Updated May 15, 2022

Best Business Checking Account

By Anna G
Read more about Best Bank for Small Business
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Cut banking costs and keep more money in your business. Here are the best business checking accounts (#1 is free).

Running a business is hard work. You need to focus on your products and services. Don't let banking add to your stress.

Managing your finances can be a full-time job in itself. Between bookkeeping, tracking expenses, paying vendors, and more, it's easy to get overwhelmed.

That's why it's important to use the best business checking account for your needs. Read on to find the perfect bank for your business.

Business Checking Accounts for July 2022

  1. Chase Business Complete Banking: Checking + Card Processing
  2. Bluevine Business Checking: High Interest Checking
  3. Novo Business Banking: Digital Integrations
  4. LendingClub Tailored Checking: Cashback Rewards
  5. Bank of America Business Advantage Banking: Low Requirements
  6. Axos Basic Business Checking: Free with No Service Fee
  7. NorthOne Business Banking: Ease of Use
  8. U.S. Bank Silver Business Checking: Free Account from Physical Bank
  9. Wells Fargo Initiate Business Checking: Comprehensive Services
  10. Lili: Personal + Business Banking for Freelancers

Types of Business Checking Accounts

First, you'll need to decide what kind of bank you want to use for your small business. There are three main types:

  • National Bank: These are the big banks with a lot of branches and ATMs throughout the country. They're more convenient and usually offer more services and products. This could be a good choice for more established businesses.

  • Local Bank: Small local businesses may benefit more from a local bank or credit union. A smaller bank is more likely to work with your needs and take a greater interest in helping local businesses grow.

  • Online Bank: This option is good for purely online businesses, freelancers, or small side hustles. Online banks often have fewer fees and requirements. The application process is usually faster as well.

Our list mostly focuses on the bigger traditional banks and online banks, since those are available to everyone. But it's wise to look into community banks in your area, also.

What kind of bank do you want to use for your small business?

10 Best Business Checking Accounts

Many small businesses are not using the best bank for their needs, which can lead to wasted time and money.

Here are the best business checking accounts for different kinds of businesses. Whether you're looking for a free account, rewards, or high tech features, we have something for everyone.

1. Chase Business Complete Banking

Best for: Convenient checking with built-in credit card processing.

Chase's Business Complete Banking is a great choice for small mobile businesses, retailers, and foodservices.

This account has credit card payment processing integrated into the checking account. You don't need to go through the hassle of opening a separate merchant services account.

The Chase QuickAccept card reader lets you accept credit card payments on your phone. And the best part is that when you use QuickAccept, you get same-day deposits into your checking account. This really helps to keep the cash flow moving for small businesses.

Chase is one of the largest banks in the U.S. with over 4,700 branches and 16,000 ATMs. So it's also good if you're looking for convenience.

You can waive the $15 monthly service fee with one of the following:
  • Maintaining $2,000 minimum daily balance, OR
  • Making $2,000 in purchases on a Chase Ink Business card, OR
  • Receiving $2,000 in deposits from QuickAccept and/or other eligible Chase Merchant Services transactions

2. Bluevine Business Checking

Best for: Potential to earn high interest rate on balances up to $100k.

Bluevine has a popular online business checking account with no monthly service fee, unlimited transactions, and a high APY.

Even though it's a purely online banking platform, it has a lot of features that makes it good for even small traditional businesses. You 2 free checkbooks, which is great if you pay employees or suppliers with paper checks.

You can also deposit cash at over 90,000 Green Dot locations. A lot of online business accounts don't support cash deposits, so it's nice that Bluevine lets you do so. However, Green Dot does charge a $4.95 fee, so it's best if you don't regularly deal in cash.

You can also create up to 2 free subaccounts with their own unique account numbers. This makes it easier to pay vendors and payroll out of dedicated accounts. What's even better - you can earn interest on all 3 accounts (on up to $100k combined).

Bluevine Business Checking is partnered with Coastal Community Bank for FDIC insurance. Bluevine also offers small business lines of credit up to $250,000.

3. Novo Business Banking

Best for: Entrepreneurs who use a lot of business software.

Novo stands out from other banks because of their tech tools. It lets you integrate your business checking with thousands of popular business apps (like Square, Stripe, QuickBooks, Xero, Zapier, Slack, and many more).

You can create a customized banking experience and manage your entire business life in one place. No more need to chase down different platforms.

Another cool perk is Novo's rewards program. It offers hundreds in savings from popular business services (for example $3,000 in Google Cloud credits). If you use these services, they can be even more valuable than getting interest or cashback.

You can also create up to 5 Reserves. That lets you better organize your finances and set aside funds for things like taxes, payroll, and upcoming purchases.

The only downside is that you can't deposit cash. You also don't get checkbooks, but you can request for mailed checks to be sent on your behalf for free.

Novo does not do a credit check. That also makes it a good option if you don't have great personal credit (or no credit).

4. LendingClub Tailored Checking

Best for: Cash back rewards for accounts with at least $5,000.

If you can keep a $5,000 balance, the LendingClub Tailored Checking business account offers some great perks for small business owners.

You earn unlimited 1% cash back on all debit card purchases if you maintain a monthly average balance of at least $5,000. In addition, balances $5k and more will earn interest.

LendingClub offers free ATM access worldwide. It even reimburses ATM fees charged by other banks. You can also make cash deposits at MoneyPass and NYCE shared deposit ATMs.

Note that you must have a website or social media presence to apply. Once you have opened an account, you have the option to open more accounts if you need.

5. Bank of America Business Advantage Banking

Best for: Convenient locations and low requirements to waive the monthly fee.

With more than 5,000 branches, Bank of America is another solid option if you're looking for a reputable national bank.

The basic Business Advantage Fundamentals Banking account lets you easily waive the monthly fee by spending just $250 a month on your debit card.[1] This makes it a good choice for even tiny micro businesses who may have trouble keeping a minimum balance.

As your business grows, you can upgrade to the Relationship account. This gives you more transactions per month plus customized employee access. And if your business needs fluctuate, you can switch between the two tiers at any time.

What really makes Bank of America stands out from the other big banks is their digital tools. The business checking account integrates with apps like QuickBooks, Google Analytics, Expensify, and more. You get real-time metrics and cash flow projections, so you can make the right decisions for your business.

6. Axos Business Checking

Best for: Free basic business checking; free ATM access

Axos Bank (previously Bank of Internet USA) offers a couple of different business checking accounts for different needs.

The Basic Business Checking account has no minimum balance requirements and no monthly fees. You get unlimited transactions. It's a great basic checking account that even comes with some perks, like the first set of 50 checks free and 2 reimbursed domestic wire transfers per month.

The other option is the Interest Checking account with a competitive annual percentage yield. In exchange for earning interest, this account only gives you 100 free transactions a month.

Axos doesn't have its own ATM network, but you get unlimited domestic ATM fee reimbursements. You can also deposit money at thousands of cash-taking MoneyPass and AllPoint ATMs (surcharge fee!).

7. NorthOne Business Banking

Best for: Well-rounded banking features to help you manage business finances.

NorthOne offers an all-in-one banking solution for busy small business owners. Even though it has a $10 monthly fee[2], it has a lot of built-in features that can save you time and stress.

We like the ability to create unlimited "envelopes." These are like savings accounts to budget for things like taxes, payroll, upcoming business trips, etc. You can set rules to automatically send a part of every payment to your envelopes, so you can save for them all year long without thinking.

Plus, you get access to a free invoice maker, multiple debit cards, cash deposits at Green Dot, and integrations with business apps like Square, Stripe, Amazon, Etsy, Lyft, and many more.

Even though it's purely online banking, it really focuses on personal customer service. If you ever need help, you can live chat with someone in just minutes. Or you can schedule a call-back to speak with an expert.

8. U.S. Bank Silver Business Checking

Best for: Free account from a national physical bank.

Traditional brick-and-mortar banks usually don't offer free business checking accounts. But the U.S. Bank's Silver Business Checking Package has no monthly maintenance fees. It's a great free option if you want in-person banking and human support.

Keep in mind, you only get 125 free transactions and 25 free cash deposit units each month. So it's ideal for very small businesses or side hustles with less banking activity.

U.S. Bank has a large branch network of over 3,000 physical branches across the nation. You get fee-free access to any U.S. Bank or over 37,000 MoneyPass ATMs.

9. Wells Fargo Initiate Business Checking

Best for: Offers comprehensive services for growing businesses.

Wells Fargo is one of the "big four" banks in the nation with over 5,000 branches and 13,000 ATMs across the country.

The Wells Fargo Initiate Business Checking account is designed with growing small businesses in mind. There is a monthly service fee, but it's easy to waive it.

The $10 monthly maintenance fee can be waived by:[3]
  • Maintaining a $500 minimum daily balance, OR
  • Maintaining a $1,000 average ledger balance

Wells Fargo offers a wide range of other business solutions including loans, lines of credit, payroll, employee benefits, and business insurance.

It could be a good choice if you want everything under one roof. Or if you have your personal account with them and want to stay with the same bank.

10. Lili Business Checking

Best for: Freelancers who don't want a separate bank account for business.

Lili is a mixed-use business and personal checking account created just for freelancers.

Sole proprietors and freelancers aren't required to have a dedicated business checking account. You may find it easier to just have your personal and business banking together.

You can easily sort transactions as "personal" or "business" via a Tinder-like swipe feature. This lets you readily see all your business expenses so you don't miss any tax deductions. Lili will even generate free expenses reports for you.

Another cool feature is the Tax Bucket. You can automatically save for your quarterly estimated tax payments by transferring a percentage of every payment. This way, taxes won't feel like such a big burden each time.

Personal Checking Account vs. Business Checking Account

A business checking account is for managing all business-related income and expenses. A personal checking account is for managing your day-to-day finances outside of your business.

Here are some main differences between personal and business bank accounts:

Personal AccountsBusiness Accounts
Monthly feesCan find accounts with no monthly fees or very low balance requirementsUsually have higher monthly fees and balance requirements (though you can find free accounts)
Account openingSimple and fastRequire more paperwork to prove your business
Debit cards1 debit card, unless you open a joint accountSome accounts let you get employee debit cards
TransactionsUnlimited deposits and withdrawalsSome accounts have a limited number of free transactions per month
IntegrationsUsually noneSome accounts let you integrate with accounting software and other business tools

Why Open a Business Checking Account

It's important to have a separate business bank account from your personal finances. Here are some good reasons:

  • Protect personal assets
    Your business structure may protect from personal liability if your business gets sued. You may lose that protection if your personal and business finances are muddled.

  • Simplify tax time
    You already have all your business expenses in one place, so you can see your deductions easily.

  • Track business cash flow
    You'll know your business's exact financial situation, which will allow you to make smarter decisions.

  • Establish credibility
    Whether you're paying suppliers, receiving payments, or applying for a loan, having a dedicated business checking account will make you look professional.

  • Unique business features
    Many business checking accounts come with features like invoicing, employee debit cards, and integrations with small business tools.

What to Look for in a Business Checking Account

With a business checking account, there are different considerations than when choosing a personal account. Here are some things to think about:

  • Type/size of bank
    This is the first thing to decide. Do you want the convenience of a large national bank? Or the personalized service of a local bank or credit union? If you're fine with only online and mobile banking, there are tons of great online business checking accounts.

  • Fees and minimum balance requirements
    Some banks have a minimum balance requirement to waive the monthly maintenance fees. Can your business comfortably meet that requirement? For new businesses with unstable cash flow, it's best to choose a free business checking account.

    Read more: Best Banks with Free Checking and No Minimum Balance

  • Transactions limits
    Business checking accounts usually only give you a certain number of free transactions per month. This includes debit card purchases, ACH transfers, deposits and withdrawals, and payments. Think about what your business needs. Some online banks give you unlimited free transactions.

  • Cash deposit limits
    Does your business take cash payments? Note how much the account allows in free cash deposits per month. Keep in mind that a lot of online banks cannot accept cash deposits.

  • Software integration
    If your small business uses accounting tools like QuickBooks or other alternatives, see if the checking account can integrate with it. This matters because it could make your life easier.

  • Additional banking services
    Look at the additional features the bank offers. If you think you may want a loan or employee programs in the future, see if the bank provides these services. Looking into options now could prevent the hassle of having to switch banks in the future.

    This is when it helps for small local businesses to work with a local bank. When you develop a relationship with your banker, they're more likely to approve you for loans or services to help your business grow.

  • Customer support
    Will you be able to get help from a real person when you have a problem? If you prefer a physical bank, it's a good idea to visit your local branch and get a feel for how friendly the people are. If you're thinking about an online bank, test out their customer response time.

How to Open a Business Checking Account

To open a small business checking account, you will need the following information and documents:

  • Employer identification number or Social Security number (for sole proprietors)
  • Partnership agreement (for partnerships)
  • Articles of organization (for LLCs)
  • Articles of incorporation (for corporations)
  • Business license
  • Business tax ID
  • Name, address, and state of your business and business owners

Sole proprietors are usually allowed to apply for a business account online.

Many online banks also let LLCs, partnerships, and corporations apply online. But if you're looking at a brick and mortar bank, it may require you and any partners to sit down with a banker in person.

FAQs

Can you use a business bank account for personal finances?
You can but it's not a good idea to comingle personal and business finances. You can't deduct your personal expenses. So it's best to only use your business checking account for business-related activities for easier bookkeeping.

Do I need a separate business bank account for my DBA?
If you have a DBA, you don't legally need a separate business checking account. As a DBA, you're personally responsible for business legal claims. But still, it's smart to keep your business finances separate to make your own life easier during tax season.

Do I need a separate business bank account for my LLC?
LLCs are legally required to have a separate business bank account. LLCs members are separate entities from the business, so you are legally required to separate company finances. This way, you're not personally liable for business debts or legal issues.

Related: Best Business Bank Accounts for LLCs

Do I need an EIN to open a business checking account?
If you're a sole proprietor or single-member LLC, you don't need an EIN. You can open a business checking account with just your SSN. But LLCs, corporations, and partnerships need an EIN to apply.

Can I open a business checking account at a credit union?
A lot of credit unions offer business checking accounts. If you're a local business, a local credit union may appeal to you more. They often have a greater interest in helping small businesses in the community grow.

Does a business checking account build business credit?
A business checking account alone doesn't help you build business credit. But lenders may look at your banking history when applying for credit.

And plus, when you have a business checking account, you can set up trade credit with your vendors and suppliers. If the vendor reports your payments to business credit bureaus, that will help you build credit.

How We Came Up with the Best Business Checking Accounts

We came up with this list of the best business checking accounts by looking at several factors:

  • Nationwide accessibility
  • Reasonable minimum balance requirements (if any)
  • Account fees
  • Unique banking features
  • Perks and bonuses
  • Customer support

We also considered the different types of businesses, such as small retailers, online-only businesses, freelancers, and larger growing companies. We finally narrowed down our top checking accounts to include options for all types of needs.

Bottom Line

No matter what kind of business you have - whether it's an ice cream stand, small e-commerce shop, or side hustle - it's essential to get a separate business checking account. Make sure to think about your business banking needs. The right checking account can help you better manage business finances and grow your business.

Carefully read the terms and conditions of your business checking account. Note any fees or balance requirements and see if they make sense for your business.

References

  1. ^ Bank of America Business Advantage Banking, Retrieved 1/4/2022
  2. ^ NorthOne Pricing, Retrieved 5/12/2022
  3. ^ Wells Fargo Initiate Business Checking Fees, Retrieved 1/4/2022

Write to Anna G at feedback@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.

Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.

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Best Bank for Small Business

Tips for Business
The right bank account can make or break your business. Narrow down your options and find the best business bank account with this guide.
What kind of bank do you want to use for your small business?
27% National bank
32% Local bank
42% Online bank
Source: CreditDonkey. Totals may not add to 100% due to rounding.
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