If three clients pay you through Stripe, one pays through PayPal, and one sends a wire from Manila, your business checking account needs to accept those payments, keep business money separate from personal checking, and avoid monthly fees. Some business checking accounts charge monthly fees, require minimum balances, or lack the payment integrations a VA uses regularly.

A good VA business checking account should separate client income, support common payment methods, connect with bookkeeping tools, and keep recurring fees low.

Why do virtual assistants need a dedicated business bank account?

A common mistake for new VAs is running client payments through a personal checking account, which can create legal, tax, and bookkeeping problems.

It can weaken the separation an LLC is meant to provide. If you formed an LLC and regularly commingle personal and business funds, it may become harder to show that the business is separate from you personally. A separate business checking account is the first and most basic step in keeping that separation clear.

Bookkeeping at tax time gets harder. When 1099 income from six clients is mixed with your rent, groceries, and Venmo activity, you (or your accountant) will spend hours sorting transactions in January. A dedicated business account means every deposit is revenue and most withdrawals are either owner's draws or deductible expenses.

The IRS expects clear records. Self-employed workers are required to keep records that clearly identify sources of business income and deductible expenses. A separate bank account isn't legally required, but it is the simplest way to meet that standard, and the SBA specifically recommends it for exactly this reason.

Invoices look more professional. A client paying "Sarah Chen Virtual Assistance LLC" instead of "Sarah Chen" reads as a real business, which reduces the odds of a payment being questioned or delayed by the client's AP process.

Quarterly estimated taxes get easier. VAs earning 1099 income generally owe quarterly estimated taxes to the IRS. Tracking what you owe is far simpler when your business income lives in one account.

What should virtual assistants look for in a business checking account?

Not every business checking account is built for a virtual assistant. The features that matter:

No monthly fees. Some traditional business checking accounts charge monthly maintenance fees unless you meet balance or activity requirements. For a solo VA, that can add up to meaningful money over the course of a year.

Free ACH transfers. ACH is the rail most US clients use to pay contractors directly, and it's how Stripe and QuickBooks Payments push your money to your bank. Paying per transfer adds up fast.

Integrations with the tools you already use. Direct integrations with Stripe, Shopify, QuickBooks, and Xero can reduce manual bookkeeping. PayPal or Wise balances can be transferred to your business checking account by ACH using account and routing numbers. Direct integrations can reduce manual transaction entry.

Built-in invoicing. Most VAs shouldn't pay for a separate invoicing tool in year one. A platform that lets you send invoices and receive card or ACH payments in the same app removes a line item from your software bill.

FDIC insurance. Your money should be insured up to $250,000 per depositor, per FDIC-insured bank, per ownership category — the standard federal limit.

Mobile and web access. VAs work from home, coffee shops, or another country. A branch requirement can slow down VAs who work remotely or travel often.

What does Novo offer virtual assistants?

Novo is a fintech that offers business banking solutions through its partner bank, Middlesex Federal Savings, F.A. It's built for small businesses that operate online, which fits many virtual assistants paid through ACH, cards, wires, or payment platforms. The specifics:

No monthly fees, no minimum balance, no overdraft fees. Free incoming ACH transfers and free incoming wires. If you have international clients who prefer to pay by wire, confirm Novo's current incoming wire instructions and supported wire types before sharing payment details.

Unlimited invoicing in the app. Send an invoice from Novo, the client pays by card or ACH, and the money lands in your Novo account. No separate invoicing subscription.

Direct integrations with Stripe, Shopify, QuickBooks, and Xero. If you take card payments through Stripe or a Shopify storefront, funds flow to Novo. Transactions sync to QuickBooks or Xero automatically for bookkeeping.

Novo Reserves for tax and expense budgeting. Reserves is a budgeting feature inside your Novo Business Checking Account that lets you set aside portions of your balance toward specific goals. A common workflow for virtual assistants is to allocate up to 30% of each client payment into a "Taxes" Reserve and about 10% into a "Software" Reserve. The money stays in your checking account; Reserves just earmarks it.

FDIC insurance through Novo's partner bank. Deposits are insured up to $250,000 per depositor, per FDIC-insured bank, per ownership category, through Novo's FDIC-insured partner bank, Middlesex Federal Savings, F.A.

How do virtual assistants open a Novo account?

The application takes about 10 minutes if you have your documents ready. What you'll need depends on how your business is set up.

Sole proprietors (no LLC, no corporation) can apply with an SSN. If you use a DBA ("doing business as") name, have that paperwork handy. You do not need an EIN, though you can get one for free from the IRS if you'd prefer to keep your SSN off client W-9s.

LLCs and S-corps should have the EIN letter from the IRS and the formation documents (articles of organization or incorporation) ready to upload. If your business is set up as an LLC, our guide to business checking for LLC owners walks through the paperwork in more detail.

After you submit, Novo generally returns a decision by email within a few business days. Once approved, you'll get account and routing numbers in the app, with a physical debit card arriving by mail.

DBA, LLC, or S-corp: which do VAs need first?

Most solo VAs start as sole proprietors, sometimes with a DBA. That's the simplest legal setup and lets you open a Novo account with just an SSN. An LLC or S-corp election can affect taxes, paperwork, and liability, so talk with a CPA or attorney before changing your business structure. You do not need a business checking account before choosing a DBA, LLC, or S-corp. Opening a business account when you start taking client payments helps keep records clean if you form an entity later.

A simple invoice template you can send today

If you don't yet have an invoicing system, paste this into a document, fill in the fields, and send:

INVOICE

From:
[Your business name]
[Your address]
[Your email]

Bill To:
[Client business name]
[Client contact name]
[Client email]

Invoice #: [0001]
Invoice date: [YYYY-MM-DD]
Due date: [Net 14 / Net 30]

Description                         Hours    Rate       Amount
--------------------------------------------------------------
Inbox management, week of [date]    5.0      $45.00     $225.00
Calendar coordination               2.5      $45.00     $112.50
Client onboarding docs (project)    N/A      N/A        $300.00
--------------------------------------------------------------
                                              Subtotal:  $637.50
                                              Total due: $637.50

Payment methods:
- ACH: routing [xxx], account [xxx]
- Card: [invoice link]

Thanks. Payment is appreciated within [14/30] days.

You can also copy this template into a spreadsheet and add formulas for hours, rates, subtotal, and any applicable tax. Save a fresh copy for each client instead of retyping totals by hand.

How does Novo compare to a traditional big-bank business checking account?

Most VAs come to Novo from either a personal checking account or a traditional big-bank business account. The difference against a traditional bank is where the contrast is sharpest. The dollar figures below are common ranges observed on published big-bank fee schedules; check your bank's current schedule for exact numbers.

| | Traditional big-bank business checking | Novo | |---|---|---| | Monthly fee | Commonly charged unless minimum balance is met | $0 | | Minimum balance | Often required to waive monthly fee | None | | Incoming ACH | Usually free | Free | | Incoming wires | Often carries a per-wire fee | Free | | Overdraft fees | Per-item fee typical | None | | Invoicing | Separate software required | Included, unlimited | | Stripe / Shopify / QuickBooks sync | Manual or via third party | Direct integration | | Application | Often requires branch visit | Fully online, about 10 minutes | | Cash deposits | Yes, at branch | Not accepted |

What tradeoffs should virtual assistants know before applying?

Novo does not accept cash deposits, so it fits VAs who are paid by ACH, Stripe, PayPal, or wire rather than cash. Most VAs go years without touching cash for work. If you also run a side business that takes cash, keep a separate account for that.

There are no physical branches. Everything happens in the app and on the web. Support is available by chat and email.

Outgoing domestic wires carry a fee. Incoming wires are free; outgoing wires cost a per-wire fee (see Novo's current fee schedule). ACH transfers, which handle the vast majority of what a VA sends and receives, are free.

How can virtual assistants get paid and set aside taxes?

Here's how a typical week looks for a VA using Novo:

1. Monday morning: send invoices from the Novo app to the three clients you worked with last week. Two pay by ACH from the invoice link; one pays by card.
2. Wednesday: card payment lands in your Novo account. ACH payments land Thursday and Friday.
3. Friday: allocate up to 30% of the week's incoming payments to your "Estimated Taxes" Reserve and about 10% to "Software & Tools." The funds stay in your checking balance; Reserves just earmarks them.
4. Quarterly: when the IRS estimated tax deadline hits, transfer from your checking account to IRS Direct Pay for the amount tracked in your Taxes Reserve.

That workflow helps separate spendable cash from tax money before quarterly deadlines arrive. Self-employed workers who expect to owe $1,000 or more in tax for the year generally must make quarterly estimated payments to avoid an underpayment penalty.

Getting paid via PayPal, Stripe, or direct ACH

VAs typically get paid in one of four ways, and each moves money into your Novo account slightly differently.

• Direct ACH from the client. Give the client your Novo routing and account numbers and they push payment from their business account. No fees, arrives in 1–3 business days. This is the cleanest method for recurring monthly retainers.
• Stripe (card payments). Send a Novo invoice with a card payment link, or use your own Stripe account. Stripe deducts its processing fee and deposits the net into Novo on its standard payout schedule. Best for one-off project invoices and international clients who prefer cards.
• PayPal. PayPal charges a fee on business payments and holds the money in your PayPal balance. You then transfer to Novo via ACH using Novo's account and routing numbers. Adds a step, but useful when a client insists on PayPal.
• Wire. If a client wants to pay by wire, confirm Novo's current incoming wire instructions and supported wire types before sharing payment details. Incoming wires to Novo are free.

Frequently asked questions

What is the best business banking option for a virtual assistant?

Novo offers business banking solutions well suited for most virtual assistants because it charges no monthly fees, includes unlimited invoicing, and integrates directly with Stripe, Shopify, QuickBooks, and Xero — the tools VAs already use to get paid and keep books.

Do I need a business bank account as a freelance VA?

Sole proprietors are not strictly required to open a separate account, but a separate account usually makes recordkeeping easier and cleaner. The IRS expects self-employed workers to keep clear records of business income and expenses, and the SBA specifically recommends a separate business account. It also supports LLC separation and makes 1099 reporting far cleaner.

Can virtual assistants use Novo without an LLC?

Yes. Sole proprietors can open a Novo account with an SSN, without forming an LLC or obtaining an EIN first. If you use a DBA name, have that documentation ready. An EIN is free from the IRS and lets you keep your SSN off client W-9s.

How do I handle quarterly estimated taxes as a VA?

If you expect to owe $1,000 or more in tax for the year, the IRS generally requires quarterly estimated payments in April, June, September, and January. A practical approach: use Novo Reserves to allocate up to 30% of every client payment to a "Taxes" bucket as it arrives, then pay the IRS from your checking account each quarter through IRS Direct Pay.

Can I use Novo if clients pay me through PayPal, Stripe, or Wise?

Yes. Stripe integrates directly with Novo, so card payments deposit into your Novo account. PayPal and Wise balances can be transferred to Novo via ACH using your account and routing numbers. International clients who want to send a wire can pay into your Novo account with no incoming wire fee; confirm current wire instructions with Novo first.

Is my money safe with an online-only banking platform?

Yes. Novo is a fintech that offers business banking solutions through an FDIC-insured partner bank, Middlesex Federal Savings, F.A. Deposits are insured up to $250,000 per depositor, per FDIC-insured bank, per ownership category, through Novo's FDIC-insured partner bank.

Do I need to send 1099s to other VAs or contractors I hire?

If you pay any contractor $600 or more in a calendar year for services, you generally need to issue a Form 1099-NEC and file it with the IRS. Keep W-9s on file for every contractor you pay so you have the information ready in January.