Running an acupuncture practice means handling a payment and compliance stack most business checking accounts were not built for: HSA and FSA cards, out-of-network superbills, cash tips, quarterly self-employment tax, and state PLLC requirements.

Acupuncturists should compare business checking accounts by payment processing, PLLC support, superbill workflows, tax bucketing, bookkeeping integrations, and cash-deposit needs. This page explains where Novo fits acupuncture practices and when a traditional bank may be a better choice.

What should acupuncturists look for in a business bank?

Acupuncture is a licensed healthcare service with a specific set of banking demands. Before comparing accounts, get clear on what the account has to do:

• Accept HSA and FSA card payments. Patients pay with an HSA or FSA debit card through your card processor (Stripe or Square), and the funds land in your business checking account. Acupuncture is a qualified medical expense under IRS Publication 502 when used to treat a medical condition, so HSA and FSA cards are common at the front desk.
• Support superbill workflows. Many licensed acupuncturists (LAcs) work out-of-network. You collect from the patient and give them a superbill they submit to their insurer for reimbursement. Your EHR or a dedicated superbill template should capture the relevant CPT codes, ICD-10 codes, NPI, license number, and tax ID; your bank should handle the payment side.
• Accept a PLLC. In several states, licensed acupuncturists cannot form a standard LLC. They must form a Professional LLC (PLLC) or professional corporation. Your bank has to accept that entity type.
• Bucket money for taxes, malpractice, and CEUs. Self-employment tax hits in April if you don't set money aside quarterly. Malpractice premiums and continuing education units (CEUs) show up on their own schedules.
• Sync to QuickBooks or Xero. Needles, table linens, clinic rent, and CEU registrations need to land in the right expense categories without hand-keying.
• Have a plan for cash. If your clinic collects cash tips and copays daily, a digital-only account that doesn't take cash deposits will slow you down unless you set up a workaround.

Why does Novo work for acupuncture practices?

Novo offers online business checking for small businesses, including solo practitioners and small clinics. For a solo PLLC or small group practice, Novo is strongest when most payments arrive by card, HSA/FSA card, or ACH.

Fees. Novo charges no monthly fees, no minimum balance fees, and no overdraft fees on its business checking account. That matters when your revenue is lumpy; a slow week doesn't cost you a maintenance charge.

Transfers. Domestic ACH transfers can be used to pay clinic rent, your acupuncture needle supplier, and contractor associates; confirm current fees and limits at novo.co.

Integrations that fit the practice stack. Novo integrates directly with Stripe, Square, QuickBooks, and Xero. Patient card payments processed through Stripe or Square deposit into your Novo account and post to your books without manual re-entry. If you already use one of these tools, connecting takes a few minutes.

Reserves for bucketing money. Novo Reserves is a budgeting feature within your Novo checking account that lets you allocate funds into up to 20 buckets — not separate accounts. Common buckets for an acupuncturist: quarterly taxes, malpractice insurance premiums, CEU registration and licensing renewals, and equipment replacement. Transfers into Reserves are manual. You decide the dollar amount after each deposit. It is not automatic percentage withholding. For a deeper look at how these business sub-accounts work in practice, see our guide.

Invoicing. Built-in invoicing supports direct-pay patients, with ACH and card payment options. Use your EHR or a dedicated superbill template for the clinical billing fields (CPT, ICD-10, NPI); use Novo invoicing to collect the payment.

Cash deposit limitation. Novo does not accept cash deposits. If your clinic collects meaningful cash weekly, you have two workable options: convert cash to a money order at USPS or a retailer and mail it to Novo per their deposit instructions, or keep a small local bank account for cash and ACH the balance over to Novo every week or two. Practices that are 95%+ card and ACH won't feel this. Cash-heavy practices should factor in the extra step.

How do acupuncturists open a business bank account?

Open the account after you confirm your entity type and get an EIN. Filing paperwork twice is avoidable.

1. Confirm your entity type with your state board

Check your state acupuncture board and secretary of state. Several states — including California, New York, and Texas — require licensed acupuncturists to register as a Professional LLC (PLLC) or professional corporation rather than a standard LLC. Novo accepts PLLCs. If you form the wrong entity, you may need to dissolve and refile. Our overview of business checking for LLC owners covers what to have ready when the entity is a PLLC as well.

2. Get an EIN from the IRS

Apply directly at IRS.gov. The IRS provides EIN applications for free online, and an EIN is typically issued in a single session. Third-party services may charge a fee for an EIN, but the IRS EIN application is free.

3. Gather your documents

Have these ready before you start the application:

• State acupuncture license
• Formation documents (Articles of Organization for a PLLC)
• Operating agreement
• EIN confirmation letter
• Government-issued ID

4. Apply online at novo.co

Most applicants complete the Novo application in one sitting. You'll upload the documents above and answer a few business questions.

5. Connect your tools

Once approved, connect Stripe or Square for patient card payments and QuickBooks or Xero for bookkeeping. Set up your first Reserves, starting with a "Taxes" bucket.

Can acupuncturists accept HSA and FSA cards?

Acupuncturists have a payment mix that doesn't look like a typical service business.

HSA and FSA cards

Acupuncture is an HSA- and FSA-eligible medical expense when used to treat a medical condition, per IRS Publication 502. From a processing standpoint, an HSA or FSA debit card behaves like a regular Visa or Mastercard: swipe it or key it into Stripe or Square, and the funds route to your Novo account. The patient's HSA administrator handles eligibility on their end.

Superbills for out-of-network patients

Many LAcs are out-of-network with commercial insurance. The standard workflow:

1. Patient pays in full at the visit (card, HSA/FSA, or cash).
2. You issue a superbill with the relevant CPT codes, ICD-10 diagnosis codes, your NPI, license number, and tax ID. Generate this from your EHR or a dedicated superbill template built for healthcare billing.
3. Patient submits the superbill to their insurer for out-of-network reimbursement.

Use Novo's invoicing to collect the payment; use your clinical tool for the superbill document itself.

Medicare's narrow scope

Medicare Part B covers acupuncture only for chronic low back pain, allowing up to 12 visits in 90 days (plus 8 more if the patient improves), provided the service is furnished by or under the direct supervision of an MD, DO, PA, or NP. Independent licensed acupuncturists generally cannot bill Medicare directly. If you see Medicare patients, they typically pay out of pocket or you work under the supervision arrangement CMS requires.

Keeping revenue streams separate

Use Novo Reserves or transaction tags to keep HSA/FSA revenue distinct from cash and standard card revenue. This separation can make year-end bookkeeping and tax preparation easier.

How should self-employed acupuncturists manage taxes?

Solo acupuncturists need to plan for self-employment tax, income tax, and quarterly estimated payments.

Self-employed acupuncturists owe 15.3% self-employment tax (12.4% Social Security + 2.9% Medicare) on net earnings, on top of federal and state income tax. So the "I made $120,000" number is not your take-home number.

The IRS generally requires self-employed individuals to make quarterly estimated tax payments using Form 1040-ES if they expect to owe $1,000 or more in tax for the year. Due dates typically fall in mid-April, mid-June, mid-September, and mid-January.

A practical rule of thumb

Move 25–30% of each deposit into a Reserve labeled "Taxes." Do it manually right after the deposit hits. Novo Reserves are buckets rather than automatic withholding, so the habit is on you. When quarterly estimates are due, transfer from the Reserve to the IRS via IRS Direct Pay.

Deductible categories to tag as you go

Set up expense categories in QuickBooks or Xero that mirror how you actually spend:

• Single-use supplies: needles, cotton balls, alcohol prep pads, cups
• Equipment and depreciation: treatment tables, moxa boxes, TDP lamps, e-stim units
• Clinic rent and utilities
• Malpractice insurance premiums
• CEU coursework, seminar fees, and license renewals
• Professional association dues (NCCAOM, state associations)
• EHR and scheduling software
• Payment processing fees (Stripe/Square)

Tag expenses throughout the year so year-end tax preparation is straightforward. Practices with a similar out-of-pocket, appointment-based model can also look at our massage therapists expense guide for a parallel list of deductible categories.

Copy-ready quarterly tax setup

QUARTERLY TAX RESERVE — SETUP CHECKLIST

Reserve name: Taxes — [Year]
Target: 28% of every deposit (adjust for your bracket)
Trigger: Move funds manually within 24 hours of each deposit

Q1 estimate due: April 15
Q2 estimate due: June 15
Q3 estimate due: September 15
Q4 estimate due: January 15 (following year)

Payment method: IRS Direct Pay (irs.gov/payments)
State estimate: check your state department of revenue

Monthly review:
- Reserve balance vs. YTD net income × 0.28
- Adjust % if consistently over/under

Use the checklist to build a spreadsheet with columns for deposit date, deposit amount, tax Reserve transfer, running Reserve balance, and quarterly payment status.

How does Novo compare with traditional business checking for acupuncturists?

The real comparison for most acupuncturists is Novo versus a traditional bank: the neighborhood Chase, Bank of America, or Wells Fargo branch where you already have a personal account.

Novo vs. traditional big banks

Fees. Traditional business checking often charges a monthly maintenance fee unless the account meets a balance or activity requirement. Novo charges no monthly fee regardless of balance. (Check each bank's current fee schedule for exact numbers.)

Cash deposits. Traditional banks are better for cash deposits because you can deposit cash at a branch. Novo does not accept cash deposits, so you need the money-order workaround or a secondary account.

Integrations. Traditional banks rarely connect natively with Stripe, Square, QuickBooks, or Xero. You export CSVs and import them, or pay for a third-party sync tool. Novo integrates directly with all four.

Invoicing. Big banks don't include invoicing in a checking account. Novo does.

Reserves and buckets. Traditional banks make you open separate accounts (each with its own fee schedule) to segregate money. Novo Reserves give you up to 20 buckets within the Novo checking account.

When a traditional bank is the better call

Pick a traditional bank if your practice deposits cash every week, if you need a branch relationship for a business loan secured by clinic assets, or if you're already at the balance threshold that waives the monthly fee. Some acupuncturists use a local bank for cash deposits and Novo for card payments, ACH payments, invoicing, Reserves, and bookkeeping integrations.

When Novo is the better call

Pick Novo if patients pay by card, HSA/FSA card, or ACH; if you use Stripe, Square, QuickBooks, or Xero; if you want a $0 monthly fee; and if you do not need branch cash deposits.

Novo is stronger for $0 monthly fees and direct integrations; traditional banks are stronger for branch cash deposits.

What questions do acupuncturists ask about business banking?

Do I need an LLC or PLLC to open a business bank account as an acupuncturist?

You don't strictly need any entity to open a business bank account. Sole proprietors can open one with an EIN and a DBA. Some states, however, require licensed acupuncturists who form an entity to use a professional entity, such as a PLLC or professional corporation, rather than a standard LLC. Check your state acupuncture board before filing. Novo accepts sole proprietors, LLCs, and PLLCs.

Can I accept HSA and FSA cards with a Novo account?

Yes, indirectly. Connect Stripe or Square to your Novo account and process HSA/FSA debit cards the same way you'd process any Visa or Mastercard. Funds land in your Novo checking account. Acupuncture is a qualified medical expense under IRS Publication 502 when treating a medical condition.

Is Novo FDIC insured?

Yes. Deposits are insured for up to $250,000 through our partner bank, Middlesex Federal Savings, Member FDIC, per depositor, per insured bank, per ownership category. For more on how the coverage actually works, see our guide to FDIC insurance for a business account.

What do I do about cash payments if Novo does not accept cash deposits?

Two options work in practice. First, convert cash to a money order at USPS or a retailer like Walmart or CVS, then mail the money order to Novo per their deposit instructions. Second, keep a small local bank account for cash intake and ACH the balance to Novo weekly. Practices that see cash only occasionally usually pick option one; cash-heavy clinics usually pick option two.

Can a group acupuncture practice with multiple practitioners use Novo?

Yes. A group PLLC or professional corporation can open a Novo account under the entity. If you have contractor associates, pay them via ACH from the account. A larger group with several practitioners should evaluate Novo's current multi-user access to confirm it fits the workflow.

How long does it take to open a Novo account?

Most applicants complete the online application in one sitting. Have your license, formation documents, operating agreement, EIN letter, and ID ready before you start. (Approval timing varies; check Novo's current application flow for specifics.)