Having a suitable small business bank account is important, regardless of how long you’ve been in business. Every professional endeavor, no matter how small, needs one. It is critical to your company’s financial operations since it accepts consumer deposits and pays your staff and vendors. For accurate bookkeeping, tax filing, and other legal requirements, a small business bank account can also be important. Furthermore, we will examine the best business bank accounts for LLCs, sole proprietorships, and startups.
Best Business Bank Accounts
Depending on the size, needs, and stage of growth of the organization, a business bank account can fulfill a variety of purposes. Frequently, the initial step is opening a business checking account. Most businesses continue to expand from there, creating a variety of business banking accounts to take advantage of interest, save for the future, connect to a merchant account, or connect to a small business loan.
We put together a list of the best bank accounts for small businesses based on their benefits (no fees, making interest, cash deposits) and preferences (banking in person or online). We also explain when and how to utilize which business accounts and how to pick the ideal one for your business to use.
#1. Chase
Chase Bank provides many types of business accounts based on the size of your endeavor, as well as incentives for joining up. For example, when you open a new Chase Complete Checking account and deposit $2,000 within 30 working days, you can get a $300 bonus. The account holder must make five qualifying purchases within 90 days and hold onto the $2,000 balance for 60 days. You can also get a $500 bonus if you put $15,000 into your account within 30 business days of starting it. Chase has credit cards with good perks and a large network of branches.
#2. Axos Bank
Since its founding in 2000, Axos Bank has been exclusively online. It has grown to be a public firm worth more than $18.4 billion. According to the company, its Basic Business Checking account is ideal “for the busy business owner with modest checking needs.” With this account, you can get unlimited reimbursement of your in-country ATM fees at no additional cost.
#3. U.S. Bank
U.S. Bank specializes in small business customers. The Silver Business Checking Package offers no monthly fees and a transaction limit of 125, which is sufficient for many small firms.
#4. Wells Fargo
The best account for depositing cash is the Wells Fargo Navigate Business Bank account because the first 250 activities and $20,000 in cash deposits per month are free.
The bank has a large network of offices and ATMs, as well as a strong website and mobile app. This makes banking easy and safe, and most business services don’t cost extra.
Best Business Bank Accounts for LLCs
LLC owners have different financial demands than freelancers and sole proprietors.
A separate business bank account is required by law for limited liability companies. This is done so that the LLC and the people who own it stay separate. LLC owners have different banking needs than workers and people who run their own businesses. Separate business bank accounts are required by law for LLCs. This is done so that the LLC and the people who own it stay separate. The best business bank accounts for LLCs offer beneficial business incentives and low costs to aid in your expansion. The top business bank accounts for all kinds of LLCs are detailed below.
#1. Lili: Best for One-Person LLCs
Lili is among the best business bank accounts for simple LLCs with only one person. It’s a place where you can do all of your banking, accounting, and taxes in one place. Lili was first made for people who worked for themselves. But now LLCs can join as well. As an LLC, you must keep your personal and work money separate. Lili allows you to keep both on the same account. You can keep your money separate in the app, though.
#2. Bluevine: Best Online
One of the best online bank accounts for businesses is Bluevine. It’s really noticeable because the interest rate is so high. Customers who meet monthly standards get a 2.0% APY on balances up to $250,000. And since there are no monthly fees and you can make as many trades as you want for free, you can keep more of your money and watch it grow.
Even though Bluevine is only available online, it still has a lot of the features you’d expect from a bank. It’s a good choice for a lot of different kinds of small businesses, even ones that have a real location.
#3. Found Business Banking: Best for Taxes
Accounting and taxes can be hard for new business owners. Trying to do everything on your own can be very stressful, as it takes up a lot of your time.
Found is an app for online banking that includes tools for keeping track of finances and filing taxes. As a result, you can concentrate on expanding your LLC without bothering about day-to-day accounting, as Found handles all the hard money matters for you.
Small Business Bank Account
However, it’s crucial to be aware of your options if you do require a separate business account. We combed through some prominent banks, evaluating their value to small businesses. There’s no one “best” bank for every business. It always depends on what your business needs.
#1. Capital One
Best if: You want to buy a lot of things for your business.
- Maintenance fees: $3-15/month
- APY: 0.2% (only for the first year)
- Transactions per cycle: No limit
- Deposits per cycle: $5,000
- Checking account with interest? No
Capital One is well-known for its 2% cash-back Spark Visa credit card. Capital One is an excellent solution for high-activity firms wishing to recoup part of their expenses, thanks to its limitless free transactions each monthly cycle.
#2. Citibank
Best if: You want a large bank with good mobile help
- Maintenance costs: $15 to $22 per month
- APY: Data Not Available
- Transactions per cycle: 200-500
- Deposits per cycle:$10,000-$20,000
- interest-bearing bank account? Yes
Citibank is another long-standing traditional bank with several overseas branches. Global Finance Magazine called Citibank the top bank for mobile cash management, so it’s a great choice if you’re looking for a suitable bank for your small business. They are also known for being the top bank for payments and collections.
#3. Baselane
Best if: You make a living by investing in real estate
- Maintenance costs: $0/month
- APY: 4.25%
- Transactions per cycle: Unlimited
- Deposits per cycle: $25,000 per day and $100,000 per month for ACH deposits; no cap on other deposits
- A bank account that pays interest? Yes
Baselane makes it easy to get your rent. It was made for landlords and real estate owners. With this tech-savvy choice, you can divide your income by property using auto-categorization or manually sort it into different virtual accounts. (Think of them like boxes that help you keep things in order.) Also, wire transfers and ACH payments are free. Home Depot’s 5% cash back makes it simple for you to keep tenants happy and the properties in good shape.
Best Business Bank Accounts for Sole Proprietorship
A sole proprietorship is a type of business where the owner and the company are one and the same. Even though it’s simple, people often ask if they need a different business bank account. The answer is no, and it’s not needed by law, but it’s a good idea.
Having a separate bank account for your business helps you handle your money better and keeps your business finances separate from your personal finances. This split is very helpful in the long run because it helps you keep accurate financial records, makes it easy to file your taxes, and gives your business a professional look. Below are some business bank accounts that are for a sole proprietorship.
#1. NorthOne Business Bank Account
NorthOne gives company owners an online business bank account for $10 a month. There are no other fees, except for those for wire transfers. NorthOne is happy to be made for small businesses, startups, and freelancers in the United States. They save businesses the time and trouble of going to the bank. No tree limbs. There is no need to wait on hold. Just simple style, lightning-fast speed, and service that feels very personal.
#2. The Bank of America
Bank of America has two business bank accounts that cover everything. Each bank account allows you to make as many free electronic transactions as you want, lets you put in a lot of cash, and doesn’t charge you a monthly maintenance fee.
Bank of America is the best business bank account for sole proprietors who like standard banking. There are 4,200 Bank of America branches in 37 states. Still, Bank of America has options that are easy to use online in addition to its physical locations.
Best Business Bank Accounts for Startups
A startup is a brand-new business. Usually, one or more business owners also referred to as leaders run it. The majority of funders are primarily focused on finding capital for their businesses in order to get the business off the ground.
In search of the best startup business bank accounts? Here, you can find one that will help you reach your financial goals and plan for your wants.
#1. Relay
Relay is an online banking platform that has been around since 2021. It is one of the best business bank accounts that help startups, accountants, and bookkeepers automate bill paying and keep track of their cash flow and running costs. It has no costs and makes sending and receiving ACH transfers, cheques, or wire transactions simple. You may sync transaction data immediately in QuickBooks or Xero, as well as set up role-based permissions, eliminating the need for employees to share login credentials.
#2. Grasshopper
Grasshopper was created in 2019 and is based in New York City. It is a digital banking solution and business bank accounts for small companies, startups, venture capital, and private equity firms. Start-ups and small and medium-sized businesses can open checking accounts in less than 10 minutes. There are no monthly maintenance fees or minimum amount requirements after the account is funded. Account users can get a free Visa debit card and the accounting software Autobooks.
#3. Brex
For venture capital-backed tech startups, Brex is among the great business bank accounts. It has very low fees and a lot of bonus-based projects that make it a great choice for tech startups.
Brex is a great new choice for a startup that needs it. It gets rid of some features of standard business banking and adds others that will be very appealing to some firms.
Which Type of Bank Account Is Best for Businessmen?
A current account is one that is used for day-to-day business activities. These current accounts are used to pay and get paid by businesses.
Which Type of Business Accounts for the Most Profit?
According to a 2017 Sageworks report, companies that offer bookkeeping, accounting, tax preparation, and payroll services have been some of the most profitable for a long time.
Can You Use a Normal Bank Account for Business?
Legally, you are allowed to do both business and non-business transactions using your personal bank account. Alternatively, you are allowed to open a different personal bank account just for your business. A limited corporation is required to have a business bank account because it is a separate legal entity.
What Are the 4 Types of Business Accounts?
Accounts like checking, savings, credit card, and financial services accounts are common for businesses. With a merchant services account, you can let your customers pay with credit and debit cards. Once you have your government EIN, you can open a bank account for your business.
What Type of Bank Account Do You Use for a Business?
The most common and useful type of bank account is a business checking account. Like a personal bank account, you can put money in, take money out, pay bills, and move money around.
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