Aug 28, 2020

Checking In on the Best Business Checking Accounts

If your small business plans to spend or receive money at any point in its existence, you will likely need a bank account to facilitate those transactions. Some entrepreneurs may nod their heads at this statement, confident that they already have personal bank accounts that are more than ready to handle those tasks.

However, using a personal checking account for your business can present a host of issues. First of all, when your personal and business expenses are running through the same account, it can be extremely difficult to separate them for tax purposes. A personal checking account also prevents you from doing any of the banking in your business’s name, and your business’s name will not appear on your checks. And the overall feeling of nonchalance that emanates from your business when you don’t have a dedicated account could be sensed by your customers.

If you plan to open a business-specific checking account, you could obviously just open an account with the bank where you already hold personal accounts. The chief advantage with that approach: the approval process will be streamlined since they already have your personal information and can draw upon your history with their bank when making their approval decision.

One of the drawbacks of opening the account where you already bank, however, is that you might not get the best deal. There could be other banks offering better rates—and they’ll often throw in a lucrative bonus when you open a new account.

“Choosing a bank for your business involves more than opening a new account at your personal bank or picking the branch office nearest your company,” says the Wall Street Journal. “You need to understand what services you require and how much they cost. Ideally you’ll find a banker who will take the time to walk you through how to solve a problem, so you can go back to running your business. Still, some business owners may spend more time shopping for a $300 laser printer than they would shopping for a bank.”

As you review your options, look at factors such as interest rates, ATM fees, and recurring charges. You should only choose a bank based on its welcome bonus if these more substantial factors are also favorable—a $300 bonus loses its luster if you find yourself paying extra money each month to maintain the account.

Additionally, you’ll want to make sure the account would be compatible with other tools and services you’re using. For example, Sunrise Pay integrates with nearly all checking accounts on the market—but if you’re already using that service, you’d want to confirm its compatibility before signing on the dotted line of a new business checking account.

Let’s look at some of the best business bank account options currently available. It’s worth pointing out that the bonuses and perks provided by some of these accounts are situational, so they won’t be available to every applicant.

This is a consistently high-rated checking option that many entrepreneurs enjoy using. Even sole proprietors are eligible, which makes it one of the easiest to qualify for. Chase provides a full range of resources for small business owners.

Bonus: If you complete all the required account activities, you’ll receive a $300 perk.

Here’s another popular checking account that gets high marks from business owners. Their website and app are easy to use, a plus for those who haven’t had experience with lots of other business checking accounts. And, if you find yourself struggling to figure something out, the customer service from Bank of America is always reliable.

Bonus: This account comes with a massive perk! If you complete all the required account activities, you’ll receive up to $750.

These accounts come with some nice features, like free debit cards and instant domestic payments. Just be sure to review the various tiers for this account to find the option that best fits with your business operations.

Bonus: If you complete all the required account activities, you’ll receive a $250 perk.

This checking account is geared toward startups and other businesses in growth mode. It includes lots of nice features, like remote deposits, unlimited monthly transactions, and a robust fraud tool.

Bonus: If you complete all the required account activities, you’ll receive a $300 perk. Please note that this is a regional offer that’s only available to folks who live in Indiana, Illinois, Michigan, Kentucky, Pennsylvania, Ohio, or West Virginia.

As long as you process a relatively low number of transactions each month, this could be a good checking account option (the first 150 are free). There are no maintenance fees, which is always nice—however, the customer service from US Bank receives mixed reviews.

Bonus: If you complete all the required account activities, you’ll receive a $200 credit on payroll services and a card reader at no cost.

This account may lack some of the resources and tools available from bigger banks, but it still delivers all the basics you need. Some small business owners might even prefer the fact that the website and app have a more stripped-down feel to them.

Bonus: If you complete all the required account activities, you’ll receive a $250 perk.

If a few of these checking accounts have caught your eye, take the time to do your due diligence. Once you’ve confirmed that the costs and benefits align with your business’s goals, you should be ready to open the account so your business can begin benefitting right away.


 

The information provided in this post does not, and is not intended to, constitute tax advice; instead, all information, content, and materials available in this post are for general informational purposes only. Readers of this post should contact their tax professional to obtain advice with respect to any particular tax matter.

About the author

Grant Olsen
Grant Olsen
Grant Olsen is a writer specializing in small business loans, leadership skills, and growth strategies. He is a contributing writer for KSL 5 TV, where his articles have generated more than 6 million page views, and has been featured on FitSmallBusiness.com and ModernHealthcare.com. Grant is also the author of the book "Rhino Trouble." He has a B.A. in English from Brigham Young University.

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