Author: Larry Li

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How Much Does It Cost to Start an LLC – LLC Cost Guide

Businessman calculating how much it cost to start an llc

Starting and running an LLC has a price. Luckily, the cost of starting an LLC is relatively affordable compared to future business expenditures down the road. Today’s guide explains how much an LLC costs and what you can expect when launching your first business. Here’s everything you need to know about how much does it cost to start an LLC.

Start your LLC with ZenBusiness for $49 only!

How Much Does an LLC Cost? 

LLC costs can be divided into two categories: LLC setup costs and LLC maintenance costs. LLC setup costs relate to the state where you register your LLC. The maintenance costs are the ongoing expenses to sustain your Limited Liability Company.

Let’s take a closer look at both LLC cost categories.

LLC Costs: Setup

You are subject to several fees when creating and filing the legal documents needed to form your LLC. There are also costs when you register your LLC with state and local authorities. For instance, you must make sure you have all the proper business licenses, business bank accounts, certificates, and permits required by local, state, and federal governments.

Filing Fees

The main cost to set up an LLC is the fee for filing your LLC’s articles of organization with the secretary of state or other relevant state authority. The typical costs for filing fees range from $50 for legal services and $50 to $800 for filing fees, depending on which state you’re starting your business in. 

For most new business owners, filing fees account for the majority of the LLC setup costs. Although you don’t need to hire a lawyer to file the articles of organization to form an LLC, we recommend using an LLC formation service. 

There are several LLC services that can help form your LLC for less than $50 plus the additional state fee. Some notable service providers include ZenBusiness and Incfile. These LLC formation services offer excellent customer service and guide you through every step of the setup process.

Best of all, LLC formation services exponentially reduce the risk of improperly filing paperwork, which can cause additional fees to fix the paperwork or reapply. They also save you time by expediting the process and giving you all the information you are required to fill out.

Start your LLC with ZenBusiness for $49 only!

Operating Agreement

An LLC operating agreement typically costs $0 to $200, depending on if you create it yourself or use an interactive template from an LLC formation service provider.

Your LLC’s operating agreement is an internal document that describes your business’s daily operations, the owners’ roles and contributions, and how your LLC makes decisions. Although only required in five states (California, New York, Delaware, Missouri, and Maine), operating agreements are crucial for every business.

This document defines specific procedures and guidelines, such as how to divide profits and losses among owners. Therefore, unless you have a legal background, it’s important to use a legal service provider like ZenBusiness. These legal service providers offer interactive templates to ensure your operating agreement is catered to your specific needs.

You can find many free templates online if you don’t want to use a paid service. However, we don’t recommend drafting it by yourself. For a small fee of $50 to $200, a legal service provider can ensure your operating agreement is congruent with all members. 

LLC Notice of Formation: Publication

Three states, including New York, Arizona, and Nebraska, require LLCs to publish a notice of their organization in the local newspaper. The fee for the publication ranges from $40 to $2,000, depending on your location. Consider this if you plan to set up your LLC in one of the three states mentioned above.

LLC Costs: Maintenanceo

After you file your articles of organization and register your business as an LLC, there are several costs associated with maintaining it. These fees include federal and state taxes, reporting costs, and the price of any services you use to maintain your LLC.

Taxes

Similar to any other entity or person, LLCs are subject to taxation. The exact tax costs vary from state to state. Read our state corporate tax guide for more information.

However, the federal government doesn’t take its portion of taxes directly from the LLC. Instead, the federal government collects taxes from the owners’ profits as a pass-through income. Nonetheless, LLCs can write off certain setup costs up to $5,000, including attorney fees, office space, equipment, and market research. 

At the state level, most states tax LLC profits in the same manner as the federal government. However, a few states also have mandatory LLC franchise taxes. For instance, the annual franchise tax in California is a minimum of $800, and the franchise fee in Delaware is $300. 

Furthermore, your LLC is subject to reporting fees at the state government level. These fees range from state to state, but you can expect to pay around $100 yearly. 

Registered Agent

The typical costs for registered agents range from $0 to $300.

An LLC registered agent is the primary point of contact between your LLC and the state. As such, your registered agent receives all legal documents and accepts the service of lawsuits. Although any adult aged 18 or above can be a registered agent, they must reside in the same state as the LLC and be available during business hours.

Since there is a lack of restrictions on who you can designate as a registered agent, you can be your own registered agent or appoint someone else in the company. However, we recommend using a registered agent service from reputable providers like ZenBusiness, Northwest Registered Agent, or Incfile. 

Registered agent services ensure your LLC never loses important legal documents and government notices in the mail. These service providers scan all the mail they receive locally and forward the documents to you as soon as they can. Depending on the registered agent service provider, you can expect to pay an annual fee of $100 to $300. 

Cost to Form an LLC in All States

The table below states the filing fees in each state as well as any annual expenses. The LLC filing fee is a one-time fee paid to the state when you create your LLC. 

The LLC ongoing costs are ongoing mandatory fees you must pay every one to two years, depending on your state. This is because most states require LLCs to file a regular report and pay an annual fee. These ongoing fees keep your LLC in compliance and in good standing. In most states, they will shut down your LLC if you fail to pay the ongoing fees.

State

LLC Filing Fee

LLC Ongoing Costs

Alabama

$200

$100 minimum (annually)

Alaska

$250

$100 (every two years)

Arizona

$50

$0

California

$70

$800 (annually) + $20 (every two years)

Colorado

$50

$10 (annually)

Connecticut

$120

$80 (annually)

Delaware

$90

$300 (annually)

Florida

$125

$138.75 (annually)

Georgia

$100

$50 (annually)

Hawaii

$50

$15 (annually)

Idaho

$100

$0

Illinois

$150

$75 (annually)

Indiana

$95

$30 (every two years)

Iowa

$50

$45 (every two years)

Kansas

$160

$50 (annually)

Kentucky

$40

$15 (annually)

Louisiana

$100

$35 (annually)

Maine

$175

$85 (annually)

Maryland

$100

$300 (annually)

Massachusetts

$500

$500 (annually)

Michigan

$50

$25 (annually)

Minnesota

$155

$0

Mississippi

$50

$0

Missouri

$50

$0

Montana

$70

$20 (annually)

Nebraska

$105

$10 (every two years)

Nevada

$425

$350 (annually)

New Hampshire

$100

$100 (annually)

New Jersey

$125

$75 (annually)

New Mexico

$50

$0

New York

$200

$9 (every two years)

North Carolina

$125

$200 (annually)

North Dakota

$135

$50 (annually)

Ohio

$99

$0

Oklahoma

$100

$25 (annually)

Oregon

$100

$100 (annually)

Pennsylvania

$125

$70 (every ten years)

Rhode Island

$150

$50 (annually)

South Carolina

$110

$0

South Dakota

$150

$50 (annually)

Tennessee

$300

$300 (annually)

Texas

$300

$0

Utah

$54

$18 (annually)

Vermont

$125

$35 (annually)

Virginia

$100

$50 (annually)

Washington

$99

$60 (annually)

West Virginia

$100

$25 (annually)

Wisconsin

$130

$25 (annually)

Wyoming

$100

$60 minimum (annually)

Best LLC Formation Services

When creating an LLC for the first time, we recommend using a business registration service provider. These services are designed to make your LLC setup as simple as possible. Here are the top two LLC formation services you can use right now.

ZenBusiness logo

ZenBusiness

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ZenBusiness Review

ZenBusiness is the best all-in-one LLC formation service that’s been helping businesses with LLC formation for over a decade. As such, ZenBusiness has assisted over 300,000 businesses and carries an excellent reputation for speed and transparency.

In addition to LLC formation services and same-day filing, ZenBusiness also provides registered agent services and EIN (employer identification number) assistance. You can even opt for ZenBusiness’ worry-free compliance, domain name registration, web design, and business banking services. Read our ZenBusiness review to find out why it’s our top pick.

  • Trustworthy online LLC formation services
  • Excellent customer service
  • User-friendly website 
  • Affordable tier-based plans
  • Registered agent service auto-renews for $99 each year
  • Cheaper options for web hosting and domain name registration exist

Pricing

ZenBusiness offers three pricing tiers for its LLC formation services:

  • Starter: $49 per year
  • Pro: $199 per year
  • Premium: $299 per year
Inc Authority logo

Inc Authority

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Inc Authority Review

Inc Authority is another LLC formation provider that offers free business registration services. This service provider offers the best customer support out of all the options available. This is because you can access 24/7 US-based support when you create your LLC with Inc Authority.

Helping businesses for over three decades, Inc Authority has established itself as one of the most worthy players in the LLC formation space. Inc Authority has thousands of positive reviews and an innate understanding of how to get your LLC up and running as soon as possible. Read more about Inc Authority in our review.  

  • Extensive range of LLC services
  • Outstanding customer service
  • Excellent free plan
  • Lots of marketing upsell
  • Paid plan pricing is confusing
  • Lack of BBB accreditation

Pricing

Although Inc Authority offers free LLC filing services, you can opt for a premium bundle:

  • Starter: Contact Inc Authority for pricing
  • Fast Track: Contact Inc Authority for pricing

LLC Cost Frequently Asked Questions (FAQs)

Here are a few common questions we receive from our readers about how much does it cost to start an LLC. 

Bottom Line on LLC Cost

Starting an LLC is an important part of establishing a flourishing business in the United States. However, some people may shy away from forming an LLC because of the LLC costs. In general, you can start an LLC with less than $1,000. The most expensive part of the process is filing your LLC registration documents with the secretary of state. 

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What is an LLC Operating Agreement & Why Do You Need One

Business executives signing an LLC operating agreement

When registering your business as an LLC, your operating agreement imprints the operational guidelines and foundational elements of your company. It’s a customized document that outlines the functional and financial decision-making of the business. Continue reading to learn why creating this agreement is crucial and what operating agreements typically consist of.

Sign up for ZenBusiness to finalize your LLC Operating Agreement with ease.

What is an LLC Operating Agreement?

An operating agreement for LLC (Limited Liability Company) is a document that identifies the business, defines member duties, states its ownership, and defines other structural components of the company. It usually includes basic information about the LLC and its owners. Furthermore, it states the company’s elected tax treatment and guidelines for handling specific procedures. 

Operating agreements function as legal contracts between the members of a multimember LLC. However, single-member LLCs can benefit from operating agreements, too. The operating agreement, once signed, acts as a binding set of rules for the members of the LLC to follow. 

It’s important to note that creating an operating agreement is not mandatory for most states. Nonetheless, it’s a crucial document you should create when starting an LLC. 

In essence, the purpose of an operating agreement is to govern the business’s internal operations in a way that adheres to the specific needs of the members. 

Why Do You Need an Operating Agreement?

There are several reasons why your LLC needs an operating agreement, including:

  • Defines key business procedures: Although the articles of organization you file with the state make your LLC official, it describes little about how the company functions. LLC operating agreements get more specific in voting, meetings, day-to-day operations, and conflict resolution procedures.
  • Strengthens your LLC’s “corporate veil”: If you don’t have an operating agreement, courts may not take your LLC status as seriously. The legal separation, or veil, between a company and its members, is key to limiting personal liability. 
  • Protects members from personal liability: An operating agreement is a formality that projects the members from personal liability.
  • Clarifies verbal agreements: The LLC operating agreement sets all agreements between the members in writing so there is no future confusion or misunderstandings. 
  • Makes certain you aren’t subject to default state rules: If an LLC doesn’t have an operating agreement in place, the default rules set by your state will apply. For instance, states have standard rules that require companies to divide profits and losses equally. 

What’s Included in an LLC Operating Agreement?

While the content and structure of LLC operating agreements vary for each business, here are the types of information they most frequently include:

  1. Each member’s ownership conveyed as a percentage
  2. Each member’s responsibilities and voting rights
  3. Guidelines on the duties and powers of each member
  4. The profit and loss allocation among each member
  5. The rules regarding member meetings and taking votes
  6. The issues regarding the management structure of the LLC
  7. Buyout and buy-sell provisions, when a member wants to exit and sell their share.

However, it’s important to remember that operating agreements are not one size fits all. Your operating agreement should be drafted to provide freedom, control, and protection over your specific type of company.

Let’s take a closer look at what’s included in an LLC operating agreement. 

Basic Information About the LLC

Operating agreements further emphasize your LLC’s most basic decisions and premises, many of which may already be set in your company’s “articles of organization”. This information typically includes your LLC’s official name, principal place of business, management structure, duration, registered agent, and statement of purpose. 

Member Information

One of the most important functions of an operating agreement is to specify how the LLC’s profits and responsibilities are distributed among the members. The operating agreement typically states basic member information, including names, addresses, and roles within the business.

It may also include the amount and nature of a member’s contributions to the business. These are often financial and should state expectations about compensation, which may be described with ownership percentages.

Tax Treatment Preference

LLCs usually have a single layer of taxation. This means they are, by default, exempt from business taxes, meaning profits are only taxed at the individual level when members report their share of income and expenses on personal tax returns. 

Furthermore, LLCs have a bit of autonomy regarding tax treatment, depending on the type of business. For example, LLCs may want to elect corporate status by filing as a C-corp or an S-corp to take advantage of certain incentives. The operating agreement should state the LLC’s initial tax status and define the procedure for modifying tax classification in the future. 

Management Structure

LLCs have one of two types of management structures, member-managed or manager-managed. A “member-managed LLC” lets members act as “agents” on behalf of the LLC and relies on members for daily operations. This is ideal for small or startup companies with relatively few members.

A “manager-managed LLC” is the second form of management structure where members elect a smaller set of people to manage the company. The non-elected members still retain passive ownership and voting rights on major decisions. This type of management structure is popular among larger companies with passive investors. 

Operating Procedures

An operating agreement also includes crucial business procedures for running the company.

These procedures include:

  • Voting
  • Approving manager actions
  • Adding new members
  • Holding member meetings
  • Facilitating member exits
  • Dissolving the LLC

Liability Statement 

One of the primary benefits of forming a limited liability company is the distinction it makes between the company and its individual members. Although corporate stockholders are protected from their company’s liability, sole proprietors or partnership members assume full personal liability for the risk of operation.

LLCs combine the best traits of both structures, enjoying a corporation’s limited liability without carrying its level of tax and regulatory burdens. Therefore, LLCs must clearly define the limited liability status with a comprehensive liability statement in case this status is challenged in the future. The operating agreement is the best place to declare this statement. 

Extra Provisions

The final goal of an operating agreement is to proactively navigate future bumps in the road. For this reason, they usually include provisions describing what happens in the event of unplanned circumstances such as a member’s death, a member’s withdrawal from the LLC, and disputes among members. 

Most operating agreements end with a “severability provision,” stating the rest of the operating agreement stays in effect if one part is opposed to state or federal law and is otherwise unenforceable. 

How to Create an LLC Operating Agreement?

Creating an operating agreement is a straightforward process as long as you use a template or get help from a business formation service.

Let’s discuss each option:

Do It Yourself

You shouldn’t draft an operating agreement yourself without a legal background. Since an operating agreement is legally binding, you don’t want to make any mistakes. Instead, you can use a blank template or step-by-step instructions. You can find many variations through legal help websites and law libraries.

Use an Online Service

The most efficient way to create an operating agreement is with the help of LLC formation services such as ZenBusiness and Rocket Lawyer. These services offer interactive templates that provide the structure and framework necessary to start a successful business. 

These automated business registration services offer an easy way to create an optimized operating agreement for your specific type of business. 

Use a Professional Service

If your LLC has unique considerations and a high level of complexity, you may want to consider getting professional legal help. There are plenty of lawyers specializing in operating agreements and offer pricing for individual documents instead of hourly rates. 

What Is an Operating Agreement – Frequently Asked Questions (FAQs)

Before you start drafting your operating agreement, there are a few key questions we receive about operating agreements you should know. Here’s a list of some frequently asked questions about operating agreements for LLCs.

Bottom Line on What is an LLC Operating Agreement

An LLC operating agreement is a legal document that lays out the terms of an LLC to its members. As such, it creates the roadmap for the business to follow and provides clarity in operations and management. It’s important to develop an operating agreement because, without one, your LLC is governed according to your state’s default rules. 

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How to Start an LLC in 7 Easy Steps

An office laptop on a desk space displaying the words "llc limited liability company" on the screen

Forming a limited liability company (LLC) is one of the most important steps when starting a new business. An LLC offers your business liability protection as well as a multitude of other benefits. This guide teaches you everything you need to know on how to start an LLC and what to expect during the process. 

Sign up for ZenBusiness to expedite your LLC formation process.

How to Start an LLC in 7 Steps

  • Step 1: Choose a State to start your LLC
  • Step 2: Name the LLC
  • Step 3: Nominate a Registered Agent
  • Step 4: File LLC Formation Documents
  • Step 5: Create an Operating Agreement
  • Step 6: Apply for an EIN
  • Step 7: Receive a Certificate from the State

Step 1: Choose a State to Start an LLC

The first step is to choose the state you want to register your business in. You should choose the state where you live or where you plan to conduct your business. Different states have different regulations and rules regarding how to start an LLC. For example, each state has different taxation, costs, fees, and other policies.

Although you can find each state’s LLC rules and regulations online, you can also use an LLC formation service like ZenBusiness to get started quickly. Services such as ZenBusiness and Inc Authority will hold your hand from steps A to Z as you form your LLC.

What’s the Best State to Start an LLC?

Delaware is the most popular state to form an LLC because it carries a strong reputation for being business-friendly and offers a quick filing process with increased protection. However, we recommend forming your LLC in your home state because that is where your LLC conducts business.

Which State Has the Lowest Business Tax?

South Dakota, Wyoming, and Nevada have no individual or corporate income tax. However, Nevada imposes gross receipts taxes. Furthermore, Alaska doesn’t have individual or state-level sales tax, and Florida doesn’t have individual income taxes. Lastly, New Hampshire and Montana have no sales tax. 

Read our guide to state corporate tax rates for more information. 

Step 2: Name the LLC

Your next task is to name your LLC. However, you can’t simply choose any name. You must make sure the name is available for use or not in your state. Furthermore, you must ensure your business name doesn’t violate another business’ trademark.

This means you can’t choose a name that’s identical to another business’ name or that is only different because of an “s” at the end or another business entity identifier. For instance, you can’t start an LLC called “John’s Kitchen Supplies, LLC” if there is already a “John’s Kitchen Supply, LLC” in your state. 

If you check available business names before filing your paperwork, you can avoid having your LLC formation request denied because of naming problems. 

Here are a few essential LLC naming guidelines to follow:

  • You must include “Limited Liability Company” or abbreviations like LLC or L.L.C in your business name.
  • You can’t include words that may confuse your company name with a government agency, such as Treasury, State Department, and FBI.
  • You can’t use words such as Bank, University, and Attorney in your LLC’s name. These words may require further paperwork in addition to a licensed person like a lawyer or doctor as part of the company. 

Most importantly, you should choose a name that’s distinctive and relates to your type of business. The name should do a good job of telling people what products or services you sell or offer. You also want to pick a name that’s memorable and easy to pronounce. It’s a good idea to check if your LLC’s name is available for domain name registration before finalizing your decision. 

How to Check if a Business Name is Taken?

Each state has a secretary of state or other state agency responsible for business entity filings. In most states, the online site of the state business filing agency has an entity name check tool. Use the tool to search business names and learn whether or not another business is already using the name you want. 

Can I Reserve My Business Name?

You can reserve LLC names for up to 3 months if you don’t want to register your LLC right away. However, each state has different rules regarding LLC name registration. Furthermore, you are required to pay a reservation fee and submit a name reservation form with your state business entity filing agency. 

Step 3: Nominate a Registered Agent

After naming your LLC, the next step is to choose a registered agent. A registered agent is an organization or person who receives legal documents on behalf of your company. These documents include official correspondences like legal summons and state filing notices.

All LLCs must have a registered agent to ensure the LLC receives these official notices and documents. Furthermore, the registered agent must be 18 years or older and have the right to conduct business in the state. The registered agent must also have a physical street address in the state. As such, you can be your own registered agent if you meet the eligibility requirements.

However, we recommend using professional registered agent services for this purpose. Hiring a professional registered agent ensures you receive all the crucial mail and information that may get lost in translation if you’re your own registered agent. 

How Much Does It Cost to Hire a Registered Agent?

The cost of hiring a registered agent depends on which state you want to start an LLC in. It also depends on which registered agent service you use. While the cost can go up to $300, Northwest Registered Agent offers a standalone registered agent service for $125 a year. 

Step 4: File LLC Formation Documents

Step four is the most important step when you start an LLC. The LLC formation documents are known as the Certificate of Formation or Articles of Organization.

You must fill in the form, either online or in PDF, and send it to the Secretary of State after paying the formation state fee. The filing fee depends on which state you file in. For example, the fee starts from $40 in Kentucky and can go up to $500 in Massachusetts.

So, visit your state LLC filing agency’s website and fill out the Articles of Organization.

Some basic information you must provide includes:

  • Your chosen business name
  • The address of your principal place of business
  • The purpose of your company
  • The way your LLC will be managed (member or manager-managed)
  • Contact information of the registered agent
  • The duration of the LLC, if not perpetual

Once you finish filling out the Articles of Organization, the business owners must sign the form. Furthermore, a few states, such as New York and Nebraska, require you to publish a notice in the newspaper specifying your desire to register your LLC. You must complete this step before filing your Articles of Organization in these states.

The Articles of Organization will explain if you need to take any further action before submitting the form. 

Step 5: Create an Operating Agreement

Once you submit your LLC formation documents, you must create an operating agreement. An operating agreement includes the details of the legal, financial, and management rights of all members of your LLC. It also details how profits are distributed, how members leave the LLC, and who provides capital for the business.

In essence, the operating agreement contains all the relevant information related to your business operations. Although many states don’t require an operating agreement, creating one is strongly recommended. This is especially important if you have more than one member or partner.

The operating agreement ensures everybody agrees on their designated rights and responsibilities. While creating your own operating agreement is an option, you can find dozens of free templates online to get you started. 

However, you may want to hire the best LLC services like ZenBusiness to create your operating agreement if you have a complex LLC structure with multiple owners. 

Here are the six primary sections of a standard operating agreement:

  • Capital Contributions
  • Dissolution
  • Distributions
  • Membership changes
  • Management and Voting
  • Organization

Step 6: Apply For an EIN

Next, you need to get an Employer Identification Number (EIN) for your LLC. An EIN is a unique 9-digit issued by the Internal Revenue Service (IRS). Every LLC is required to get an EIN to help the IRS distinguish each business for general tax purposes. Therefore, an EIN is similar to a Social Security (SSN) number for your LLC.

Your company’s EIN is crucial if you plan to hire employees or open a business bank account. You can obtain an EIN by applying directly on the IRS website. The IRS will issue your EIN immediately once it verifies your application. 

All multi-member LLCs need an EIN, regardless of whether they are taxed as a partnership or have chosen to be taxed as a corporation. However, the IRS treats single-member LLCs as a disregarded entity unless they elect to be taxed as a corporation.

Therefore, single-member LLCs are not required to obtain an EIN unless it has one or more employees or excise tax liabilities. 

Step 7: Receive a Certificate from the State

After your LLC formation documents are filed and approved, your state will send a certificate to confirm that your LLC formally exists. After you receive the certificate, you can handle further business matters like obtaining business licenses and opening a business bank account.

After You Start an LLC

After starting your LLC, there are additional tasks to manage and review. Here are other essential things to address after forming an LLC.

  • Set Up Business Accounting. Having a business accountant who will help you take advantage of tax benefits is crucial. Accurate bookkeeping is essential for any successful business.
  • Get Permits and Licenses. Check if your business needs any business licenses or permits to stay compliant with your state’s laws and regulations.
  • Separate Personal Assets From Business. It’s vital to open a dedicated business bank account and credit accounts to avoid blending them with your personal bank accounts. If you don’t separate personal assets from business assets, your personal assets (your car, home, and other valuables) are at risk if your LLC gets sued.
  • Get Business Insurance. In most cases, businesses with employees must get workers’ compensation insurance. Although general liability insurance is not a legal requirement, we recommend getting it to protect your business assets from lawsuits.

How to Start an LLC – Frequently Asked Questions (FAQs)

Before you head out, we want to answer a few common questions we receive about how to start an LLC. This way, you will have all the information you need to launch your business without any headaches along the way.

Bottom Line on How to Start an LLC

Learning how to start an LLC is quick and painless once you know the exact steps. If you follow the above guidelines to a tee, you will have your LLC up and running in no time. However, if you want to expedite the process, we recommend using a professional LLC formation service from ZenBusiness or Inc Authority. 

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Next Insurance Review: Perfect Coverage For Small Businesses

Next Insurance logo

Due to the meteoric growth of the internet over the past decade, the needs of business owners have dramatically changed. However, the insurance industry has been slow to accommodate these rapidly changing needs.

This is where Next Insurance steps in. Next Insurance is an insurance company dedicated to selling business insurance online. The company aims to provide simple and affordable coverage to any small business owner.

Our in-depth review will determine if Next Insurance is the right fit for your business. 

Next Insurance logo

Next Insurance: Verdict

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Founded in 2016, over 300,000 business owners use Next Insurance currently. Since Next Insurance focuses on providing tailored coverage, this insurance provider serves more than one thousand different types of businesses. You can purchase individual business insurance policies or bundles catered to certain industries, such as child care, construction, and fitness.

  • Simple and quick application process
  • Receive up to a 10% discount on bundled packages
  • Easy online accessibility and sharing capabilities
  • Specialized business insurance, such as key person insurance, isn’t available
  • May be confusing for business owners who only use paper records

Next Insurance Business Review: Overview

Screenshot of Next Insurance's home page

Next Insurance is designed to provide small business owners with affordable and tailored insurance policies. This insurance provider offers various types of insurance, including general liability insurance, business income insurance, and professional liability insurance. Best of all, you will receive a quote in no time after you finish the application. 

Who Next Insurance is Best For

Next Insurance is best for small business owners that don’t need specialized insurance. For example, if your business requires a key person or builder’s risk insurance, we recommend looking at another insurance provider. Next Insurance is designed for more common types of insurance coverage.

In addition, Next Business Insurance is ideal for business owners who prefer an all-digital solution. You can submit insurance claims through Next Insurance’s online portal or a call center representative. Furthermore, you can view your certificate of insurance and add additional insureds online.

Next Insurance is also an excellent choice for business owners that require an insurance agent but want personal support. As such, Next Insurance offers advisers who will walk you through all your options.

Next Insurance Pricing

Next Insurance offers several types of insurance, but the exact price you pay for each depends on your specific circumstances. We recommend going to the Next Insurance website and requesting a quote if you’re interested in one particular policy. The application takes about 10 minutes to complete, and you receive your quote immediately. 

However, here’s what each policy starts at:

  • General liability insurance: Starts at $11 per month or $128 annually
  • Workers’ compensation insurance: Starts at $12.20 per month or $146 annually
  • Professional liability insurance: Starts at $18.34 per month or $220 annually
  • Commercial property insurance: Starts at $17 per month or $205 annually
  • Commercial auto insurance: Starts at $12.50 per month or $150 annually
  • Errors and omissions insurance: Starts at $19 per month
  • Tools and equipment insurance: Starts at $12.50 per month

Next Insurance: Key Features

The next section covers each of the insurance policies Next Insurance offers. Although you can purchase policies online individually, you can bundle them together for up to a 10% off discount. 

In addition, Next Insurance offers small businesses less inherent risk and cheaper insurance coverage. Keep this in mind as you continue reading the Next Business Insurance review.

Business Owner’s Policy (BOP)

Next Insurance’s business owner’s policy consolidates its general liability insurance, commercial property insurance, and business income insurance into one bundle.

Therefore a business owner’s policy is an excellent option for small business owners seeking:

  • A single all-inclusive insurance policy
  • Coverage for a physical business location, inventory, or equipment
  • Businesses dealing with customers directly

General Liability Insurance

Also known as business liability insurance, general liability insurance protects you and your business if you are ever responsible for paying an individual’s property damage, attorney fees, or medical expenses. 

For example, this coverage protects you if someone falls and injures themselves at your store. However, general liability insurance is crucial for all businesses, even those without a physical retail location. 

Next Insurance offers this coverage as part of its business owner’s policy, as seen above. 

Workers’ Compensation Insurance

Next Insurance also provides workers’ compensation insurance. In the United States, every state except for Texas requires businesses with employees to have workers’ compensation insurance. 

This coverage protects your business if an employee gets injured or sick while at work and sues your company. If this is the case, the individual must file a claim with your workers’ compensation insurance provider. Your workers’ comp covers lost wages, medical expenses, long-term disability, and other expenses incurred when an employee is injured at work. 

Although each state has its own minimum coverage limits for workers’ compensation insurance, you can decide to purchase more than the minimum, especially if you’re in an industry predisposed to worker injuries, such as construction or manufacturing. 

Commercial Property Insurance

Commercial property insurance, also known as business property insurance, protects your physical business location in the event of damages or losses. This protection covers furniture, equipment, inventory, landscaping, storage facilities, and fences. 

Business property insurance is essential for most businesses, but it’s crucial for brick-and-mortar businesses. Even if you run a home-based or online business, you shouldn’t ignore property insurance. It can give you peace of mind knowing the risk of fire, storm, or theft is covered. 

Next offers commercial property insurance in its business owner’s policy. However, you can purchase just the individual policy as well. 

Professional Liability Insurance

Professional liability insurance protects you if a customer sues you for committing a service error or providing bad advice. If your company’s reputation is at stake, professional liability insurance can be essential. 

Next Insurance tailors each professional liability policy to every individual business. This is important because different businesses pose different risks. For example, a gardener may be sued for damaging a customer’s lawn. On the other hand, a psychologist may be sued for using incorrect therapeutic methods. 

While you fill out your application form on Next, you have a chance to describe your company in detail so that Next can offer you a customized policy. 

Business Income Insurance

Offered in the BOP bundle or as a standalone policy, business income insurance protects your business’s cash and assets when your business is damaged by conditions that are out of your control. This policy can help your business pay for lost income, taxes, payroll, and other unexpected expenses.

Tools and Equipment Insurance

Tools and equipment insurance provides additional coverage for expensive or specialized equipment that can be difficult to replace. This type of policy can keep your business running when you need a quick repair or replacement. 

Next Insurance offers this policy as an add-on to its general liability insurance. 

Commercial Auto Insurance

Any business owner who drives a company or personal vehicle for business needs commercial auto insurance. This policy covers injuries to other individuals and property that occur while driving for business reasons. Your coverage may also cover the driver’s medical bills. 

Furthermore, you can add hired and non-owned auto insurance to your commercial auto insurance policy if your company uses rented vehicles to conduct business.

Next Insurance’s most popular commercial auto insurance covers up to $100,000 of property damage or bodily injury per incident. However, Next offers policy limits of up to $1 million. This same policy also covers $100,000 for underinsured and uninsured motorist coverage as well as $5,000 for medical expenses. 

Alternatives to Next Insurance 

Before you make a decision, it’s essential to consider all the available options. This way, you can make the most informed decision possible and have peace of mind knowing you are getting the best deal. 

So, here are three alternatives to Next Insurance worth taking a look at. 

Hiscox logo

Hiscox

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Hiscox is a reputable insurance provider that sells basic coverage, such as business owner’s policy and general liability insurance. While you can purchase Hiscox coverage online, you can also use independent insurance agents from Geico. 

This insurance provider is an outstanding choice for professional services businesses, including consultants and accountants. However, Hiscox also offers packages for health, fitness, and beauty companies. Hiscox will refer you to partner websites if you need other types of coverage, such as workers’ comp insurance and commercial auto insurance. 

  • What the product is
  • Who the product is best for
  • How it compares to the product being featured here

Pricing:

Hiscox’s general liability insurance typically costs $30 per month or fewer

  • Everything handled online
  • Up to a 5% discount when you bundle policies together
  • 14-day money-back refund policy
  • Unavailable in Alaska
  • Doesn’t offer every type of coverage
  • BOP typically only offered to businesses with 10 employees or less
CoverWallet logo

CoverWallet

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CoverWallet is a digital insurance broker that provides quotes to small business owners from a variety of different insurance companies. Therefore, CoverWallet doesn’t provide insurance policies itself. 

This is an excellent choice for businesses that want affordable business insurance policies. CoverWallet can save you a lot of time by letting you compare costs from multiple insurance providers simultaneously.

Similar to what you learned in our Next Insurance review, CoverWallet also provides general liability insurance, workers’ compensation insurance, business property insurance, and professional liability insurance. 

Pricing:

For most businesses, Coverwallet’s business owner’s policy starts at $49 per month. In addition, its general liability insurance starts at 

  • Receive multiple quotes quickly
  • Wide variety of coverage policies
  • Everything handled online
  • You may be required to call to complete the quote process
  • Not a dedicated insurance provider
Chubb logo

Chubb

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Chubb is another excellent small business insurance provider that has been operating for over 30 years. This insurance company sells nearly every type of business insurance. Therefore, finding the exact coverage you need won’t be difficult. 

Furthermore, we recommend Chubb for businesses earning less than $1 million in revenue per year. Chubb’s automated coverage assistant will help you find a business owner’s policy, general liability policy, professional liability policy, worker’s comp policy, and umbrella insurance online.

Pricing:

You must request a quote at Chubb’s website to determine the pricing for your particular business.

  • Suitable for small businesses
  • Comprehensive suite of coverage options
  • Excellent customer reviews
  • Some policies may not be available in certain states
  • Phone support only available if purchased directly from Chubb
  • Must request certificates of insurance through the online portal

Next Insurance Review – Frequently Asked Questions (FAQs)

We created this final section to clear up any confusion you may still have surrounding Next Insurance. So, here are a few common questions you may be asking yourself after reading our Next Insurance review. 

Bottom Line on Next Insurance Review

Next Insurance focuses on providing affordable insurance policies for modern-day and traditional small businesses. As an online insurance provider, most of its policies are sold from start to finish on its website. Therefore, Next’s automated system will provide you with a quote as soon as you finish the quote request application. 

The convenience and speed offered by Next Insurance are invaluable to the fast-moving and startup nature of small businesses. 

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10 Best Bad Credit Loans with Instant Approval

The text "Bad credit loans" written on a sticker lying on a work desk

Getting approved for a loan when you have bad credit can be difficult. Similar to other financial services, borrowers must submit an application with their income information and agree to a credit check before getting a loan. Since lenders prefer to work with borrowers who have a reputable track record, you may be caught in a challenging situation.

Fortunately, we created a list of the best bad credit loans with instant approval. These lenders can provide you with immediate cash relief even with a poor credit score. However, bad credit lenders typically charge higher interest rates and fees. So, make sure the lender you choose offers adequate rates and terms based on your own financial situation.

So, let’s dive into the list of the top 10 loans for bad credit.  

Top 10 Best Bad Credit Loans

MoneyMutual logo

MoneyMutual – Best Overall

4.58

★★★★★

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MoneyMutual serves as an online marketplace for personal loans. This lending service has an excellent track record of assisting people with low credit scores and helping them get the money they need. Trusted by over 2,000,000 customers, you can take out a cash advance or personal loan with MoneyMutual. 

Application Process: 4.5/5

MoneyMutual makes it quick and easy to apply for a loan. The minimal application form takes a few minutes to complete, and you must provide your Social Security number, driver’s license ID, and bank account routing number. 

Loan Amount Limits: 4.5/5

MoneyMutual’s loan amount limits range from $100 to $5,000. Since MoneyMutual is a loan marketplace, it offers a wide variety of lending options. Therefore, each lender has its own minimum loan amount and terms. 

Rates and Fees: 4/5

As a lending marketplace, MoneyMutual does not charge extra fees to apply for or receive a loan. Nonetheless, the lenders in the network may charge late payments, origination, or other fees. For this reason, it’s important to read the loan’s terms before applying. 

Turnaround Time: 5/5

MoneyMutual is the best bad credit loan because it offers instant approval. This is because MoneyMutual can match you with a potential lender in less than two minutes. Furthermore, the loan can be sent to your bank account within 24 hours, depending on which offer you agree to.

Repayment Terms: 4.5/5

Your specific repayment terms depend on which lender MoneyMutual matches you with. However, you can expect repayment terms anywhere from 3 to 60 months. This gives you a lot of time to repay your loan without too much financial burden. 

Customer Support: 5/5

You can contact MoneyMutual via email at customerservice@moneymutual.com. If you need to speak with an agent immediately, give them a call at (844) 276-2063.

  • More than 10 years of experience
  • Loans up to $5,000
  • Quick application process
  • Unavailable in IL, CT, and NY
CashUSA logo

CashUSA – Best for Fast Cash

4.67

★★★★★

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If you’re in a pinch and need money quickly, you may be desperate enough to take on a funding source with high interest rates and fees. However, you don’t need to turn to these riskier funding sources and rack up more debt.

This is because CashUSA offers the fastest online application for personal loans for bad credit. With CashUSA’s wide network of lenders, you can be approved for a loan immediately. As one of the most reputable online lending platforms, CashUSA is an excellent choice for individuals with poor credit scores.

Application Process: 5/5

CashUSA offers a speedy application process that’s simple to fill out. Once you fill out the online form and explain how much money you want to borrow, CashUSA performs a soft credit check before matching you with a lender. However, since it’s a soft credit check, individuals with low credit scores don’t need to worry about getting denied. 

Loan Amount Limits: 4.5/5

CashUSA has a minimum loan amount of $500. Furthermore, the maximum amount you can borrow from a CashUSA lender is $10,000. The amount you can borrow depends on your credit report. Also, the lowest credit score you can have to secure a loan is 579.

Rates and Fees: 4.5/5

Since you likely have a bad credit score, your interest rate on your loan may go up to 35.99%. On the other hand, the lowest interest rate CashUSA offers is 5.99%. It depends on your credit score and how much money you want to borrow.

Turnaround Time: 5/5

As the best bad credit loan for fast cash, CashUSA has an outstanding turnaround time. The application process takes less than five minutes, and the approval will come in soon after that. Furthermore, if approved for the loan, you can expect CashUSA to send the amount to your bank account within one business day. 

Repayment Terms: 4.5/5

CashUSA’s network of lenders has repayment terms from 90 days to 72 months. 

Customer Support: 4.5/5

If you need help, you can email CashUSA at support@cashusa.com. Furthermore, you can call them directly at (866) 973-6587.

  • Can borrow up to $10,000
  • Origination fee-free
  • Receive money the next day
  • Not a direct lender
  • Relatively high APR
BadCreditLoans logo

BadCreditLoans – Best for Exceptionally Low Credit Scores

4.5

★★★★★

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BadCreditLoans features one of the most extensive lending networks in the United States. Founded in 1998, BadCreditLoans provides loans up to $10,000 without any application fees. 

In addition to personal loans, BadCreditLoans also offers installment loans such as auto loans, emergency loans, home loans, small business loans, mortgage loans, and debt consolidation loans.

Application Process: 4.5/5

Similar to the previous two options, BadCreditLoans features a quick application form that takes around five minutes to complete. You must provide your driver’s license and bank account deposit information. 

Loan Amount Limits: 4.5/5

The lenders at BadCreditLoans offer loan amounts of $500 to $10,000. Best of all, you can apply for a loan with BadCreditLoans even if your credit score is 500 or lower. Therefore, BadCreditLoans is one of the best lenders for individuals with drastically low credit scores.

Rates and Fees: 4.5/5 

BadCreditLoan’s lenders have similar interest rates to CashUSA, ranging from 5.99% to 35.99%. It’s impressive how BadCreditLoan offers competitive interest rates even with the low minimum credit requirement. However, you are subject to a higher APR if your credit score is less than 570.

Turnaround Time: 5/5

Once you fill out the online form, you must wait for one to two minutes for BadCreditLoans to match you with a list of potential lenders. You can then choose the loan with terms that work best for your specific situation. After you accept the loan, the money is sent to your bank account within a single business day.

Repayment Terms: 4/5

Loans from BadCreditLoans lenders carry repayment terms of 90 days to 72 months.

Customer Support: 4.5/5

You can submit a message through the contact form on the website. However, you can also contact BadCreditLoans through email at support@badcreditloans.com. For emergencies, you can call the hotline at 1-(800) 245-5626.

  • Easy to find lenders
  • Free service
  • Can borrow up to $10,000
  • Borrowers with extremely poor credit receive lower loan amounts
  • No BBB Accreditation
Personal-Loans logo

PersonalLoans – Best for Fast Installment Loans

4.58

★★★★★

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Providing loans for nearly two decades, PersonalLoans is one of the most reputable online lending solutions available. This lending platform doesn’t require a minimum credit score to get approved for a loan, making it an excellent option for fast installment loans. 

Application Process: 5/5

PersonalLoans carries a simple application process that takes around five minutes to complete. Make sure to have your bank account information ready, so the lender knows where to deposit your loan. 

Loan Amount Limits: 4/5

Uniquely, the minimum loan amount you can receive from PersonalLoans is $1,000. This is a higher minimum loan amount limit than the previous options on today’s list. Furthermore, since BadCreditLoans doesn’t require a minimum credit score, you will receive higher rates if your credit score is under 570.

Rates and Fees: 4.5/5

There are no application or finder fees at PersonalLoans. Furthermore, the offered APR varies from 5.99% to 35.99%, depending on your credit score. 

Turnaround Time: 5/5 

PersonalLoans matches you with potential lenders one to two minutes after you submit the online form. After you agree to the loan and sign your e-signature, the loan amount is electronically deposited into your bank account within the next business day. 

Repayment Terms: 4.5/5

Repayment terms range from 3 to 72 months at PersonalLoans. 

Customer Support: 4.5/5

You can reach PersonalLoans via email at support@personalloans.com. Furthermore, you can speak with a customer service agent by calling 1-(800) 772-2274. These reps are available Monday through Friday from 6 a.m. to 7 p.m. Pacific time. 

  • Rapid application process
  • No upfront or origination fees
  • Secured and unsecured loans up to $35,000
  • No BBB accreditation
  • Unavailable in a few states
Funds Joy logo

Funds Joy Loans – Best for Quick Loans

3.75

★★★★★

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Funds Joy Loans is growing as one of the top direct lenders in the market for fast cash. This lending platform offers instant loans to individuals with poor credit scores. Best of all, Funds Joy Loans provides same-day loans with a quick application process. 

Application Process: 4.5/5

Funds Joy Loans has an easy application process that takes just a few minutes to complete. You must also provide your driver’s license or state ID and checking account deposit information.

Loan Amount Limits: 3.5/5

You can quickly qualify for a loan of at least $200 at Funds Joy Loans. In addition, the maximum amount you can receive from Funds Joy Loans is $2,500. 

Rates and Fees: 3/5

The interest rates Funds Joy Loans lenders offer range from 4.99% to 450%. In addition, there are several lenders that also offer cash advance loans with interest rates ranging from 200% to 1386%.

Turnaround Time: 4.5/5

Although the application process takes less than five minutes, it may take up to 10 minutes for Funds Joy Loans to match you with potential lenders.

Repayment Terms: 4/5

Funds Joy Loans offers flexible repayment terms for up to 72 months, giving you time to get your finances back on track.

Customer Support: 3/5

The only way to get in touch with Funds Joy Loans is by sending them a message through the website’s contact page.

  • Can borrow unsecured personal loans up to $2,500
  • Easy application process
  • No additional fees
  • Potentially high APR
  • Relatively low minimum loan amounts
Credible logo

Credible – Best for High Loan Amounts

4.48

★★★★★

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Credible is an excellent option if you want to rebuild your credit score. With a soft credit check, Credible offers loans to individuals with poor credit scores. In addition, this reputable lending platform carries top-notch lenders, such as Sallie Mae and Rocket Mortgage. Therefore, you can find a trustworthy lender with agreeable terms quickly. 

Application Process: 4.5/5

Credible’s online application takes less than five minutes to finish. You should prepare your Social Security number and driver’s license to help verify your identity.

Furthermore, you must create a Credible account to keep track of your loan application status and debt balances. 

Loan Amount Limits: 5/5

Credible offers personal loans ranging from $600 to $100,000. However, you must have a credit score of at least 600 for guaranteed approval on your loan request. Although you can still apply for a loan with a credit score lower than 600, Credible may ask you to add a co-signer to improve your chances of approval.

Rates and Fees: 4.5/5

Credible is an online lending platform with many lenders. These lenders offer interest rates from 3.99% to 35.99%. Therefore, credible features some of the lowest interest rates you can receive with a bad credit score.

Furthermore, even though it’s free to use Credible’s lending platform, make sure to read the fine print of your loan terms to see if the lender charges any additional fees. 

Turnaround Time: 4/5

You will receive a list of potential lenders within a few minutes after you submit your online application at Credible. However, you may need to wait longer if you have an extremely poor credit score. Adding a co-signer improves your odds of finding a lender, and your application is valid for two weeks after you add the co-signer. 

Repayment Terms: 4/5

Credible offers kindly repayment terms from 12 to 84 months. This gives you enough time to get out of debt and start anew without the strain of high monthly payments.

Customer Support: 4.9/5

You can contact Credible via email at support@credible.com. Furthermore, you can call a customer service rep at (866) 540-6005.

  • Can have cosigners
  • Multiple loan options
  • Potentially low APR
  • Can borrow personal loans up to $100,000
  • Must have a 600 credit score or more for guaranteed approval
LendingTree logo

LendingTree – Best for Reputable Loan Marketplace

4.58

★★★★★

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As one of the best bad credit loans with instant approval, LendingTree has a long and reputable history of helping people just like you. Created in 1996, LendingTree has been servicing individuals with poor credit for over 25 years. This lending platform offers a wide range of financial products, including business loans, personal loans, and debt consolidation.

LendingTree also provides a mobile app you can use to check your credit score report. Therefore, LendingTree is an excellent option for those searching for a way to build their credit scores.

Application Process: 5/5

LendingTree has a simple application process that takes less than five minutes to submit. In addition, you have the option to add a co-signer if you have a low credit score and want to improve your chances of getting matched with the best lenders on the platform.

Loan Amount Limits: 4.5/5

The minimum unsecured personal loan amount is $1,000 at LendingTree. Alternatively, the maximum amount you can receive is $50,000. We only recommend applying for $50,000 if you have a relatively high credit score or have a co-signer on the loan.

A suitable credit score for guaranteed approval at LendingTree is 670. However, LendingTree is still willing to assist you if you have a lower credit score and will match you with appropriate lenders.

Rates and Fees: 4/5

Since LendingTree offers an extensive range of financial services, it charges origination fees of 3% to 6%. However, the APR varies from 7.04% to 35.89%, depending on the lender and your credit score.

Turnaround Time: 5/5 

Just like most of the best bad credit loans on today’s list, LendingTree matches you with a list of potential lenders in one to two minutes. Make sure to closely inspect the terms on each loan and compare the options before making a decision. 

Repayment Terms: 4/5

The repayment terms for a LendingTree loan vary depending on which lender your choose. However, the repayment terms can range from 24 to 144 months, so we recommend comparing offers before making a decision.

Customer Support: 5/5

You can send LendingTree a message on the website’s contact page. However, you can also reach them by telephone at 1-(800) 813-4620. The website’s contact page lists LendingTree’s operating hours.

  • Multiple loan options
  • Can borrow up to $1,000
  • Option to add co-borrowers
  • Mobile app availability
  • 3% minimum origination fee
AmOne logo

AmOne – Best for Fast Loan Applications

4.42

★★★★★

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AmOne is an industry leader when it comes to personal loans for bad credit. Founded in 1999, AmOne offers personal loans and other installment loans such as bad credit business loans. AmOne has assisted over 13 million individuals in finding the right loans for their needs. As such, this is one of the most reputable and trusted online lending platforms for bad credit scores.

Application Process: 4.5/5

It takes less than five minutes to finish and submit your AmOne loan application. You will be asked to provide your Social Security number and address, so ensure this information is readily available.

Loan Amount Limits: 4.5/5

AmOne’s loan amounts range from $1,000 to $50,000. However, AmOne gives higher loan amounts to people with higher credit scores. Nonetheless, it’s worth submitting an application because it won’t affect your credit. This is because AmOne conducts a soft credit inquiry. 

Rates and Fees: 4/5

AmOne features an extensive network of lenders with competitive interest rates fluctuating from 4.99% to 35.99%. Also, there are no upfront costs or origination fees at AmOne.

Turnaround Time: 5/5 

This lending platform offers incredibly fast turnaround times. Once you submit your application, AmOne provides a list of loan offers in less than three minutes. Then, after you agree to a specific loan, you can expect the money to hit your bank account within one business day.

Repayment Terms: 4/5

AmOne offers loan repayment terms between 24 to 84 months.

Customer Support: 4.5/5

You have the option of sending a message to an AmOne support agent directly on the website’s Contact page. In addition, you can call a loan representative at 1-(800) 781-5187. These experts are available to speak on Mondays to Fridays between 9 a.m. and 9 p.m. Eastern time. They are also available on Saturdays from 9 a.m. to 5:30 p.m. Eastern time.

  • Can borrow up to $50,000
  • BBB accreditation
  • Extensive network of personal loan lenders
  • Customer complaints about needless phone calls
Avant logo

Avant – Best for Debt Consolidation

4.37

★★★★★

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Avant is an outstanding choice for individuals with less-than-amazing credit. This is because you can qualify for a personal loan with a credit score as low as 580. In addition, you can use your Avant loan for many purposes, such as consolidating existing debt into a single payment or paying for unexpected expenses.

In addition to personal loans, Avant offers an Avant MasterCard you can use for credit cash advances. This card carries a limit of $300 to $3,000. Avant also has a mobile app that helps you organize your existing debt. 

Application Process: 4.5/5

You can finish your Avant loan online application in less than six minutes. However, make sure to have your Social Security number ready, as well as other personal information such as your email address, full name, home address, and phone number. Overall, the application is straightforward and quick. 

Loan Amount Limits: 4.5/5

The lenders in the Avant network offer loans ranging from $2,000 to $35,000. However, the loan amount Avant approves you for depends on your credit score. Since Avant doesn’t conduct a hard credit inquiry, submitting an application won’t affect your credit score.

Rates and Fees: 4.2/5

Avant charges an administration fee of up to 4.75% on your loan amounts. Furthermore, you can expect an APR on your loan ranging from 9.95% to 35.99%. Although the minimum APR is higher than other bad credit loans, Avant makes up for it by providing you with flexible repayment terms.

Turnaround Time: 4/5

On the lengthier side of waiting times, Avant provides a list of loan offers in up to 10 minutes. In addition, Avant sends an email of the potential lenders it has based on your credit score. Therefore, entering your correct personal information is crucial for your application to go through. 

Repayment Terms: 4/5

Avant provides flexible repayment terms from 24 to 60 months. 

Customer Support: 5/5

Avant offers the best customer support out of all the options on our list of the best bad credit loans with instant approval. This is because Avant carries a live chat option inside its mobile app. 

However, you can also send an email to support@avant.com or call a customer support agent at (800) 712-5407. The live chat staff and phone reps are available from Mondays to Fridays from 7 a.m. to 10 p.m. and on weekends from 7 a.m. to 8 p.m. Central time.

  • Lines of credit
  • Can borrow up to $35,000
  • Relatively low APR
  • May charge origination fees
  • Income documentation may be required
Citrus Loans logo

Citrus-Loans – Best for Emergency Loans

4.05

★★★★★

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Citrus Loans is our recommended lender when you’re in a stressful financial situation and need an emergency loan. This lending platform matches borrowers with low credit scores with potential lenders in just a few minutes. Furthermore, Citrus Loans is an excellent option for cash advance loans. 

Application Process: 4.5/5

The Citrus Loans online application takes less than five minutes to complete. Inside the online form, Citrus Loans asks you for your Social Security number, driver’s license number, and your bank account number. Also, you must be 18 years or older to qualify for a loan. 

Loan Amount Limits: 3.5/5

We only recommend Citrus Loans for short-term loans and emergency situations. This is because you can borrow a minimum amount of $100 and a maximum of $2,500. Furthermore, you can apply for a Citrus Loans loan with a sub-600 credit score.

Rates and Fees: 3.4/5

Since Citrus Loans carries payday loans, you can expect above-average interest rates. As such, the APR offered by Citrus Loans lenders ranges from 261% to 1304%. In addition, Citrus Loans does not charge an origination or service fee.

Turnaround Time: 4.9/5

Citrus Loans displays a list of potential lenders one to two minutes after you submit your online form. If Citrus Loans can’t find a suitable lender, it will send you to another online loan resource that may be able to assist you. 

Repayment Terms: 4/5

Citrus Loans offers repayment terms from 14 days to 24 months.

Customer Support: 4/5

You can contact the Citrus Loans customer service team by calling them at (888) 372-6219. This is the only way to get in touch with the customer support staff.

  • Can borrow up to $2,5000
  • No additional fees
  • A member of the Online Lenders Alliance
  • Relatively high APR

Loans For Bad Credit Methodology

Now that you understand the top 10 best bad credit loans with instant approval, it’s important to discuss how we compiled this list. We based our decisions on the most crucial factors in a bad credit loan, such as the application process, loan amounts, and fees.

So, let’s take a closer look at each of the core factors to consider when choosing loans for bad credit.

Application Process:

Fortunately, the application process for each of the options above is quick and painless. We understand you may already be in a stressful situation due to your financial situation, and we wanted to make it as easy as possible for you to find a bad credit loan. Therefore, you will be able to find a suitable online lender in less than 20 minutes with any of the options above.

Loan Amount Limits:

Another important factor to consider is how much money each lender offers. However, since you have a poor credit score, you shouldn’t expect to get approved for the maximum loan amounts. Instead, you can start with lower loan amounts and build your credit with payday loans or short-term loans.

Rates and Fees:

Luckily, many online lending platforms are here to help rebuild your credit score. Therefore, your loan may receive a lower-than-expected interest rate. However, individuals with extremely low credit scores may be unable to avoid high interest rates and fees.

Nonetheless, most lending platforms don’t charge additional fees and act as a free service that matches you with potential lenders. This is exactly what bad credit loans like Credible and CashUSA do.

Turnaround Time:

We only chose bad credit lending platforms with speedy turnaround and approval times. Therefore, you can expect to see a list of loan offers in less than 10 minutes. However, it may take a bit longer depending on your credit score and how much money you ask for.

Repayment Terms:

Since you’re likely under financial stress already, we chose lending platforms with flexible repayment terms. This means you’ll have more than enough time to repay your loan amount and rebuild your credit score.

Customer Support:

Since you’re dealing with an online lender, it’s important for the platform to offer above-average customer support. This is because there are no physical branches you can walk into and get help. The best bad credit loans offer a phone number you can call whenever an issue or inquiry arises. Furthermore, they should offer speedy email support. 

Personal Loans For Bad Credit: FAQs

Top 5 Best Bad Credit Loans: Overview

1. MoneyMutual

  • More than 10 years of experience
  • Loans up to $5,000
  • Quick application process

2. CashUSA

  • Can borrow up to $10,000
  • Origination fee-free
  • Receive money the next day

3. BadCreditLoans

  • Easy to find lenders
  • Free service
  • Can borrow up to $10,000

4. PersonalLoans

  • Rapid application process
  • No upfront or origination fees
  • Secured and unsecured loans up to $35,000

5. Funds Joy Loans

  • Can borrow unsecured personal loans up to $2,500
  • Easy application process
  • No additional fees

Final Thoughts on Best Bad Credit Loans

This concludes our list of the best bad credit loans with instant approval. Hopefully, you’ve chosen which online lending platform is the best for you by now.

Our top pick is MoneyMutual because it’s a trustworthy lending platform with low interest rates for individuals with poor credit history. MoneyMutual is also one of the best reputable payday lenders. Therefore, you can have peace of mind knowing MoneyMutual is entirely safe to use.

If you don’t need a personal loan and are looking for other options, you can look closely at platforms such as LendingTree, Credible, and BadCreditLoans.

Although you may have a poor credit score right now, that doesn’t mean you can’t take action to rebuild it. The online lending solutions we listed in today’s guide will help you get back on your feet in no time.

However, make sure to read the loan terms carefully so you can confidently make the monthly payments.

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Member-Managed LLC vs Manager-Managed LLC: Key Differences

A member-managed LLC team meeting in a meeting room

After registering your business as an LLC, you have one more crucial decision to make. It’s whether you want to set up your management structure as a member-managed LLC vs manager-managed LLC. 

A member-managed LLC means the owners have combined control over business decisions. On the other hand, a manager-managed LLC assigns one or more elected professional managers to make company decisions.

1. Member-Managed LLC

A member-managed LLC gives management authority to the owners of the LLC. The owners are called “members” or “agents”, and each member can offer input in company decisions. However, depending on the details in the operating agreement, the owners may have an equal or varying say. 

For example, a partner who owns 50% of the LLC may have twice as much say as a partner who owns 25% of the LLC. In addition, member-management is the standard structural designation in most states. This means that if you don’t specify in your LLC’s articles of organization or operating agreement, each member may be considered a manager. 

  • All members can contribute to management decisions
  • Less complex structure, especially for small businesses
  • Excellent solution for retailers and brick-and-mortar businesses 
  • Can take away owners’ time from strategic decisions
  • Harder to raise money from investors

2. Manager-Managed LLC

A manager-managed LLC requires your company to elect a manager or managers to control day-to-day business decisions. However, members still retain authority over some activities, such as dissolving the company. Nevertheless, the manager is the primary legal agent of the LLC and can make quick decisions on half of your company without waiting for approval. 

This type of management designation is ideal when an LLC has investors. In this case, most investors are passive investors, also known as “silent partners”. Passive investors own a portion of the business but typically don’t have the time or expertise to help with day-to-day decisions. This is why you should elect the most knowledgeable members to be managers. 

  • Easy for investors to passively invest in the company
  • Makes it more convenient for large LLCs to operate quickly
  • Lets elected managers make quick decisions
  • Consolidates decision-making authority 
  • All members don’t have a say in management decisions
  • Must carefully document manager authority it operating agreement
  • Elected manager may not understand business as well as owners
  • Elected manager must earn a salary, making it more difficult for small businesses 

Member Managed vs Manager Managed LLC

There are a few key differences between a member-managed LLC and a manager-managed LLC. The following comparison chart will help you decide which management structure to choose.

Key Features

Member Managed LLC

Manager Managed LLC

Day-to-Day Decision Making

All Members

Designated Members

Allows Passive Investment

No

Yes

Ideal For What Size Business

Small Businesses

Larger Businesses

Default Option for Most LLCs

Yes

No

Decision-Making Speed

Slower

Quicker

Member Control

High

Low

Attracting Qualified Management

Harder

Easier

Simplicity

Very Streamlined

Less Streamlined

Who Are Member-Managed LLCs Best For?

Member-managed LLCs are suitable for companies with a small number of investors who want to streamline day-to-day decisions. This type of LLC management is popular because of its simplicity and flexibility. As such, it shouldn’t come as a surprise to you that member-management is the most common option for owners when creating an LLC.

In addition, this management structure typically suggests that investors must be able to provide assistance in a hands-on managerial role. Although this isn’t always the case, this is great for businesses that want to leave decision-making in the hands of members with an active role in personal investment and engagement. 

In essence, member-managed LLCs are the perfect choice for your business if you and the other owners want to play an active role in the company’s affairs. For example, let’s say you co-own an online store with another individual. If you want to create the website while your partner conducts the marketing activities, you should choose a member-managed LLC. 

Who Are Manager-Managed LLCs Best For?

Manager-managed LLCs are ideal for larger companies with passive investors. Similar to corporations, manager-managed LLCs allow your company to have passive investors. As such, you can extend membership to individuals who don’t want to take part in day-to-day business activities. You can think of the manager in a manager-managed LLC as a corporate director.

This is also the correct business management structure for businesses with members without management or industry experience. Since designated managers don’t need to be existing members of the LLC, manager-managed LLCs have an easier time recruiting competent management.

We can go through an example to help you visualize how a manager-managed LLC works.

Let’s say you and your business partner receive money from three investors. At this point, you, your partner, and the three investors are members of the LLC since each of you has an ownership stake. 

In a manager-managed LLC, all the members can vote to make you and your partner the LLC managers. This way, you and your business partner can make quick business decisions without getting the go-ahead from the three outside investors. 

A manager-managed LLC is also the right choice if you have a larger business with multiple owners. It may be difficult to assemble everyone to vote on management decisions if you have more than five or six owners. A better strategy is to delegate management responsibility to one or two professional managers. 

It’s also important to remember that professional managers are considered employees and must receive a salary for their work. If an individual is both a member and a professional manager, then they can receive a salary for the chunk of time they put into management duties. 

LLC Operating Agreement: Finalize Your Business Structure

Your LLC’s operating agreement is a contract between the members explaining how the company will be run and how your company makes important decisions. Examples include how crucial procedures work, how compensation will be distributed, and how the business would like to be taxed.

Operating agreements also indicate which management structure your LLC chooses and discuss the responsibilities amongst members and the allocation of administrative rights. If you don’t detail your management structure, your LLC is at risk when legal issues or other disputes arise.

However, you don’t need to file operating agreements with the state, such as with articles of organization. Nonetheless, having an operating agreement is strongly recommended. Furthermore, you should update the operating agreement as your company grows.

How Do I Create an Operating Agreement?

It is very difficult to create an operating agreement from scratch without legal experience. Instead, we recommend following a template or step-by-step instructions found online on legal help websites.

However, the best way to create an operating agreement is with the help of a business registration service, such as ZenBusiness. These LLC services are catered toward LLCs and offer many services, including the creation of operating agreements based on a series of questions.

If you need further help forming your LLC, you can use ZenBusiness. As one of the best LLC services, ZenBusiness specifically focuses on LLC formation.

IT can also help you get the right business license based on your business structure, location, and industry type. Furthermore, since LLCs require you to nominate a registered agent, ZenBusiness offers registered agent services as well.

FAQs for Member-Managed vs Manager-Managed LLC

Before you head out, let’s go over a few common questions we receive about LLC management structure:

Bottom Line on Member Managed vs Manager Managed LLC

Choosing the correct LLC management structure is easy once you understand both options, member managed, and manager managed. Choosing a member managed LLC is your best bet if you have a small business with a few owners. Conversely, larger businesses with passive investors should opt for a manager-managed LLC. 

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What is an EIN Number? – Ultimate Guide

EIN tax number written on a desk background

An employer identification number, or EIN, is like a Social Security number (SSN) for your company. It’s a unique nine-digit number the IRS uses to identify businesses for tax reporting purposes. Continue reading our What is an EIN Number guide to learn if your business needs one and how to apply online, by fax, telephone, or mail. 

Get your EIN with ZenBusiness

What is an EIN Number 

The term EIN is a unique identifier the Internal Revenue Service (IRS) assigns to a business entity for tax purposes. An EIN number consists of nine digits and is formatted as XX-XXXXXXX. Businesses can apply for an EIN directly through the IRS, which typically issues them immediately. 

In addition to using an EIN to report taxes, you can also use an EIN to open bank accounts and apply for credit. You can apply for an EIN for your business at no cost with an application on the IRS website. 

What Is an EIN Number for a Business?

Every business that meets a few specific criteria must have an EIN before it can start operating. As mentioned above, employer identification numbers are provided to identify businesses in the United States in the same way the SSNs are used to pinpoint individual residents. 

Also known as a Federal Tax Identification Number (TIN), EINs include information about the state where you register your business. Moreover, the IRS uses EINs to identify taxpayers that must file various business tax returns.

You must have an employee identification number if you operate as a corporation or partnership, withhold taxes from income other than wages, file certain tax reports, or have employees. 

The following business entities can apply for and receive EINs:

  • Corporations
  • S corporations
  • Limited liability companies (LLCs)
  • Partnerships
  • Sole proprietorships
  • Non-profit organizations (NPOs)
  • Government Agencies
  • Trusts
  • Estates

Furthermore, the IRS doesn’t distinguish between different-sized companies. This means even companies with one employee are eligible for an employer identification number as multinational corporations. 

It’s also important to note that EINs are not considered to be confidential and sensitive information like an SSN. Instead, an EIN is freely dispersed by businesses online and through print publications. 

Do I Need an EIN Number?

The IRS requires companies to acquire an EIN if certain criteria are met for tax reporting purposes. Every company must file for and obtain an EIN if the company:

  • Operates as a corporation or partnership
  • Has any number of employees
  • Files excise, alcohol, tobacco, firearms, or employment tax returns
  • Has Keogh plan
  • Is involved with a number of types of organizations, including but not limited to estates, non-profits, or trusts.

On top of this, businesses that modify their ownership structure generally must apply for a new EIN. For instance, sole proprietors that want to incorporate their company must apply for a new EIN number. 

For help with business formation, visit our guide on the best business registration services. You can use services like IncFile, LegalZoom, and ZenBusiness to appoint registered agents and find out what type of business licenses your company needs.

Get your EIN with ZenBusiness

How to Get an EIN Number?

Filing for and receiving an EIN number is completely free. You can apply by phone, mail, or online. In addition, the application process is very straightforward and easy.

To apply, you must fill out Form SS-4: Application for Employer Identification Number, which you can find on the IRS website. 

You will need to provide the following information to obtain your EIN number:

  • Name of the company’s principal officer, trustor, partner, owner, or any other title
  • The person’s taxpayer identification number

Some additional information you must include in your application form are:

  • The type of entity
  • The reasons for applying (e.g., change of organization, new business, IRS withholding requirement compliances)
  • The start date or acquisition date
  • The principal industry of your business

As you can see, the application form doesn’t ask for an overwhelming amount of information. We recommend applying online because your EIN is issued immediately after verifying the information. However, the business must be located in the US or US territories to apply for an EIN online. 

If you choose to apply by fax, the IRS typically sends a fax with your EIN within four business days. 

On the other hand, international applicants can apply by telephone by calling  267-941-1099 (not a toll-free number) from 6 a.m. to 11 p.m. Eastern time, Monday through Friday. The person who calls must be authorized to receive the EIN and answer questions related to Form SS-4, Application for Employer Identification Number. 

Get your EIN with ZenBusiness

Benefits of an EIN Number

The primary benefit of obtaining an EIN is being able to begin business operations. This means that you can’t run your business without one. 

Luckily, you only need to apply one time per business. EINs are unique for every business to which they are assigned. Furthermore, EINs never expire, and the same number is never given to another business entity.

Without an EIN, your business cannot:

  • Hire and pay employees
  • Open bank accounts
  • Obtain credit
  • Invest surplus cash
  • Maintain corporate shields
  • File business taxes and registered state taxes

Obtaining an EIN also lets you separate your personal finances from your business ones. This allows you to protect your personal information from identity theft. 

In addition, self-employed individuals such as subcontractors are usually required to get an EIN, which the primary contractor uses to report to the IRS all business income paid to the subcontractor.

How to Close an EIN Number

Once you receive your EIN, that number is associated with you and your company forever. The EIN is permanently associated with your entity, and the IRS cannot technically ever cancel an EIN.

This is because your EIN is a crucial part of required financial reporting. Even if your business entity never files a return, the EIN is still associated with it.

However, if you want to close your EIN number because you discover it’s not needed, the IRS can close your associated business account. This is typically the case for startup companies that never launch. 

You must mail a physical letter to the IRS with your legal name, business address, EIN number, and reason for closing the account. Although your EIN number remains, the IRS business account will be closed. 

EIN Number vs TIN Number

A Tax Identification Number (TIN) is a wide-ranging term used to describe any kind of identification number. It’s a broad descriptor for an assortment of different numbers used on a tax form. As such, an EIN is a specific form of TIN. 

Different types of TIN numbers include:

  • EIN
  • SSN
  • ITIN (Individual Taxpayer Identification Number)
  • PTIN (Preparer Taxpayer Identification Number)
  • ATIN (Adoption Taxpayer Identification Number)

Depending on the type of specific taxpayer, the EIN may or may not be the TIN used by the Internal Revenue Service. For example, sole proprietors often use their Social Security number as their TIN. Conversely, corporations and partnerships typically use their EIN as their TIN.

What is an EIN Number Frequently Asked Questions (FAQs)

Before you visit the IRS website and apply for your EIN, there are a few things you should know about what an EIN is. Let’s discuss a few common questions we receive about employer identification numbers.

Bottom Line on What is an EIN Number

Businesses need an EIN number to open a bank account, pay federal taxes online, file annual tax returns, and issue payroll and tax documents to suppliers. Therefore, an EIN number has less to do with employees and more to do with tax reporting purposes. So if your business pays taxes, you need an EIN to begin operating. 

Get your EIN with ZenBusiness

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What Is the Retail Inventory Method? Definition, Formula & Calculator

Retail inventory manager looking at an inventory illustration on a PC

The retail inventory method is an accounting procedure that estimates the value of a retail store’s merchandise. This method produces the ending inventory balance for a store by calculating the cost of inventory relative to the price of the goods. In short, it’s one of the most common ways to calculate the value of your stock.

What Is the Retail Inventory Method?

You can use the retail inventory method to quickly estimate the value of your ending inventory over a given time period. 

Since inventory is the bread and butter of your retail store, you likely have a lot of capital tied to your stock. Therefore, it makes sense to keep track of your inventory so you can make effective decisions when it comes to what to order, what to invest in, and when to carry more products.

Although there are many ways to estimate the value of your stock, the retail inventory method is one of the most common and efficient techniques. This method works by taking the total retail value of all the products in your inventory, subtracting the total amount of sales, and then multiplying that amount by the cost-to-retail ratio. 

We understand how challenging it is to run a retail store. You have to manage employees, build staff schedules, implement marketing strategies, and keep an accurate count of your store’s inventory to ensure you don’t run out of any products. Furthermore, you must ensure you aren’t losing money on sales by correctly calculating your cost-to-retail ratio.

The best way to guarantee you don’t run out of inventory or lose any money is by mastering the retail inventory method.

Retail Inventory Method Advantages

The main advantage of the retail inventory method is that it saves retailers the time and expense of shutting down temporarily to conduct a physical inventory. Physical inventories are time-consuming and can impact your business’s bottom line.

During physical inventories, you must pay your staff to help while also shutting down your business from outside customers. Although some retailers perform physical inventories at night time, your staff are prone to errors during a spontaneous graveyard shift.

Furthermore, the retail inventory method is part of the Generally Accepted Accounting Principles (GAAP) provided by the American Institute of CPAs. It’s also useful for determining the value of your retail business since this method creates a report on the value of the inventory on hand.

Retail Inventory Method Disadvantages

Although the retail inventory method has a lot of benefits, there are some drawbacks to be aware of. First of all, it’s important to understand that it’s just an estimate and doesn’t account for items that are stolen, broken, or otherwise taken out of inventory for reasons other than a sale.

Furthermore, the retail inventory method works best when the markup is consistent across all your products. If different products carry different markups, the end result won’t be completely accurate.

For example, if your retail clothing shop marks up every item it sells by 70% of the price you get from wholesale distributors, you can accurately use the retail inventory method. However, if you mark up some items by 15%, some by 30%, and some by 60%, it is difficult to apply this accounting method accurately.

Another disadvantage is that large additions of inventory would throw off calculations. For example, this can occur in the event of acquiring another company. 

Who Should Use the Retail Inventory Method

The retail inventory method isn’t suitable for everyone. All retailers are different, and the retail inventory method is an optimal accounting strategy for specific types of retailers.

Those who will find the most value in the retail inventory method tend to be:

  • Retailers with multiple locations since physical inventories are difficult to coordinate for the same time in different locations
  • Retailers who don’t usually have large amounts of inventory in transit since it doesn’t account for those
  • Retailers who are comfortable with estimates that are regularly available on an on-demand basis
  • Retailers who have consistent markups across all their products

How to Calculate the Retail Inventory Method

To calculate your ending inventory value with the retail inventory method, use the following steps:

Step 1: Calculate the Cost-to-Retail Ratio

The first step is determining the cost-to-retail percentage of your retail inventory. The cost-to-retail ratio determines how much your inventory costs in relation to the retail price.

For example, if a sweatshirt costs $15 to manufacture and you sell it for $100, the cost-to-retail ratio is 15%.

Therefore, you can calculate your cost-to-retail ratio with this formula:

  • cost-to-retail ratio = (cost of merchandise / retail price of the merchandise) x 100

Step 2: Calculate the Cost of Merchandise Available for Sale

The next step is to determine the exact time period you will be reporting. Then, you must identify the cost of inventory at the beginning of the time period and the cost of any additional inventory purchases made during the course of that time period.

For example, if your shop had a beginning inventory of $30,000 and then you purchased $10,000 of new inventory during that period, your cost of merchandise available for sale is $40,000.

The formula for this calculation is

  • Cost of merchandise available for sale = cost of beginning inventory + cost of additional inventory

Step 3: Calculate the Cost of Sales During the Time Period

Next, you need the total merchandise sales and cost-to-retail percentage for your chosen time period. You will use these numbers to calculate the cost of sales, which represents the total cost of goods for all the merchandise you sold during the reporting period.

For example, let’s say your cost-to-retail ratio is 15%, and you had sales of $50,000 over your chosen time period. You can multiply your cost-to-retail ratio by your total sales to find your cost of sales was $7,500.

  • Cost of sales = sales during the chosen time period x cost-to-retail percentage

Step 4: Calculate Ending Inventory

Now, you can use the cost of merchandise available for sale and the cost of sales during that period to determine your ending inventory.

Your ending inventory represents the value of merchandise you have available at the end of your reporting period. Once you calculate your ending inventory, you can use it on future balance sheets. However, you must ensure its accuracy if you report your store’s financial information when seeking financing.

  • Ending inventory = cost of merchandise available for sale – cost of sales during the chosen time period

Example of the Retail Inventory Method

Let’s pretend your retail business sells home coffee roasters for an average price of $300 and a cost of goods of $150. As such, your cost-to-retail ratio is 50%. 

In this example, let’s also say your beginning inventory costs $500,000, and you paid $200,000 for purchases during the month. During the same time period, you had sales of $1,000,000.

To calculate your ending inventory value:

How to calculate your ending inventory value:

Beginning inventory

+ $500,000

Purchases

+ $200,000

Goods available for sale

= $700,000

Sales

– $500,000 (Sales of $1,000,000 x 50%)

Ending Inventory

= $200,000

Additional Retail Inventory Method Tips

If you plan to use the retail inventory method for your business, keep the following tips in mind.

1. Always Have Accurate Data Available

The retail inventory method requires you to use certain numbers, including your cost-to-retail ratio, beginning inventory, and sales. To ensure the calculation is efficient and effective, you need to keep accurate numbers available.

Therefore, you should equip your business with a POS (point of sale) and retail management system with strong reporting and analytics capabilities. 

2. Don’t Ditch Physical Inventory Counts

Since the retail inventory method only gives an estimate of your ending inventory value, it’s not the perfect substitute for physically counting and reconciling inventory.

For this reason, we still recommend scheduling physical inventory counts. However, it doesn’t need to be as frequent after integrating the retail inventory method.

Frequently Asked Questions (FAQs) for Retail Inventory Method

Here are a few common questions retailers have about the retail inventory method.

Bottom Line on Retail Inventory Method

Keep in mind that the retail inventory method is more of an educated guess than a concrete calculation of how much value your ending inventory holds. This method provides directionally accurate answers to give you quick snapshots at any given time. It’s cost-effective, quick, and works best when it’s part of your overall inventory management strategy.

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6 Best Banks in California in 2023

A woman with a banker opening a new bank account with one of the best banks in California

The best banks in California offer a combination of low account fees, convenience, and comprehensive banking tools. If you’re in California and want to find a new bank, this guide discusses your best options. Each bank is federally insured and carries a variety of products, including checking accounts, investment accounts, and loans.

Best Banks in California

In ranking the best banks of California, we looked at the factors most important to consumers, including fees (and whether they’re waivable), opening deposit requirements, and annual percentage yield (APY) on savings accounts. There’s more to consider when choosing a bank and we detailed our methodology below.

Bank

Pricing

Services

Opening Deposit

Savings APY

Number of CA Branches

Bank of America logo

Bank of America

Starts at $4.95 per month

Checking accounts, savings accounts, credit cards, home loans, car loans, investing

$25 to $100

0.01% to 0.04%

854

Chase Business logo

Chase Bank

Starts at $12 per month

Checking accounts, savings accounts, money market accounts, CDs, custodial accounts, home loans

$0

0.01% to 0.05%

967

Wells Fargo logo

Wells Fargo

Starts at $10 per month

Checking accounts, savings accounts, money market accounts, CDs, custodial accounts, home loans

$25

0.01% to 0.02%

932

Ally bank logo

Ally Bank

$0 per month

Checking accounts, savings accounts, auto loans, home loans, personal loans

$0

0.90%

0

U.S. Bank logo

US Bank

Starts at $6.95 per month

Checking accounts, savings accounts, money market accounts, CDs, custodial accounts, home loans

$25

0.01%

481

Bank of the West logo

Bank of the West

Starts at $10 per month

Checking accounts, savings accounts, CDs, IRA CDs, credit cards, loans

$0

0.01%

224

Bank of America logo

Bank of America: Best Overall Bank

Pricing (or other important bit): Starts at $4.95 per month, but is waivable if you meet the requirements below

4.91

★★★★★

Visit

Bank of America Review

Bank of America is a national bank with an extensive network of free ATMs and branch offices. Although Bank of America offers weak savings rates, you get access to premium traditional banking services and support. Bank of America offers a host of different checking and savings accounts, making it easy to find the best solution for your needs.

Why we chose it: Bank of America is the best overall bank in California because of its complete range of online and mobile banking tools. Furthermore, Bank of America makes it easy to waive the monthly fee on all three of its checking account plans and it’s also one of the best mortgage lenders. 

  • Three checking account options
  • No overdraft fees
  • Many physical branches

Pricing: 

Bank of America offers three different checking accounts:

  • SafeBalance: $4.95 per month, waivable if you are under 25 and qualify as a student, are under 18, or are enrolled in Preferred Rewards.
  • Advantage Plus: $12 per month, waivable if you have at least one qualifying direct deposit of $250 or more, maintain a $1,500 minimum daily balance, or are enrolled in Preferred Rewards.
  • Advantage Relationship: $25 per month, waivable if you maintain a combined balance of $10,000 in eligible linked accounts or are enrolled in Preferred Rewards.

Checking and Savings Options

Bank of America has three checking account plans and one savings account. The Advantage Plus account is $12 per month, but you can waive the service fee if you have at least one qualifying direct deposit of $250 or more, maintain a $1,500 minimum daily balance, or are enrolled in Preferred Rewards.

Fees and Requirements

Every Bank of America checking and savings account has a monthly maintenance fee, while Ally has none. However, you can waive each monthly maintenance fee if you meet Bank of America’s requirements. Furthermore, you can access Bank of America’s vast network of fee-free ATMs. There’s a $3 out-of-network ATM withdrawal fee.

Interest Rates

The Bank of America Advantage Savings account offers a low APY of 0.01% to 0.04% if you’re a Platinum Honors Tier Preferred Rewards Member. 

ATM and Branch Access

Bank of America has hundreds of branches and ATMs across California. Therefore, it’s convenient to withdraw cash or get in-person help at a Bank of America branch.

Banking Experience

Bank of America stands out because of its easy online banking experience and digital tools. The website and mobile app are straightforward and offer everything you need to manage your bank account and make payments. 

Chase Business logo

Chase Bank: Best for Checking Account

Pricing (or other important bit): Starts at $12 per month but is waivable if you meet requirements below

4.83

★★★★★

Visit

Chase Bank Review

Chase Bank is the largest bank in the United States with over $3 trillion of assets. This bank offers a robust menu of banking products and services. Chase Bank’s website and mobile experience can compete with online-only banks. Furthermore, Chase offers five different checking accounts and two savings account plans. We have also review articles for other business banks like Novo Review and Bluevine Review

Why we chose it: Chase Bank is the best California bank for checking accounts because it offers five different account options. It also offers three additional checking account plans for kids and students. 

  • Wide range of checking accounts
  • Regular cash bonuses for opening an account
  • Many ATMs and branches
  • Above average monthly fees
  • Low rates on CDs
  • Low rates on savings

Pricing: 

Chase Bank carries five different checking accounts:

  • Chase Total Checking: $12 per month, waivable if you have $500 in electronic deposits, maintain a $1,500 minimum daily account balance, or maintain an average beginning day balance of $5,000 or more in any combination of this account and link qualifying Chase accounts.
  • Chase Secure Banking: $4.95 per month fixed fee.
  • Chase Premier Plus Checking: $25 per month, waivable if you have an average beginning day balance of $15,000 or more in any combination of this account and linked qualifying Chase accounts. 
  • Chase Sapphire Banking: $25 per month, waivable with an average beginning day balance of $75,000 or more in any combination of this account and linked qualifying Chase accounts.
  • Chase Private Client Checking: $35 per month, waivable with an average beginning day balance of $150,000 or more in any combination of this account and linked qualifying Chase accounts.

Checking and Savings Options

Chase Bank offers eight total checking accounts and two savings accounts. Therefore, there’s a good chance you’ll find a plan that meets your banking needs.

Fees and Requirements

Every Chase Bank account has a monthly service fee that can be waived if you meet the requirements outlined above. 

Interest Rates

Chase offers low 0.01% to 0.05% APY on its savings account–Ally offers a slightly higher APY. Therefore, Chase Bank isn’t a great option if you want to earn interest on your account balance. 

ATM and Branch Access

Chase has over 900 branches in California and 16,000 ATMs throughout the United States. Even if you’re not located near a Chase branch, you can handle all of your banking duties through Chase’s mobile app or online website.

Banking Experience

Chase has an excellent banking experience because of its many branch locations and great online banking tools. Furthermore, Chase customer support is easy to reach and helpful. 

Wells Fargo logo

Wells Fargo: Best for Small Business

Pricing (or other important bit): Starts at $10 per month but waivable if you meet requirements below

4.71

★★★★★

Visit

Wells Fargo Review

Wells Fargo is another major US bank offering a full array of banking services. These include checking and savings accounts, investing and wealth management services, home loans, auto loans, and credit cards. With nearly 1,000 branches in California, you won’t have trouble depositing money, withdrawing cash, or getting in-person help. 

Why we chose it: Wells Fargo is the best bank for small businesses because it is one of the nation’s top lenders to small businesses, with transparent interest rates on loans. 

  • Many branches in California
  • Wide range of savings options
  • Comprehensive banking tools
  • Low APYs
  • Minimum opening deposit
  • Service fees

Pricing: 

Wells Fargo has four checking account options:

  • Clear Access Banking: $5 per month, waivable if the primary account owner is 13 to 24 years old.
  • Everyday Checking: $10 per month, waivable with a $500 minimum daily balance, $500 or more in total.
  • Prime Checking: $25 per month, waivable with $20,000 or more in statement-ending qualifying linked balances.
  • Premier Checking: $35, waivable with $250,000 or more in statement-ending qualifying linked balances.

Checking and Savings Options

Wells Fargo carries four unique checking accounts and two savings accounts. Wells Fargo is best for individuals who prefer access to branches and want to keep multiple accounts at the same bank. It also offers one of the best business checking account options on the market.

Fees and Requirements

Although each account has a monthly maintenance fee, you can waive them by following the guidelines above.

Interest Rates

Wells Fargo offers a low APY of 0.01% to 0.02% across both savings accounts. 

ATM and Branch Access

Wells Fargo has hundreds of ATMs and branches across California. Therefore, you don’t need to worry about finding somewhere to withdraw or deposit cash. 

Banking Experience

Similar to Bank of America and Chase Bank, Wells Fargo offers a complete suite of physical and digital banking tools. With Wells Fargo, you get access to contactless debit cards, 24/7 fraud monitoring, and 12,000 ATMs across the United States.

Ally bank logo

Ally Bank: Best for Savings Account

Pricing (or other important bit): No monthly maintenance fees; free to open an account

4.65

★★★★★

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Ally Bank Review

Ally Bank is a widely popular online bank for people seeking strong rates and an extensive set of digital banking features. Since Ally Bank is online only, it saves money on its overhead and can pass it on to customers in the form of minimal fees and high interest rates. The bank also offers convenient customer service options. Don’t forget these reviews as well; NBKC Bank Account Review and Axos Review.

Why we chose it: Ally Bank is the best California bank because it offers 0.90% APY on the Online Savings Account. You can also earn 0.25% APY on an Ally Interest Checking Account.

  • High APY 
  • No fees or minimums
  • Excellent customer service
  • No physical branches
  • No way to deposit cash
  • 30 days to fund account

Pricing: 

Ally doesn’t charge monthly maintenance fees and doesn’t have a minimum opening deposit 

Checking and Savings Options

Ally offers one checking account and one savings account. However, Ally also offers a Money Market account and high-yield CDs. 

Fees and Requirements

Ally shines because it doesn’t have monthly maintenance fees, overdraft item fees, or minimum balance requirement fees. The only fees Ally has are returned deposit item fees, expedited delivery fees, and outgoing domestic wire fees.

Interest Rates

Ally’s Online Savings Account offers 0.90% APY, and its Interest Checking Account offers 0.25% APY. These interest rates are well above the standard rates we see from most California banks. 

ATM and Branch Access

Ally is an online bank without physical branches. However, account holders can access 43,000 fee-free Allpoint ATMs across the United States. You also receive $10 per month in ATM fee reimbursements if you withdraw from out-of-network ATMs. 

Banking Experience

Since Ally is an online bank, it offers a comprehensive suite of digital banking tools. Furthermore, you get access to Zelle to easily send and receive payments.

U.S. Bank logo

U.S. Bank: Best for Customer Service

Pricing (or other important bit): Starts at $6.95 per month, but waivable

4.39

★★★★★

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U.S. Bank Review

U.S. Bank is the fifth-largest bank in the US by assets. As a well-known national bank, U.S. Bank offers convenient access to thousands of branches and ATMs across the United States. Furthermore, US Bank carries five different checking accounts, making it easy for you to find an option that suits your needs. Since you have read the U.S. bank review you might be interested as well to Lili Review and Capital One Review.

Why we chose it: US Bank is the best California bank for customer service because it offers 24/7 live phone support. You can get in-person help at one of the 500 California US Bank branches.

  • Excellent customer service
  • Wide range of banking services
  • Hundreds of branches in California
  • Low APYs 
  • Monthly fees
  • Not as many branches as other banks

Pricing: 

US Bank carries five checking account plans:

  • Easy Checking: $6.95 per month, waivable if you have combined monthly direct deposits totaling $1,000 or more, you keep an average account balance of $1,500 or more, or you or another person on the account are age 65 or greater.
  • Gold Checking: $14.95 per month, waivable if you have an open U.S. Bank personal loan, line, mortgage, or credit card
  • Platinum Checking: $24.95 per month, waivable if you have $25,000 or more in combined personal deposits, credit balances with U.S. Bank investments through U.S. through Bancorp Investments.
  • Student Checking: $0 per month
  • Safe Debit Account: $4.95 per month, non-waivable

Checking and Savings Options

US Bank is unique because it offers five different checking accounts and five different savings accounts. These range from basic student accounts to a Platinum Checking account that includes all of US Bank’s banking tools. 

Fees and Requirements

Easy Checking, Gold Checking, and Platinum Checking have monthly maintenance fees that are waivable if you meet the requirements. Furthermore, the Student Checking account is $0 per month, and the Safe Debit Account is a non-waivable $4.95 per month.

Interest Rates

US Bank offers low interest rates at a 0.01% APY. For this reason, we recommend Ally bank if you’re looking for a savings account with a high interest rate. 

ATM and Branch Access

US Bank has a large physical presence across Los Angeles, Orange County, South Bay, Inland Empire, San Diego, and many surrounding communities. 

Banking Experience

US Bank excels as one of the best banks in California when it comes to reach and access. In addition to the wide selection of branches and ATMs, US Bank’s customer service is available 24 hours a day by phone or social media. 

Bank of the West logo

Bank of the West: Best for Regional Banking

Pricing (or other important bit): Starts at $0 per month if you meet requirements

4.25

★★★★★

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Bank of the West Review

Bank of the West is headquartered in San Francisco and is owned by BNP Paribas, a French international banking group. The bank has more than 500 branches in 19 states and mainly operates on the west coast. Bank of the West offers a wide range of banking and investment products for personal and commercial banking needs.

Why we chose it: Bank of the West is the best California bank for regional banking because it has a strong presence on the west coast and midwest. 

  • Convenient customer service
  • Wide range of banking tools
  • Good for small businesses
  • Low rates
  • Some accounts can’t be opened online
  • Not available everywhere in USA

Pricing: 

Bank of the West provides three different checking accounts:

  • Any Deposit Checking: $0 monthly service fee with any deposit per statement ($0.01 or more) or if you’re under 25
  • 1% For The Planet Checking: $0 monthly service fee with any deposit per statement ($0.01 or more) or if you’re under 25
  • Premier Checking: $25 monthly service charge waived with minimum $25,000 average balance in eligible accounts

Checking and Savings Options

Bank of the West carries a wide range of checking accounts and one savings account. The downside of these accounts is the low interest rates they offer.

Fees and Requirements

You can waive the monthly maintenance fee on the Any Deposit Checking and 1% For The Planet Checking by making any deposit per statement. This can be as little as $0.01. However, the Premier Checking account has a monthly service fee of $25 that can be waived with a $25,000 minimum average balance in eligible accounts.

Interest Rates

Bank of the West savings account only offers 0.01% APY, which is relatively low compared to other options on this list.

ATM and Branch Access

Bank of the West has over 200 branches in California. We recommend checking if there’s a Bank of the West branch near your home.

Banking Experience

Bank of the West offers various ways to conduct your banking duties, including at physical branches, online, and in the Bank of the West mobile app.

Methodology for the Best Banks in California

In this section, we discuss the crucial factors offered by the best banks in California. By breaking down each feature into its own section, you can easily discover which bank has the right solutions for your needs.

  • Checking and savings options: The most important feature of the best banks in California is their checking and savings account options. The best banks in California offer checking and savings accounts with low fees and 
  • Fees and requirements: Each bank has unique monthly service fees, which can be waived if you meet certain requirements. Choose a bank in California with a monthly maintenance fee you can easily waive. Furthermore, each California bank has a unique minimum deposit requirement.
  • Interest rates: Some checking accounts pay interest while most savings accounts pay some interest. If you’re interested in earning interest on your account balance, you need to find a California bank with an above average annual percentage yield (APY).
  • ATM and branch access: If you mostly use cash, you need a bank that makes it easy to withdraw cash at an ATM or branch. Furthermore, banks with many branches in California make it easy for you to manage your account and perform your banking duties in person. 
  • Banking experience: Banking experience describes how easy the bank makes it to perform different actions. For example, the best banks in California offer great mobile apps, excellent online websites, and simple ways to deposit checks, pay bills, send money, and monitor account activity. 

Frequently Asked Questions (FAQs) for Best Banks in California

Choosing the best bank in California is an important decision as you’re looking to open a new account for a business. If you are an entrepreneur there are top banks for startups also. So let’s discuss a few questions you may have about California banks.

Bottom Line on the Best Banks in California

Bank of America, Chase Bank, and Wells Fargo are the best banks in California if you prefer traditional banking and a wide range of services. If you want to open a digital bank account, Ally and CIT Bank are great options. There are also banking accounts in the market that are free. Either way, you can’t go wrong with any bank on this comprehensive list. Look for features that suit your needs before making your decision. We also have other reviews like Kabbage Review and Oxygen Review that may help you create the right decision.

Best Business Bank Accounts by State

Below you will find an interactive U.S map that can help you locate and compare different banks and financial institutions that offer business accounts in your area.

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7 Best Prepaid Debit Cards in 2023

Man with head cropped off holding the different best prepaid debit cards

The best prepaid debit cards act as an alternative to a credit card or standard debit card. Prepaid debit cards allow you to conveniently make purchases without needing to open a credit card or checking account. They also act as a low-risk way to manage your money. Learn which prepaid debit card is best for you.

Best Prepaid Debit Cards

The following table describes the key features and fees of the best prepaid debit cards we selected. These include monthly fees, reload fees, and ATM fees. Learn more about our rating methodology below. 

Prepaid Debit Card

Monthly Fee

Reload Fees

ATM Fees

Foreign Transaction Fees

Maximum Balance

Rewards

Bluebird logo

Bluebird by American Express

No monthly fees

$0 at Walmart and up to $3.95 at other participating retailers

Free ATM withdrawals at over 30,000 MoneyPass ATMs

$0

$100,000

None

Netspend logo

Netspend Visa Prepaid Card

Starts at $5/month

Up to $3.95

$2.95

4%

$15,000

Payback Rewards program

Serve logo

Serve Cash Back by American Express

$7.95/month

Up to $3.95

$0 at MoneyPass ATMs

2.7%

$100,000

1% cash back

Serve logo

Serve Free Reloads by American Express

$6.95/month

$0 at over 45,000 locations

$0 at MoneyPass ATMs

2.7%

$100,000

None

FamZoo logo

FamZoo Prepaid Card

Starts at $2.50/month

$4 to $6

Standard ATM operator fees

0%

$5,000

$0 for first 4 cards

PayPal logo

PayPal Prepaid Mastercard

$4.95/month

Up to $3.95

$2.50 per withdrawal

4%

$15,000

PayBack Rewards program

Walmart logo

Walmart MoneyCard

$5.94/month, waived when you direct deposit $500 or more in previous monthly period

$0 at Walmart and up to $5.95 at other retailers

$2.50 per withdrawal

3%

$10,000

3% cash back at Walmart.com, 2% cash back at Walmart fuel stations, and 1% cash back at Walmart stores

Bluebird logo

Bluebird by American Express: Best Overall Prepaid Debit Card

No monthly fees

★★★★★

4.9

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The Bluebird prepaid debit card is offered by American Express. It’s an FDIC-insured prepaid debit card with effectively no fees. This prepaid debit card functions similarly to a checking account, making it a great alternative for those without a bank account. It also offers several ways to deposit money onto the card and an extensive free ATM network.

Why we chose it: Bluebird by American Express is the best overall prepaid debit card because it doesn’t have any monthly fees, cash reload fees, or ATM withdrawal fees.

  • No monthly fees
  • No activation fees
  • Can load up to $100,000
  • No cash back
  • Not available to Vermont residents
  • ATM withdrawal fees at non-MoneyPass ATMs

Pricing: There are no monthly fees for the Bluebird prepaid debit card.

Fees

There are virtually no fees with a Bluebird prepaid debit card, unlike Netspend, which charges $5 per month. However, you are subject to fees if you use out-of-network ATMs and cash reload retailers. 

Maximum Balance

You can add up to $100,000 to your Bluebird prepaid debit card. This is one of the highest maximum account balances in the prepaid debit card niche. 

Reload Options

Bluebird offers several ways to deposit money into your prepaid debit card. These include direct deposit, mobile check deposits, cash reloads at Walmart, and transfers from a linked debit card or external bank account.

Membership Rewards

Bluebird doesn’t offer cash back or any type of rewards program. Therefore, Bluebird isn’t an excellent option for those looking for membership rewards. However, the Serve Cash Back prepaid debit card by American Express offers 1% cash back on in-store and online purchases.

Additional Features

Uncommon to most prepaid debit cards, Bluebird offers low balance alerts and family subaccounts. It also doesn’t let your prepaid card go negative, so you won’t get charged overdraft fees.

Netspend logo

Netspend Visa Prepaid Card: Best for Account Management

Starts at $5 per month

★★★★★

4.78

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Netspend makes it easy to sign up for a Netspend Visa Prepaid Card because there’s no banking or credit checks required to open an account. However, Netspend is unique because it offers two different fee payment options. You can either pay a monthly fee or pay a fee every time you make a purchase. 

Why we chose it: The NetSpend Visa Prepaid Card is the best prepaid debit card for account management because of its easy-to-use and highly extensive mobile app. It allows you to manage your money 24/7 from any location in the world.

  • Comprehensive mobile app
  • Refer a Friend feature
  • Simple to use
  • Monthly fees
  • High inactivity fees
  • Low maximum balance

Pricing: The NetSpend Visa Prepaid Card carries two different payment options:

  • Monthly Plan: Starts at $5 per month if you receive at least $500 a month in payroll checks or government benefits each month
  • Pay-As-You-Go Plan: No monthly fee, but pay a flat $1.50 on purchases

Fees

The NetSpend Visa Prepaid Card has higher fees than most of its competitors. Furthermore, the monthly plan costs up to $9.95, but you can lower it to $5 if you receive at least $500 a month in payroll checks or government benefits each month. 

Maximum Balance

You can deposit up to $15,000 maximum on your NetSpend Visa Prepaid Card. Although this is a low amount compared to the $100,000 maximum balance allowed on a Bluebird prepaid debit card, it should be enough for most individuals. 

Reload Options

You can deposit cash at over 130,000 locations, including gas stations, grocery stores, check cashers, and convenience stores. Some examples are Jewel, Circle K, CVS, Speedway, and U.S. Bank.

Membership Rewards

The NetSpend Visa Prepaid Card offers a 5% APY (Annual Percentage Yield) savings account on balances up to $1,000 and 0.50% APY on any amount over $1,000. NetSpend also offers a Payback Rewards program which provides customized offers based on your spending habits

Additional Features

If you refer a friend to NetSpend, you and your friend receive $20 if your friend deposits $40 or more onto their card. NetSpend also provides useful iOS and Android apps that help you manage your account and budget your spending.

Serve logo

Serve Cash Back by American Express: Best for Rewards

$7.95 per month

★★★★★

4.69

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Serve Cash Back by American Express is a unique prepaid debit card because it offers 1% cash back on in-store and online purchases. This is a similar feature to most credit cards. Therefore, a Serve Cash Back prepaid debit card is a great alternative for those who want to earn cash back but don’t want to open a credit card.

Why we chose it: Server Cash Back by American Express is the best prepaid debit card for rewards because it offers unlimited 1% cash back on purchases.

  • No ATM withdrawal fees at MoneyPass ATMs
  • Unlimited 1% cash back on purchases
  • No card opening fee when you open an account online
  • Steep monthly fee
  • 2.7% foreign transaction fee
  • Mobile check deposit can take up to 10 days

Pricing: Serve Cash Back by American Express has a $7.95 monthly fee.

Fees

The Serve Cash Back card carries a $7.95 monthly fee that you can’t waive. However, Bluebird doesn’t have a monthly fee and the PayPal Prepaid Walmart MoneyCard has a $5.94 monthly fee which you can waive.

If you need to withdraw cash, you can do so for free at MoneyPass ATMs. However, withdrawing cash at non-MoneyPass ATMs costs $2.50 per withdrawal. Furthermore, cash reloads cost up to $3.95 per transaction, depending on the retailer. 

Maximum Balance

You can have a maximum balance of $100,000 on your Serve Cash Back prepaid debit card. This is a high maximum balance and should be more than sufficient to suit your needs.

Reload Options

There are over 45,000 cash reload locations in the United States. These include retailers such as Walmart, CVS, Family Dollar, Dollar General, Rite Aid, and 7-Eleven. 

Membership Rewards

It’s free to open a Serve Cash Back prepaid card when you apply online. Otherwise, it may cost up to $3.95 at participating retail locations. Furthermore, you can create subaccounts for free for anyone 13 and older.

Additional Features

You receive 120 days of post-purchase protection on eligible items up to $1,000. In addition, Serve offers a comprehensive mobile app that allows you to manage your account from any location. You can view your balance, manage transactions, send money, and add checks with the mobile app.

Serve logo

Serve Free Reloads by American Express: Best for Cash Reloads

$6.95 per month

★★★★★

4.55

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Serve Free Reloads by American Express is a neat prepaid debit card that offers free cash reloads. However, you can only add up to $500 or as low as $20 per cash reload. To deposit cash, visit a participating location and give the cash to a cashier. Then, swipe your card, and the money is immediately added to your account. 

Why we chose it: Serve Free Reloads by American Express is the best prepaid debit card for cash reloads because it offers free cash reloads at over 45,000 participating locations.

  • Free cash reloads at over 45,000 locations
  • No card opening fee when you open an account online
  • Get your paycheck up to 2 days faster when you sign up for direct deposit
  • Above average monthly fee
  • 2.7% foreign transaction fee
  • Mobile check deposit can take up to 10 days

Pricing: The Serve Free Reloads prepaid debit card carries a non-waivable $6.95 monthly maintenance fee

Fees

The Serve Free Reloads prepaid debit card has a monthly fee of $6.95 that isn’t waivable. Furthermore, there are no minimum balance requirements or hidden fees. Although you’re subject to a 2.7% foreign transaction fee, there aren’t ATM withdrawal fees at MoneyPass ATMs. 

Maximum Balance

The maximum balance you can hold on your Server Free Reloads prepaid debit cards is $100,000. However, there are no minimum balance requirements.

Reload Options

Stated right in its name, Serve Free Reloads offers free cash reloads at 45,000 retail locations. These include Walmart, CVS, Family Dollar, Dollar General, Rite Aid, and 7-Eleven. If you want more reload options, the PayPal Prepaid Mastercard offers access to 130,000 NetSpent reload locations.

Membership Rewards

The primary benefit of the Free Reloads prepaid card is the ability to add as much cash as you want without incurring fees. You also get access to a wide range of American Express offers, including shopping and dining. 

Additional Features

Serve offers Online Bill Pay which allows you to organize and pay your bills on time. Furthermore, Serve offers FDIC insurance and covers you for fraudulent purchases.

FamZoo logo

FamZoo Prepaid Card: Best for Families

Starts at $2.50 per month

★★★★★

4.46

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FamZoo offers a distinctive prepaid card dedicated to families. It puts parents in control of their family bank because FamZoo offers automatic allowances and the ability to send interest payments to children based on their savings.

Why we chose it: The FamZoo Prepaid Card is the best prepaid debit card for families because it offers four free prepaid cards when you signup. 

  • Great way to teach children about money
  • Parents can control kids’ spending
  • No card opening fee on first four prepaid cards
  • Up to $5.99 monthly fee
  • No mobile check deposit
  • $3 card opening fee after first four cards

Pricing: 

FamZoo offers four different payment plans based on the length of your subscription:

  • Pay Monthly: $5.99 per month (1-month free trial)
  • Prepay 6 Months: $4.33 per month, $25.99 total (plus an extra free month)
  • Prepay 12 Months: $3.33 per month, $38.99 total (plus an extra free month)
  • Prepay 24 Months: $2.50 per month, $59.99 total (plus an extra free month)

Fees

FamZoo starts at $5.99 per month which can be reduced if you subscribe to a longer-term subscription. Although FamZoo doesn’t charge ATM fees, you’re subject to ATM operator fees. 

Maximum Balance

Since FamZoo is designed for families, the maximum balance you can load onto a FamZoo prepaid debit card is $5,000. This is the lowest maximum balance out of all the prepaid debit cards on this list. 

Reload Options

You can deposit money onto your FamZoo prepaid debit card through direct deposit (free), ACH (free), or cash reload ($4 to $6). You can deposit cash at Green Dot or MasterCard rePower reload agents.

Membership Rewards

You receive a $15 referral bonus when you refer a friend, and they spend at least $15 in subscription fees. 

Additional Features

FamZoo offers automated chore charts, chore review options, missed payment tracking, and mobile apps for Android and iOS.

PayPal logo

PayPal Prepaid Mastercard: Best for PayPal Users

$4.95 per month

★★★★★

4.32

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The PayPal Prepaid Mastercard does not require a credit check, so approval is guaranteed. This prepaid debit card is unique because it lets you transfer money from your PayPal account in real-time. Therefore, this prepaid debit card is only suitable for frequent PayPal users. 

Why we chose it: The PayPal Prepaid Mastercard is the best prepaid debit card for PayPal users because it offers free and quick transfers from your PayPal balance.

  • Free transfers from PayPal balance
  • Get cash back for free at retailers
  • Savings account with up to 5% APY is available
  • ATM withdrawal fees
  • Cash reload fees
  • PayPal transfers limited to $300 per day

Pricing: This prepaid debit card carries a monthly maintenance fee of up to $4.95.

Fees

The PayPal Prepaid debit card offers free ATM withdrawals from in-network ATMs and up to $3.95 for cash reloads. Moreover, the minimum initial load is $10 to $20.

Maximum Balance

The maximum amount of money you can have on your PayPal Prepaid Mastercard is $15,000, which is significantly lower than the $100,000 maximum balance allowed on Bluebird and Serve prepaid debit cards.

Reload Options

You can reload your card via direct deposit, PayPal instant transfers, or the NetSpend reload network of 130,000 retail locations.

Membership Rewards

You receive access to a high-yield savings account, earning you 5% APY on balances up to $1,000. Furthermore, PayPal’s Refer-A-Friend program grants you and your friend $20 for meeting eligibility requirements.

Additional Features

You can download the PayPal Prepaid Mastercard app on both the Google Play Store and Apple App Store. This app lets you monitor your account balance, load checks, review transactions, and receive alerts.

Walmart logo

Walmart MoneyCard: Best for Walmart Shoppers

Waivable fee of $5.94 per month

★★★★★

3.51

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The Walmart MoneyCard is the ideal prepaid debit card for frequent Walmart shoppers. It offers 3% cash back on Walmart.com purchases, 2% cash back at Walmart fuel stations, and 1% cash back at retail Walmart locations. However, you can only earn up to $75 in cash back reward per year. 

Why we chose it: The Walmart MoneyCard is the best prepaid debit card for Walmart shoppers because it offers cash back on all Walmart purchases. 

  • Waivable monthly fee
  • Earn rewards on all Walmart purchases
  • ASAP direct deposit
  • High foreign transaction fees
  • $2.50 fee for bank teller and ATM withdrawals
  • A high deposit amount required to waive the monthly fee

Pricing: $5.94 per month but waivable if you direct deposit $500 or more in previous monthly period

Fees

With the Walmart MoneyCard, you get free cash withdrawals at over 5,000 Walmart locations, free cash reloads at Walmart stores, free online bill pay, and free direct deposit of payroll. Since this debit card has a monthly maintenance fee of $5.94, Bluebird by American Express is a better option if you’re looking for a prepaid debit card without monthly fees.

Maximum Balance

The maximum balance you can have on your Walmart MoneyCard is $10,000, unlike Serve prepaid debit cards which offer a maximum balance of $100,000.

Reload Options

You can deposit money into your Walmart MoneyCard through the Walmart MoneyCard app, Walmart Rapid Reload, MoneyPak, or cash and load checks at Walmart stores.

Membership Rewards

The Walmart MoneyCard prepaid debit card lets you add up to four additional family members aged 13 or older. You can also earn 2% APY on up to $1,000 in your optional savings account.

Additional Features

The MoneyCard mobile app lets you deposit checks, monitor your account, and transfer money. You can also unlock overdraft protection for up to $200 with opt-in and an eligible direct deposit. 

Methodology for the Best Prepaid Debit Cards

Choosing the best prepaid debit card shouldn’t be difficult if you know what you want. Each prepaid debit card has unique costs and benefits, so look for an option that maximizes your benefits and minimizes your costs. Here at the key factors to consider when picking the best prepaid debit card.

  • Fees: Prepaid debit card issuers usually charge fees for various purposes. These fees include ATM withdrawal fees, monthly service fees, foreign transaction fees, per-transaction fees, and cash reload fees. You can’t avoid every fee, but you can minimize your costs by scanning fee policies carefully.
  • Maximum Balance: Another crucial factor is the maximum balance you’re allowed to load onto the debit card. Prepaid debit cards have various limits, ranging from $300 to over $10,000.
  • Reload Options: Reload options specify how you’re allowed to load more money on your prepaid debit card. The best prepaid debit cards allow online transfers and in-person reloads with popular retailers like Walmart or CVS.
  • Membership Rewards: Some prepaid debit cards offer rewards, including cash back, sign-up bonuses, or other specialty items. Other debit cards don’t have reward programs at all.
  • Additional Features: Additional features in a prepaid debit card include account security features, purchase protection, and fraud protection. The best prepaid debit cards offer peace of mind features to ensure your protection. 

Frequently Asked Questions (FAQs) for Best Prepaid Debit Cards

Before you make your decision, it’s essential to address a few common questions we get asked about prepaid debit cards. This way, you can make the most informed decision possible.

Bottom Line on the Best Prepaid Debit Cards

Bluebird, Netspend, and Serve offer the best prepaid debit cards in 2023. These prepaid debit cards offer various incentives, such as no monthly fees, cash back, and no cash reload fees. However, Walmart and PayPal offer prepaid debit cards that can be valuable to you if you use those retailers often.

Best Business Bank Accounts by State

Below you will find an interactive U.S map that can help you locate and compare different banks and financial institutions that offer business accounts in your area.

AL AK AZ AR CA CO CT DE FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY DC