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Starting a business is an opportunity to be your own boss, make money and grow your skill set.
There are also the not-so-great, somewhat messy and complicated parts about operating a business. If you start off solo or small, you’ll be tackling a lot of tasks yourself.
But don’t worry. In this article, we’re going to address something relatively simple in the business world: the best business checking accounts.
We’ll go into why you need one, what you should look for and several of the best ones available, both in-person and online-only.
Best Banks for Business Checking at a Glance
Get Some Extra Money in Your Account
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Chase |
Many branches and ATMs |
$300/Business Complete |
GET DETAILS | ||
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Wells Fargo |
Customized debit card |
None |
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U.S. Bank |
No fee/Silver Business |
None |
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BlueVine |
1.5% APY |
None |
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Axos Bank |
First 50 checks free |
$100 or $200 |
GET DETAILS | ||
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Lili |
Invoicing software and write-off tracker features |
None |
GET DETAILS |
The Best Business Checking Accounts for September 2022
We chose six institutions and a couple of different checking account options for each where available.
Chase Business Complete
Chase has business saving account, lending and credit card options, too. Chase offers several small-business credit cards, all with new card member bonuses, which include $750 cash back to 100,000 bonus points depending on the card.
For more details on Chase’s checking and credit card offerings, check out our full Chase Bank review.
Chase Performance Business
Wells Fargo Initiate Business
Other benefits include a customized business debit card, 24/7 fraud monitoring and mobile deposit. Wells Fargo also offers small-business lending and credit card options. The banking giant also announced it will be curbing certain fees and offering other services for qualifying customers throughout 2022.
For more details on Wells Fargo’s checking and credit card offerings, check out our full Wells Fargo review.
Wells Fargo Navigate Business
U.S. Bank Business Checking
U.S. Bank Gold Business Checking
U.S. Bank will charge you $5 for paper statements, so stick with online ones to save money and the planet. You can also access online and mobile banking, check-order discounts, get a small business Visa credit card and more.
Silver and Gold are good options for small businesses looking for free business checking accounts (as long as you stay within the limits). And in general, Chase, Wells Fargo and U.S. Bank are all good options for an LLC.
BlueVine
Customers get a BlueVine Business Debit Mastercard, access to a business line of credit, two free checkbooks, and phone and email customer support. To earn 1.5% interest on balances up to $100K, members must spend $500 per month with the BlueVine Business Debit Mastercard or receive $2,500 per month in customer payments to their account.
Axos Basic Business Checking
Axos Business Interest Checking
Axos Bank also offers savings accounts and Business CDs, but no credit cards. Other benefits: customers can pay bills with no charge through the app and get 50 free checks.
Regarding the bonus, new business owners can now earn *$200* if they incorporated after June 1, 2020. Not a new biz owner? No worries: You can still earn $100 when you open your Axos account and follow certain stipulations.
For more details on Axos Bank’s checking and credit card offerings, check out our full Axos Bank review.
Lili
Lili is FDIC-insured through Choice Financial Group up to $250,000. Lili offers two types of bank accounts — Basic and Pro — which have varying limits and capabilities (for example, Basic users can deposit $2,500 per day via mobile check per day, while Pro users can deposit up to $5K). The banking app has high ratings on both the App Store (4.7) and Google (4.5), making it a fine choice for small-biz owners who prefer to bank from their smart device.
What to Look for in a Business Checking Account
Before you peruse accounts, get a handle on your business needs and wants. For instance, do you make a lot of transactions? Do you want a business credit card ASAP? Do you prefer a big bank where you can pop into a different branch every half mile?
There are other considerations. Do you want your bank, credit union or financial institution to…
Offer free bank statements? Have an app? (a fair requirement in 2022) Offer free online banking and/or bill pay? Have in-person locations? Offer comprehensive customer service, i.e., allow you to talk to someone online and on the phone 24/7? Have integration with tools, like invoicing software? Offer multiple products, such as business credit cards, small-business loans, etc.?There are lots of banks for small businesses to choose from, but you want one that will give you the most options. And ideally, save you some money and headaches in the process.
To choose the best business checking accounts, we focused on accounts that:
Require a low minimum initial deposit ($1,000 or less — most require only $25). Offer a certain number of transactions for free. Either have no monthly service fee or make it easy to have the fee waived.We also focused on checking accounts for small and medium businesses. If you’re looking for accounts to manage a higher volume, many of the traditional institutions on our list have them, too.
An inconvenient reminder: Banking institutions can be acquired and shut down (RIP Azlo). So, it’s a good idea to keep the following business bank accounts in mind in case you find yourself suddenly needing to move your money.
Do I Really Need a Business Checking Account?
The purpose of a business checking account is to keep your business finances separate from your personal finances.
Technically, you might not need one depending on the legal structure of your business.
For example, if you’re a freelance writer who established a sole proprietorship and is starting slowly, you could use your personal checking account to get off the ground. But you’ll want to be extremely organized about keeping track of your business money for tax time. (Nothing will dampen your momentum like getting audited.)
The type of business you’re running makes a difference here. If it’s transaction-heavy — or a particular legal structure, like a limited liability company — you might need a business checking account, full stop.
But if you’re starting any kind of business, it’s probably in your best interest to open one.
Business checking accounts make it easier to track profits, expenses and deductions, and help establish your operation if you file for business credit cards or loans down the line.
What’s the Right Business Checking Account for You?
The bottom line: The best business checking account for you will depend on your business and needs.
Whether you’re just starting out or looking to level up, there are plenty of options out there, online and off. Start your search now, so your future self — and CPA, come tax time — will thank you later.
What You Need to Open a Business Checking Account
To open an account, you’ll typically need the following:
Social security number (SSN) or employee identification number (EIN) Valid driver’s license or state ID An initial depositHow easy it is to open a business checking account will depend on your business. If you’re a sole proprietor, the process might feel similar to opening a personal checking account. If you have a different legal business structure, you’ll likely have to provide additional documentation (like your articles of incorporation).
Requirements will vary from bank to bank.
Regional Business Checking Account Options
Here’s a glance at three smaller, regional options for business checking accounts. If your area isn’t listed, you can research credit unions and banks near you.
America First Credit Union
This institution has branches in Nevada and Utah. America First offers four types of business checking accounts: Basic, Premier, High-Yield and Non-Profit.
The Basic Business Checking offers 250 free monthly transactions, free online bill pay, access to money market savings, lines of credit and a Business Visa credit card.
First Horizon
This bank has branches in Tennessee, Florida, North Carolina, South Carolina, Virginia and Texas. First Horizon offers BizEssentials Checking, Plus Checking and Interest Checking accounts.
The Business Interest Checking Account has no minimum balance requirements (though you can waive the monthly maintenance fee when you keep an average of $10K in it), plus you’ll earn interest on your balance and have access to a Visa Business debit card.
Truist
If this is a new name to you, you’ll likely know the two banks that merged to form Truist: SunTrust and BB&T. Truist Bank has branches in Alabama, Arkansas, New Jersey, Ohio, Pennsylvania, Washington D.C., Indiana, Texas, Florida, Georgia, Maryland, Mississippi, Kentucky, North Carolina, South Carolina, West Virginia, Tennessee and Virginia. Truist offers three types of business checking accounts: Simple Business Checking, Dynamic Business Checking and Community Business Checking.
Simple Business Checking has no monthly fee. Each month, you’ll get 50 free transactions and you can deposit up to $2,000 in cash deposits fee-free.
Summary of Best Business Checking Accounts
Chase Bank: Best for 24/7 Customer Service and Overall Accessibility Wells Fargo: Best for Small Business Owners Just Getting Started U.S Fargo: Best for Simple, Fee-Free Banking BlueVine: Best for Fee-Free, Online-Only Banking Axos Bank: Best for Free ATM Use Lili: Best for App BankingFrequently Asked Questions (FAQs) About Business Bank Accounts
Here are some FAQs about checking accounts for your business.
Keeping your business earnings separate from your primary checking account funds is a great way to keep your books organized — ideally, you want to keep your biz earnings and related expenses in one place. This can help you during tax time, and also allow you to get a clear view of how your business is doing. And you’ll have good financial records if you want to apply for loans. An individual biz account is good branding because of checks with your business name on them.
he short answer is no, a business account is not a legal requirement for a limited liability company, or LLC. However — again — it’s a solid move to keep your business financials in one location. Whether you’re a sole proprietor, LLC or other business entity, it’s a smart move to keep your finances organized in a separate account.
Yes! You can open an account at a credit union, a brick-and-mortar, regional or online-only bank, or an other financial institution — whatever your preference, you have many options when it comes to choosing a business bank account. Don’t feel like you have to limit your search to your primary bank, either; if a different place has a better business account for your needs, you can open an account at a different bank.
The best bank for your business will depend on several factors. If you’re looking for an online-only option with perks (like APY for your checking account), Axos or BlueVine are worth looking into. However, if you like the peace of mind of walking into a physical branch in big cities across the U.S., Chase or Wells Fargo might be better options for you. Or, maybe you prefer to support a regional credit union — the options are nearly endless. Overall, it’s best to look for a bank with no fees.
Contributor Kathleen Garvin (@itskgarvin) is a personal finance writer based in St. Petersburg, Florida, and former editor and marketer at The Penny Hoarder. She owns a content-writing business and her work has appeared in U.S. News, Clark.com and Well Kept Wallet.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.