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Best Business Checking Accounts

A business checking account is a type of bank account specifically designed for businesses to manage their finances. The best accounts come with Federal Deposit Insurance Corporation (FDIC) insurance, which protects your hard-earned money in case of bank failure.

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Compare The Top Online Business Banks

Editor's Choice
Lili Designed for small businesses
  • No account minimums, no account fees
  • Fee-free overdraft up to $200
  • Earn 1.50% APY2 on your Savings
  • FDIC-insured by Choice Financial Group
View details
Pros
  • One-stop shop for all your small business financial needs — banking, accounting and taxes
  • Unlimited fee-free transactions
  • Offers early payment feature with direct deposit
Cons
  • Out-of-network ATM fees: $2.50 for U.S. ATMs, $5 for international ATMs.
  • Mobile only right now (web interface will be live soon)
Bluevine Earn 2% APY on balances up to $250K
  • One-stop small business banking you deserve
  • 2.0% APY for eligible customers
  • No minimums or non-sufficient funds fees
  • FDIC insured
View details
Pros
  • 2% interest credited on account balances up to $100,000
  • No minimum deposit or maintenance fees
  • No insufficient fund fees or ATM fees
Cons
  • Customer support only available during set business hours
  • A deposit fee of $4.95 per deposit at Green Dot locations
  • No physical banking locations
Novo Smart choice for business checking
  • Easy Transfers
  • Freedom from fees
  • No minimum account balance
  • FDIC insured
View details
Pros
  • No hidden fees, minimum balance requirements and unlimited ATM refunds
  • Integrations with top tools like Quickbooks, Stripe, Square, Shopify and more
  • Automated budgeting with Novo reserves
Cons
  • No physical branches, if needed
  • Cumbersome to make a cash deposit
  • No interest paid on checking account balance
Chase Wide Range of Products & Services
  • Banking stability since 1799
  • Easily monitor and control your cash flow
  • Ability to waive monthly fee
  • FDIC insured
View details
Pros
  • Ability to waive monthly fee
  • Popular rewards credit cards
  • Branch support for online account holders
Cons
  • A limited number of branches in some states
  • Minimum daily balance required to waive fees
  • Low interest rates credited on checking and savings accounts
U.S. Bank Solid bank for businesses
  • In-person & mobile banking options
  • An extensive range of accounts
  • Ideal for small businesses & entrepreneurs
  • Member FDIC
View details
Pros
  • Currently offering a $750 sign-up bonus (after meeting certain conditions)
  • Several business checking accounts to choose from, as well as a basic business savings account
  • Large network of free ATMs nationwide and brick-and-mortar branches in 26 states
  • Convenient online and mobile banking options
  • Waivable monthly fees
Cons
  • Not as transparent about different account fees, terms, and conditions
  • Low annual percentage yields (APYs)
  • Limited account features compared to other major banks and credit unions
Found Designed for single member LLCs
  • Automated tax calculator & savings
  • Built-in, free-expense tracking
  • No credit check. No required or hidden fees
  • FDIC insured by Piermont Bank
View details
Pros
  • More than a debit card — banking, bookkeeping, invoicing, taxes
  • Auto-save the right amount for taxes and pay from the app
  • Customize & send unlimited free invoices
  • Straightforward application process with no minimum balance or hidden fees
Cons
  • Not a direct lender or bank
  • Certain advanced features and tools are only available with the paid subscription
  • No business savings accounts or certificates of deposit (CDs)

How do Business Checking Accounts Work?

A business checking account is similar to a personal one in many respects, yet it offers unique tools and benefits for businesses. Many banks, credit unions, and other financial institutions offer those. Each institution has its own requirements, features, and drawbacks. For example, you might have to pay specific fees or have minimum balance requirements tied to the account. On the other hand, these accounts come with a suite of business-related tools and perks, and some banks offer an annual percentage yield (APY) on business checking accounts.

A business checking account may allow you to do things like:

  • Write checks in the name of your business
  • Use a debit card at ATMs, online, or at merchants
  • Get a business credit card,
  • Make withdrawals, deposits, ACH transfers, and wire transfers
  • Pay bills
  • Pay employee salaries
  • Pay for necessary expenses or make purchases
  • Handle daily business transactions and expenses

Some business checking accounts have bonuses or welcome offers. Others come with money management or budgeting tools, free checks, positive pay (for checks), remote deposit capture, employee debit cards, and more.

Helpful for Getting Your Taxes Right

Ultimately, having a business checking account makes it easier for individuals to operate their company — and handle taxes — than if they were to use a personal account. With a separate business account, you won’t have to worry about mixing your personal and business expenses, either. This is particularly helpful if the IRS audits you.

Key Business Checking Account Terms and Features

  • Positive pay: With this, a business can provide information about its written checks to help prevent fraudulent transactions.
  • Debit card: Both the business owner and associated employees could get a linked debit card.
  • Cash-counting limits: Some banks set a limit on how much cash a business can deposit without a fee.
  • Bill pay: This allows businesses to pay bills online through the account.
  • Items: Some accounts have restrictions on things like cash or ATM withdrawals, check or ACH deposits, and debit card transactions.
  • Remote deposit capture: This feature lets businesses deposit checks remotely.

How to Get a Business Checking Account

Opening a business checking account is straightforward. Here’s what you can typically expect:

  1. Gather the necessary documents. Before you can open an account, you’ll need certain documents and information. This includes your SSN or EIN, state ID, and personal identification and contact details (ex. date of birth and address). You may also need proof of address of your business, a partnership agreement (if applicable), and any relevant business licenses.
  2. Understand your business entity type. Many banks will also require information related to the type of business you have. The specific requirements depends on the entity type. For example, if your business is an LLC, you’ll need Articles of Organization documents. If you operate a corporation, be prepared to provide Articles of Incorporation documents.
  3. Compare different financial institutions. Next, compare three to five banks for their features, fees, and other perks. Some institutions have higher fees, balance requirements, or restrictions (ex. maximum monthly transactions) than others.
  4. Apply for the account. Once you’ve settled on an institution, you can apply for an account online or in person. The process typically starts by asking for basic personal information, followed by business information. You may also need to upload the necessary documents.
  5. Make a deposit. Some banks require you to make a minimum deposit to open the account. You’ll get this money back if your application is denied.
  6. Start using the account. Once opened, you can start using the account for your business needs. If you ordered checks or a debit card, you may need to wait for these to arrive before using them.

Choosing the Best Business Checking Account

When it comes to choosing a checking account for your business, here’s what you need to consider:

  • Minimum balance requirement: You may need to maintain a minimum account balance to keep the account open. This might also help you avoid certain fees.
  • Opening deposit: This is often required with business checking accounts.
  • Fees: Business checking accounts tend to have higher fees than personal accounts, though you might be able to waive some of them. Common fees include monthly maintenance fees, cash-counting fees, and overdraft fees.
  • Transaction limits: Certain banks impose limits on the number of transactions you can make in a month. Exceeding this limit could result in additional fees.
  • APY or interest rate: Unlike savings accounts, checking accounts don’t usually have a high interest rate. But it doesn’t hurt to compare options to find the most competitive one.
  • Cash deposit limits: Some banks limit how much money you can deposit into your business checking account without incurring a fee. This is primarily for cash deposits.
  • FDIC insured: An FDIC-insured account keeps your money safe in the unfortunate case that the bank goes out of business.
  • Branches and ATMs: Some institutions are digital-only, while others have physical branches. Both the number of branches and free ATMs can vary depending on the institution’s size. This is important if you plan on doing in-person banking.

Business Checking Accounts: Pros and Cons

A business checking account is a great tool if you want to separate your personal and business finances. However, these accounts may come with more fees — and other downsides — than personal checking accounts. Here are the main pros and cons to consider.

Business Checking Accounts Pros

  • Convenient way to separate business and personal income and expenses
  • Simplifies business growth
  • Makes it easier to apply for a business loan, business line of credit, or credit card
  • Easier tax preparation and greater tax audit protection
  • Having separate personal and business assets can protect your personal ones
  • Makes your business look more professional
  • May have money management, expense management, or budgeting tools

Business Checking Account Cons

  • Typically come with higher or additional fees
  • May have stricter requirements (ex., business license and related documents)
  • Minimum account balance or maximum withdrawal limits

Should You Get a Business Checking Account?

You may want to consider getting a business checking account if you:

  • Want to turn a freelance gig into a small business and gain legitimacy
  • Are ready to look more professional to other businesses and clients
  • Want to protect your personal income and assets from your business expenses and income
  • Already have an LLC or corporation and want greater liability protection
  • Want to make it easier to manage and prepare your taxes
  • Think you’ll need business credit for future business financing options
  • Can keep up with the minimum requirements and avoid some of the heftier account fees

The best reason to open a business checking account is the impact it has on your company’s reputation with clients and vendors. When you use a personal account, your name pops up on any transaction you make. Many companies and clients will feel wary when trading with somebody who operates under their name. They want to see the name of the organization they’re doing business with on their bank statements.

Ultimately, a business checking account is essential for every business owner, regardless of whether they operate as a corporation, LLC, sole proprietor, freelancer, or gig worker.

Average Business Checking Account Rates & Terms

Business checking accounts vary by bank or financial institution, but here are some of the best ones:

Financial Institution* Maximum APY Common Fees Minimum Balance Transaction limits FDIC insured
Lili 2% (with a savings account) No monthly account fees, no ACH transfer fees, and no ATM fees None Undisclosed Yes
Bluevine 2% No monthly service fees, ACH fees, overdraft fees, or wire fees None Unlimited Yes
Novo None No monthly fees or hidden fees None Unlimited free US transactions Yes
Chase 0.01% $15 to $95 waivable monthly service fee (depending on account type) $2,000 to $100,000 (depending on account type) Up to 500 free transactions Yes
US Bank 0.005% Fees vary by checking account type $100 to $3,000 (opening deposit) 125 to 500 (depending on account type) Yes

*Rates and fees subject to change

FAQ

Can you do online banking for a business account?

What banks will let me open a business account online?

How much money do you need to start a business bank account?