For a freelancer asking what the best online business bank is, the answer depends on your existing bookkeeping habits. The choice often comes down to Novo or Found. Found serves as a standalone financial hub that automatically tracks tax obligations and categorizes expenses for self-employed individuals. Novo acts as a streamlined checking platform that connects seamlessly to the external accounting software and payment processors you already use. Before choosing either platform, you need the right paperwork in place. If a new entity structure or an EIN is on your checklist, separating your finances is the necessary first step. You can use ZenBusiness accounting and formation services to organize your legal structure and obtain your documentation before starting the bank application process.

The Golden Rule of Freelance Finance: Separation

Before comparing the specific features of online business accounts, a freelancer must understand the importance of financial separation. Commingling personal and business income creates a significant administrative burden at tax time. It also introduces severe legal risks. When a solo operator fails to separate their money, they risk forfeiting the legal protections that entity structures offer.

The U.S. Small Business Administration is clear about this requirement. The agency notes that separation is pivotal for protecting your own assets and credit. To keep personal funds and business funds completely separate you must have two different bank accounts. Opening a dedicated account ensures that business liabilities do not easily cross over to affect your personal savings. This separation creates a clean paper trail that is essential for both legal and tax purposes.

The Internal Revenue Service enforces a similar perspective regarding taxation. The agency states that one of the first things you should do when you start a business is open a business checking account. You should keep your business account separate from your personal checking account. This clean divide makes it easier to track deductible expenses and prove the legitimacy of your business activities during an audit.

If you operate as a sole proprietor, you can often open a basic business account under your own name and Social Security Number. However, if you choose to form a limited liability company or a corporation, a bank will require your official formation documents. You will also need an Employer Identification Number. Securing these official documents comes before the account application process begins.

Deposit Insurance and the Fintech Model

The landscape of online business banking is largely populated by financial technology companies rather than traditional banks. These fintechs build the software interface and issue the debit cards, while a partner bank actually holds the deposited funds. Both Novo and Found operate entirely under this partnership model. Understanding this structure is vital for evaluating how your freelance income is protected.

The Federal Deposit Insurance Corporation provides coverage for bank failures. The deposit accounts of a corporation, partnership, or unincorporated association are insured for up to $250,000. All accounts held by the same entity at one insured bank are combined. It is important to note that separate accounts for different divisions or purposes do not get separate coverage. If a freelancer has a main operating account and a separate tax reserve account at the same partner bank, all balances are aggregated toward the single limit.

The distinction between a chartered bank and a fintech becomes critical regarding the fintech's own financial health. The FDIC is explicit that nonbank companies themselves are never FDIC-insured. Funds you send to a nonbank company are not eligible for FDIC insurance until the company deposits them in an FDIC-insured bank and after other conditions are met.

If the underlying partner bank fails, the standard insurance applies to your eligible deposits. However, FDIC deposit insurance does not protect against the insolvency or bankruptcy of a nonbank company. If the fintech platform itself ceases operations or files for bankruptcy, recovery runs through an insolvency or bankruptcy proceeding. The FDIC warns that this legal process may take some time. During this period, a business owner might lose access to their working capital.

Novo vs Found in 2026

Freelancers evaluating Novo and Found are looking at two highly capable platforms with fundamentally different philosophies. Both cater to solo operators with digital-first experiences and minimal fee structures. Neither charges a mandatory monthly maintenance fee for its base tier. The decision rests on whether you want a comprehensive financial system or a simple ledger that connects to other specific tools.

Found: The All-in-One Approach

Found is built as an integrated system specifically for the self-employed worker. It brings banking, bookkeeping, and tax tracking tools into a single digital application. When a client pays an invoice, Found automatically estimates the upcoming tax burden and sets that money aside. It tracks write-offs in real time and assists with preparing Schedule C tax forms.

For a freelancer who wants to avoid paying a separate subscription for accounting software, Found provides massive value. It completely removes the friction of moving data between different financial applications. Everything from categorizing a business lunch to generating an income report happens in the same dashboard. This approach appeals heavily to creative professionals and independent contractors who prefer an automated administrative workflow.

Novo: The Integration Hub

Novo takes a decentralized approach to business finance. Instead of building complex accounting features directly into its interface, Novo focuses on robust software integrations. It connects smoothly to external payment processors like Stripe, Square, and PayPal. It integrates natively with platforms like Shopify and QuickBooks.

Novo allows users to create specialized reserves for setting aside tax money, but it relies on outside software to calculate the estimates. For a freelancer who already pays for dedicated accounting software, Novo is often the better fit. It acts as a highly efficient clearinghouse that pushes transaction data accurately to the tools you already trust.

The Full List of Freelance Banking Options

While Novo and Found dominate many conversations about freelance finances, the market features several other strong competitors. Below is an alphabetical look at the prominent options available to freelancers and solo operators. Prices and terms are accurate as of October 6, 2026. This list is organized alphabetically rather than as a ranking.

Bluevine

Bluevine provides a tiered business checking platform offering the ability to earn interest on deposits. The Bluevine Standard plan has a $0 per month fee and provides a 1.3% APY subject to a monthly activity goal. The Bluevine Plus plan costs $30 per month and yields a 1.75% APY. The highest tier is the Premier plan, which costs $95 per month and yields a 3.0% APY. Both the Plus and Premier monthly fees are waivable if the user meets specific balance or spending requirements.

Found

Found merges standard banking features with tax preparation and expense tracking tailored for self-employed individuals. Its Free plan costs $0. The Plus plan introduces advanced tax tools and custom invoicing capabilities for $35 per month or $315 per year. Found also offers a Pro tier, which costs $80 per month or $720 per year. The platform is ideal for independent contractors seeking a unified financial dashboard.

Lili

Lili focuses squarely on freelancers and solo operators with a blend of basic banking and automated accounting features. The Lili Core plan has a $0 monthly fee. Its paid tiers introduce features like tax preparation, invoicing, and higher-priority customer support. The Pro plan is $15 per month, the Smart plan is $35 per month, and the Premium plan is $55 per month. Lili sometimes offers a promotional rate of roughly 40% off for three months on its paid tiers, but this is strictly an introductory discount rather than the ongoing price.

Mercury

Mercury targets startups and tech-focused companies, but freelance operators can utilize its platform. The base plan costs $0 per month. Mercury also provides a Plus plan at $29.90 per month and a Pro plan at $299 per month. The interface is geared toward users who require advanced digital operations and scale.

Novo

Novo offers a streamlined digital business account designed to connect smoothly with external software tools. There is a $0 per month fee, meaning users pay no monthly maintenance cost. Novo is highly regarded for its minimal fee structure and its deep integration catalog. It appeals to business owners who want to customize their financial stack with distinct third-party applications.

Relay

Relay is designed for meticulous cash flow management and team collaboration. It allows business owners to open multiple individual checking accounts. This makes it easy to separate funds for taxes, operating expenses, and external contractor payments. The Relay Starter plan costs $0 per month. The Grow plan costs $30 per month, and the Scale plan costs $90 per month. Relay is an excellent option for users operating under specific budgeting frameworks.

Wise

Wise caters to freelancers who manage international clients or supply chains. It allows users to hold balances in multiple currencies and receive local bank details for several different countries. Registering is free, and there is no monthly fee. A one-time 31 USD fee opens the full business feature set. Wise charges per transaction instead of a subscription, with sending and conversion fees starting from 0.23% varying by currency. It is highly specific to cross-border financial operations.

ZenBusiness

ZenBusiness is not a bank and does not offer a business bank account. Instead, it provides the legal entity formation services a freelancer needs to establish a formal business structure. Before a bank will open an account for an LLC or a corporation, the applicant needs official state documentation and an EIN. ZenBusiness handles the articles of organization, acts as a registered agent, and secures the required federal tax identification numbers.

What You Need to Open an Account

The exact documentation required to open a business deposit account varies significantly by institution. Gathering the correct paperwork ahead of time ensures a smooth approval process. This is true whether you apply at a traditional branch or through a digital application.

For a basic sole proprietorship, the requirements are generally minimal. An applicant typically needs a Social Security Number and a valid government ID. If the sole proprietorship operates under a trade name, the bank will likely ask for the relevant business registration documents.

When a freelancer transitions to a formal entity like an LLC, the documentation requirements increase. A look at traditional banking requirements provides a good baseline for what most institutions expect. Bank of America asks for the business name and address, the state of formation, the EIN or SSN, and the date established. It also mandates personal details including a Social Security Number and date of birth for everyone on the application, including those with at least 25% or more ownership.

Depending on the structure, a bank may request the Articles of Organization or equivalent state documents. If the business operates under a name different from its legal entity name, trade name documentation is required. It is worth noting that Bank of America does not list an operating agreement as required. Not every bank will ask for one during the application process, though having one on file is standard practice.

Taking the time to organize these legal documents is the final step in the separation process. Once the entity framework is established and the paperwork is gathered, a freelancer can confidently choose the banking platform that best fits their daily needs.

Sources

This article provides general information rather than legal, tax or accounting advice, and requirements vary and change over time.