Phase 06: Protect

Mercury vs Relay vs Chase: Best Business Bank Account for Small Business

7 min read·Updated April 2026

Mixing personal and business money is the most common way entrepreneurs accidentally pierce their LLC's liability protection. A dedicated business bank account costs nothing to open and fixes that problem immediately. Here is which one is right for your stage.

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The quick answer

Mercury is the best business bank account for startups and online businesses — no fees, excellent UI, and strong integrations. Relay is better if you want built-in profit-first budgeting with multiple envelopes. Chase Business Complete Banking wins for businesses that need cash deposits or in-person branch access. All three open online in under 30 minutes.

Side-by-side breakdown

Mercury: no monthly fees, no minimum balance, FDIC insured, ACH and wire transfers included, API access for developers, debit card and virtual cards included, US-based businesses only, no cash deposits. Best for tech-forward businesses and startups.

Relay: no monthly fees, up to 20 checking accounts and 50 virtual debit cards, built for profit-first budgeting (envelope method), team access controls, integrates with QuickBooks and Xero. Best for businesses that want to manage cash flow by category.

Chase Business Complete Banking: $15/month fee (waived with $2,000 minimum balance or qualifying activity), 100+ free transactions/month, cash deposits accepted at branches, broad ATM network, integrates with Zelle. Best for businesses with physical cash handling.

When to choose Mercury

Choose Mercury when you are a digital service business, consultant, SaaS company, or any business operating entirely online. The UI is genuinely excellent, virtual cards are useful for separating software subscriptions, and the API access is valuable if you build any financial automation. Mercury also has a venture-focused tier useful if you plan to raise funding.

When to choose Relay

Choose Relay when you want to implement profit-first financial management — allocating percentages of every deposit to separate expense, tax, and profit accounts. Relay's multi-envelope structure makes this natural. Also a strong choice for businesses with multiple employees or contractors who need team card access with individual spending limits.

When to choose Chase

Choose Chase when you have cash revenue — retail, restaurants, services paid in cash — that needs to be deposited at a branch. Chase has the largest branch and ATM network of the three and is the only option here that accepts cash deposits without a third-party service. The monthly fee is easily waived by maintaining a small average balance.

The verdict

Online business or digital service: Mercury. Cash flow management focus or small team: Relay. Physical business with cash handling: Chase. Open your account today — before your next client payment. Every day you deposit business income into your personal account is a day your LLC protection is eroding.

How to get started

1. Choose your bank based on your primary need. 2. Apply online with your EIN, LLC documents, and personal ID. 3. Fund the account with a small initial deposit from your personal account. 4. Update all client invoicing to show the new business account details. 5. Set up separate accounts or envelopes for taxes (25-30% of revenue) from day one.

RECOMMENDED TOOLS

Mercury

Best online business bank — no fees, strong integrations

Best for Online Business

Relay

Built for profit-first budgeting with multiple accounts

Chase

Best for businesses needing branch access and cash deposits

Some links above are affiliate links. We may earn a commission if you sign up — at no extra cost to you.

FREQUENTLY ASKED QUESTIONS

Do I need a business bank account if I am a sole proprietor?

Legally no, but practically yes. Even as a sole proprietor with no liability protection, a separate business account makes bookkeeping, tax preparation, and expense tracking dramatically simpler. When you form an LLC, a separate account becomes essential for maintaining your liability protection.

Can I open a business bank account without an LLC?

Yes. Most banks will open a business bank account for a sole proprietor using your Social Security Number and a DBA (Doing Business As) registration. However, forming an LLC first and using your EIN is cleaner and protects you better.

How much should I keep in my business account?

At minimum: enough to cover two months of operating expenses. Additionally, set aside 25-30% of gross revenue in a separate tax savings account from day one. Many business owners are blindsided by their first quarterly estimated tax payment — this prevents that.

Apply This in Your Checklist

Phase 8.1Get business insurancePhase 8.2Create your contracts and service agreements

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