If you own or are considering starting a small business, I can assure you that you will require a small business account. You could jeopardize yourself and your company if you don’t. When you manage a small business, you will have a lot more responsibilities than if you were an individual with a personal bank account. To begin, be sure that your business and personal finances are kept separate. If they aren’t, you could be exposed to risk in a variety of ways, including liability for business debts and litigation, as well as problems when it comes time to file your taxes. That is why in this article we shall be discussing online small business accounts, how to open a small business account and so much more. <\/p>\n\n\n\n
Small business banking refers to a company’s financial dealings with a financial institution that specializes in providing business loans, credit, savings accounts, and checking accounts to businesses rather than individuals.<\/p>\n\n\n\n
When a bank, or a subsidiary of a bank, only deals with businesses, it is known as business banking. A retail bank is one that mostly deals with individuals, whereas an investment bank is one that primarily deals with capital markets. Some financial institutions <\/a>cater to both categories of customers.<\/p>\n\n\n\n Having a professional business bank account is vital whether you’re just starting out or have been in business for a long time. Every business or organization, no matter how tiny, requires one: It is crucial to the financial operations of your company since it collects deposits from customers and makes payments to staff and vendors. It’s also necessary for appropriate bookkeeping, tax reporting, and other legal requirements.<\/p>\n\n\n\n There is no one-size-fits-all solution for a company bank account: What you require depends on the type of company you run, its size, and its complexity. However, there are some account features that all business owners, regardless of their industry, should examine when looking for a financial institution. We’ve combed through the options and selected the finest in numerous categories.<\/p>\n\n\n\n You’ll need a business checking account if you’re a small business owner or a startup founder. Why not just use your personal checking account to pay for business expenses? Here’s why you should get a separate business account:<\/p>\n\n\n\n Many small company lenders, including the SBA, will not even evaluate your loan application unless you have a business banking account, making it far more difficult to find small business loans to drive expansion or financially fund business activities. In other words, most small businesses benefit from having a company checking account.<\/p>\n\n\n\n Today, you may discover a range of fee-free business checking accounts, as well as those that give a limited amount of free transactions before costs kick in. Some companies provide benefits such as cashback or discounts on business supplies.<\/p>\n\n\n\n Depending on the nature of your company, you should tailor the amount of money you put away in the business savings account accordingly. Aim to set aside at least ten percent of the profits you produce each month, and keep a reserve fund equal to at least six months’ worth of operational expenses. This is especially important to keep in mind if your company operates on a seasonal basis and generates the majority of its revenue within a condensed period of time.<\/p>\n\n\n\n The proprietors of a company have the option of paying themselves a draw, a salary, or some combination of the two: A draw is a direct payment made from the company to the individual themselves. During the payroll process, a portion of a salary is set aside to cover tax obligations. When you use a combination approach, a portion of your income is treated as a salary, while the remaining portion is treated as a draw or distribution.<\/p>\n\n\n\n There is no legal necessity for sole proprietors to maintain a business bank account\u2026. One of two things can be meant by the term “bank account for self-employed individuals”: either the use of a personal account for the business that is performed when self-employed, or the use of a business account instead. There is no legal necessity in most jurisdictions for lone proprietors to maintain a company bank account.<\/p>\n\n\n\n If you operate your business as a lone proprietor, opening a business bank account is not mandated by law. However, if you want to be taken seriously as a business owner, you should get a separate bank account for your company. This is why: Keeping your personal funds and business operations separate with a dedicated business bank account is a great way to simplify both tasks.<\/p>\n\n\n\n When I open a bank account for my company, do I have to submit a credit check? The thing is; when opening a business checking account at most financial institutions, a credit check is not typically performed; however, a ChexSystems report is almost always performed. When an individual applies to a bank for a loan or a business line of credit, the financial institution may perform a credit check as well as a score check.<\/p>\n\n\n\n You are not allowed to legally use any business name before you have registered it as an officially recognized business entity with both the authorities in your home state and the Internal Revenue Service (IRS). The Internal Revenue Service does not require any particular actions or paperwork for a company to be acknowledged as a business by the agency.<\/p>\n\n\n\n The following is a list of the seven best bank accounts for professionals that are self-employed: Bluevine <\/em><\/strong>is the best bank account out there for people who work for themselves and want a high-interest yield on their checking account. The best option for new freelancers who are looking for help with their digital tax preparation. The best digital-only bank for instant access to funds and the quickest possible payments is Novo*.<\/p>\n\n\n\n Opening a small business bank account online is often faster and easier than visiting a branch and filling out an application, and you can do it on your own time.<\/p>\n\n\n\n Here, we’ll go through some of the top options for opening a small business bank account online, so you can select the ideal option for your company.<\/p>\n\n\n\n LendingClub<\/a> Tailored Checking is ideal for growing businesses. The online business account offers a robust suite of online and mobile banking tools, plus the ability to earn interest.<\/p>\n\n\n\n Features include:<\/strong><\/p>\n\n\n\n You can apply for an account online in just a few minutes but LendingClub may take two to five business days to process your application. Open a LendingClub Account Now<\/p>\n\n\n\n First things first: Brex Cash isn\u2019t a business bank account. Brex Cash is a cash management account, offered by Brex Treasury LLC, a registered broker-dealer that is a member of FINRA and SIPC.<\/p>\n\n\n\n You can deposit your funds <\/a>as cash (where you\u2019ll have FDIC protection of up to $250,000) or you can invest in a money market fund that yields dividends. And, you don\u2019t have to choose just one, you can allocate between the two options however you\u2019d like.<\/p>\n\n\n\n Brex Cash offers a range of other perks, with a focus on tech-first, online-focused businesses. Here\u2019s what you can expect with this cash management account:<\/p>\n\n\n\n Brex Cash also includes access to the Brex credit card, which is paid from your account daily (like a debit card), and offers competitive rewards points on your transactions, which can be redeemed for cash back, gift cards, or miles.<\/p>\n\n\n\n You can earn:<\/strong><\/p>\n\n\n\n Brex Cash is an online-only account and can be a great option for business owners looking to manage their finances digitally especially those who want to take advantage of the rewards points or any of Brex\u2019s other unique features.<\/p>\n\n\n\n Novo is an online business bank account that was created specifically with startups and small business owners in mind. This business checking has no monthly fees, unlimited fee-free transactions, and access to a range of features designed to help entrepreneurs manage their finances online.<\/p>\n\n\n\n Some of Novo\u2019s benefits include:<\/strong><\/p>\n\n\n\n It requires a $50 minimum opening deposit. Applying online is quick and simple but it typically takes two to three business days to review applications.<\/p>\n\n\n\n With NBKC, you can open both a business checking account and a business savings account online. NBKC\u2019s business checking account, also called its \u201cbusiness account,\u201d has virtually no fees. In fact, the only fees NBKC charges are a $5 fee to send domestic wires and $45 to send or receive international wires.<\/p>\n\n\n\n This online business checking account offers:<\/p>\n\n\n\n BlueVine, which is perhaps best known for its business financing platform, also offers a free online business checking account. More so, business owners who wish to avoid fees and earn interest on their balance might consider the BlueVine business checking account.<\/p>\n\n\n\n Features include:<\/strong><\/p>\n\n\n\n Chase Business Complete Banking combines the best of both worlds by allowing you to open a business checking account online while also providing access to over 4,700 physical locations essential for organizations that deal primarily in cash.<\/p>\n\n\n\n With Chase Business Complete Banking, you receive:<\/strong><\/p>\n\n\n\n This account has a $15 monthly fee; however, there are multiple ways you can waive it. You can open an account thus, online if your business is a privately held sole proprietorship, LLC, or corporation. All other business types need to apply at a branch location.<\/p>\n\n\n\n Bank of America business checking is a great option for growing and evolving business banking needs. The brick-and-mortar bank offers more free physical transactions per month than Chase Business Complete Banking which can be important if you\u2019re looking for in-person banking.<\/p>\n\n\n\n For example, here\u2019s what you can expect with Bank of America\u2019s Business Advantage Fundamentals account:<\/p>\n\n\n\n Also, as your business grows, you can always upgrade to the next level, the Business Advantage Relationship account. Bank of America also offers a Preferred Rewards program for eligible business owners. This program gives you access to discounts on other products and services, as well as a way to waive the monthly fees on either of the business checking accounts.<\/p>\n\n\n\n Bank of America offers the most attractive business checking account for newcomers due to the fact that its monthly service charges are waived. You are allowed up to 200 free transactions each month, and you can make free deposits of up to $5,000 each and every month. Within the app, Bank of America also gives you the ability to check your Dun & Bradstreet score for your company’s credit.<\/p>\n\n\n\n You shouldn’t use your personal bank account for your company’s funds, partly because doing so may have an effect on your legal responsibilities. This is true even if maintaining two bank accounts seems cumbersome to you. In point of fact, in addition to having a personal bank account, one of the first steps toward owning a business should be opening a bank account specifically for the firm.<\/p>\n\n\n\n The finest free checking accounts for businesses should not have any monthly costs or should have fees that are easy to waive. Bluevine, U.S. Bank, First Internet Bank, Novo, Mercury, Grasshopper, and Oxygen Bank<\/em><\/strong> are some examples of financial institutions that do not impose monthly fees. Bank of America, Chase, and Capital One<\/strong><\/em> are examples of financial institutions that make it simple to avoid paying their monthly fees.<\/p>\n\n\n\n It is critical to establish a separate bank account for your company in the event that you are sued or face significant liability. This will allow you to demonstrate that you and your company exist as two distinct financial entities. In order to assist keep the members of the company protected from personal liability, everybody who joins an LLC should open a bank account for their firm.<\/p>\n\n\n\n You can open a business checking account online by providing some basic business and personal information and uploading key documents.<\/p>\n\n\n\n While the exact requirements will vary from one bank to the next, here\u2019s what you need to open a business bank account:<\/p>\n\n\n\n Applying for an online business bank account may only take a few minutes, but it will take several business days for your application to be reviewed and approved.<\/p>\n\n\n\nOverview <\/h2>\n\n\n\n
Benefits of Small Business Bank Account<\/h2>\n\n\n\n
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How Much Money Should be in a Small business Bank Account?<\/h2>\n\n\n\n
How Do I Pay Myself for My Business?<\/h2>\n\n\n\n
Do I Legally Need a Business Account?<\/h2>\n\n\n\n
Can I Run a Business Without a Business Bank Account?<\/h2>\n\n\n\n
Is There a Credit Check for Business Bank Account?<\/h2>\n\n\n\n
Can You Run a Small Business Without Registering it?<\/h2>\n\n\n\n
Which Bank is Best for Self-Employed?<\/h2>\n\n\n\n
Small Business Bank Account Online<\/h2>\n\n\n\n
#1. LendingClub<\/h3>\n\n\n\n
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#2. Brex Cash<\/h3>\n\n\n\n
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#3. Novo<\/h3>\n\n\n\n
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#4. NBKC<\/h3>\n\n\n\n
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#5. BlueVine<\/h3>\n\n\n\n
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#6. Chase<\/h3>\n\n\n\n
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#7. Bank of America<\/h3>\n\n\n\n
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Who Has the Best Business Checking Account?<\/h2>\n\n\n\n
Can I Use a Personal Account for My Small Business?<\/h2>\n\n\n\n
What Banks Offer Free Business Checking Accounts?<\/h2>\n\n\n\n
Should I Open a Business Bank Account for My LLC?<\/h2>\n\n\n\n
How To Open Small Business Bank Account <\/h2>\n\n\n\n
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How to choose a free business checking account<\/h2>\n\n\n\n
#1. Consider fees and minimum balance requirements<\/h3>\n\n\n\n