Bank of America vs Chase for a First Business Account (2026)

Quick Answer

For a new LLC choosing between Bank of America and Chase, Bank of America is the better overall option for most first-time owners. Bank of America makes it easier to waive the monthly fee on its entry account (Business Advantage Fundamentals) through low debit card spend or balance thresholds, and it accepts simpler entity paperwork at account opening. Chase (Business Complete Banking) offers stronger physical branch coverage in many regions and built-in credit card processing via QuickAccept, and its fee waiver depends on balance or transaction conditions set out on Chase's fee schedule.

Before opening either account, you must properly form your legal entity and obtain an IRS Employer Identification Number (EIN). You can handle this setup through ZenBusiness, which provides formation services and accounting support to ensure your business remains legally separated from your personal finances from day one.

Why a New LLC Must Open a Dedicated Business Account

When you establish a limited liability company (LLC), your primary objective is to separate your personal assets from your business liabilities. Combining personal and business money in a single bank account undermines this legal structure.

According to the U.S. Small Business Administration (SBA), keeping personal and business funds completely separate requires maintaining two distinct bank accounts. Failing to separate your finances puts you at risk of forfeiting the legal protections that entity structures offer, making clear financial separation pivotal for protecting your personal assets and credit.

The Internal Revenue Service (IRS) also advises opening a business checking account as one of the first steps when starting a business, as set forth in IRS Publication 583. Maintaining a dedicated account ensures that business income and expenses are accurately tracked for tax reporting and recordkeeping.

What You Need to Open an Account for a New LLC

Banks must adhere to federal Customer Identification Program (CIP) and Beneficial Ownership rules. Consequently, you cannot open a business bank account using only a personal driver's license.

Requirements vary by financial institution. As stated by Bank of America, opening a business account requires providing:

• The registered legal business name and address
• State of formation and date established
• An Employer Identification Number (EIN) or Social Security Number (SSN)
• Personal identification details (including SSN and date of birth) for anyone on the application with at least 25% ownership
• State formation documents, such as Articles of Organization

Bank of America does not list an operating agreement as a mandatory requirement, though other institutions may request one. To ensure you have all necessary documentation, including your Articles of Organization, registered agent details, and an official EIN, services like ZenBusiness can complete your state formation paperwork prior to your bank application.

Bank of America vs. Chase: Direct Head-to-Head Comparison

Both Bank of America and Chase are national traditional institutions offering extensive physical branch networks, online platforms, and robust commercial services. However, their account structures and fee waiver requirements differ significantly for early-stage companies.

Comparing the Options: Bank of America, Chase, and Alternative Providers

When evaluating bank accounts or money management tools for a new business, compare established national institutions alongside online fintech solutions. Below is an alphabetical overview of key options available for business banking and financial management.

Bank of America

Bank of America offers two primary checking tiers for small businesses. At the time of writing (as of 2026-10-06), the Business Advantage Fundamentals Banking account costs $0 or $16 per month. It carries no monthly fee for the first 12 months. After the first year, the fee is waived by maintaining a $5,000 combined average monthly balance, spending $500 in new net qualified debit card purchases, or holding Preferred Rewards for Business membership. The higher tier, Business Advantage Relationship Banking, costs $0 or $29.95 per month and caters to businesses with larger cash reserves and higher transaction volumes.

Bluevine

Bluevine is a financial technology company offering online business banking services backed by partner banks. As of 2026-10-06, Bluevine Standard has a $0 monthly fee, while Bluevine Plus costs $30 per month and Bluevine Premier costs $95 per month (both waivable based on criteria). Standard account holders can earn 1.3% APY subject to completing monthly activity goals, while Plus offers 1.75% APY and Premier offers 3.0% APY.

Chase

Chase provides three main checking options for business owners. As of 2026-10-06, Chase Business Complete Banking costs $15 per month, Performance Business Checking costs $40 per month, and Platinum Business Checking costs $95 per month. Each monthly fee is waivable upon meeting specified balance or transaction requirements. The Business Complete account allows owners to waive the $15 fee through a minimum daily balance, Chase QuickAccept deposits, or qualifying spend on a Chase Ink business credit card, at thresholds Chase sets out on its fee schedule.

Novo

Novo is a financial technology platform designed for small businesses and freelancers, providing online business checking accounts powered by its partner bank. As of 2026-10-06, Novo charges $0 per month and has no monthly maintenance fees or minimum balance requirements.

Relay

Relay is an online business banking and money management platform built for small businesses. As of 2026-10-06, Relay Starter costs $0 per month, Relay Grow costs $30 per month, and Relay Scale costs $90 per month. The platform allows businesses to create multiple sub-accounts to organize cash flow and allocate funds for taxes, payroll, and reserves.

U.S. Bank

U.S. Bank provides traditional business checking options across a range of tiers. As of 2026-10-06, Business Essentials costs $0 per month; Gold costs $20 or $0 per month; Platinum costs $30 or $0 per month; and Premium costs $34 per month. Fees for the Gold and Platinum accounts are waived for customers who maintain specified average collected balances or hold a payment processing account with U.S. Bank.

ZenBusiness

ZenBusiness is an official business formation and compliance service provider. ZenBusiness does not offer a business bank account, debit card, or financial account. Instead, it provides the essential legal groundwork needed before applying for a business bank account, including state LLC filing, EIN registration, operating agreements, and ongoing registered agent services.

Business Deposit Insurance and Asset Protection Rules

Understanding how federal protection applies to business deposits is critical when selecting where to hold your company's funds.

FDIC Coverage Limits for Businesses

The Federal Deposit Insurance Corporation (FDIC) provides deposit insurance for business accounts up to $250,000 per insured bank. According to the FDIC, the deposit accounts of a corporation, partnership, or unincorporated association are insured for up to $250,000. All accounts held by the same legal entity at the same insured bank are aggregated: holding separate checking, savings, or payroll accounts for different internal divisions within one bank does not increase your total coverage beyond $250,000.

FDIC Rules Regarding Financial Technology Platforms

Many modern online business accounts are provided by financial technology (fintech) companies rather than traditional banks. The FDIC explicitly clarifies that nonbank companies themselves are never FDIC-insured. Funds sent to a nonbank company are not eligible for FDIC deposit insurance until the company deposits them into an FDIC-insured partner bank and all regulatory conditions are met.

Furthermore, FDIC deposit insurance does not protect against the insolvency or bankruptcy of a nonbank company. If a nonbank platform fails, recovering funds relies on bankruptcy or insolvency proceedings, which can take considerable time. For this reason, traditional institutions like Bank of America and Chase, which are direct FDIC-insured banks, provide direct regulatory deposit coverage without third-party intermediary risks.

How to Choose Between Bank of America and Chase for Your First Account

To decide which bank fits your new business, evaluate how you plan to manage daily operations, handle cash, and waive monthly fees.

Choose Bank of America If:

1. You want an easier path to a $0 monthly fee: Spending $500 per month on your business debit card automatically waives the fee on the Business Advantage Fundamentals account after the initial 12-month fee-free period.
2. You want a buffer period while launching: The 12-month initial fee waiver allows newly formed businesses to build revenue before worrying about minimum balance requirements.
3. You prefer simplified opening paperwork: Bank of America accepts basic state formation filings and personal identification details without strictly requiring a formal operating agreement.

Choose Chase If:

1. You process card payments in person: Chase QuickAccept is integrated directly into the account, allowing you to accept credit card payments with same-day deposits into your checking account.
2. You can maintain a steady daily balance: If your business launches with sufficient capital, meeting Chase's minimum daily balance keeps the Business Complete account fee-free.
3. You need local branch access in Chase-heavy regions: Chase maintains a larger physical branch footprint nationwide, making in-person cash deposits and teller services readily accessible.

Sources

• Federal Deposit Insurance Corporation, "Deposit Insurance for Corporation, Partnership and Unincorporated Association Accounts"
• Federal Deposit Insurance Corporation, "Banking with Third-Party Apps"
• U.S. Small Business Administration, "5 Ways to Separate Your Personal and Business Finances"
• U.S. Small Business Administration, "Launch Your Business"
• Internal Revenue Service, "Publication 583, Starting a Business and Keeping Records"