Best Business Bank Accounts of November 2024

accounts for small business

Plus, users pay no ATM fees and get unlimited reimbursements on those charged by ATM owners. It’s best to set aside 30 minutes to an hour to open a business bank account. But the timeframe can be shorter or longer depending on the paperwork you need and whether you’re applying online or in person. Oftentimes, banks will tell you on their website about how long the application process takes. 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.

Or you can elect to invest your money in a money market fund that pays 4.47% as of August 29, 2024. Most banks don’t check your personal credit score when you apply for a business bank account. So having bad personal credit typically won’t prevent you from opening a business checking account. There’s no pressure to save a lot because all balances earn the same rate, and you only need a balance of $300 to waive the $5 monthly fee.

accounts for small business

How to choose a business checking account

  1. You might choose to use document management software to keep track of key financial information and statements.
  2. Tax management features include real-time tax estimates, write-off tracking, auto-generated tax forms and auto-saving for taxes.
  3. Even if you’re simply working a side hustle, having a business checking account speaks to your credibility and professionalism.
  4. It also earns 0.50% APY for accounts with an average daily balance of $10,000 and reimburses up to $10 per month in ATM fees.
  5. An EIN is also known as a federal tax identification number (FTIN) and is used to identify a business entity.

In contrast, a small business savings account stores funds you don’t need immediately. It generally provides higher interest rates than checking but may have monthly withdrawal limits. It’s a low-risk place to hold emergency reserves and collect interest on cash you don’t need right now. The EverBank Business Money Market pays from 1.35% to 2.35%% APY and can be used to provide overdraft protection for your EverBank checking account.

How to choose a business bank account

LendingClub is known for business loans, but its checking rewards put it on the map as a great option for small businesses. LendingClub offers unlimited 1% cash back on purchases, making it a great option for maximizing your spending rewards. LendingClub’s checking account also offers up to 3.35% APY, plus unlimited ATM rebates. The required documents to open a business checking account will ultimately depend on the institution you choose. Depending on the account type, you may also need to be prepared to make an initial opening deposit.

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. what is customer profitability analysis Even if you’re simply working a side hustle, having a business checking account speaks to your credibility and professionalism. Though banks may not check your credit as part of the business checking account application, they may pull your ChexSystems report to see how you’ve managed bank accounts in the past. Limited liability companies (LLCs), sole proprietors, corporations and partnerships can all open business checking accounts. A business as small as a one-person consulting firm or as large as a 10,000-employee software company can set up a business checking account.

Relay’s Business Checking account has no monthly fees and unlimited transactions. Customers can operate up to 20 separate checking accounts and 50 Visa debit cards with spending limits, so it’s easy to organize your money and know where it’s going. It can also be synced with QuickBooks or Xero to code and reconcile every transaction quickly, and Relay or Gusto for payroll data.

How we choose the best business checking accounts

Formerly TIAA bank, EverBank is an online bank with nine branch locations in Florida. This business checking account offers a balance of features, including low fees and 200 free transactions monthly. This is where you can deposit and withdraw money, pay bills and make purchases. Most business checking accounts come with a debit card and possibly a checkbook for transactions. Bank of America charges a $10 overdraft fee per item, up to two times daily.

Similar to other online business accounts, Novo does not have physical locations and does have transaction limits. This account is best for business owners who prefer doing their banking in person and will qualify to waive the maintenance fee every month. We don’t like that this account has a high monthly fee and a high minimum balance requirement of at least $100 to waive it. We picked the Axos Bank Business Interest Checking account because it offers several free business services and earns competitive interest. It also comes with access to dedicated Axos Bank relationship managers. We don’t like that balances below $10,000 don’t earn interest with this account.

Low fees combine with a 0.50% APY on checking balances for a solid account for any business owner who needs a moderate volume of transactions processed. The NBKC Bank Business Checking Account is best for smaller businesses that want to save on banking and have the flexibility to let their balances fluctuate. It’s ideal for those without complicated money management or app integration needs. Although the NBKC online platform and mobile app are user-friendly, they’re more basic than offerings from other banks and don’t have many business-specific tools for budgeting and accounting.