Oxygen Bank business checking review: The no-fee business banking option that helps you form an LLC

Whether you're a freelancer or running a small team, finding an affordable business checking account can be a huge factor in your success.

Oxygen, a new no-fee banking option, seeks to serve sole proprietors and independent contractors by offering an unconventional host of services and features, including in-app accounting tools and even cash-back rewards on debit card purchases.

For the security-minded entrepreneur, Oxygen's business checking account also offers one-time-use debit cards to increase protection against identity theft. But apart from all the bells and whistles, Oxygen also provides support for business owners looking to take their operation to a new level by helping them establish LLCs.

Ahead, Select reviewed Oxygen's business checking account to help you decide if it is right for your small business needs. We considered a range of factors, looking specifically at access to your cash, perks and fees. (Read more about our methodology below.)

• Access to your cash
• Perks
• Fees
• Bottom line

Oxygen is an online-only bank, which means you can manage all your banking through a mobile app or via the bank's website on your desktop internet browser.

There is no limit to the number of deposits or wire transfers you can accept daily.

There's also the option to transfer money via Green Dot^®. Transfers are limited to three times per calendar day (with a maximum of $1,000 per deposit, $1,000 per calendar day and $10,000 per calendar month).

Oxygen has no ATM network, so all money is handled virtually, making this account ideal for cash-free businesses that make and receive every payment online. Users can, however, withdraw cash from any ATM or at checkout with the following limits:

• Cash withdrawal (ATM): Up to three times per calendar day; Up to $500 per calendar day
• Cash back at checkout (point-of-sale): Up to three times per calendar day; up to $500 per transaction; up to $500 per calendar day

Keep in mind, outside ATM providers may charge a fee. Oxygen doesn't charge a fee for out-of-network ATM withdrawals, but it does not provide ATM fee reimbursements either.

For security reasons, Oxygen lets users create one-time use virtual card numbers that link to their Oxygen Visa® Business Debit Card. This way, you can make online purchases securely without worrying that phishers will get access to your card details.

Setting up your LLC can be a daunting task, but Oxygen offers nationwide LLC creation services through a third party called CorpNet, Inc. Users can use the mobile app to set up their LLC before opening an Oxygen account.

And for those business owners stressed about doing it all, real-time integration with in-app accounting tools are there to help you set and control monthly spending, manage authorized merchants and freeze/cancel virtual cards.

Oxygen also offers cash-back rewards through The Oxygen Cashback Rewards program. The program allows each eligible participant the opportunity to earn cash-back rewards to be credited to the participant's Oxygen demand deposit account. Rewards vary and rotate based on available offers.

Oxygen charges no monthly fees or fees for money transfers, though you may be subject to dollar limits. There are no fees for wire transfers, cash transfers, direct deposits or ACH transfers. However, outside ATMs may charge fees, and Oxygen does not provide any reimbursement to cover these costs.

If your business deals mostly in cash, the Oxygen business checking account is probably not best suited for you. We recommend the Bank of America Business Advantage Relationship Banking as the best account for making cash deposits.

Similarly, if withdrawing cash from an ATM is part of your financial routine, you may want to consider an alternative bank that reimburses for outside ATM charges, such as Novo Business Checking.

To determine which business checking accounts offer the most convenience, Select analyzed dozens of U.S. business checking accounts offered nationwide by online banks as well as those with physical branches. We narrowed down our rankings by considering no-fee checking accounts or accounts with easy ways to waive the monthly maintenance fees.

We compared each checking account on a range of features, including:

• Fees
• Minimum balance requirement
• Mobile banking ease
• Small business tools and support
• Large ATM network
• Account accessibility
• Customer reviews, when available

All of the accounts included on this list are either members of the Federal Deposit Insurance Corporation (FDIC) or FDIC-insured through partner institutions. This insurance protects and reimburses you up to your balance and the legal limit in the event your bank or credit union fails.

The rates and fee structures for checking accounts are subject to change without notice and they often fluctuate in accordance with the prime rate.

Your earnings depend on any associated fees and the balance you have in your checking account. To open an account, some banks and institutions may require a deposit of new money, meaning you can't transfer money you already had in an account at that bank.