Best Banking Options for Freelancers & Self-Employed
Lili Business Account
Tax overlay + automatic expense categorization
Lili was purpose-built for freelancers. It automatically sets aside a percentage of every deposit for taxes, categorizes expenses as you spend, and generates a tax-ready expense report. The free tier handles most needs.
✅ Pros
- Automatic tax savings bucket is game-changing
- Expense categorization saves hours at tax time
- Free invoice sending
- Tax reports ready for Schedule C
- No minimum balance
❌ Cons
- Free tier has limitations
- Limited ATM network
- Not ideal for businesses with employees
Relay + Mercury Combo
Separate operating + savings structure
High-earning freelancers benefit from using Relay for daily operations (up to 20 sub-accounts: income, taxes, expenses, profit) combined with Mercury's API for automation.
✅ Pros
- Total control over cash allocation
- API automation for advanced users
- Unlimited sub-accounts for tax/expense separation
- $0 at both banks
❌ Cons
- Requires managing two bank accounts
- No built-in tax calculation
- Better for established freelancers than beginners
Found Business Account
Automatic tax + invoicing in one clean app
Found handles taxes, invoicing, bookkeeping, and banking in one app. It calculates your quarterly tax estimates in real time based on your actual income.
✅ Pros
- Real-time quarterly tax estimates
- Free invoicing and bookkeeping
- All-in-one — no third-party tools needed
- 1.5% cashback debit card
❌ Cons
- No APY on savings
- Limited advanced accounting features
- Plus plan needed for some features
The Freelancer Tax Rule
As a self-employed person, you pay self-employment tax (15.3%) plus income tax on profits. A simple rule: set aside 25–30% of every payment immediately. Lili, Found, and Relay all support this with automatic or manual tax buckets.
| Account | Monthly Fee | Tax Buckets | Invoice | Bookkeeping | Best For |
|---|---|---|---|---|---|
| Lili | $0 (basic) | Automatic | Yes | Auto | Beginners |
| Found | $0 (basic) | Real-time estimates | Unlimited | Auto | All-in-one simplicity |
| Relay | $0 | Manual sub-accounts | No | No — needs QuickBooks | Organized freelancers |
| Mercury | $0 | Manual | No | No | Tech-forward freelancers |
Estimate your quarterly tax bill
Use the tax estimator to calculate what you'll owe quarterly — then make sure you're setting the right amount aside.