive and decide if you’ll realistically qualify.
Not reading what counts as a transaction. This one bites people constantly. An account includes “50 free transactions” and you think you’re safe with your 20 monthly activities.
Then you discover each mobile check deposit counts as two transactions (one for the deposit, one for processing), ATM withdrawals count, and transfers between your own accounts count. Suddenly you’re at 65 transactions paying overage fees.
Get specific clarity on transaction definitions before opening any account.
Assuming online-only banks are sketchy. I still hear this occasionally—people assuming banks without physical branches aren’t “real” or safe. But Novo, Bluevine, Mercury, and others are FDIC-insured through partner banks, meaning your deposits have the same federal protection as Chase or Bank of America.
Check FDIC insurance status on any bank (look for the FDIC logo and verify at FDIC.gov), but don’t avoid online banks purely because they’re online. You’ll often get better features and lower fees.
Forgetting about checks. Many newer businesses operate almost entirely electronically. But then you get that one vendor who only accepts checks, or a tax payment that requires a check, or a refund that arrives as a paper check you need to deposit.
If your account charges $2-5 per paper check or lacks mobile deposit, these occasional needs become annoying and expensive. Make sure your chosen account handles the 10% of transactions that aren’t electronic.
Opening an account before you officially form the LLC. You need your LLC formation documents, EIN (Employer Identification Number from the IRS), and operating agreement to open a business account. Some people try to open accounts before their LLC paperwork finalizes, then get frustrated when banks won’t proceed.
Form your LLC, get your EIN from the IRS, then open your business checking account. In that order.
Mixing multiple businesses in one account. If you operate two separate LLCs, don’t run them through the same checking account to save on fees. You’ve destroyed the liability separation for both businesses and created a bookkeeping nightmare.
Each legal entity needs its own account. Non-negotiable.
To Wrap Up
Finding the right business checking account for your low-transaction LLC isn’t complicated once you know what matters. Zero or low monthly fees, reasonable transaction limits, and features that match your actual banking habits—that’s 90% of the decision.
For most low-volume LLCs I work with, digital banks like Novo, Relay, or Bluevine offer the best combination of zero fees and solid features. If you need branch access or handle cash regularly, Chase or Bank of America can work if you carefully manage fee waiver requirements.
What matters most is opening a separate business account—period. Even if it’s not perfect. Your liability protection, tax record-keeping, and professional credibility all depend on that separation.
Take an hour, list your actual monthly transactions and banking needs, compare 3-4 accounts from the options above, and make a decision. You can always switch later if your needs change. I’ve seen people spend months overthinking this while paying unnecessary fees at their current bank.
Your LLC deserves banking that works for its reality, not someone else’s high-volume business model.
Frequently Asked Questions
Do single-member LLCs really need a business checking account?
Yes, even single-member LLCs benefit significantly from separate business accounts. While the IRS doesn’t strictly require it, mixing personal and business funds can jeopardize your liability protection if you’re ever sued. Courts can “pierce the corporate veil” and go after personal assets if you don’t maintain clear separation between your LLC and personal finances. Beyond legal protection, separate accounts make tax filing infinitely easier and help you actually track whether your business is profitable. I’ve worked with single-member LLCs who thought separate accounts were optional, then spent hundreds in extra accounting fees sorting mixed transactions at tax time.
What documents do I need to open a business checking account for my LLC?
You’ll typically need your LLC formation documents (Articles of Organization from your state), your EIN (Employer Identification Number from the IRS), a government-issued ID for all LLC members/managers, and your LLC operating agreement. Some banks also require proof of business address. The specific requirements vary slightly by bank, so call ahead or check their website before visiting or applying online. Digital banks often have streamlined applications requiring only your EIN and LLC formation documents uploaded as PDFs.
Can I switch business checking accounts easily if I choose wrong?
Yes, switching business checking accounts is more straightforward than people expect, though it requires some organization. Open your new account first, then update any automatic deposits (client payments) and automatic payments (subscriptions, utilities) to use the new account information. Keep both accounts active for 30-60 days during the transition to catch any delayed transactions. Once everything has moved over, close the old account. I recommend making switches during slower business periods to minimize complications, but I’ve helped multiple LLCs switch accounts without significant problems.
Are business checking accounts with $0 monthly fees as good as paid accounts?
For low-transaction LLCs, free business checking accounts often provide everything you need. Paid accounts typically add features like higher transaction limits, cash deposits, dedicated business banking support, integration with business credit cards, or interest on deposits. But if you’re processing 10-30 transactions monthly and operating primarily online, you genuinely don’t need these extras. I’ve watched LLC owners pay $20-30 monthly for features they never use. Start with free accounts and only upgrade if you identify specific features you’re missing. Don’t pay for theoretical value.
What happens if I accidentally exceed my transaction limit?
Most banks charge a per-transaction fee (usually $0.30-0.75) for each transaction beyond your monthly limit. These fees appear on your monthly statement. If you consistently exceed your limit by significant amounts, the bank may suggest upgrading to a higher-tier account with more included transactions. Some digital banks with “unlimited” transactions don’t have this issue at all. If you exceed limits once due to unusual activity, it’s not a major problem—just a few dollars in fees. But if it happens monthly, choose a different account with higher limits or unlimited transactions rather than paying constant overage fees.
Author Bio
This article was written by “Omar Knight” a business banking consultant with over 12 years of experience advising LLCs, startups, and small businesses on banking solutions, cash flow management, and financial operations. The author has helped hundreds of business owners navigate fee structures, account selection, and banking compliance requirements across various industries.
Reviewed Sources: Federal Deposit Insurance Corporation (fdic.gov), Internal Revenue Service (irs.gov), U.S. Small Business Administration (sba.gov), official bank websites, Bloomberg, American Bankers Association.
Disclaimer: This article was reviewed by our financial content team to ensure factual accuracy and neutrality. Banking products and fees are subject to change; always verify current terms with financial institutions directly.