Our Take
The bottom line:
Expedited payments (up to two days faster) is the standout feature for Lili Basic, but more perks await if you’re willing to pay a monthly fee.
Lili Basic Business Checking
Checking
Deposits are FDIC Insured
Monthly fee
$0
Learn more
at Lili, Deposits are FDIC Insured
Pros & Cons
Pros
- No monthly fees or transaction fees.
- No fees at MoneyPass ATMs.
- Cash deposits via Green Dot network (fees and limits apply).
- Early payment feature allows you to receive funds up to two days sooner than with a traditional bank account.
Cons
- Fee for using out-of-network ATMs.
- Cash deposits limited to $1,000 per day, $9,000 per month. Service fee of up to $4.95 per deposit.
- No checkbooks; can’t send wire transfers.
How does Lili compare?
Lili Basic Business Checking | Bluevine Business Checking | Grasshopper Business Checking Account |
|---|---|---|
Monthly fee $0 | Monthly fee $0 | Monthly fee $0 |
APY N/A | APY 2.00% With $0 min. balance for APY | APY 2.25% With $0 min. balance for APY |
Bonus N/A | Bonus N/A | Bonus N/A |
Full Review
Lili has made substantial changes to its business checking accounts since it launched in 2018, expanding availability to include most business entity types and introducing higher deposit and transfer limits on its free business checking account.
Most recently, Lili added two new account options — Lili Smart and Lili Premium — to its roster of online business checking accounts. In doing so, the fintech company removed the tax-planning and expense-management tools from its free Lili Basic plan. Invoicing, tax form preparation and other features moved from Lili Pro to Lili Smart and Premium. These changes mean new and existing Lili customers will have to pay for (or pay more for) features once included in Lili Basic and Lili Pro.
Despite the recent account updates, Lili still lacks some basic business features. You can’t write checks, for example, or send wire transfers from your Lili account.
Lili business checking accounts
Lili now offers four business accounts: Lili Basic (free), Lili Pro ($9 per month), Lili Smart ($20 per month) and Lili Premium ($35 per month). This review discusses Lili Basic and Pro in detail, but the corresponding star rating focuses on Lili Basic.
Lili Basic: Lili’s free business checking account has no minimum opening deposit and an early payment feature that allows you to receive certain ACH payments up to two days early.
Lili Pro: The Pro version includes BalanceUp, which covers up to $200 in debit overdrafts for no charge (terms apply), and a business savings account that, as of this writing, earns a 4.15% annual percentage yield, or APY, on balances up to and including $100,000. This account also includes a host of digital tools that were once available on Lili Basic, including the ability to categorize expenses, generate expense reports and estimate and save for taxes.
Lili Pro previously offered pre-filled tax reports and unlimited invoices and payments. Those features are now only available with Lili Smart or Lili Premium.
Note: Lili is a neobank whose banking services are provided by Choice Financial Group, and deposits on all accounts are insured up to $250,000 by the Federal Deposit Insurance Corp.
Lili business checking is best for small-business owners who:
- Make minimal cash deposits.
- Don’t need access to a physical branch.
Lili business checking at a glance
Lili Basic | Lili Pro | |
|---|---|---|
Monthly fee | $0. | $9. |
Minimum opening deposit requirement | $0. | $0. |
APY | None. | Lili Pro Checking: None. Lili Savings*: 4.15% APY on balances up to $100,000. *Lili Savings is available for Pro account holders and higher. |
Transactions | Unlimited. | Unlimited. |
Bonus | None. | None. |
How to open a Lili business checking account
Originally designed specifically as a bank account for freelancers and independent contractors, Lili is now available to the following entity types:
- Sole proprietors.
- LLCs.
- S-corps.
- Partnerships (general and limited liability).
Lili does not support B corporations, C corporations and nonprofits. It also doesn’t support certain types of businesses, including trusts, crowdfunding and cryptocurrency operations, and those in the gambling or cannabis industries.
You can open a Lili bank account online or via the mobile app in minutes. After you submit your application, you should receive approval and account access almost instantly. If you apply for an account online, Lili will send a verification code via text message or email to pair your account to the mobile app.
Regardless of how you sign up for Lili banking, you will use the mobile app to fund your account and manage your expenses. You can fund your account using direct deposit, ACH transfers or mobile check deposit and by linking external bank accounts or platforms like Venmo and PayPal.
Although it can take up to two weeks for your Lili Visa business debit card to be delivered, you’ll be able to use a digital version of your card through the Lili app. You’ll also be able to track the progress of your physical card on the main screen of the mobile app. Once you receive your card in the mail, you’ll need to activate it within the app before you can use it.
What you need to open an account
To apply for a Lili account, you'll need to provide the following information and documentation:
- Personal information: Name, mobile phone number, date of birth, home address and Social Security number. This information is required for anyone who owns 25% or more of the company.
- Business information: Industry and business entity type, physical mailing address (no P.O. boxes allowed), state your business is registered in and employer identification number, or EIN (if applicable).
Business owners may also need to provide an IRS EIN letter and other documentation, such as articles of organization or partnership agreement, depending on the business type.
Where Lili business checking stands out
No fees (mostly): Lili Basic has no monthly fees, no minimum balance requirements, no minimum opening deposit and no transaction fees (aside from cash deposits). Lili also doesn’t charge for returned items or stop payments, incidental fees that are charged by online and brick-and-mortar competitors. And Lili does not charge a foreign exchange rate adjustment fee, meaning there’s no additional charge to make debit card purchases outside the U.S.
Lili isn’t fully fee-free, though. There is a charge for using out-of-network ATMs: $2.50 at domestic non-MoneyPass ATMs and $5 at international ATMs.
Fast access to ACH payments: Getting your money faster is always a bonus. And Lili account holders can get select funds up to two days earlier than they would with a traditional bank. Lili’s early payment feature applies to direct deposits, ACH transfers and transfers from Cash App (when linked to your Lili account).
Free overdraft protection: Lili Pro users can qualify for up to $200 in free overdraft protection through Lili’s BalanceUp program (terms apply). To qualify, you need at least $500 in qualifying monthly deposits. Overdraft coverage applies only to debit card purchases, and you need to resolve any negative balance within 30 days.
Integrated tools for expenses and taxes: Upgrade to Pro and you can unlock tools to help manage expenses and plan for freelancer taxes, including the ability to estimate your tax bill and automatically set aside a percentage of funds every time you get paid. You can also categorize expenses, add receipts to transactions and generate monthly expense report. (Note: Many of these tools were previously available with the free Lili Basic account.)
If you're averse to the monthly fee, consider
Found Small Business Banking
. This free business checking account offers automated tax withholding, expense tracking and Schedule C creation, plus invoicing and bookkeeping tools.Where Lili business checking falls short
Limited business-related features: Lili business accounts have a lot of useful tools but still lack some basic business-related features that competitors offer. You can’t use your Lili account to pay by check or to send wire transfers. (You can receive incoming domestic wire transfers, but not international wires.)
If wire transfers are essential to your business, consider the
Mercury Business Bank Account
, which offers free domestic and international wire transfers. You can also add multiple users to your Mercury business account and can issue (and manage) multiple virtual debit cards.Limited weekend support: Lili offers customer support via phone and email during the week (9 a.m. to 7 p.m. Eastern time), but if you have an issue over the weekend, your only option is email support. If accessible customer support is a high priority, consider Axos Basic Business Checking, which offers 24/7 customer support.
Deposit fees and limits: While Lili customers can deposit cash at participating Green Dot locations, deposits are capped at $1,000 per day and $9,000 per month, and each deposit carries a $4.95 fee. That may be tolerable for the occasional deposit but is hard to stomach with frequency. If your business makes regular cash deposits, consider an
nbkc Business Account
or LendingClub Tailored Checking
, which offer unlimited cash deposits, for no fee, via compatible ATMs.Mobile check deposits via the Lili app also come with some restrictions. Depending on your business entity type, you'll need to wait 30 days and complete at east $200 in ACH transfers before you can use mobile check deposit.
Once approved, you can deposit only two checks per day (15 per month) and a maximum of $5,000 per day ($50,000 per month). While these limits aren’t unusual, they are worth comparing if you process a decent volume of checks.
Bluevine Business Checking
has no cap on the number of checks you can deposit per day, but accounts are capped to $20,000 in mobile check deposits per month. Axos business checking is more generous: Account holders can deposit up to 20 checks per day (60 per month), up to a maximum of $25,000 per business day ($200,000 per month).The Annual Percentage Yield (“APY”) for the Lili Savings Account is variable and may change at any time. The disclosed APY is effective as of September 1st, 2023. Must have at least $0.01 in savings to earn interest. The APY applies to balances of up to and including $100,000. Any balance over $100,000 will not earn interest or have a yield. Available to Lili Pro, Lili Smart, and Lili Premium account holders only.
Learn more
at Lili, Deposits are FDIC Insured