BUSINESS ACCOUNT: All You Need To Know

A business account is a way for entrepreneurs to control their financial flow. The cash balance, money owed to the company, money owed to creditors, and payroll payments to employees are all tracked using business accounts. Different businesses will require different numbers of accounts, but all firms need business accounts. All business kinds, from contractors and SMBs to enterprises, should also have a business account. In this post, we will be looking into the best business bank account for small business and LLC businesses.

Business Account

A financial account used for business is known as a business account. Usually, a bank or other financial organization is in charge of maintaining this kind of account. It gives business owners an easy way to distinguish between their personal funds and the cash flow of their company. You’ll have access to more tools with a business account that are intended to make daily operations less difficult.

How Can You Open a Business Account?

You’ll often need to show some proof of your business in order to open a business account, which can include:

Social Security number (SSN) or employer identification number
Paperwork for forming a business
A license for a firm An ownership contract

Types of Business Account

#1. Checking Account

The foundation of a firm is its checking account. Payroll deductions, bill payments, and sales deposits are all made from this account. In most cases, a business’s connection with a bank will begin with this account. Maintaining this account properly might create a connection that might be useful if the company needs money for expansion or a line of credit.

#2. Merchant Accounts

A merchant account is required for credit card payments made to businesses that accept them. Online payments made with a credit card or PayPal are also accepted through merchant accounts. Customers find it appealing and practical that a firm may take all payment methods thanks to a merchant account. Creating an account involves working with a bank and a third-party processor. A merchant account will be especially beneficial to a firm with an internet presence.

#3. Accounts Payable

A list of the accounts that the company owes to its creditors is called accounts payable. These types of accounts, which include mortgages, vehicle loans, and lines of credit provided to the company by other companies, are examples. Typical business expenses are either long-term or revolving accounts, however, this account is not. Usually, the checking account of the company is used to make payments on these accounts.

#4. Receivable Accounts

Contrary to payable accounts, receivable accounts show money that is due to the company by other companies. For instance, if a company gives its clients credit, the money due to the company is known as a receivable. Payments on a receivable are put into the company’s checking account rather than being credited to this account. These are informational accounts, together with the payable account.

#5. Payroll Account

When a company employs workers, funds are transferred from the business checking account to the payroll account. For general accounting and tax purposes, it is simpler to track the amounts when paying employees from separate accounts. Although some organizations choose to deduct the full amount of payroll from the business account instead of using a distinct payroll account, using the payroll account is simpler from an accounting perspective.

Best Business Account Bank

Bank accounts for businesses operate similarly to those for individuals. Users who have been given permission can deposit and withdraw money. You will have the choice to open a checking account, savings account, credit card account, or merchant services account, just as with a traditional bank account. When dealing with the same financial institutions, your banking requirements for business money will be comparable to your own.

#1. Chase

For business accounts, Chase offers some of the most complete banking services. The Business Complete Banking account, the Performance Business Checking account, and the Platinum Business Checking account are the three main types of business accounts available. Additionally, you can open a company savings account, credit cards, lines of credit, and software for point-of-sale. Chase doesn’t need a minimum deposit and offers a substantial $300 incentive for just creating your business account. Although there is a $15 maintenance cost each month, it is rather simple to forego it.

#2. Bank of America

Business Advantage Relationship Banking and Business Advantage Fundamentals are the two types of business bank accounts that Bank of America offers. If you’re interested, it’s worth investigating the distinct features and qualities that these two applications have to offer. Due to its friendliness toward small businesses, Bank of America is included on this list. Small business owners can evaluate statistics, track account activity, and manage their overall business success with the aid of a number of services. The BofA mobile app offers access to all of these functions, including bill payment options, checking card payments, daily balances, and overall cash flow.

#3. Bluevine

A banking solution available only online, Bluevine has a number of significant advantages for small businesses. Earning interest at rates as high as 1.5% APY on accounts up to $100,000 is the main perk. To use the Bluevine Business Debit Mastercard, you must make purchases totaling at least $500 or receive payments from clients totaling at least $2,500 per month. Wire transfers inside the United States and abroad are free and only $15. There are also no minimum balance requirements, starting deposit requirements, or monthly fees. Last, but not least, there is no cap on monthly transactions, and there are no costs associated with them.

#4. NBKC

Only four physical branches of NBKC (National Bank of Kansas) may be found in Kansas and Missouri. However, a web bank provides a useful business checking account with a number of advantages. In addition, NBKC provides four distinct business credit cards, business loans, business lines of credit, numerous business solution services, and business savings accounts such as money market funds and certificates of deposit. The absence of any expenses, including monthly maintenance fees, is the finest thing about utilizing NBKC. You may access your account online and on mobile devices, and there is no minimum deposit needed to start one. There may be a price for using an out-of-network ATM, but you’ll get up to $12 back each month.

Best Small Business Bank Account

Having a suitable small business bank account is crucial, regardless of how long you’ve been in business or if you’re just getting started. No matter how modest, every professional endeavor requires one. It plays a crucial role in your company’s financial operations because it takes consumer deposits and pays your staff and merchants. Additionally, a small company bank account may be necessary for accurate bookkeeping, tax reporting, and other regulatory requirements.

#1. Chase Business Complete Checking

According to the size of your business and the incentives for opening an account, Chase Bank offers a variety of business accounts. A $300 bonus is available for new Chase Business Complete Checking accounts, for instance, when $2,000 is deposited within 30 business days of account opening. The account holder must make five qualifying transactions within 90 days and keep a $2,000 balance for 60 days. Additionally, if you deposit $15,000 within 30 business days of creating your account, you’ll receive a $500 incentive. Chase has a sizable branch network in addition to offering lucrative rewards-earning credit cards.

#2. Axos Bank

From the moment it was founded in 2000, Axos Bank was intended to be a digital bank. It now has assets worth over $18.4 billion and is a publicly traded firm. The company’s Basic Business Checking account is intended “for the busy business owner with modest checking needs.” The account includes unlimited domestic ATM fee reimbursement and no monthly service fees.

#3. Huntington Bank

Located in seven states—Ohio, Illinois, Indiana, Kentucky, Michigan, Pennsylvania, and West Virginia—Huntington is a regional bank. You might profit from Huntington’s extensive business offerings, which include checking, savings, CDs, a business credit card, lending, and merchant services if you reside in one of these states.

Electronic ACH transfers, merchant and payroll services, online bill payment, and a grace period for resolving any overdrafts are all features offered by Huntington Bank’s business checking accounts.

#4. Live Oak

Even though Live Oak may not be as well-known as some of the well-known banks in this list, don’t let that deter you from giving it a closer look. A bank with FDIC insurance and a host of advantages for businesses is Live Oak. Because of the savings possibilities, we advise Live Oak. It presently offers 3.50% APY on its business savings account, which has no minimum balance requirements or monthly fees. Additionally, Live Oak provides competitively priced 6-month to 5-year CDs. Additionally, you may open a business checking account that integrates with Quickbooks, Venmo, PayPal, Square, and Stripe. Just be aware that you cannot deposit cash at this time.

#5. Chase Bank

With over 4,700 locations, Chase is the biggest bank in the US. From accounts and credit cards to business and merchant services, the bank provides a broad range of business banking solutions. It is also one of the largest providers of small business loans, company lines of credit, and finance. Chase provides two savings accounts and three business checking accounts. Chase QuickAccept, which enables you to take credit card payments anywhere, anytime via the app or internet, is included with the Business Complete Bank Account.

#6. Axos Bank

Axos distinguishes itself by providing various business accounts along with excellent customer service. Customers have access to customer assistance around-the-clock, which is a feature that most traditional and online banks don’t provide. Additionally, it offers 50 free checks, unlimited domestic ATM reimbursements, and Quickbooks interoperability with its bank accounts. Axos also provides a range of small business services, which can assist a new company’s operations to run more smoothly. These services include merchant services, SBA loans, payroll administration, and treasury services.

Best Business Bank Account for LLC

Even though opening a bank account might have numerous advantages for your company, the process frequently seems difficult. This is particularly true if you’re managing a newly formed LLC and attempting to reconcile the conflicting demands that a new company places on you. It might be challenging to determine which company checking account is best for your LLC because there seem to be countless options available. Let’s look at the example of a business bank account for an LLC:

#1. BlueVine Business Checking

The BlueVine Business Checking account offers a higher rate of interest than most traditional banks, paying 1.20% APY on all balances up to $100,000. Additionally, unlike other interest-earning accounts, you are not required to keep a minimum balance on a daily or weekly basis. With the BlueVine business bank account, there are no minimum initial deposits, monthly fees, insufficient funds fees, or costs associated with ACH payments. Additionally, this account offers fee-free ATM access and limitless transactions.

#2. Axos Business Checking

For LLC owners who don’t want to deal with monthly fees or keep a minimum balance, the Axos Basic Business Checking account is perfect. You won’t have to worry about paying the monthly fee that most legacy banks impose because this account has no maintenance fees. Although there is a minimal deposit requirement for the account, you are not obligated to keep the balance over that amount in order to prevent extra penalties or account closure. On the other hand, most physical establishments demand you to keep a minimum quantity, which can be challenging for newly-incorporated LLCs and new business owners.

#3. Wells Fargo Business Choice Checking

Wells Fargo is a terrific choice for companies with multiple locations or people who like in-person banking because it is the fourth-largest bank by assets and has around 5000 branches spread across 37 states. The Business Choice Checking account offers access to 16,000 ATMs nationwide, online and mobile banking, and a debit card.

Through Wells Fargo, business owners can benefit from services including merchant services, payroll services, and business credit cards. If you maintain an average balance of $7,500 or more, the $15 monthly service fee for the Business Choice Checking account is waived.

#4. Chase Bank Business Complete Banking

A dedicated business banker, online and mobile banking, access to 16,000 ATMs, and other amenities are all included with the Chase Business Complete Banking account, which is intended for small firms. The first 20 transactions made with a teller or paper checks drawn on the account are free of charge. After that, any purchase a user makes is subject to a 40-cent fee.

#5. U.S. Bank Silver Business Checking

With locations throughout 26 states, U.S. Bank ranks as the fifth-largest bank in the country. It is a good choice for LLC owners who value in-person customer service but also desire the convenience of mobile and online banking. The U.S. Bank Silver Business Checking account includes free online and mobile banking, a debit card, and access to 4,700 ATMs nationwide via the Allpoint ATM network. In order to better control spending and save money for taxes or other business-related expenses, you can also open a Silver Business Savings account.

What are The 5 Basic Accounts?

Assets, liabilities, equity, expenses, and income (revenue) are the top 5 account categories.

What Kind of Bank Account is Used by Business Owners?

Checking, savings, certificates of deposit, and money market accounts are examples of common business bank accounts.