Since you will be managing both your personal and your business checking accounts, it’s important to know their similarities and differences. While the accounts are similar, they may operate under different rules, fees and assumptions. With a business checking account, you likely will be handling a wider variety of transactions and the quality of your record-keeping matters more. Whether you are a sole proprietor or a business owner with employees, your business needs a business checking account. For tax purposes, it’s important to separate your personal finances from your business finances right from the start.
Best for Cash Back
They’re established under a business’s legal name, so business finances stay separate from the personal finances of the owner or owners. Business bank accounts with lower and fewer fees, wider accessibility, better digital and customer experience scores and lower minimum deposit and balance requirements were ranked higher. In addition to being packed with valuable perks, this account regularly offers one of the best business bank account bonuses, so you can potentially earn a cash bonus just for opening a new account. Welcome bonus offers run for a limited time, and you must meet certain balance and activity requirements to qualify.
In other words, freelancers, independent contractors and those with side gigs are welcome. A business checking account can be an important tool for building a financially healthy company. In the Nav Business Banking compare and contrast job order costing and process costing Survey, “managing finances” was the top answer (24%) to the question, “What’s the hardest part of running your business that you didn’t expect?
You can find many different types of financial institutions for your small business banking needs. The type of institution you choose will influence the services they offer and how you use them. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products.
Novo Business Checking offers free transfers, mailed checks and incoming wires and ATM fees are refunded up to $7 per month. The account integrates with other small business tools including Stripe, Shopify and QuickBooks. The $50 monthly account maintenance fee can be waived by maintaining a $30,000 average monthly collected balance between the primary and all beneficiary business checking accounts.
Alternatives to Small Business Bank Accounts
Forbright also reverses any out-of-network ATM fees within one business day. There is no monthly maintenance fee for the account, and the minimum opening deposit is only $250. The only other potential fees you might run into are standard fees like wire transfers, overdraft fees, and more. Lili empowers business owners by combining business banking, accounting, invoicing, and tax preparation in one platform. For business owners, centralizing all aspects of their business finances streamlines their business operations and provides clarity about their financial position.
- The best banks for small businesses not only offer essential banking services but also combine them with low fees and exceptional customer support to truly cater to the needs of entrepreneurs.
- Robin Hartill, CFP®, is Motley Fool Money’s Head of Product Ratings and has worked for The Motley Fool since 2020.
- Miller notes that because the minimum balance to open a savings account is generally low, it makes sense for a business to have one.
- They’re established under a business’s legal name, so business finances stay separate from the personal finances of the owner or owners.
- But different business bank accounts come with different features and restrictions, making some better for certain businesses than others.
Best Business Bank Accounts Of 2024
ATM withdrawals are free at any TD Bank location, with around 2,600 available in the U.S. (primarily on the East Coast). TD Bank operates in 16 states on the eastern side of the country, so businesses outside the bank’s service area are out of luck. You’ll also get unlimited domestic ATM fee reimbursements, up to 60 fee-free remote deposits each month, and two outgoing domestic wire fee reimbursements each month. We like the Wells Fargo Business Market Rate Savings account because you can make up to 20 deposits, $5,000 in cash, free each statement period. Around one-third of small businesses use fintechs and online lenders for borrowing.
However, credit score alone does not guarantee or imply approval for any credit card, financing, or service offer. For complete information, see the terms and conditions on the credit card, financing and service issuer’s website. In most cases, once you click “apply now”, you will be redirected to the issuer’s website where you may review the terms and conditions of the product before proceeding. If your goal is to minimize costs, you’ll want to read the fee disclosures carefully and consider how various fees may impact your business. Not every business needs free business checking, but when you’re starting out you’ll want to watch costs carefully.
Another popular option is virtual cards that provide a unique account number you can use for online shopping, subscriptions etc. Whether you’re using a regular business debit card or a virtual card, it’s helpful to be able to set spending limits, or to be able to freeze or close the virtual card if you believe it has been compromised. These features provide an additional layer of protection when shopping online.