Best Business Bank Account for Small Business & Freelancers 2026: 7 US Picks Tested
Fastlancer Team · Updated: Sep 12, 2026
Picking a business bank account gets easier once you answer two questions in the right order: how your business is registered, and whether you ever touch cash. Everything else — fees, apps, integrations, interest — is a second-order choice. This guide compares seven US accounts for freelancers, self-employed professionals and small businesses, and tells you which ones you can actually open.
Start with your business structure and money workflow
Only one of these seven accounts is closed to sole proprietors. Start from your own situation rather than from a ranking.
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Sole proprietor
Six of seven are open to you
You work under your own name and report on Schedule C. Only Mercury is unavailable, because it needs a state-filed formation document.
Novo · Relay · Found · Lili · Bluevine · Chase
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LLC or corporation
All seven, Mercury included
You have a registered entity, so nothing here is closed to you. The question becomes cards, sub-accounts and who else needs access.
Mercury · Relay · Novo · Found · Lili · Bluevine · Chase
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Cash or branch access
One real option
You deposit cash, handle checks or need notarisation. This is the one thing no fintech account here can substitute.
Chase Business Complete
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Tax and bookkeeping
Set money aside automatically
You want a tax pocket on every deposit, expense categorisation or invoicing inside the banking app.
Found · Lili · Novo
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Team, bookkeeper or startup
Separate logins, not a shared one
A co-founder, a bookkeeper or an accountant needs their own access, with permissions and spending limits.
Relay · Mercury · Found
Jump to team access
Our picks at a glance
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Best for solo tax organisation
Found
A tax pocket on every deposit, 20 sub-accounts and team cards — all on the free plan.
Eligibility: sole prop, LLC, corp, partnership · No monthly fee
View Found details -
Best for plain free banking
Novo
No monthly fee, no waiver conditions, reserve accounts and ATM fees reimbursed up to $7 a month.
Eligibility: sole prop (US citizens), LLC, corp, partnership · No monthly fee
View Novo details -
Best for shared access
Relay
Unlimited users with their own permissions on every plan, including the free one, plus 20 checking accounts.
Eligibility: sole prop, LLC, corp, general partnership · From $0
View Relay details -
Best for registered entities
Mercury
A virtual card per vendor or subscription, cancellable one at a time, plus a public API.
Eligibility: LLC, C/S corp, partnership, LLP, non-profit · No monthly fee
View Mercury details -
Best for cash and branches
Chase Business Complete
A nationwide branch and ATM network for cash deposits, checks and notarisation.
Eligibility: sole prop, LLC, corp · $15 a month, waivable
View Chase details
Compare all 7 business banking options
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A card per vendor
Eligibility: LLC, C/S corp, partnership, LLP, non-profit — no sole proprietors
Monthly fee: None · Cash: digital only
Team: user roles, virtual cards · Accounting: QuickBooks Online
Coverage: platform; Choice Financial Group and Column N.A.; opt-in sweep documented to $5M, conditions apply
Watch out: no cash, no branches
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Plain free banking
Eligibility: sole proprietor (US citizens), LLC, corporation, partnership
Monthly fee: None · Cash: digital only
Team: not verified · Accounting: not verified
Coverage: platform; Middlesex Federal Savings, F.A.; direct, to $250,000
Watch out: no interest, no sweep structure
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Shared access
Eligibility: sole proprietor, LLC, corporation, general partnership
Monthly fee: from $0 · Cash: digital only
Team: unlimited users, 20 checking accounts (50 on Scale) · Accounting: QuickBooks and Xero from Grow
Coverage: platform; Thread Bank; sweep documented to $3M
Watch out: AP workflows start at Grow
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One app instead of three
Eligibility: sole proprietor, LLC, corporation, partnership
Monthly fee: from $0 · Cash: digital only
Team: team logins, expense controls · Accounting: external accounts sync on Smart and Premium
Coverage: platform; Sunrise Banks, N.A.; sweep documented to $3M
Watch out: the free Core plan is banking only
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Interest on checking
Eligibility: sole proprietor, LLC, corporation
Monthly fee: from $0 · Cash: digital only
Team: not verified · Accounting: QuickBooks
Coverage: platform; Coastal Community Bank; sweep documented to $3M
Watch out: free-tier interest requires monthly activity
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Tax set-aside
Eligibility: sole proprietor, LLC, corporation, partnership
Monthly fee: from $0 · Cash: digital only
Team: team cards with limits, 20 sub-accounts on the free plan · Accounting: not verified
Coverage: platform; Lead Bank; direct, to $250,000
Watch out: tax forms cover Schedule C and 1120-S only
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Cash and branches
Eligibility: sole proprietor, LLC, corporation
Monthly fee: $15, waivable · Cash: branch and ATM network
Team: multiple signers · Accounting: standard bank feeds
Coverage: the bank itself; JPMorgan Chase Bank, N.A.
Watch out: transaction and cash-deposit fees apply on top
Jump to the account
| Account | Best for | Entity eligibility | Monthly fee | Cash / branches | Tax / bookkeeping | Team / sub-accounts | Accounting integrations | Coverage & provider structure |
|---|---|---|---|---|---|---|---|---|
| Mercury | A card per vendor | LLC, C/S corp, partnership, LLP, non-profit — no sole prop | None | Digital only | QuickBooks sync | User roles, virtual cards | QuickBooks Online | Platform; Choice Financial Group, Column N.A.; opt-in sweep to $5M, conditions apply |
| Novo | Plain free banking | Sole prop (US citizens), LLC, corp, partnership | None | Digital only | Reserve accounts | Not verified | Not verified | Platform; Middlesex Federal Savings; direct, to $250,000 |
| Relay | Shared access | Sole prop, LLC, corp, general partnership | From $0 | Digital only | Bill import from Grow | Unlimited users; 20 accounts, 50 on Scale | QuickBooks, Xero from Grow | Platform; Thread Bank; sweep to $3M |
| Lili | One app instead of three | Sole prop, LLC, corp, partnership | From $0 | Digital only | Paid tiers only | Team logins, expense controls | External accounts on Smart and Premium | Platform; Sunrise Banks, N.A.; sweep to $3M |
| Bluevine | Interest on checking | Sole prop, LLC, corp | From $0 | Digital only | Not verified | Not verified | QuickBooks | Platform; Coastal Community Bank; sweep to $3M |
| Found | Tax set-aside | Sole prop, LLC, corp, partnership | From $0 | Digital only | Tax pocket, receipts, 1099 e-filing | Team cards with limits; 20 sub-accounts free | Not verified | Platform; Lead Bank; direct, to $250,000 |
| Chase Business Complete | Cash and branches | Sole prop, LLC, corp | $15, waivable | Branch and ATM network | Standard bank feeds | Multiple signers | QuickBooks, Xero via bank feed | The bank itself; JPMorgan Chase Bank, N.A. |
“Not verified” means the claim was not on the provider’s own pages at the check date. That is not the same as “no”: treat it as a question to ask before you apply.
1. Mercury — for registered entities that want a card per vendor
Best for: registered US businesses that want a card per vendor, a public API and no monthly fee.
- Monthly fee
- None, no minimum balance, no overdraft fee
- Eligibility
- LLC (single and multi-member), C corp, S corp, partnership, LLP, non-profit. No sole proprietors and no trusts
- Cash / branch
- Digital only
- Tax / bookkeeping
- QuickBooks Online sync, built-in invoicing
- Team
- User permissions, virtual card per vendor or subscription
- Integrations
- QuickBooks Online, public API
- Coverage
- Financial technology company, not a bank. Deposits with Choice Financial Group and Column N.A., members FDIC. Opt-in sweep documented to $5M across program banks, conditions apply
- Watch out for
- No cash deposits and no branches
Domestic wires are free to send and receive; an international USD wire is free on the shared-fee option or a flat $15 if you cover intermediary fees, with a 1% conversion fee on other currencies. The virtual cards are the practical standout: a separate card number per subscription means cancelling one tool without re-entering details everywhere after a fraud alert. Pricing and partner banks: mercury.com/pricing.
On deposit coverage, be precise about what the headline number is. Mercury lets you opt in to its partner banks' sweep program, which spreads a balance across a network of FDIC-insured program banks and is documented up to $5M across as many as 20 of them. It is a choice rather than a default, and Mercury states that certain conditions must be satisfied for pass-through insurance to apply.
The Treasury product deserves the same care, because its rate travels further than its conditions. Qualifying needs a minimum balance of $250,000 across your Mercury accounts. The money is then held in lower-risk money market and ultra-short bond funds rather than as a bank deposit, and Mercury states that Treasury accounts are not FDIC insured, are not bank deposits, are not guaranteed, and may lose value. Partnerships, LLPs and non-profits cannot hold one at all. For a one-person business the question rarely arises. Source: mercury.com/treasury.
The catch is the entity. Mercury requires a state-filed formation document — Articles of Organization, Articles of Incorporation or a Certificate of Formation — so a sole proprietorship cannot open an account, because there is nothing to verify. That is a documentation requirement, not a judgement about the size of your business, and it is not a reason to incorporate. See Mercury's own list of supported structures.
2. Novo — for plain, free business banking
Best for: a sole proprietor who wants business money separated from personal money and nothing else.
- Monthly fee
- None, and no waiver requirement
- Eligibility
- Sole proprietor (US citizens), LLC, corporation, partnership. No minimum opening deposit
- Cash / branch
- Digital only; third-party ATM fees reimbursed up to $7 a month
- Tax / bookkeeping
- Reserve accounts for setting money aside
- Team
- Not verified at the check date
- Integrations
- Not verified at the check date
- Coverage
- Financial technology company, not a bank. Deposits insured up to $250,000 through Middlesex Federal Savings, F.A., member FDIC
- Watch out for
- No interest on the balance and no sweep structure
Novo is the least complicated account here. No monthly maintenance fee and no conditions attached to that, no minimum balance, free ACH transfers, and debit rewards tiered by balance: 2% on eligible purchases at $5,000 or more, 1% below that. Sole proprietors need to be U.S. citizens; registered entities supply an EIN and their formation documents. The full list is on Novo's own checklist.
Where it stops: coverage runs directly through one partner bank rather than a sweep network, and there is no yield product for idle cash. For a one-person business that holds a working balance and a tax reserve, neither limit usually bites. If you want your own tax pocket automated rather than a manual reserve account, Found does that on its free plan.
3. Relay — for shared access and separate pots
Best for: anyone who shares money access with a bookkeeper, an accountant or a second person, and anyone who budgets in separate pots.
- Monthly fee
- Starter $0, Grow $30, Scale $90
- Eligibility
- Sole proprietorship, LLC, corporation, general partnership
- Cash / branch
- Digital only
- Tax / bookkeeping
- Bill import from QuickBooks or Xero, from Grow
- Team
- Unlimited users with their own permissions, on every plan
- Sub-accounts
- 20 checking accounts on Starter and Grow, 50 on Scale
- Integrations
- QuickBooks, Xero, from Grow
- Coverage
- Financial technology company, not a bank. Banking services from Thread Bank, member FDIC; deposits documented as qualifying for up to $3M through a sweep program
- Watch out for
- Accounts-payable workflows and same-day ACH start at Grow
Relay's strength is access. Every plan includes unlimited users with their own permissions, so you, a bookkeeper, a VA and an accountant never share one login — and that holds on the free tier, not only on the paid ones. The 20 checking accounts make envelope-style budgeting workable: tax, payroll, operating and reserve money sit apart without opening accounts at four banks. Grow adds bill import, accounts-payable workflows and same-day ACH, which is the point at which paying vendors becomes a process rather than a chore.
And it takes sole proprietors, which is the part most comparisons get wrong, including an earlier version of this one. Relay's own documentation lists four supported structures: LLC, corporation, general partnership and sole proprietorship. As a sole proprietor you provide an SSN, a physical U.S. address and a DBA certificate if you trade under a name other than your own. Most applications are reviewed within one to two business days. Plans and coverage: relayfi.com/pricing.
4. Lili — for one app instead of three
Best for: owners who want banking, invoicing and expense tools in one app and will pay a monthly fee for the bundle.
- Monthly fee
- Core $0, Pro $15, Smart $35, Premium $55; paid tiers discounted for the first three months
- Eligibility
- Sole proprietor, LLC, corporation, partnership. Some add-ons and international wires are limited to registered entities
- Cash / branch
- Digital only
- Tax / bookkeeping
- Invoicing, expense categorisation and tax tools on the paid tiers; accounting software on Smart and Premium
- Team
- Team logins and expense controls
- Integrations
- External bank and card transactions sync on Smart and Premium
- Coverage
- Financial technology company, not a bank. Banking services and FDIC insurance documented up to $3M through Sunrise Banks, N.A., member FDIC, and its sweep network
- Watch out for
- The free Core plan is banking only
Lili bundles banking with invoicing, expense categorisation, tax estimation and a savings bucket. The split matters more than the prices: Core is banking only, and the tools most people come for sit in the paid tiers, with the accounting and invoicing software reserved for Smart and Premium. Current plans: lili.co/plans.
One thing to know before building a stack around it: Lili repositioned in 2026 away from freelancers and solopreneurs toward higher-revenue small businesses with employees, and the tier structure reflects that. If you already run FreshBooks, QuickBooks or Bonsai, the bundle duplicates what you have — take Core for the banking and leave the rest. If you have no accounting tool yet, price the bundle against what you would otherwise buy separately.
5. Bluevine — for interest on an active balance
Best for: businesses with regular card spend or steady deposits that want the balance to earn interest.
- Monthly fee
- Standard $0, Plus $30, Premier $95; the paid fees can be waived under conditions
- Eligibility
- The checking account documents no entity restriction. The credit line requires a corporation or LLC
- Cash / branch
- Digital only
- Tax / bookkeeping
- Not verified at the check date
- Team
- Not verified at the check date
- Integrations
- QuickBooks
- Coverage
- Financial technology company, not a bank. Deposits with Coastal Community Bank, member FDIC; up to $3M documented through a sweep across program banks
- Watch out for
- Free-tier interest stops if the account goes quiet
Bluevine Standard has no monthly fee and no minimum balance, and pays 1.3% APY on balances up to $250,000 — but only while the account stays active. The published condition is $500 a month of spend on the Bluevine business debit card or $2,500 a month received or deposited. Miss both and the interest stops, which makes Standard a poor choice for a dormant tax-reserve account. Plus at $30 a month pays 1.75% with no activity condition, and Premier at $95 pays 3.0% on all balances. Rates are variable. Details: bluevine.com/business-checking.
Bluevine also offers a line of credit, and its requirements are narrower than the pairing with a freelancer account suggests. The published eligibility is $10,000 in monthly revenue, 12 or more months in business, a personal FICO score of 625 or above, no bankruptcies on file, good standing with your Secretary of State, and a corporation or LLC — a sole proprietorship does not qualify. It is not available in Nevada, North Dakota, South Dakota or the U.S. territories. A Bluevine checking account is not required but gives instant access to approved funds. Applications are subject to credit approval, and rates, credit lines and terms vary with creditworthiness and can change. Treat the credit line as a later option to verify, not as a reason to open the account.
6. Found — for automatic tax set-aside
Best for: anyone who files a Schedule C and wants tax money set aside automatically, without paying for it.
- Monthly fee
- Free $0, Plus $35 ($315 a year), Pro $80 ($720 a year)
- Eligibility
- Sole proprietor, single and multi-member LLC, corporation including S-corp taxation, partnership
- Cash / branch
- Digital only
- Tax / bookkeeping
- Tax pocket on every deposit, real-time estimates, expense categorisation, receipt scanning, contractor W-9 collection and 1099 e-filing — all on the free plan
- Team
- Team debit cards with spending controls, on the free plan
- Sub-accounts
- Up to 20 pockets, on the free plan
- Integrations
- Not verified at the check date
- Coverage
- Financial technology company, not a bank. Deposits FDIC-insured up to $250,000 per depositor per ownership category through Lead Bank, member FDIC
- Watch out for
- Tax form generation covers Schedule C and Form 1120-S, not Form 1065 or 1120
Found gives away more on its free plan than any other account here, including unlimited invoicing, 20 sub-accounts and team cards with limits. What it does that Mercury and Novo don't is tie tax estimation and set-aside to your transactions: you pick a percentage, every deposit moves that share into a tax pocket, and an estimated quarterly figure sits alongside it. Plus at $35 a month adds priority support, custom invoicing, advanced reporting and 1.50% APY on balances up to $20,000; Pro at $80 pays 2.50% on all balances. Rates are variable. Plans: found.com/pricing.
Found also takes more structures than its solo framing suggests. The limit is on tax form generation, not on the account: Schedule C and Form 1120-S yes, Form 1065 and Form 1120 no. So a partnership-taxed or C-corp-elected LLC can bank there and simply file separately. Treat any tax estimate as a planning aid — these tools help organise reserves and expenses, but they do not replace tax advice and do not establish what you owe.
7. Chase Business Complete — for cash, checks and branches
Best for: businesses that take cash or checks, or need a branch for notarisation.
- Monthly fee
- $15, waivable in several ways (see below)
- Eligibility
- Sole proprietor, LLC, corporation
- Cash / branch
- Nationwide branch and ATM network; cash deposits and notarisation
- Tax / bookkeeping
- Standard bank feeds into accounting software
- Team
- Multiple signers on the account
- Integrations
- QuickBooks and Xero via standard bank-feed connections
- Coverage
- The bank itself: JPMorgan Chase Bank, N.A., member FDIC
- Watch out for
- Fees apply on top for certain transactions and for cash deposits
The published ways to waive the $15 are more varied than the usual balance rule. Chase waives it if you maintain a linked personal Chase Private Client, JPMorgan Classic Checking or Private Client Checking Plus account, if you meet Chase Military Banking requirements, or if you hit $2,000 in any one of three activities: a $2,000 minimum daily ending balance on every business day of the statement period, $2,000 in deposits through Chase Payment Solutions, or $2,000 in eligible Chase Ink or Chase Sapphire Reserve for Business card purchases. Note that the balance condition is a daily floor, not a monthly average — a single day below the line costs you the waiver.
What Chase does that no fintech account here can: branches for cash deposits and notarisation, and a traditional bank routing arrangement that some corporate payers still insist on. What the fintech accounts do better: no fee with no balance condition, and deeper links into the tools a small business already runs. If you never touch cash, the $15 buys you little. If you take cash weekly, it buys the one thing that has no substitute. Current transaction and cash-deposit fees are in Chase's fee schedule for business accounts.
How to check whether a business account fits your risk level
Most accounts in this comparison are not banks. They are financial technology companies working with a partner bank, and in several cases with a network of program banks behind it. That is not a problem in itself, but it changes what “FDIC insured” means, and it means the answer can change without the app changing.
Five questions before you open anything:
- Which legal structure can actually apply?
- Is the provider a bank itself, or a platform?
- Which bank holds the funds?
- Does coverage run directly through that bank, or through a deposit-sweep program across several?
- Do you need branches and cash, or only digital payments?
| Provider | Bank or platform | Bank holding the funds | Coverage structure |
|---|---|---|---|
| Mercury | Platform | Choice Financial Group, Column N.A. | Opt-in sweep across program banks, documented to $5M; conditions apply for pass-through insurance |
| Novo | Platform | Middlesex Federal Savings, F.A. | Direct, up to $250,000 |
| Relay | Platform | Thread Bank | Sweep across program banks, documented to $3M |
| Lili | Platform | Sunrise Banks, N.A. | Sweep across program banks, documented to $3M |
| Bluevine | Platform | Coastal Community Bank | Sweep across program banks, documented to $3M |
| Found | Platform | Lead Bank | Direct, up to $250,000 per depositor per ownership category |
| Chase Business Complete | The bank itself | JPMorgan Chase Bank, N.A. | Direct, standard FDIC limits |
Two practical notes. A sweep ceiling is a ceiling, not a guarantee: it describes what can be covered if the conditions are met, and at Mercury it also requires opting in. And a yield product is not a deposit — Mercury Treasury holds money in funds and is explicitly not FDIC insured, while Bluevine's and Found's interest is paid on deposit balances. Partner banks change, so read the current terms of service rather than an article, including this one.
Cash, ATMs and what actually differs between the cards
You don't choose a business debit card on its own. It comes attached to the checking account, which means the account decision above is also the card decision — and it is worth knowing what actually varies, because it is not the plastic.
Virtual and disposable cards are the biggest practical difference. Mercury lets you spin up a separate card number for each subscription or vendor and kill it without touching the others. For anyone carrying a dozen software subscriptions, that is the difference between cancelling one tool and re-entering card details everywhere after a fraud alert. Found issues team cards with spending controls on its free plan, which solves a related problem: several people spending without several people seeing the whole account.
Cashback is the second variable, and smaller than the marketing suggests. Novo tiers debit rewards by balance: 2% on eligible purchases at $5,000 or more, 1% below that. On realistic small-business spending that is worth tens of dollars a year. Treat it as a tiebreaker, not a reason.
Two things matter more and get less attention. Cash and ATM access is the one thing the fintech accounts genuinely cannot match: if you take cash payments, a branch network is the reason to accept a monthly fee. And foreign transaction fees quietly tax anyone with overseas clients or non-US software, because they apply to every charge in another currency. Check the percentage before you commit, and keep the business card for business spend only.
Tax buckets and bookkeeping
The self-employed have a banking problem employees never face: money arrives gross. Nothing is withheld, quarterly estimated payments come due four times a year, and the difference between what landed in the account and what is actually yours is roughly a quarter to a third of every deposit. An account that helps you keep that separation is worth more than a slightly better interest rate.
Three of the seven address it directly. Found moves a percentage of every deposit into a tax pocket automatically and shows an estimated quarterly figure, on the free plan, alongside 20 sub-accounts and receipt scanning. Lili covers the same ground plus invoicing and expense categorisation, but on its paid tiers. Novo has reserve accounts, which is the manual version of the same idea. Relay solves it differently: 20 checking accounts let you run envelope budgeting without any tax feature at all.
These tools help organise reserves and expenses. They do not replace tax advice and do not establish what you owe. For the other half of the pairing, see our accounting software for startups guide and Best Invoice Software for Freelancers.
What your business structure decides, and what it doesn't
One question decides less of this list than most comparisons claim. Of the seven accounts here, six are open to sole proprietors. Only Mercury is not, and the reason is narrow: it verifies a state-filed formation document during onboarding, and a sole proprietorship has none. Novo, Relay, Lili, Found, Bluevine and Chase Business Complete all document sole proprietorship as a supported structure. Most will take your SSN in place of an EIN, Relay adds a DBA certificate if you trade under another name, and Novo requires sole proprietors to be U.S. citizens.
So do not form an LLC in order to reach a banking app. Choosing a legal structure affects liability, how you are taxed, administration and cost, and those consequences outlast any account decision. If you are weighing an LLC for legal or tax reasons, discuss your specific situation with a qualified professional and assess banking eligibility separately.
One thing does change with a registered entity: Bluevine's line of credit requires a corporation or LLC, along with $10,000 in monthly revenue and 12 or more months in business. That is a lending requirement, not a banking one. And if you expect to incorporate within the year, open a free account now rather than waiting — moving banks later costs an afternoon of updating client payment details, while running personal and business money through one account for six months costs far more at tax time.
You are no longer solo?
For teams, startups and businesses with a bookkeeper, vendor payments or several cardholders, access control and money separation usually matter more than a $0 monthly fee. Three things change, and none of them is “startups need more features”.
- More than one person needs access. A co-founder, a bookkeeper, a VA and an accountant should not share one master login. Relay includes unlimited users with their own permissions on every plan, plus 20 checking accounts on Starter and Grow and 50 on Scale. If what you need is spending limits rather than separate logins, Found's free plan already issues team cards with controls.
- Team spending needs cards, not one shared debit card. Mercury lets you create a virtual card per vendor or subscription and cancel it at any time. With three or four people signing up for software, that is the difference between a readable expense report and a monthly reconstruction exercise.
- The accounting integration stops being a nice-to-have. Once a bookkeeper reconciles monthly instead of you doing it quarterly, a missing bank feed costs real money in hours. Mercury syncs with QuickBooks Online; Relay adds QuickBooks and Xero from Grow.
The entity gate only closes one door: incorporating opens exactly one additional account here, Mercury.
Keep reading
This guide covers US accounts. Banking in the UK works differently, and the difference is worth knowing before you open anything: Tide, where most UK freelancers land, is not a bank but an e-money institution. Whether your balance is FSCS-covered depends on which sort code you were issued — the review explains which is which, alongside the plan tiers and the transfer fees.
See Best Invoice Software for Freelancers, Best Accounting Software for Startups, and our Best CRM for Freelancers guide. For broader picks, browse all finance tools, our top freelancer tools hub, or all freelancer guides.
Frequently Asked Questions
What's the best business bank account for freelancers in the US?
It depends on your legal structure and how money moves through your business, not on your revenue. Found if tax set-aside is the pain point. Novo if you want plain fee-free banking. Relay if a bookkeeper or a second person needs their own login. Mercury if your business is a registered entity and you want cards per vendor. Chase if you deposit cash. Only one account in this comparison excludes sole proprietors, and it does so for a documentation reason rather than a size reason: Mercury requires a state-filed formation document.
Can a sole proprietor open a business bank account?
Yes, and with six of the seven accounts here. Novo, Found, Lili, Bluevine, Chase and Relay all document sole proprietorship as a supported structure. Relay asks for an SSN, a physical U.S. address and a DBA certificate if you trade under a name other than your own; Novo requires sole proprietors to be U.S. citizens. Mercury is the exception: it needs a state-filed formation document such as Articles of Organization, and a sole proprietorship has none. Check each provider's current entity and documentation requirements before you apply.
Mercury vs Novo for freelancers — which is better?
Different requirements, not different quality. Mercury only accepts registered entities: single- and multi-member LLCs, C and S corporations, partnerships, LLPs and non-profits. It has no monthly fee, no minimum balance, virtual cards per vendor and a public API. Novo also accepts sole proprietors, has no monthly fee and reimburses third-party ATM fees up to $7 a month. Mercury's deposits sit with Choice Financial Group and Column N.A.; Novo's with Middlesex Federal Savings. For a sole proprietor the question does not arise, because Mercury is not available.
Do freelancers need a separate business bank account, or is a personal account fine?
As a sole proprietor you can legally use a personal account, but two things argue against it. Separating expenses at tax time is far harder when personal and business transactions sit in one place. And the mixing of personal and business funds is regularly raised as an argument against an LLC's liability protection; how that plays out in any specific case is a legal question for a qualified professional. Since six of the seven accounts here have a free tier, the cost argument for staying on a personal account has largely disappeared.
Can I open a business bank account online as a freelancer?
Yes. Mercury, Novo, Relay, Bluevine, Lili and Found are online-first, and the application takes 10 to 20 minutes. What you need depends on your structure: registered entities supply an EIN and the state formation document (Articles of Organization or Incorporation); sole proprietors generally apply with an SSN plus a DBA certificate where one applies. Everyone needs a government-issued photo ID and a physical address, since PO boxes, virtual mailboxes and registered-agent addresses are commonly rejected. Relay reviews most applications within one to two business days.
What about traditional banks like Chase or Bank of America?
Traditional banks give you branches, and branches are the one thing a fintech account cannot substitute: cash deposits, check handling and notarization. The trade-off is a monthly fee with conditions attached. Chase Business Complete charges $15 a month, waived if you maintain a linked personal Chase Private Client or JPMorgan Classic Checking account, meet Chase Military Banking requirements, or hit $2,000 in one qualifying activity. If you rarely touch cash, a fee-free fintech account usually fits better. If you take cash regularly, the fee buys something real.
Is my money safe in a fintech business account?
That question has no single answer, so check the structure instead. Mercury, Novo, Relay, Bluevine, Lili and Found are financial technology companies, not banks; your deposits sit with a partner bank. Four checks before you open an account: which bank actually holds the funds, whether your balance is eligible for FDIC insurance, whether coverage is direct or runs through a deposit-sweep program across several program banks, and whether any yield product is separate from ordinary checking. Partner banks change, so read the current terms of service rather than an article.
How do deposit-sweep programs work?
A sweep program spreads your balance across a network of FDIC-insured program banks so that more of it can fall under coverage than the $250,000 per depositor at a single bank. Relay, Bluevine and Lili each document up to $3 million this way; Mercury documents up to $5 million across as many as 20 program banks. Two things matter. Mercury's sweep is something you opt in to, not a default. And Mercury states plainly that certain conditions must be satisfied for pass-through insurance to apply, so the headline figure is a ceiling, not a guarantee.
Which accounts support tax buckets or sub-accounts?
Found sets aside a percentage of every deposit into a tax pocket and includes up to 20 sub-accounts on its free plan. Relay offers 20 checking accounts on Starter and Grow, and 50 on Scale, which is what makes envelope-style budgeting workable. Lili's paid tiers add expense management and tax tools; its free Core plan is banking only. Novo has reserve accounts. Treat any tax estimate as a planning aid: these tools can help you organise reserves and expenses, but they do not replace tax advice and do not establish what you owe.
Which account works best for a bookkeeper or a small team?
Relay, because every plan includes unlimited users with their own permissions, so a co-founder, a bookkeeper and a CPA never share one login. Found is the cheaper starting point if what you need is spending control rather than separate logins: its free plan includes team debit cards with limits. Mercury manages user roles and issues a virtual card per vendor or subscription, which keeps expense reports readable when several people sign up for software. Grow at $30 a month is where Relay adds accounts-payable workflows and bill import.
Are business banking lending products guaranteed?
No. Some providers offer credit to eligible businesses, and eligibility is narrower than the marketing suggests. Bluevine's line of credit, for example, documents $10,000 in monthly revenue, 12 or more months in business, a personal FICO score of 625 or above, no bankruptcies on file, good standing with your Secretary of State, and a corporation or LLC rather than a sole proprietorship. It is not offered in Nevada, North Dakota, South Dakota or the U.S. territories. Applications are subject to credit approval, and rates, credit lines and terms vary with creditworthiness.
Should I form an LLC before opening a business account?
Do not form an LLC only to reach a particular banking app. Choosing a legal structure affects liability, how you are taxed, administration and cost, and those consequences outlast any account decision. Six of the seven accounts compared here are open to sole proprietors, so the banking argument for incorporating is weaker than it looks. If you are weighing an LLC for legal or tax reasons, discuss your specific situation with a qualified professional and assess banking eligibility separately. Opening a free sole-proprietor-friendly account now costs nothing and does not lock you in.
