Lili Business Checking Accounts Review

Designed for Freelancers

The number of people in the US who earn all or part of their money from freelance or gig work has been steadily growing over the past decade. Think of Uber and Lyft. Think of all the side hustles you see your friends talking about on Facebook. According to the research organization Gallup study, 36% of Americans are now employed in some way in the gig economy. Freelancing involves some unique financial challenges, from managing cash flow to paying for essential benefits. Lili is dedicated to helping gig workers manage the complexities of being self-employed. The company's mobile app gives freelancers a comprehensive, real-time way to look at their finances in one convenient place.

Referral Reward - Lili now offers $100 for every customer referral. Users can earn up to $1,000 (by referring 10 people), and both sides receive the $100 reward, once the recipient signs up and uses the Lili card with $250 within 45 days.

A Host of Fee-Free Services

Everyone wants to save money, especially freelancers who are just beginning to build their businesses and for whom every dime counts. One of the most attractive features of using Lili banking services is how economical it is. The company doesn't charge monthly service fees for its basic Lili Standard account, which is chock full of features. Transfers, deposits, bill pay, and ATM withdrawals at 38,000-plus US locations are all free. You will incur fees for international ATM withdrawals or if a check you deposit is returned. That last one is definitely a concern for freelancers: sadly, it's not unusual for freelancers to get burned by unscrupulous clients. 

Customers can also upgrade to a Lili Pro account. For a low monthly fee of $4.99, Lili Pro adds overdraft protection up to $200, a high-yield interest-bearing savings account that's way above the market benchmark, an enhanced VISA card that earns cashback rewards, unlimited invoicing, overdraft protection up to $200, and more.

Screenshot from Lili.co 7/07/2021

It's also worth mentioning that Lili offers plenty of free advice through its freelancer-focused blog.

Keep on Top of Taxes

When you work for a company that issues you a W-2 form, managing your tax responsibilities is relatively simple: The company withholds taxes from your check for you and gives you a tax summary at the end of the year. The information you need to file your taxes at the end of the year is largely provided in your W-2 form. It's way more complicated when your paychecks come from multiple companies. Depending on the size of their businesses, some freelancers may be required to pay taxes quarterly. Most of the companies that hire you for services will issue you a 1099 form—and those can add up to quite a few to keep track of. Then there are the companies that aren't required to send you a 1099 because they paid you less than $600. That doesn't mean you're not responsible for paying taxes on that money, though! The Lili app captures all of your earnings and helps you figure what you'll owe the IRS.

Many freelancers find themselves in trouble come tax time because they fail to segregate and save enough money to offset their tax liabilities. With the Lili app, you can automate tax savings so that each time you deposit a check from a client, an appropriate portion of the money goes into a "tax bucket." Lili can help you find the discipline you may not have on your own. The app can also help you segregate those expenses you pay that are tax-deductible from those that aren't, which also simplifies tax accounting.

Reputation

Lili Bank is a new company and isn't yet rated by the Better Business Bureau. iOS users who rate the Lili app at the Apple Store give it 4.5 out of stars. Android users award the app 4.4 out of stars at the Google Store.

*Disclaimer

Lili is a financial technology company, not a bank. Banking services provided by Sunrise Banks N.A., Member FDIC.