Lili Business Checking Review 2022
Tricia has nearly two decades of experience in commercial and federal government lending. Her expertise is highlighted throughout small business loan content on Fit Small Business.
This article is part of a larger series on Business Banking.
For sole proprietors and freelancers operating a lean business without a support team, Lili is a great choice. It’s a fully digital bank offering a business checking account with no monthly fees, a Visa debit card that earns cash back, a tax write-off tracker, an expense tracker, and fee-free overdraft coverage. Opening a Lili account is also hassle-free through its mobile app. However, to maximize its account features, you need to subscribe to the Lili Pro plan, which costs $4.99 per month.
Lili
What We Like
- No monthly fees for basic tier
- Lili Pro plan includes an automatic savings account that earns 1% annual percentage yield (APY)
- Two days early payment through Direct Deposit
What's Missing
- No physical locations
- Limits business accounts to doing-business as (DBA) setups and single-owner limited liability companies (LLCs)
- Lacks physical checkbooks
Features
- Free Visa business debit card
- Mobile banking
- Invoice software: Unlimited invoice creation
- Tax Optimizer: Tracks tax write-offs
- BalanceUp: Fee-free overdraft coverage feature
How Lili Stacks Up With Its Competitors
APY | Cash Deposit Fee | ATM Fee | Minimum Opening Deposit | |
|---|---|---|---|---|
 | None | $4.95/transaction via Green Dot retail locations | Free at MoneyPass locations; $2.50 for nonnetwork | None |
 | N/A | None; doesn’t accept cash deposits | Refunds all ATM fees | $50 |
 | 1.5% | $4.95/transaction via Green Dot retail locations | Free at MoneyPass locations; $2.50 for nonnetwork | None |
*Providers are financial technology (fintech) platforms backed and Federal Deposit Insurance Corp. (FDIC)-insured by a supporting bank partnership (Choice Financial Group for Lili, Middlesex Federal Savings for Novo, and Coastal Community Bank for Bluevine).
When Lili Is a Good Fit
- New freelancers with a low volume of transactions: To open a basic account with Lili, you need only a social security number. It has no monthly fees and no minimum balances, though you’re limited to deposit up to $9,000 in cash per month and $6,000 in mobile check deposits monthly. These are some of the reasons we consider it one of the best bank accounts for self-employed professionals.
- Freelancers or single-member LLCs whose needs are satisfied by mobile-only banking: Lili’s app has multiple layers of security and allows you to make check deposits, view your finances, pay your bills, receive payments, track your expenses, and create digital invoices.
- Freelancers without a support staff: It has a secure expense tracking management tool, invoice creation software, and tax planning tools to help you monitor your expenses, issue invoices, and prepare tax forms.
When Lili Is Not a Good Fit
While Lili has excellent digital offerings, it may not be the right fit in these scenarios:
- Freelancers who want a traditional bank and to transact in person: Lili is limited to mobile banking and doesn’t offer investments, business credit cards, and lending products. U.S. Bank and Chase Bank have thousands of branches in more than half of all states and offer loans and lines of credit, certificates of deposits (CDs), and business credit cards.
- Sole proprietors or single-member LLCs needing to make heavy cash deposits frequently: It limits cash deposits to $1,000 per day and $9,000 per month. Bank of America, Wells Fargo, and Chase Bank are great alternatives as they have no cash deposit limits when you use their ATMs.
- Freelancers looking for an interest-earning business checking account: Lili’s basic business checking account has no APY. If this is important to you, then good options would be Bluevine and Axos Bank, where you can earn 1.5% and 1.01% interest, respectively.
Lili Business Checking Overview
Business Checking Basic Plan | Business Checking Pro Plan | |
|---|---|---|
Required Opening Deposit | None | None |
Required Balance Minimum | None | None |
Monthly Fee | None | $4.99; cannot be waived |
Cash Deposit Limit | $1,000 per day $9,000 per month | $1,000 per day $9,000 per month |
Mobile Check Deposit Limit | $2,500 per day $6,000 per month | $5,000 per day $50,000 per month |
Card Purchases Limit | $3,000 per day | $5,000 per day |
ATM Withdrawal Limit | $500 per day | $500 per day |
Wire Transfer Fees | Wire transfers unavailable | Wire transfers unavailable |
Direct Deposit Limit | $25,000 per day $50,000 per month | $25,000 per day $50,000 per month |
ACH Outbound Limit | $500 | $5,000 |
ACH Inbound Limit (Linked Account) | $500 per day $2,000 per month | $1,000 per day $5,000 per month |
ATM Fees | Free at MoneyPass locations; $2.50 for nonnetwork and $5 for international ATM withdrawal | Free at MoneyPass locations; $2.50 for nonnetwork and $5 for international ATM withdrawal |
Cash Deposit | $4.95/transaction via Green Dot retail locations | $4.95/transaction via Green Dot retail locations |
APY | None | None for checking but offers a savings account that earns 1% APY |
Open an Account | ||
Business Checking Basic | Business Checking Pro | |
|---|---|---|
Debit card | Free Visa debit card | Premium Visa debit card with cash back rewards |
Software Integrations | Built-In Expense Tracking, Quickbooks | Invoicing software, Tax Optimizer, BalanceUp, Advanced Expense Tracking, Quickbooks |
Customer service | Phone: (855) 545 4380 (Monday–Friday, 9 AM–7 PM EST) Email: support@lili.co | Phone: (855) 545 4380 (Monday–Friday, 9 AM–7 PM EST) Email: support@lili.co |
Other products available | None | Savings account |
Open an account | ||
Lili Business Checking Requirements
Download the Lili mobile app—available in the App Store and Google Play—to open a business checking account. You’ll need to provide your personal information, such as name, Social Security number, email address, mobile number, and mailing address.
Only single-owner LLCs are allowed to open a business checking account. For a DBA, you’ll need to provide one of the following:
- DBA Registration Form or Fictitious Name Registration or Assumed Name Certificate.
Lili allows DBA business accounts for businesses if the name isn’t the legal name of the business. Opening a DBA Business account requires providing a Social Security number, the business’s employer identification number (EIN), and documentation of the DBA.
For an LLC, Lili requires an IRS EIN letter.
For detailed information opening an account, you can look at our guide on how to open a business bank account. We included a downloadable checklist for easy viewing.
Lili Checking Features
Lili’s Business Checking account offers access to tax and invoice tools and a Visa debit card with cash back rewards. It also has a direct deposit feature that allows two days of early payment than the expected date.
Mobile Banking
You can do mobile check deposits using Lili’s mobile app and integrate payment apps, such as Venmo, PayPal, and Cash App, into your account.
Visa Debit Card
A Lili Business Checking account comes with a free Visa debit card. Under Lili Pro, your debit card earns cash back rewards for both personal and business purchases at participating merchants. Free withdrawals are also allowed at more than 38,000 partner ATMs. You can monitor and categorize your expenses on your debit card in real-time using the Lili mobile app.
Balance Up
Balance Up is Lili’s fee-free overdraft coverage where your debit card purchases are covered up to $200, subject to conditions. It’s open to Lili Pro customers and applicable to debit card purchases only.
Automatic Savings
Under the Lili Pro plan, you can open an Emergency Bucket account, a savings account with 1% APY to prepare for emergencies. It lets you set up an automatic transfer at $1 minimum per day, keep track of your savings, and view monthly statements through the Lili app. Maintain at least 1 cent to earn interest.
Tax Optimizer
For more tax savings, use Lili’s tax management tool where tracking tax write-offs is easy. You can view estimated tax savings, allot a portion of your income automatically for tax payment, and download business expense reports every quarter and year. A prefilled 1040 Schedule C form for your business can also be downloaded annually.
Invoices & Payments
You can make unlimited and customized invoices using Lili’s mobile banking app. Your customers can pay you through PayPal, Venmo, Cash App, and debit, bank transfer, and debit card/credit card via Stripe. For invoices, you can connect up to three payment apps. You can also link up your external bank accounts to your Lili account for sending or receiving money.
Direct Deposit
Lili features a free direct deposit payment method where you can receive your money two days earlier than the expected date. A notice is sent to your Lili app when the money is available. Setting up direct deposit is easy as you can do this by providing your account and routing number on the mobile app or getting a direct deposit form via email. Link your account with Cash App, Venmo, PayPal, and marketplaces to take advantage of the early payment direct deposit feature.
Lili Business Checking Pros & Cons
| PROS | CONS |
|---|---|
| No monthly maintenance fees under a Lili Basic plan | Noninterest bearing account under the basic plan |
| $200 overdraft coverage under a Lili Pro plan | Joint accounts aren’t allowed |
| Fee-free withdrawals at 38,000-plus partner ATMs | Cannot send and receive wire transfers |
Lili is a great choice for freelancers and business owners looking for more savings since it has no monthly maintenance fees under its basic tier. You can also benefit from a fee-free $200 overdraft protection when you subscribe to the Lili Pro plan. In addition, withdrawals are free when you use your debit card at 38,000-plus partner ATMs.
However, keep in mind that a Lili business checking account is limited to single-owner LLC, so you can’t open a joint account if you have a business partner. It also doesn’t earn interest—although you get an automatic savings account with a 1% APY under Lili Pro. Lastly, Lili doesn’t allow sending and receiving of wire transfers.
Alternatives to Lili Business Checking
Lili offers a great business checking account, but for businesses wanting to earn interest, send and receive wires, and needing a traditional bank, there are other banks to choose from. Here are some options to consider:
- Chase: Best for LLCs that want to open an account with a traditional bank; online banking and in-person banking are available options
- Bluevine: Best for business owners who prefer to earn a high 1.5% interest on their business checking accounts; no account opening deposit and no minimum balance are required
- Grasshopper: Best for businesses that want to send and receive wire transfers; businesses get free incoming wires
Find more providers in our roundup of the best small business checking accounts.
Bottom Line
Lili Business Checking is ideal for small businesses and freelancers wanting to open an account with no minimum deposit and no maintaining balance, earn cash back rewards from a free debit card, gain access to tax management tools, and use invoice software to create unlimited invoices. If mobile banking can support your business needs, then opening an account with Lili is recommended highly.
