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,...
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.
Wait, 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 damper 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 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.
What You Should 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? 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.
Check out our current list of bank promotions for a chance to gain a monetary bonus when signing up for a new business checking account.
The 5 Best Business Checking Accounts for May 2021
We chose five institutions and a couple of different checking account options for each where available.
1. Chase: Best for 24/7 Customer Service and Overall Accessibility
Chase is a well-known brand with many physical branches and flexible options for business owners. It’s a good choice if you want to be able to find a chain easily and talk to someone in person. Chase also offers 24/7 support, so you can call and email them anytime of day. From personal experience, if you send them a secured online message, they typically follow up within 24 hours. To learn more, read our Chase Bank review.
Number of branches: Approximately 4,700 Number of ATMs: 16,000Here’s the lowdown on Chase Business Complete Banking and Chase Performance Business Checking.
Chase Business Complete Banking
Chase Business Complete Banking (for small businesses) at a glance:
Sign-up bonus: $300 for new customers who meet certain criteria
Minimum initial deposit: $25
Monthly service fee: $15; waived if you maintain a minimum daily balance of $2,000 or link a qualifying Chase account
Cash deposits per month: Up to $5,000 without an additional fee
Free transactions per month: 100
Other benefits:
Access to Chase online and mobile banking Get same-day deposits ?on card payments at ?no additional costChase Performance Business Checking
Chase Performance Business Checking (for medium-sized businesses) at a glance:
Sign-up bonus: None specified
Minimum initial deposit: $25
Monthly service fee: $30; waived if you maintain a minimum daily balance of $35,000 or more in qualifying accounts
Cash deposits per month: Up to $20,000 without an additional fee
Free transactions per month: 250
Other benefits:
No charge for all incoming wires and two outgoing domestic wires per statement cycleInterest-bearing option availableChase 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.
2. Wells Fargo: Best for Small Business Owners Just Getting Started
Wells Fargo is another strong choice for your business checking account needs. It has many branch locations and you can call them 24/7. Its website is also easy to navigate and lets you find answers to your questions without clicking on a ton of links. Check out our Wells Fargo Bank review for more information.
Number of branches: Approximately 7,200 Number of ATMs: Over 13,000Wells Fargo Initiate Business Checking
Initiate Business Checking (for new and small businesses) at a glance:
Sign-up bonus: None specified
Minimum initial deposit: $25
Monthly service fee: $10; waived by having a minimum daily balance of $500
Cash deposits per month: Up to $5,000 for free
Free transactions per month: 100
Other benefits:
Customized business debit card 24/7 fraud monitoring Mobile depositIf you’re just getting started with your small business and don’t expect to scale right away, Initiate Business Checking is a solid, affordable account to open.
Wells Fargo Navigate Business Checking
Navigate Business Checking (for small- to medium-sized businesses) at a glance:
Sign-up bonus: None specified
Minimum initial deposit: $25
Monthly service fee: $25; waived by having a minimum daily balance of $10,000 or an average combined business deposit balance of $15,000
Cash deposits per month: Up to $20,000 for free
Free transactions per month: 250
Other benefits:
Customized business debit card 24/7 fraud monitoring Mobile depositWells Fargo also offers small-business lending and credit card options.
3. U.S. Bank: Best for Simple, Fee-Free Banking
While primarily located in the Midwest, this chain has lots of locations across the country. That’s great news if you’re a small-business owner looking for a simple checking account.
U.S. Bank has no monthly service fees for its Silver account, so no worries about meeting certain criteria to have the fee waived. You can also go to its website and take a short quiz to determine which account would work best for your needs.
Number of branches: 3,106 Number of ATMs: 4,842U.S. Bank offers Silver, Gold, Platinum and Premium business checking accounts, and we’re going to outline the first two.
U.S. Bank Silver Business Checking
Silver Business Checking (best for newer or smaller businesses) at a glance:
Sign-up bonus: None specified
Minimum initial deposit: $100
Monthly service fee: $0
Cash deposits per month: 25 for free
Free transactions per month: 120 per statement cycle; 50 cents per excess transaction
U.S. Bank will charge you $5 for paper statements, so stick with online ones to save money and the planet.
Other benefits:
Online and mobile banking Discount on first check order Small Business Visa credit card Card payment processingU.S. Bank Gold Business Checking
Gold Business Checking (for businesses with moderate transaction levels) at a glance:
Sign-up bonus: None specified
Minimum initial deposit: $100
Monthly service fee: $20; waived by satisfying one of several criteria listed on its website
Cash deposits per month: 100 for free
Free transactions per month: 300 per statement cycle; 45 cents per excess transaction
Other benefits:
Online and mobile banking Remote check deposits Discount on first check order Small Business Visa credit card Card payment processingSilver 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.
4. BlueVine: Best for Fee-Free, Online-Only Banking
Want to open an account on your phone and manage it entirely online? Welcome to 2021… and to BlueVine.
BlueVine boasts no hidden fees and unlimited transactions. Members can pay vendors, schedule one-time and recurring payments, and earn an impressive 1.0% on their checking account balance up to $100,000. Deposits are FDIC-insured (up to $250,000) through The Bancorp Bank.
Number of branches: 0 Number of ATMs: Users can withdraw cash fee-free at over 38,000 MoneyPass® locations in the U.S.BlueVine at a glance:
Sign-up bonus: None specified
Minimum initial deposit: $0
Monthly service fee: $0
Cash deposits per month: Unlimited. You can deposit cash at close to 100,000 retail locations through a partnership with Green Dot. A $4.95 fee, per deposit, applies.
Free transactions per month: Unlimited
Other benefits:
A BlueVine Business Debit Mastercard® Access to a business line of credit Two free checkbooks Phone and email customer support
5. Axos Bank: Best for Business Interest Checking
Axos Bank is another online-only bank. In addition to business checking accounts that earn interest, customers can take advantage of surcharge-free ATMs across the U.S.
Number of branches: 0 Number of ATMs: You can use any ATM in the U.S. and you’ll be reimbursed for the feesAxos Bank offers Basic Business Checking, Business Interest Checking and Analyzed Business Checking. We’re going to look at the first two.
Axos Basic Business Checking
Basic Business Checking at a glance:
Sign-up bonus: $!00 if you incorporated after June 1, 2020
Minimum initial deposit: $1,000
Monthly service fee: $0
Cash deposits per month: Up to 60 items with remote deposit
Free transactions per month: 200; afterward, 30 cents each
Other benefits:
Pay bills with no charge through the app First set of 50 checks is free Compatible with QuickBooksAxos Business Interest Checking
Business Interest Checking at a glance:
Sign-up bonus: $100 if you incorporated after June 1, 2020
Minimum initial deposit: $100
Monthly service fee: $10; waived if there’s an average daily balance of $5,000
Cash deposits per month: Up to 60 with remote deposit
Free transactions per month: 50; afterward, 50 cents each
Other benefits:
Earn up to 0.81% APY First set of 50 checks for freeAxos Bank also offers saving accounts and Business CDs, but no credit cards.
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 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 (Value, Basic, Standard and Interest) and Business Interest Checking Account, which combines the benefits of a checking and interest-earning savings account.
The Business Interest Checking Account has no minimum balance requirements, plus you’ll earn interest on your balance and have access to a Visa Business debit card.
SunTrust, Now Truist
This bank has branches in Alabama, Arkansas, Washington, D.C., Florida, Georgia, Maryland, Mississippi, North Carolina, South Carolina, Tennessee and Virginia. SunTrust offers three types of business checking accounts: Simple Business Checking, SunTrust Primary Business Checking and SunTrust Business Advantage Plus Checking.
SunTrust Primary Business Checking has a $15 monthly fee that’s waived in the first two statement cycles and after that when you have a $1,000 minimum daily balance. Each month, you’ll get 150 free transactions and $5,000 cash processing.
What’s the Right Business Checking Account for You?
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.
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.