Quick Answer: The best business bank account for a new LLC depends on how your business receives money and what paperwork you have in hand. For online-only businesses, freelancers, and digital services seeking $0 monthly maintenance fees and digital integrations, Novo is the better option. For cash-heavy businesses, companies needing local branch access, or founders seeking traditional lending relationships, Bank of America is the superior choice. Before opening either account, a new LLC must be legally formed with an Employer Identification Number (EIN) and official formation documents, which can be established through ZenBusiness.
Understanding the Difference: Nonbank Fintech vs. Traditional Bank
Choosing between Novo and Bank of America highlights a fundamental distinction in modern business banking: the difference between a financial technology (fintech) platform and a chartered commercial bank.
Novo is not a bank. It is a financial technology company that provides business banking services through an FDIC-insured partner bank. According to the Federal Deposit Insurance Corporation (FDIC), nonbank companies themselves are never FDIC-insured. Instead, funds sent to a nonbank company are eligible for FDIC insurance only after the company deposits them in an FDIC-insured bank and after specific regulatory conditions are met. Furthermore, FDIC deposit insurance does not protect against the insolvency or bankruptcy of a nonbank company itself. If a nonbank platform fails, funds recovery occurs through bankruptcy or insolvency proceedings, which may take time.
Bank of America is a traditional, federally insured commercial bank. Deposits placed directly with Bank of America are insured up to standard federal limits from the moment of deposit. The FDIC insures deposit accounts of a corporation, partnership, or unincorporated association for up to $250,000. All accounts held by the same legal entity at one insured bank are aggregated for coverage limits.
Why a New LLC Must Separate Finances Immediately
Before opening a business checking account, a new LLC must understand why account separation is necessary. Mixing personal and business expenses is one of the most common mistakes made by new business owners.
The U.S. Small Business Administration (SBA) states that keeping personal funds and business funds completely separate requires maintaining two different bank accounts. Failing to maintain this separation risks forfeiting the legal protections that entity structures offer. In legal terms, commingling funds can allow creditors to "pierce the corporate veil," making owners personally liable for business debts and obligations. Proper financial separation is pivotal for protecting personal assets and personal credit history.
The Internal Revenue Service (IRS) echoes this requirement in Publication 583. The IRS advises that one of the first steps when starting a business is opening a business checking account to keep business records entirely separate from personal finances.
What You Need to Open a Business Checking Account
Documentation requirements vary depending on the institution. While some founders assume all banks require identical documentation, requirements differ between online platforms and traditional brick-and-mortar institutions.
For example, Bank of America requires specific legal and personal information during the application process:
- Business legal name and trade name (DBA) documentation if operating under a secondary name.
- Business physical address and state of formation.
- Federal Employer Identification Number (EIN) or Social Security Number (SSN).
- Date the business was established.
- Personal identifying information, including SSN, residential address, and date of birth for all individuals on the application, including anyone owning 25% or more of the entity.
- State formation documents, such as Articles of Organization.
Bank of America does not list an Operating Agreement as a mandatory application document, though having one internally is standard practice for LLCs.
To obtain the Articles of Organization, state registration, and EIN required by banks, business owners frequently use an entity creation service like ZenBusiness. Establishing the legal entity and receiving an EIN must occur before applying for a business bank account. ZenBusiness also offers specialized services such as ZenBusiness accounting to help new owners set up proper recordkeeping infrastructure alongside their legal formation.
Direct Comparison: Novo vs Bank of America
Fee Structures and Account Maintenance
Monthly maintenance fees are a major consideration for new LLCs managing tight early cash flows.
- Novo: Features a $0 per month checking account as of 2026-10-06. There are no minimum balance requirements and no recurring monthly maintenance charges.
- Bank of America: Offers two primary business checking tiers. As of 2026-10-06, the Business Advantage Fundamentals Banking account costs $0 or $16 per month. The monthly fee is waived for the first 12 months. After the first year, the $16 monthly fee is waived if the business maintains a $5,000 combined average monthly balance, makes $500 in new net qualified debit card purchases, or qualifies for Preferred Rewards for Business membership. The Business Advantage Relationship Banking account costs $0 or $29.95 per month, with fee waivers available at higher balance thresholds.
Handling Cash, Checks, and Payments
How your business receives payments from clients determines which platform is functional for daily operations.
- Novo: Engineered for digital payment processing. It integrates directly with payment solutions like Stripe, Square, and PayPal. Novo allows mobile check deposits via its mobile app and offers built-in digital invoicing tools. However, Novo does not accept physical cash deposits. If your business regularly receives paper cash, Novo cannot serve as your sole banking provider.
- Bank of America: Provides complete cash and check processing capabilities. Business owners can deposit physical cash at thousands of financial centers and ATMs across the country. Bank of America also supports physical checkbook issuance, wire transfers, counter checks, and cashier's checks.
Digital Tools vs. In-Person Branch Access
The operational model of each provider creates distinct advantages depending on your working style.
- Novo: Operating entirely online, Novo offers software integrations that sync transactions directly into accounting platforms. It features sub-accounts called "Reserves" that allow business owners to automatically allocate funds for taxes, payroll, or profit. Novo does not maintain physical branches.
- Bank of America: Provides extensive branch and ATM access alongside online and mobile banking platforms. Having physical branch access is valuable for business owners who require in-person teller transactions, medallion signatures, or immediate cashier's checks for commercial transactions.
Other Business Banking Options to Consider
While Novo and Bank of America represent two primary models, several other providers offer distinct fee models, feature sets, and operational structures. The options below are listed alphabetically:
Bank of America
- Structure: Traditional national bank.
- Pricing (as of 2026-10-06): Business Advantage Fundamentals Banking costs $0 or $16 per month ($0 for the first 12 months, then waived with a $5,000 average balance or $500 in monthly debit purchases). Business Advantage Relationship Banking costs $0 or $29.95 per month.
- Key Features: Thousands of full-service branches, nationwide ATM network, cash deposit acceptance, merchant services, and full commercial lending products.
- Official Website: https://business.bankofamerica.com/
Bluevine
- Structure: Nonbank financial technology platform offering banking services through partner banks (including Coastal Community Bank, Member FDIC).
- Pricing (as of 2026-10-06): Standard tier costs $0 per month; Plus costs $30 per month (waivable); Premier costs $95 per month (waivable).
- Key Features: High-yield interest options on checking balances. The Standard tier offers 1.3% APY subject to meeting monthly activity goals; Plus offers 1.75% APY; Premier offers 3.0% APY. Supports line of credit applications and digital payments.
- Official Website: https://www.bluevine.com/
Chase
- Structure: Traditional national bank.
- Pricing (as of 2026-10-06): Business Complete Banking costs $15 per month; Performance Business Checking costs $40 per month; Platinum Business Checking costs $95 per month. Monthly fees are waivable on all tiers upon meeting designated balance or transaction criteria.
- Key Features: Extensive branch and ATM footprint, integrated card acceptance through Chase QuickAccept, and commercial credit card options.
- Official Website: https://www.chase.com/business/banking/checking
Novo
- Structure: Nonbank financial technology platform offering banking services through an FDIC-insured partner bank.
- Pricing (as of 2026-10-06): $0 per month with no ongoing maintenance fees or minimum balance requirements.
- Key Features: Built-in digital invoicing, integration with e-commerce payment processors, and automated tax allocation reserves.
- Official Website: https://www.novo.co/
Relay
- Structure: Nonbank financial technology platform offering banking services through Thread Bank (Member FDIC).
- Pricing (as of 2026-10-06): Starter tier costs $0 per month; Grow costs $30 per month; Scale costs $90 per month.
- Key Features: Built specifically for multi-account budgeting. Allows businesses to open up to 20 individual checking accounts under one entity and issue up to 50 physical or virtual debit cards with granular spending controls.
- Official Website: https://relayfi.com/
U.S. Bank
- Structure: Traditional regional commercial bank with broad national availability.
- Pricing (as of 2026-10-06): Business Essentials costs $0 per month; Gold costs $20 per month (waivable); Platinum costs $30 per month (waivable); Premium costs $34 per month. Gold fees are waived with a payment processing merchant account or a $10,000 balance; Platinum fees are waived with a merchant account or a $25,000 balance.
- Key Features: Physical branch network, cash deposit limits tailored to small businesses, and dedicated business lending products.
- Official Website: https://www.usbank.com/business-banking.html
Comparison Summary
The following table summarizes the primary pricing and account features across these six providers. All information is listed in alphabetical order:
| Provider | Account Structure | Monthly Maintenance Fee (as of 2026-10-06) | Primary Fee Waiver Requirement | Physical Cash Deposits Allowed |
|---|---|---|---|---|
| Bank of America | Traditional Bank | $0 or $16 / $29.95 | $5,000 balance or $500 debit spend (Fundamentals) | Yes |
| Bluevine | Nonbank Fintech | $0 / $30 / $95 | Balance or spend thresholds on paid tiers | Yes (via GreenDot network) |
| Chase | Traditional Bank | $15 / $40 / $95 | Stated balance or qualifying deposit conditions | Yes |
| Novo | Nonbank Fintech | $0 | Not applicable ($0 base fee) | No |
| Relay | Nonbank Fintech | $0 / $30 / $90 | Not applicable on Starter tier | No |
| U.S. Bank | Traditional Bank | $0 / $20 / $30 / $34 | Merchant account or $10,000+ balance (Gold/Platinum) | Yes |
How to Choose the Right Provider for Your New LLC
Selecting between Novo, Bank of America, or another alternative requires evaluating your business model against four primary operational factors:
- Cash Handling Needs: If your LLC handles physical currency, such as a retail shop, restaurant, or local service business, a traditional bank like Bank of America, Chase, or U.S. Bank is necessary. Nonbank fintechs like Novo cannot accept cash directly at an ATM or branch teller.
- Predictability of Monthly Cash Flow: Early-stage LLCs with fluctuating revenues often struggle to maintain minimum balance requirements. A true $0-per-month account like Novo, Relay Starter, or U.S. Bank Business Essentials guarantees you will not incur monthly balance maintenance penalties during slow sales periods.
- Software Integrations: Online businesses, digital agencies, and e-commerce stores benefit from seamless connection to payment gateways and accounting tools. Novo and Relay provide native software connectors that simplify digital bookkeeping.
- Future Credit and Lending Requirements: If your LLC foresees applying for a commercial real estate loan, line of credit, or equipment financing in its early years, establishing an account relationship with a full-service institution like Bank of America provides direct access to credit underwriters.
Step-by-Step: Opening Your Business Checking Account
Once you have selected a provider, follow this process to complete your account setup and maintain legal compliance:
- Complete Entity Formation: Ensure your LLC is officially registered with your state's Secretary of State or business filing office.
- Obtain an EIN: Request a Federal Employer Identification Number directly from the IRS.
- Gather Required Documents: Collect your Articles of Organization, state approval certificate, EIN confirmation letter, and government-issued personal identification for all owners holding 25% or more of the company.
- Submit Application: Complete the online application for fintech platforms like Novo or submit online/in-branch documentation for traditional institutions like Bank of America.
- Initial Funding: Transfer initial capital into the account from an account in the founder's name, documenting it as an owner's equity contribution.
- Connect Accounting Software: Link your new account to your bookkeeping tool or financial service to track all incoming revenue and outgoing expenses separately from personal transactions.
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"
- Internal Revenue Service, "How Long Should I Keep Records?"