August 8, 2022

Best Places to Open Business Checking Account Online

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Opening a business checking account is easy. It just takes a few minutes. But which bank is best for you? Read the full review.

You don't need much to open a business checking account online.

The best business bank accounts let you open an account from home in just a few minutes.

Plus, you won't be limited to your local bank. You'll have your pick of banks across the nation. But which one is the easiest to open? What are the fees like? And are there any restrictions?

Read on for everything you need to know.

Can I Open a Business Checking Account Online?

Many banks let you open a business bank account entirely online. The process is fast, secure, and takes just a few minutes.

However, each bank has its own requirements, fees, and rates. Some brick-and-mortar banks may require the owner(s) to be present in person.

To qualify for a business checking account, you just need to:

  • Have a small business
  • Be at least 18 years old
  • Be a U.S. citizen or permanent resident

If you qualify, then you can open your business checking account. Although you will need to choose the best bank.

Can I open a business checking account for free?
A lot of banks let you open a business checking account with a $0 minimum deposit. Many accounts even have no monthly fee. Read more on how to open a free business bank account.

How to Open a Business Checking Account Online

You can apply and submit your documents on the bank's website. Here's a step-by-step guide to opening a business account online.

1. Gather your documents

You will need the following information:

  • SSN or EIN
  • Official ID (driver's license, state ID, or passport)
  • Business license (if your state requires)
  • Proof of address
  • U.S. phone number
  • U.S. address

Depending on the entity of your business, you'll likely need to provide documents to prove that your business has been registered with your state. These include:

  • Sole proprietors: DBA certificate
  • LLCs: LLC agreement and Articles of Organization
  • Partnerships: Partnership Agreement and Certificate of Partnership
  • Corporations: Corporate Bylaws and Articles of Incorporation

What type of business do you have?

2. Fill out application online

From the bank's website, find the "get started" button to start the application. It will take you through some basic questions about you and your business. You may also need to provide:

  • Company name
  • Industry
  • Years in business
  • Approximate annual revenue

If your business has multiple owners, you may need to provide personal information for the other members as well.

Tip: If you're a sole proprietor or freelancer, you can just use your own name. But if you have a DBA, you will also provide your DBA name.

3. Sign and submit application

After entering your information and uploading documents, the last step is to sign the application electronically and submit it.

If everything is in order, you could be approved in just minutes.

As soon as you're approved, you can create a login and get access to your account. But you'll have to wait a few days to get your debit card.

4. Fund your new account

Once your new business checking account is open, you need to fund it. Depending on the bank, it may have a minimum opening deposit to officially activate the account.

The easiest way is to link an external bank account and transfer funds electronically. It'll take a few days for the transfer to clear.

Top Business Checking Accounts You Can Open Online

Here are the best business checking accounts that let you open an account online. Whether you're looking for a traditional bank or an online-only bank, you'll find both below.

Bluevine: Best Interest Rate

Bluevine is a popular online business checking account with a high interest rate. Even though it's digital-only, it offers well-balanced features similar to a traditional bank.

You can deposit cash at over 90,000+ Green Dot locations. Plus, you get 2 free checkbooks, which is rare for business banks.

Bank of America: Best Big-Bank Option

Bank of America is a great choice if you're looking for a large national bank with lots of branches. We like it because the basic business checking account has very easy requirements to waive the monthly fee.

It also has one of the most highly-rated mobile apps. You can connect your account to lots of business apps, so you can see all your metrics in one place.

Chase Bank: Best for Chase Customers

Chase is one of the biggest banks in the U.S. It offers a unique Chase Business Complete Banking account that has built-in credit card processing. So it's a great choice for small retailers and food services.

However, it has slightly higher requirements to waive the monthly service fee.

LendingClub: Best for Cashback Rewards

LendingClub offers unlimited 1% cashback on debit card purchases. However, you need a $500 average balance to get this perk and waive the monthly service fee.

Note that LendingClub requires a website or social media presence to qualify for an account.

Axos Bank: Best for Free Basic Checking

Axos Bank offers two business checking accounts. There's a free basic account with no monthly service fee. It also has an interest-bearing account with a competitive APY.

You get unlimited domestic ATM fee rebates. And you can deposit cash via MoneyPass and Allpoint ATMs.

Novo: Best for Tech-Savvy Businesses

Novo is one of the most innovative digital business banks. It has no fees or minimums and integrates with thousands of business apps so you can have everything in one place.

But cash deposits are not supported, so it's best for online-only businesses.

Traditional vs. Online Banks

Depending on your type of business, a traditional brick-and-mortar bank or an online-only bank may be better for you.

But there are some pros and cons of each:

  • Traditional banks give you the option to do banking or get help in-person. They tend to offer more products and services. But they usually have more fees.

    You also have the chance to build a personal relationship with your banker. That could help you obtain more resources or get better loan rates in the future.

  • Online banks typically have fewer fees and requirements. A lot are even free with no monthly service fees. They also may offer better interest rates, rewards, and digital tools.

    But a downside is that it's harder to deposit cash. So they're best for businesses that don't deal in cash.

Where do you prefer to bank?

How to Choose the Right Business Checking Account

Here are some factors to consider when choosing the best bank for your needs:

Monthly fee
New or small businesses may want to choose a bank account with no monthly fees. This way, you don't need to worry about maintaining a minimum balance.

Some business checking accounts have a monthly fee. But don't rule them out if you like the features and can meet the minimum balance requirements.

ATM access
If you need to withdraw cash, make sure there are convenient ATM locations. A lot of online banks use nationwide ATM networks like Allpoint and MoneyPass.

Cash deposits
Do you need to deposit cash? Be careful because not all online bank accounts support cash deposits. Some, like Bluevine, let you deposit cash at GreenDot (with a fee).

If your business deals heavily with cash, consider if a physical bank may best fit your needs.

Features
Besides standard features like mobile check deposits and bill pay, each bank may have its own unique features. This could be things like QuickBooks integration, free wires, built-in card processing, or cashback rewards.

Think about which features are must-haves for your business.

Room to grow
As your business grows, your bank should grow with you. If you start with a basic account, see if the bank also offers higher-tier business accounts with more transactions, features, or rewards.

FAQ

Which bank is easy to open a business account?
Generally, online business banks are the easiest to open an account. For example, Novo even has no credit check, so it's a great choice if you have no credit or less-than-stellar personal credit.

Do I need an EIN to open a business bank account?
Sole proprietors do not need an EIN. You can use your SSN to open a business checking account. However, LLCs, corporations, and partnerships need an EIN to apply.

Do I need to be an LLC to get a business bank account?
No, you can open a business checking account if you're a sole proprietor, or even freelancer or gig worker. Each bank has its own rules, so be sure to check eligibility before you apply.

Many modern digital banks are more friendly towards non-traditional business owners.

How long does it take to open a business account online?
Opening an account online is easy and fast. If you have all your documents in order, it could just take a few minutes to get your account approved and running.

What credit do I need?
In general, as long as you don't have poor credit, you can be approved for a business checking account. However, what's more important is your ChexSystems reports. If you have negative marks on that report, you could be denied.

Bottom Line

Opening a business checking account online is fast and convenient. To avoid any problems, have all your documents ready before applying. The actual application takes only a few minutes to fill out.

As always, go over your options carefully before choosing a bank. Make sure you understand all the terms and fees.

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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Chase
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Expires 10/19/2022
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Best Business Checking Account

Cut banking costs and keep more money in your business. Here are the best business checking accounts (#1 is free).
What type of business do you have?
24% Sole proprietorship
2% Partnership
56% Limited liability company (LLC)
18% Corporation
Source: CreditDonkey
Where do you prefer to bank?
53% Credit union
13% Online bank
33% Traditional bank
Source: CreditDonkey. Totals may not add to 100% due to rounding.
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