Best Small Business Checking Accounts for February 2024

You can skip this step if you’re not planning on hiring any employees. However, even if you’re only hiring an occasional contractor, you should have your payroll system set up. Get access to our customer support team, plus a wide array of consulting solutions that cater to every stage of your business. It’s important legally, and the threat of penalties is often enough to dissuade poor payment practices. Although individual P&L statements are valuable, quarter-by-quarter comparisons are even more critical. Checking P&L statements against one another yields valuable insights.

  1. Having a business bank account separates your personal and business finances, simplifies tax reporting and helps you look professional to clients and suppliers.
  2. Account holders can earn 1% cash back on qualifying purchases which can be redeemed as statement credit.
  3. Research for this article encompassed business bank accounts from across the U.S.
  4. Personal accounts don’t usually provide the advanced tools and features growing companies need.

Always read the requirements carefully to understand what would be needed of you during the process. Lili is a business banking platform that offers banking services through Choice Financial Group. Even if you’re a sole proprietor, it’s a good idea to open a business bank account.

Radius, an online bank founded in 1987, was acquired by LendingClub, one of the largest online lending marketplaces, in February 2020, and now operates as LendingClub Bank. LendingClub Tailored Checking is its primary business checking option, which—unlike other accounts on this list—both earns interest and awards cash back. An EIN is one essential piece of information needed to open a business bank account, in addition to basic identifying and contact information like your date of birth and address. Some banks may ask to see additional information about your business, like your business website and business license.

For instance, you might choose to start your fiscal year on July 1 and have it end on June 30 of the following calendar year. Or you may choose a more traditional approach and have your fiscal year follow the standard calendar year, depending on what works best for your business. If you operate a seasonal business, for instance, then you may choose to begin your fiscal year at the beginning or end of your peak sales season.

Free cash deposits are limited to $5,000 or 20 transactions per month. This savings account is a worthy option for high balances and convenient cash access, but it’s not ideal for saving on a smaller scale. Some business bank accounts can have hefty initial deposit requirements or monthly maintenance fees that may not be ideal for start-ups or businesses with limited cash flow.

U.S. Bank Silver Business Checking Terms

The bank’s wide network of branches and ATMs, plus its strong online and mobile app, allows for flexible and secure banking, and you won’t pay fees for most business services. Since you will be managing both your personal and your business checking accounts, it’s important to know their similarities and differences. While the accounts are similar, they may operate under different rules, fees and assumptions. With a business checking account, you likely will be handling a wider variety of transactions and the quality of your record-keeping matters more. As the name suggests, a high-yield business checking account usually offers a higher APY than a standard business checking account.

Waive the Monthly Service Fee if you achieve $2,000 of minimum daily balance, deposits from Chase QuickAccept®, or Chase Ink Business Card purchases. However, many small businesses file estimated quarterly tax payments. Quarterly payments need to be made on self-employment tax (including Social Security tax and Medicare tax) and income tax on your company’s profits. One of the messiest accounting blunders small business leaders make is mixing their business and personal funds. Although many entrepreneurs self-fund their businesses, business revenue and expenses must be kept separate from personal finances. Novo doesn’t allow for cash deposits, but you can use the mobile app to deposit money orders and checks.

As a business owner, the thought of doing accounting for your business may be more intimidating than the prospect of owning a business. For complete details, please review the Additional Banking Services and Fees for Business Accounts at or visit a Chase branch. Deposits are subject to limits, verification, fraud monitoring, and other restrictions. QuickAccept usage subject to eligibility, terms of service, monitoring and further review. Choose your business type for a checklist of the required documentation needed to open a new business account.

A closer look at the top business checking accounts

When you need general customer service support, you can call Monday through Friday, 7 a.m. For specific questions about business banking services like remote deposit or online banking, you can call additional dedicated service lines. The account integrates with other small business tools you may be omni calculator logo using to manage your business, including Stripe, Shopify and QuickBooks. If you need to send a paper check, you can request online for one to be sent at no charge. When you need to deposit cash, you can purchase a money order and deposit the money order through the mobile check deposit feature.

Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information.

What Is a Business Checking Account?

Opening a bank account for a small business is an essential step to help manage the business and keep its finances in order. If you’re a small business owner looking to find the right business account, here’s where to get one, what to look out for and how one of these accounts can help you. When all of your transactions have been entered, you’re ready to run your financial statements. Start with an unadjusted trial balance, which can help locate any out-of-balance accounts. Chase business checking solutions are designed to help you manage cash flow, save time, and get the support you need when you need it. Customers can make fee-free withdrawals at over 100,000 Allpoint and MoneyPass ATMs in the U.S.

Choosing the best business checking account for your small business is a personal decision, based on your business’s needs and your own habits and wants. The monthly service fee, $15, is waived if you meet specific monthly account requirements (see Details). There is no fee for the first 20 deposits and withdrawals made either at the teller or by paper check. Each additional paper check or teller transaction incurs a 40-cent fee.

And affiliated banks, Members FDIC and wholly owned subsidiaries of Bank of America Corporation. Programs, rates, terms and conditions are subject to change without notice. There is a $10 monthly maintenance fee for this account, but it’s waived if you keep a $500 average monthly balance. Overall, this is a valuable low-fee, cash-back business checking account.

U.S. Bank Silver Business Checking

By hiring a CPA, you can reduce accounting mistakes and ensure your records are accurate and current. A CPA can review your books to help you identify ways to cut costs and boost spending in growth areas. According to the Truist Bank survey, 84 percent of small business owners reported experiencing cash flow problems. Increase your collection activity and invoice regularly to help keep cash flowing. To improve your accounting skills, become familiar with Generally Accepted Accounting Principles (GAAP), data analytics, business intelligence software and cloud-based accounting. “[Business owners] enjoy what they’re selling or what their business is all about,” says Kari Harpold, treasury management officer at Capitol Bank in Madison, Wisconsin.

Its business checking account has a relatively small $100 minimum deposit requirement to open the account. The account offers 1.51% APY on balances up to $25,000 and on balances greater than $250,000. Account holders earn unlimited 1% cash back on online and signature-based debit card purchases if they maintain an average monthly balance of $10,000 or more in their account. LendingClub charges no ATM fees and rebates fees charged by other ATMs, worldwide. The Found business checking account is designed for the self-employed, freelancers and independent contractors.