Small business owners can also take advantage of Chase offerings such as small business loans, credit cards, and savings accounts in addition to checking. One feature offered by banks is the ability to earn interest on your balances. A number of popular business checking accounts let you earn interest (albeit at a low rate). But business savings accounts will usually offer a better APY (annual percentage yield). A business money market account is similar to a savings account in that it earns interest and provides a place to build up cash reserves. However, this type of account typically comes with some features of a checking account, such as an ATM card or paper checks, that offer easier access to your funds.
Her journey into finance started with building her personal credit, but soon grew into a borderline obsession with credit cards and travel rewards. For the last 7 years, she has enjoyed the ability to share her expertise with readers, as well as the opportunity to interview companies and individuals making an impact on our financial lives. One final benefit of having a business account, not listed by the Small Business Administration, is taking advantage of tax deductions. If you report tax deductions for a business from a personal account, it may trigger an audit.
Relay Automated Savings Account: Best for automated business savings
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 bank’s business checking and savings accounts all charge monthly maintenance fees that can be waived by maintaining a high balance or, sometimes, becoming a Preferred Rewards for Business member. You’ll use a business bank account similarly to how you use a personal account. If it’s a checking account, you’ll pay bills, receive payments, deposit checks and more. If it’s a savings account, you’ll deposit money that you don’t plan on using right away.
Bank of America
- New businesses may take a little longer for verification but many accounts today are approved very quickly.
- Banks may offer sub-accounts that allow you to set aside money to budget for recurring expenses such as taxes, or for a specific goal.
- Also, many of the best accounting and tax preparation features are locked in one of the paid tiers.
- Learn how to get approved, which benefits and fees to consider, how transaction limits work and more.
Once you’ve selected a bank, gather your identification and business documents. Have your Social Security number and Employer Identification Number (EIN) ready, as well as certified business documents such as your articles of incorporation, business license or partnership agreement. Small businesses that are required to pay estimated quarterly taxes but fail to do so may be assessed a penalty by the IRS. For instance, you might choose to start your fiscal year on July 1 and end it on June 30 of the following calendar year.
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. While the rate isn’t too impressive at 0.01% APY, this account offers convenience in the form of check-writing privileges and low balance and deposit requirements. Bank accounts that are most attractive to LLCs, for example, do more than just allow you to keep personal and business expenses separate. They also usually come with features to help you keep tabs on revenue and expenses, and tools to make tax season easier.
How To Open a Business Checking Account
This will appeal to some businesses that do not want to use a fintech for their business banking. While most customers will use it as an online bank, customer service is handled by the branch location. And perhaps most importantly, without a business bank account your options for financing your business will be more limited. Some lenders require business bank statements to verify business revenues, and will not approve loan applications from businesses without one. Without one, your options for a small business loan will be much more limited.
Best for Businesses with High Volume Transactions
To learn more about our review methodology and editorial process, see How Forbes Advisor Reviews Banks. Accountholders can access up to $175 in insurance coverage through Axos Bank InsureGuard+ Savings from IntraFI Network Deposits. Small Business Administration, as of July 2024 there were nearly 35 million small businesses in the U.S., which amounted to 99.9% of all U.S. businesses. "Starting a small business is about having the right tools to simplify your life, not complicate it," said Ryan Greiser, cr what does cr stand for the free dictionary CFP, a member of Investopedia’s Financial Advisor Council. Founded in 1852, Wells Fargo has grown into the third-largest bank in the U.S., with over $1.7 trillion in assets. It's based in San Francisco, California, and has approximately 4,900 locations and more than 12,000 ATMs across the United States.
