Lili

Lili Banking Overview

Lili is banking that's built specifically for business owners and scaling businesses. The lack of fees and minimums makes it easy to get started, and the built-in financial management tools can help you save time and money come tax season. Our Lili business banking review will help you decide if it’s the right bank for you.

Pros

• Earn 3.00% APY with Lili Pro, Smart, or Premium
• No minimum deposit or monthly balance requirement
• Helpful business tools for bookkeeping, invoicing and tax preparation
• Free business checking plan
• Interest-bearing savings account on paid plans
• No fees for non-sufficient funds, covers any overdraft on Visa Business Debit Card up to $200 (available for Pro and above plans), transactions, or domestic withdrawals from MoneyPass ATMs
• All business types are accepted (single member LLC, multi member LLC, general partnership, limited liability partnerships, S-Corporation, and sole proprietors)

Cons

• Free plan doesn’t earn interest
• 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.
• Has lower limits for deposits, transfers, and withdrawals

Lili Business Checking Plans Overview

Lili Business Checking Accounts

Lili has undergone significant transformations in its business checking accounts since its inception in 2018, broadening its availability to encompass most business entity types and presenting elevated deposit and transfer limits on its complimentary business checking account.

Recently, Lili has augmented its account offerings with the introduction of Lili Smart and Lili Premium, thereby excluding tax-planning and expense-management tools from its free Lili Basic plan. Functions such as invoicing, tax form preparation, and others have been shifted from Lili Pro to Lili Smart and Premium. This alteration signifies that both new and current Lili customers will need to incur additional costs for features previously included in Lili Basic and Lili Pro.

Despite these recent account enhancements, Lili continues to miss certain fundamental business features. For instance, it does not support check writing or the sending of wire transfers from your Lili account.

• Lili Basic: Lili Basic is tailored for entrepreneurs seeking a cost-free checking account. This plan requires no monthly fee or minimum deposit, providing a standard business checking account with a Visa debit card. Accountholders have an opportunity to receive direct deposit paychecks up to two days in advance. Though it does not come with a business savings account, users can automatically transfer funds to an “Emergency Bucket” for withdrawal when needed, which does not earn interest.
• Lili Pro: Lili Pro, including features like BalanceUp covering up to $200 in debit overdrafts at no extra charge (terms apply), offers a business savings account earning a 3.00% annual percentage yield (APY) on balances up to $100,000 as of this writing. It also provides various digital tools like expense categorization, expense report generation, and tax savings estimation. However, some previously offered features, such as pre-filled tax reports and unlimited invoices and payments, have been moved to Lili Smart or Lili Premium. Lili, a neobank, operates its banking services through Choice Financial Group, with all account deposits insured up to $250,000 by the Federal Deposit Insurance Corp.
• Lili Smart: At a monthly cost of $22, Lili Smart offers all features included in Pro accounts and more. Subscribers gain access to smart bookkeeping, comprehensive financial reports, unlimited invoices and payments, and pre-completed business tax forms.
• Lili Premium: Lili Premium, the highest tier plan at $33 per month, encompasses all Lili Smart features. Premium account holders enjoy the addition of a dedicated account specialist, priority customer support, and a metallic version of the Business Pro debit card.

How Does Lili Work?

Lili is designed for business owners and scaling businesses who want to open a business bank account. It’s an online bank with built-in tools that can make managing your business’s finances easier.

You can easily open a bank account online and there's no minimum deposit required to get started. However, you have to use your Social Security number (SSN), even if your business has an Employer Identification Number (EIN).

Although, if you have a business as (DBA) name or a single party LLC, you can share your tax return, business license, or fictitious name registration with Lili to accept checks or payments made out to the business name.

Your Lili account will also come with a Visa business debit card — but no checks — and has routing and account numbers you can share with clients to set up direct deposits.

Built-In Tools for Small Businesses

Separating your business and personal funds isn’t a legal requirement if you’re freelancing. However, opening a separate bank account for your business makes it easier to track your business’s finances, which can be important for understanding how well your business is doing. Additionally, having a system for tracking your business expenses can save you money as you won’t accidentally forget tax-deductible expenses. Plus, you’ll have all your records in one place, which can save you time when you’re preparing your tax return.

Alternatively, you could do this by connecting a bank account to accounting software, or manually keeping track of all your deductible business expenses. However, there’s often a subscription fee for accounting software services like Quickbooks and Freshbooks.

As a small business, you could use either a business bank account or a personal bank account as your “business” account. Where Lili really shines is in the business-specific tools that it offers:

• Set aside money for taxes. Small businesses often have to pay quarterly taxes, but it can be difficult to track and remember how much you have to pay. Lili won’t do the calculations for you, but you can create a Tax Bucket and choose to have a percentage of your income automatically transferred into the Tax Bucket.
• Separate emergency savings. You can also create an Emergency Bucket, which is like your Tax Bucket but for emergency expenses. You can choose an automatic daily transfer amount and move money in and out of your emergency bucket at any time.
• Expense reporting. Categorize your business expenses in real-time using the Lili platform. You can also add images of the receipts to the transactions, and request quarterly and annual expense reports. The expense report can be especially helpful come tax time.

If you happen to use your Lili account for a non-businesses purchase, you can categorize it as a “life” transaction to avoid messing up your records. Additionally, you’ll want to keep track of business purchases that happen outside of your Lili account so you don’t miss out on potential tax deductions.

Lili Smart Features

Lili Smart is a new plan option that combines two operations that business owners find challenging: taxes and accounting. With Lili Smart, these features -- payment, accounting, and taxes -- are rolled into one.

For just $21/month, Lili Smart allows for smart bookkeeping and managing all business financial needs in a single platform such as bill pay. The invoicing tool helps customers get paid faster and keep track of payments. Tax savings are deducted from income automatically, and income and expense transactions are sorted into the right tax categories.

Additionally, cash flow statements, profit & loss reports, and expense reports can be generated quickly.

Other features offered by Lili Smart include:

• Access to the Advanced Business Checking Account
• A Visa Business Pro debit card with cash back rewards
• Fee-free ATM withdrawals at 38,000 locations
• Fee-free overdraft up to $200
• Payments up to 2 days earlier
• 3.00% APY on savings
• Unlimited invoices and payments
• Auto-scan your bills and manage and pay them instantly

How to Apply for a Lili Business Account

Applying for a Lili bank account is very easy. To start, you’ll create a login by providing your email address and password. You’ll use these credentials to access your account going forward.

You’ll then have to provide the following information:

• Your name
• Your date of birth
• Your phone number
• Your Social Security number
• Your address
• What industry you operate in
• Your business entity type

After you apply, Lili bank reviews your details and should give you an immediate approval. You can then start using your new business bank account immediately.

Initially created as a bank account exclusively for freelancers and independent contractors, Lili has expanded its availability to:

• Sole proprietors
• LLCs
• S-corps
• Partnerships (general and limited liability)

However, it does not cater to B corporations, C corporations, and nonprofits. Additionally, businesses involved in trusts, crowdfunding, cryptocurrency operations, gambling, or the cannabis industry are not supported by Lili.

Opening a Lili bank account is a quick and straightforward process. This can be done online or through their mobile app, with approval and account access granted almost immediately after application submission. During online application, a verification code will be sent via text or email to link your account to the mobile app.

Regardless of the signup method, account management and funding are conducted through the Lili mobile app. Various funding options are available, including direct deposit, ACH transfers, mobile check deposit, and links to external bank accounts or platforms like Venmo and PayPal.

While the delivery of your Lili Visa business debit card may take up to two weeks, a digital version is instantly available for use through the app. The app also allows you to monitor the status of your physical card delivery. Upon receiving your card in the mail, it must be activated within the app prior to use.

Lili Business Checking Features

Lili offers many features that can appeal to all types of business owners and you can get to know why Lili is one of the best business bank accounts for freelancers.

• No fees (mostly). Lili Basic has no monthly fees, minimum balance or opening deposit requirements, and no transaction fees, excluding cash deposits. Lili also doesn’t impose charges for returned items, stop payments, or foreign exchange rate adjustments, which are typical fees charged by other online and traditional banks. However, Lili does charge for using out-of-network ATMs: $2.50 domestically (non-MoneyPass ATMs) and $5 internationally.
• Fast Access to ACH Payments. Lili account holders can receive selected funds up to two days earlier than with traditional banks, providing faster access to your money. This early payment feature is applicable to direct deposits, ACH transfers, and transfers from the linked Cash App to your Lili account.
• Mobile Banking. Lili is a mobile-focused bank, so you can do all of your necessary money tasks while on the go.
• Debit card access. Lili gives all its customers a debit card that they can use to make withdrawals and purchases.
• Overdraft protection. Users of Lili Pro are eligible for up to $200 in complimentary overdraft protection via the BalanceUp program from Lili (terms and conditions apply). To be eligible, a minimum of $500 in monthly deposits is required. This overdraft protection is limited to debit card transactions, and any overdraft must be addressed within a 30-day period.
• Integrated tools for expenses and taxes. Upgrade to Pro to access tools for expense management and freelancer tax planning, including tax bill estimation and automatic allocation of a percentage of your earnings for taxes. Additionally, categorize expenses, attach receipts to transactions, and create monthly expense reports. (Note: Most of these features were once part of the complimentary Lili Basic account.)
• Invoicing and payment tools. You can send invoices and payments to your suppliers directly from your Lili account.

Lili Business Checking Drawbacks

While Lili's features and lack of fees could make it a good fit for many freelancers, it’s not going to be right for everyone.

For example, if you frequently handle cash, a branch-based bank would probably be better than an online or mobile option. Additionally, Lili imposes spending, withdrawal, deposit, and transfer limits that could limit its usefulness for some freelancers.

You can check Lili’s help center for up-to-date limits, but as of the time of writing, the limits are:

• Mobile check deposits: two per day (15 per month)
• Mobile check deposit amounts: $5,000-per-check ($50,000 per month)
• Transfer from Lili to your other bank accounts: $5,000 per day ($60,000 per month)
• Transfer from your other bank accounts to Lili: $1,000 per day ($5,000 per month)
• ATM cash withdrawals: $500 per day
• Debit card purchases: $5,000 per day
• **You can’t use a Lili account to send or receive international wire transfers.(Domestic wire transfers are okay) **
• You can’t deposit money orders or cashier’s checks.

However, if you send a client an invoice for $5,500 and they decide to pay by check, you won’t be able to easily deposit the money into your Lili account.

You could also run up against the limits if you’re using Lili to track and hold your freelance income, and then transferring your spending money into your everyday bank account for spending. Even part-time freelancers might find the $5,000 daily and $60,000 monthly transfer limit too low.

Terms and Requirements

Lili has relatively few requirements for its customers. To qualify for an account, your business must be organized as a:

• Sole proprietorship
• Single-member or multi-member LLC
• General or Limited Liability Partnership (LLP)
• S-Corporation

Freelancers are also eligible for Lili bank accounts.

Lili Bank Fees

Big banks may charge fees that can be difficult to avoid if you have a small side gig or don’t maintain a large balance in your account. Fortunately, you don’t have to worry about many fees with Lili. 

There are no:

• Monthly service fees
• minimum balance to open or maintain an account
• Overdraft fees
• ACH bank transfer fees
• Foreign transaction fees
• No stop payment fees
• No inactivity or dormant fee

You can also withdraw cash for using your debit card at in-network MoneyPass networks in the U.S. However, there’s a $2.50 fee for withdrawing cash at out-of-network ATMs, and a $5 fee for withdrawing cash outside the U.S. (The ATM operators may charge additional fees as well.)

The only other fees that Lili charges are $5 for debit card replacements (beyond the first replacement), $25 for deposited check returns, and $20 for express mail.

Who is Lili Best for?

Lili is most suitable for small business owners who:

• Wish to monitor business expenses and deductions
• Seek an improved method to save for taxes
• Have no requirement for writing checks
• Don’t need to deposit or transfer large sums of cash monthly
• Operate predominantly online without the need for a physical branch

Now, Lili is accessible to multi-member businesses, providing joint account access. This ensures that all registered business owners holding 25% or more stake in the business can access the account.

Much like Bluevine and Novo, Lili supports multiple users and provides each business owner with a debit card. This arrangement facilitates equal and efficient distribution of financial management tasks, offering considerable convenience for business partners in managing banking operations.

How Lili Stacks Up

Lili banking caters to business owners aged 18 and above. It accommodates various business entities including sole proprietorships, single-member LLCs, general partnerships, limited liability partnerships, LLCs, and S-corps, among others.

It attracts diverse business customers with its multiple banking plans that offer varied features and price points. Operating solely digitally, Lili is ideal for entrepreneurs at ease with online financial management. However, it might not be suitable for those seeking in-person banking assistance.

Although Lili offers its services in comprehensive plans, in essence, users pay a monthly maintenance fee for account access and business features. When deciding where to do your business banking, consider these additional costs. Some online banks provide business checking with no extra monthly fees.

Lili vs. Bluevine Bluevine, another online banking platform, offers its Business Checking with high-yield APY without needing a paid plan, albeit with spending or payment requirements to earn interest. Like Lili, Bluevine provides a debit card and fee-free access to MoneyPass ATMs. Unlike Lili, Bluevine includes two free checkbooks, making it a preferable option for online bill payments.

Lili vs. Novo Considering the Novo Business Checking Account is worthwhile for those desiring to avoid extra charges. Novo does not impose monthly fees and offers easy access to business tools without the need for plan subscriptions.

While Novo Business Checking does not offer an interest-earning option, it does include a debit card, ATM fee reimbursement, and a virtual debit card for its customers, adding to its appeal.

Is My Money Safe?

Yes, Lili ensures security by employing bank-level encryption. Additionally, deposits in Lili are safeguarded, being FDIC-insured up to $250,000 for every depositor through its partnering bank, Choice Financial Group, a member of FDIC.

For further security, you have the option to freeze and unfreeze your debit card whenever you wish. Plus, you can get instant notifications for each transaction, allowing you to monitor your account activity in real-time.

Is It Worth It?

If you're a freelancer accustomed to managing your finances on your mobile, Lili might be suitable for you. The fees are justified considering the comprehensive features offered, particularly with the Smart account plan, which provides significant value.

Lili Business Checking User Reviews

Users who reviewed Lili business checking on Trustpilot have given it a favorable rating of 4.7 out of 5, based on over 2,400 reviews. They highlight the platform's convenience, including features like tracking tax write-offs, organizing expenses, and offering overdraft coverage. The simplicity of account opening and effective customer service are also well-received.

Nevertheless, some users expressed a desire for additional services, including increased deposit and daily ATM withdrawal limits, live customer support, the ability to issue physical checks, and payroll service capabilities. Lili actively engages with each review, assuring account holders of anticipated future enhancements on the platform.

Lili Business Banking Alternatives

Lili is one of the many business bank accounts out there that appeals to entrepreneurs and freelancers. While many consumer Lili bank account reviews are positive, you should shop around to see if you can find a better deal.

If you need a business bank account, consider these alternatives.

Lili Disclosures

• Lili is a financial technology company, not a bank. Banking services provided by Sunrise Banks N.A., Member FDIC.
• The Lili Visa® Debit Cards is issued by Sunrise Banks N.A., Member FDIC, pursuant to a license from Visa U.S.A. Inc.