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Do you know how to find the top business checking account for your needs? Whether you’re just about to launch your very first pottery business or you want to take your landscaping company to the next level, you need a business checking account. The only thing left to figure out is which benefits you want, which perks you need and how you can set yourself up for financial success.
To help you on your way, this guide to business checking accounts will look at:
Axos Bank Basic Business Checking accounts are a solid choice for start-ups and new-to-business entrepreneurs who would rather have lower fees and few hurdles versus lots of bells and whistles. Sometimes, fee-free accounts mean subpar customer service, but you can contact Axos support 24/7. There’s also a nationwide ATM network, and transactions are either free or eligible for reimbursement.
Look out for promos, like sizable welcome bonuses. One available in March 2024 offered $400 to new account owners who maintain an average daily balance of at least $50,000 (other terms may apply).
Note that Axos also offers a Business Interest Checking option that includes an APY of up to 1.01%.
Axos Bank® Basic Business Checking: An overview
| APY | Minimum Deposit | Fees |
|---|---|---|
| N/A | N/A | $0 monthly fee |
Axos Bank® Basic Business Checking: Pros and cons
| Pros | Cons |
|---|---|
| ✅ No initial deposit or minimum balance requirements ✅ Unlimited monthly transactions ✅ Free/automatically refunded nationwide ATM access ✅ Welcome bonus available |
❌ Doesn’t support third-party app integrations ❌ Hefty $25 fee for overdrafts/returned transactions |
Found is built around a pile of freelancer-friendly features, such as third-party gig app integration, built-in invoicing and automatic tax withholding. But the tradeoff is that Found Small Business Checking is only available to sole proprietors and single-member LLCs. You’ll also be restricted to relatively low deposit limits. On the flip side, you can pay a monthly “subscription fee” to upgrade to a high-yield business checking account with up to 1.50% APY.
Found Small Business Checking: An overview
| APY | Min Deposit Required | Fees |
|---|---|---|
| N/A for basic; upgrade to a subscription high-yield account for up to 1.50% APY | N/A | $0 monthly fee |
Found Small Business Checking: Pros and cons
| Pros | Cons |
|---|---|
| ✅ Fee-free account with no minimum monthly balance ✅ Blends daily banking, client invoicing and bookkeeping ✅ Calculates your tax bill in real time ✅ Able to integrate with third-party business, e-comm and payment apps |
❌ Limited deposits (max. $2,000/week and $4,000/month cash; max $3,000/week mobile check deposit) ❌ Only available to solo entrepreneurs, freelancers and single-person LLCs ❌ Customer service only available during business hours |
Novo is a solopreneur’s dream with zero overdraft fees, no minimum balance requirements and ATM fee reimbursements. Special welcome offers like $3,000 in Google Cloud credits and money toward Google Ads are quite favorable too, as is the option to sync with platforms like Shopify, Amazon and TransferWise.
All that said, Novo allows for zero cash deposits. With no ATM deposits and no brick-and-mortar locations, the only way to deposit cash is to get a money order and use the mobile deposit option.
Novo Business Checking: An overview
| APY | Min Deposit Required | Fees |
|---|---|---|
| N/A | N/A | $0 monthly fees |
Novo Business Checking: Pros and cons
| Pros | Cons |
|---|---|
| ✅ Unlimited fee-free transactions, plus up to $7/monthly ATM fee reimbursement ✅ Accepts payments/transfers via syncs with Apple Pay and Google Pay ✅ Integrations and partnerships with tools that help with team communication, invoicing and marketing |
❌ No option to deposit cash ❌ No brick-and-mortar locations |
Chase Business Complete Banking straddles the line between the convenience of online banking and the comfort of traditional brick-and-mortar branches. Certain features, like no minimum opening deposit, partial overdraft protection and fee-free electronic transactions, are a boon for business owners tired of being nickeled and dimed. But on the flip side, you’ll find a $15 monthly fee, limits on fee-free cash deposits and a 20-transaction cap. You’re likely best suited to a Chase checking account if you’re wary of online-only banking and don’t make too many transactions.
Chase Business Complete Banking℠: An overview
| APY | Min Deposit Required | Fees |
|---|---|---|
| N/A | N/A | $15 monthly maintenance fee (waived with a minimum balance of $2,000) |
Chase Business Complete Banking℠: Pros and cons
| Pros | Cons |
|---|---|
| ✅ Generous overdraft policy ✅ Ability to walk into any of 4,700+ Chase bank branches nationwide ✅ Fee-free ATM use at 16,000 Chaste ATMs nationwide ✅ 24/7 access to customer support |
❌ $15 monthly fee (waived for account balances of $2,000+) ❌ Free cash deposits max out at $5,000 per month ❌ Maximum of 20 physical transactions per month |
Designed with small businesses in mind, NorthOne offers features to take your business wherever you go. NorthOne is an online-only business banking platform that offers an easy-to-use business checking account through the app or web. Think of it as a HUB for your business’ financial tasks. You can pay expenses, track invoices and even send notifications that a payment is on the way. It’s FDIC-insured through a partnership with The Bancorp Bank, so your funds are safe. NorthOne offers business management features such as debit cards with individual logins for co-owners, and an app that is designed to work with any payment system. It’s easy to get started with a $50 initial deposit and $0/month for NorthOne Standard. For priority service and lower fees, NorthOne offers NorthOne Plus for $20/month.
NorthOne Business Checking: An overview
| APY | Min Deposit Required | Fees |
|---|---|---|
| N/A | $50 | $0 (NorthOne Standard) $20 (NorthOne Plus) |
NorthOne Business Checking: Pros and cons
| Pros | Cons |
|---|---|
| ✅ Integrated business tools ✅ $0 monthly fee for Standard account ✅ Supports mobile check deposit and cash deposit ✅Physical and virtual debit card included |
❌ $50 minimum deposit ❌ No weekend customer service ❌ High fees for Standard account |
Business checking accounts are used primarily for business purposes. You might use yours to pay your vendors and receive payments from your clients. This lets you keep your personal and professional finances separate. A business account also typically operates under the name of your company, which lends your brand an extra dose of legitimacy.
Business checking accounts are suitable for anyone who has a business, no matter the size. You can get a business account as a sole proprietor, as a single-entity LLC or as a huge corporation. Even freelancers, nonprofit organizations and professional product resellers could benefit from a business account that draws a firm line between personal expenditures and revenue tied to business income. That is important for anyone who wants to avoid any financial mix-ups, but it’s absolutely essential for companies that answer to stockholders or donors that require complete transparency.
You might want your own business checking account if you:
Business checking accounts provide a number of key benefits:
Before you partner up with a new bank, learn how to identify good business checking accounts. To do this, you’ll need to compare accounts using criteria like monthly fees, accessibility and miscellaneous benefits.
An offer for a free business checking account sounds well and good, but what does “free” really mean? Ask about the fees listed below to see whether you’ll be on the hook for a load of extras or if there really is a business checking account with no fees right around the corner.
Checking account fees to look out for:
Monthly fees can add up quickly, so look for fee-free accounts or accounts that waive the monthly fee if you maintain a reasonable minimum balance.
High minimum deposits and monthly balance requirements can tie up funds and limit your cash flow.
Ideally, your business checking account should have unlimited, fee-free ATM transactions or fee reimbursement.
In the case of an overdraft, will you be charged big bucks, or is there insufficient funds protection and/or a grace period?
Small business checking accounts have their benefits, but some limits make it challenging to run your business.
Some limitations include the following:
Theoretically, you can access your money via cash withdrawal, wire transfer, checks or digital banking to transfer funds without ever touching them. But the exact options you have could depend on the type of bank that hosts your account.
Brick-and-mortar banks are usually the most diverse, but you may be charged for transactions beyond a certain threshold. Online-only banks are more likely to have limited access points, but the fees are often lower and the transaction limits higher.
Before you decide on a small-business checking account, ask yourself these questions to see if it’s going to add value to your venture:
To open a business account, you’ll need to provide your:
You may need to provide other documents too, such as a copy of your business license or incorporation papers.
You can usually sign up for an account online or, if dealing with a traditional bank, in person.
You can open a business checking account with bad credit, but you may have fewer options. It often depends on what your ChexSystems report says about your overall banking track record. If you have a clean banking history with minimal bounced checks, forced account closures and overdraft fees, you’re far more likely to be approved.
High-yield business checking accounts operate just like basic checking accounts while also generating interest based on your account balance. Some checking accounts, like the Bluevine Business Checking Premier Plan, can earn up to 4.25% on balances. But in many cases, you’re better off opening a separate high-yield savings account with up to 5.00% APR versus counting on the much lower 1.00% APR you might get through high-yield checking.
If you’re not sure you want to open a business checking account, there are some other options that can help you organize your finances.
Business checking accounts are tailor-made for frequent transactions. You can withdraw and deposit money on a regular basis without (hopefully) incurring too many fees. Savings accounts are places to stockpile money while it generates interest. For that reason, savings accounts tend to have low withdrawal and transaction limits.
Use business checking for business expenses and your personal account for personal expenses, such as rent, groceries and vacations. Keeping personal and professional funds separate makes it easy to tackle your accounting, calculate taxes and safeguard against lawsuits and debt collectors.
The best small-business checking account is the one that best suits your company’s needs. Those needs could differ significantly based on the type of business you have, how many transactions you do per month and whether you prefer an online checking account or in-person banking. The best way to choose the best checking account is to make a list of your needs and wants and see which account matches up.
The most important feature of a business checking account is that it’s FDIC-insured. Other sought-after features include platform and app integrations, introductory offers, low or no fees, easy ATM access and exciting welcome offers.
Many people believe the best business checking accounts are the free ones. Luckily, you can get a free business checking account from banks like Axos, Found and Novo.
You may be able to open a business checking account with your Social Security number but only if you’re a sole proprietorship or single-person LLC. All other business structures require an EIN.
Having two business accounts is a smart way to separate income from expenditures. You can also use multiple accounts to maximize FDIC protection, which is otherwise limited to $250,000 per account owner, per account type, per institution.
To close your business checking account, you’ll first need to settle any outstanding debts and wait for incoming payments to finish processing. Then, file the paperwork required by your bank for an account closure. If there are funds left in the account, withdraw them or transfer them to a new business account.
Alana Luna (Musselman) is a versatile storyteller with over a decade of writing experience. She is passionate about helping people build their business through unique and engaging content. Some examples of her current freelance projects include building content strategies for small businesses, completing industry research to build case studies, crafting buyer guides and more.
She has a passion and keen ability to simplify complex ideas through storytelling to make it easier for readers to understand hard-to-digest information. As such, Alana’s writing holds strong three principles – content that educates, engages and entertains.
Apart from her contributions to LA Times Compare, Alana has freelanced and ghostwritten for large publications and prestigious brands such as Orbitz, Groupon, Amazon, JCPenney, Walmart and more.
