Choosing the right business checking account is a crucial step for a business. As the owner of a business, you want a checking account that is right for your type of business whether you are a Sole Proprietor, a small business, a large corporation, or an Entrepreneur. While convenience is a major factor for all business owners there are other features to consider when looking at business checking accounts. Do you want security? Do you want to pay no fees? Do you have business perks? These are just a few of the factors to ask when trying to find the right business checking account. In this article, we will be over the best business checking accounts.
5 Best Business Checking Accounts
Inside This Article
Chase Business Complete Checking – Best For Business
- Multiple ways to send and receive money with wire transfers, Chase QuickDeposit and Chase Online Bill Pay.
- Built-In Card acceptance using the Chase Mobile App
- Same day deposits at no additional cost
- Use QuickAccept to accept card payments anytime, anywhere in the U.S, issue refunds, and track disputes
- You can open an account online or in-person at your local branch.
- $15 monthly service fee or get the fee waived if you have a $2,000 minimum daily balance, $2,000 in purchases on your Chase Ink Business Card, $2,000 in deposits from QuickAccept or link a Chase Private Client Checking Account.
Bank NOVO – Best For Freelancers and Entrepreneurs
- Free business checking account but does require a minimum of $50 to open.
- Backed with FDIC Insurance
- Easy transfers such as Free ACH transfers, mailed checks, and incoming wires
- Apply in under 10 minutes
- No hidden fees – there are two fees with this checking account that cost $27 each Insufficient Funds Charge and Uncollected Funds Returned Fee
- Online banking
- Refunds all ATM fees
- Integrated Business Tools such as Shopify, QuickBooks, Stripe, Zapier, and Slack.
- Thousands of dollars in exclusive perks- discounts for Booking.com, QuickBooks, Stripe, Google Cloud, HubSpot, Gusto, Google Ads, GoDaddy, Salesforce Essentials, Zendesk, and more.
BlueVine Business Checking– Best Small Business Checking Account
- Unlimited transactions
- No monthly fees
- No minimum deposit
- Earn 1% on your balance up to $100,000
- No fees for non-sufficient funds
- Two free checkbooks
- Pay venders and bills by ACH, wire, or check
- Deposits are FDIC insured to at least $250,000 through The Bancorp Bank
- Sign-up in just a few minutes
Bank Of America Business Advantage Checking Account – Best For Large or Growing Businesses
- Zelle for your business
- Mobile Check Deposit
- View balances by category, get cash flow projections and monitor key transactions
- Business Debit Cards with $0 Liability Guarantee
- Business Savings Account ($10 per month)
- Easy Quickbooks Integration
- Ability to grant and customize account access levels per employee
- No fees for incoming wires, stop payments, electronic deposits, and more
- $29.95 per month but can be waived when you have a $15,000 combined average monthly balance or become a member of Preferred Rewards for Business.
- A dedicated business specialist will listen to your needs and provide guidance when you need it.
- Use a second checking account to set aside taxes, separate funds by location or cap discretionary spending.
Axos Business Interest Checking – Best Online Business Checking
- Earn .81% Annual Percentage Yield (APY)
- $100 minimum opening deposit
- No monthly maintenance fee when you have a $5,000 average daily balance
- Unlimited ATM fee reimbursements
- Up to 50 free items per month
- Up to 60 items per month for Remote Deposit Anywhere
Security Service Federal Credit Union Business Checking Account – Best For Business Perks
- 24/7 telehealth services where you can connect with a doctor or mental health professional at no cost.
- Data Breach Protection & Recovery
- Mobile Phone Coverage for any accidental damage, mechanical failure or theft up to $500.
- Nationwide Network of Attorneys for free or discounted services for your business for collection letters, operation agreements, and lease agreements.
- Personal ID Theft Recovery Service
- High Interest on Your Balance
- $20 a month maintenance fee for accounts that don’t keep an average balance of at least $50,000
- You can join Security Service Federal Credit Union by living, working, attending school, volunteering, or having a business in Colorado Texas, or Utah. You can also join by being a military member of select branches, Department of Defense employees a certain basis or you have family members that are existing members.
Does My Business Need A Checking Account?
While it is not a requireent for all businesses to have a business checking account it is recommended by the IRS that business owners should have seprate bank accounts. As a business owner you will need to keep track of payments coming in, business expenses, payroll or so much more. From a tax perspective, it is easiest to open a business checking account to keep everything related to you business in one place.
If you are a sole proprietor and running a business on your own with no employees you could just use your personal checking account but it is best to have a separate place for all your transaction.
Do Banks Check Credit When Opening A Checking Account?
No, banks will not check your credit score when you open a checking account. You will just need to provide a few documents about yourself and your business in order to open a business checking account.
If you are wanting to apply for a business credit card after opening your business checking account then yes they check your credit score. If you are a new business the bank will check your personal credit score to determine your creditworthiness for the business credit card. You do not need to apply for a business credit card right away but it is very beneficial to you and your business if you do open a business credit card. If your credit score is bad, you will have time to fix your credit before you apply.
You will want to start building business credit so you can separate your business credit from your personal credit. You will want business credit as it won’t impact your personal credit score, and you can get approved for higher credit limits and better business benefits such as business lines of credit from merchants.
Can You Be Denied For A Business Checking Account?
Yes, it is possible to be denied for a business checking account for 2 reasons. The first reason you could be denied is for not supplying the correct paperwork in order to open a business checking account such as your business name, driver’s license, LLC, EIN or more. Make sure you know the paperwork that is needed before you apply for a business checking account as each bank will have different requirements.
The second way you could be denied for a business checking account is if the bank questions your banking history and savings account through the ChexSystems report. If you have any history of negative banking information such as overdrafts, or bounced checks you could be denied for a business checking account.
Related: Banks Who Don’t Use ChexSystems
What Do I Need To Open A Business Checking Account?
There is a short checklist you need in order to open a business account. When you are ready to open a business checking account you will need:
- Two forms of personal identification (Driver’s License, Passport, Social Security, Military Card, etc)
- Tax Identification Numbers such as your Social Security Number (Sole Properietorship), Individual Taxpayer Identification Number or Employer Identification Number (EIN)
- Business Documentation – You will need your Articles of Corporations or Articles of Organization for LLCs. This will vary depending on your state requirements.
- Do Business As (DBA) documents if you are doing business under a name that is not your own.
Do You Need An LLC To Open A Business Checking Account?
No, you do not need to have an established LLC to open a business bank account. You can open a business checking account as a sole proprietor and use your Social Security Number. Having a separate business account from your personal account is the best practice so you can track income, expenses for IRS filing purposes.
If you aren’t sure if you should operate your business as an LLC, Corporation or Sole Proprietor consult an account to see which is best for your business and needs for tax purposes.
Which Bank Has The Best Business Checking Account?
The best business checking account will depend on what your business is, and what features are most important to you. If you are a small business BlueVine is the best, if you are a large business Bank Of America is the best, if you are a freelancer or in Ecommerce Bank NOVO is the best, if you like convenience Chase Business Checking is the best. To find the bank account that works best for your type of business and view all the features and fees to see which one is the best fit for you.
Do Business Checking Accounts Charge Fees?
Yes, some business checking accounts charge fees. Most banks that charge fees give you ways to waive the fees. For example, Chase Business Complete Checking has a $15 monthly service fee but if you have a $2,000 minimum daily balance or spend $2,000 in purchases on your Chase Ink Business Card or $2,000 in deposits from QuickAccept Chase merchants or Link a chase Private Client Checking account the fee will be waived.
What Banks Offer Free Business Checking Accounts?
There are many business checking accounts that are free. BlueVine offers a free business checking account. Bluevine is great for small businesses. Other banks that offer free checking accounts include Ally Business checking, Capital One business checking, and Discover Bank.
Can I Open A Business Checking Account At A Credit Union?
Yes, there are several business checking accounts that you can open with a credit union. For instance, Security Service Federal Credit Union has a great business checking account that you can open. This business checking account has some great business perks such as 24/7 telehealth services, Nationwide Network of Attorneys, and high interest in your business. Other popular credit unions are Vystar Credit Union and Bethpage Federal Credit Union. Be sure to check in your local area for small credit unions that offer business checking accounts.
What You Should Look For In A Business Checking Account
If you are looking to open a business checking account, you want to know what to look for before you apply so you can find the best checking account for your needs. These are some of the things you need to look for:
- Does It Have any Minimum Requirements? Some banks will requirement minimum deposits when you open a new business account. There will also be some banks that require a daily minimum balance you will need to have in your business account to waive the monthly fee. Make sure these are fees that you can afford.
- Are There Fees? Most banks have fees to use their checking accounts these fees could include monthly maintenance fees, ATM fees, check fees, or transaction fees. Always look to see what the fees are before you apply.
- Do They Offer Interest Checking Accounts? Some banks will offer interest checking accounts so you can make money by having money in your checking account. Most banks won’t offer this but some do.
- Is It Insured With FDIC? Check to make sure the checking account you would like to apply for is insured with FDIC of up to $250,000 in insurance to protect your account from bank failure.
- What Are The Limits? Business checking accounts might have transaction limits, cash deposit limits or ATM withdrawal limits.
- What Is Their Customer Service Like? Does the business bank have good customer service? Either call the bank or walk into a branch to see if they can meet with you and answer all of your questions about business checking.
- Can They Handle The Growth Of Your Business? Most business checking accounts cater to small businesses as you are just starting out, but you want to look and see if they could handle your business if you grow into a larger business.
In conclusion, opening a business checking account is the best business practice for keeping all of your income and expenses in one place. Find the business checking account that fits the needs and wants of your business. There are free business checking accounts you can open and credit union will also offer special features for business checking accounts. Banks will not check your credit score for opening a business checking account but they will check your credit score if you want to apply for a business credit card.
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