Starting a business is hard enough – you don't need the added hassle of dealing with paperwork and long lines at the bank. Fortunately, thanks to the internet, you can now open a business bank account online in minutes.
In this blog post, we will provide a list of the best banks for small businesses, so you can get started quickly and easily. Let's get started.
Why do you need a separate business bank account?
There are plenty of reasons why you might want to consider having a dedicated business bank account, even if you’re a one-person operation. They include:
Helps you build up your business credit
If you ever need to take out a loan for your business, having a strong credit history will be essential. By using a business credit card and paying your bills on time, you can start to build up your business credit score. This will make it easier to get approved for loans in the future. Read more about how a business account affects credit score.
Separate personal and business accounts
Another key benefit of having a business bank account is that it helps you to keep your personal and business finances separate for taxes. This can make it much easier to manage your money, and it can also help you to avoid any legal problems down the road.
Builds credibility with vendors
When you have a dedicated business bank account and start paying your vendors with corporate checks, they’ll be more likely to view your business as credible and professional. That can lead to better terms, such as longer payment terms, and discounts for early payments.
Makes tax time a lot simpler
At the end of the year, you will need to file your taxes. Having a dedicated business bank account makes it much easier to track your expenses and income, as all of the relevant information will be in one place. This can save you a lot of time and hassle come tax time.
How to choose the right business checking account online
The first thing you need to consider when choosing a business checking account is the type of account that best suits your needs. There are three main types of accounts: basic, interest-bearing, and money market.
- Basic business checking accounts offer the simplest level of service and usually have no monthly fees.
- Interest-bearing accounts earn interest on your deposited funds, but they typically require a higher minimum balance.
- Money market accounts offer the highest interest rates, but they also have stricter requirements in terms of minimum balance and transactions.
Once you've decided on the type of account that's right for your business, the next step is to compare the fees and features offered by different banks.
When you're looking at fees, it's important to pay attention to both the monthly service fee and the per-transaction fees. Some banks charge higher fees for certain types of transactions, such as wire transfers or international payments.
When it comes to features, you'll want to consider what's important to your business. For example, if you frequently make large cash deposits, you'll want to make sure the bank you choose offers deposit slips. If you frequently travel for business, you may want to consider a bank that has branches in multiple cities or an account that comes with a debit card that can be used internationally.
Once you've compared the different options, it's time to choose the account that's right for you. Be sure to read the fine print and understand all the terms and conditions before you make your final decision.
How to open a business bank account online
Now that you've chosen the right bank and account for your business, it's time to open your account. The process is similar to opening a personal account, but there are a few key differences.
To open a business bank account online, you'll need to provide some basic information about your business, such as the legal name of your business, your business address, and your tax identification number. You'll also need to provide some personal information, such as your name, address, and Social Security number.
Once you've gathered all the required information, you can begin the account opening process. Research how much it costs to open a business bank account with an institution and decide where to create one.
The first step is to fill out an application -- this can usually be done online, but some banks may require you to print and mail in your application.
Once your application has been processed, you'll need to submit some documentation to verify your business. This may include your business license, articles of incorporation, or tax return.
After your documentation has been processed, you'll be asked to fund your account. This can usually be done by transferring funds from another bank account or by mailing in a check.
If you're having trouble, then the customer support team of the bank you're setting up your account with should be able to help.
It's important to note that, to set up a business account online, you'll need to be the legal owner of the business.
If you're not the legal owner, then you'll need to provide documentation proving that you have the authority to open and operate the account on behalf of the business.
There are a few things to keep in mind when you're using your new account. First, be sure to keep track of your transactions and balances so you can stay within your account's limits.
Second, remember to pay any fees or charges associated with your online business bank account on time. Failure to do so could result in late fees or other penalties.
By following these steps, you can open a business bank account online and start taking advantage of all the benefits it has to offer. With a little planning and research, you can find the perfect account for your business needs.
Where to open a business checking account online?
Now that you know how to open a business bank account online, you may be wondering where to open your account. Here are a few of the best online business bank accounts:
Bonsai's business account
Bonsai's business account is an easy-to-use checking account that allows you to manage, save, and spend your business funds with a minimum of hassle. The account offers you the convenience of digital business account solutions at a fraction of the cost.
Unlike traditional checking accounts, Bonsai's business account doesn’t charge you any monthly maintenance fees or transaction fees, and there are no opening requirements either. Yes, we are a no minimum business checking account.
The “Envelopes” feature makes it much easier to save more money and grow your business. You can create a few sub-accounts within the main account that you can use to set aside business funds. For instance, you can set up a “tax season”, ‘’business supplies”, or “emergency money” sub-account. You can technically have as many business accounts as you want.
You can even go a step further and allocate a percentage of your incoming funds to these sub-accounts. For example, you can assign 50% of your incoming funds to the “tax season” sub-account and the remaining 50% to the “business supplies” sub-account.
You can set up a business account for your business using three simple steps:
- Create your account by providing your name, country, and currency
- Provide a few details about your line of work
- Apply for a free trial
Save more time and money by choosing Bonsai's business account as your dedicated business checking account. Open an account today.
Novo Business Checking
Novo business checking is a great alternative for small-business owners on the go since it offers no monthly fees, unlimited reimbursements for ATM expenses, and several mobile business account features.
Novo is compatible with hundreds of small business applications, such as Stripe, Shopify, and QuickBooks. For example, you can check your Stripe balance for client payments, transfer funds across borders with Wise, and monitor your QuickBooks transactions in real-time from your Novo account.
Novo also offers Novo Reserves, which are accounts that allow you to set money aside for particular reasons, such as taxes, payroll, or other expenditures. You can establish up to five Reserves in your Novo account for various spending plans and objectives.
That said, if you're searching for a bank that offers business savings accounts or interest-accumulating accounts, then you'll want to look elsewhere. Currently, Novo only provides a business checking account that doesn't pay out any interest.
Kabbage Checking Account
Kabbage Checking's greatest benefit is its above-average 1.10% APY for account holders. In comparison, typical banks usually provide low 0 percent to 0.01 percent APY on their checking accounts.
Users may also add funds to a “Reserves” account, which is similar to an enveloping account. You can organize your money for specific savings objectives or categories such as new business equipment or taxes in the "Reserves" section of the account.
You can withdraw cash for free at one of the 19,000-plus in-network ATMs across the country with the Kabbage Checking account. To help you locate the nearest ATM, there is an ATM locator in the Kabbage mobile app.
Kabbage does not charge a fee for any withdrawals made outside of its ATM network, but the bank whose ATM you're using can charge you a small fee.
There are no monthly maintenance fees or minimum balance requirements with the Kabbage Checking account. Traditional banks generally charge monthly account servicing costs between $10 and $29.95, so having no costs with Kabbage is already a significant advantage.
NBKC Business Checking
You have two business account choices with the mostly online-based NBKC Bank: the NBKC Business Account and the NBKC Business Money Market Account.
- The NBKC Business Account is a basic business checking account that's intended to keep your money safe for everyday use.
- The NBKC Money Market Account is a traditional savings account in which you can save extra money and earn interest on it.
You won't have to make an opening deposit when opening an NBKC Business Checking account. You don't have to maintain a minimum balance either, and the bank doesn't charge you any monthly fees. What's more is that transactions, incoming domestic wires, and check deposits are fee-free too.
You have access to over 32,000 MoneyPass ATMs across the country, and can get ATM fee reimbursements of up to $12 a month.
Axos Basic Business Checking
With Axos Basic Business Checking, you open a 100% online account and get benefits such as:
- unlimited domestic ATM reimbursements
- no monthly maintenance fees
- no minimum balance requirements
For any business incorporated after June 1, 2020, Axos offers a $200 bonus for opening an account. And for small businesses incorporated before that date, the bank offers a $100 welcome bonus.
You can redeem the $200 offer by using the code NEWBIZ200, and the $100 bonus using the code NEWAXOSBIZ.
There's a catch, though. To qualify for this welcome bonus, you need to maintain an account balance of at least $2,500 during your first two months with Axos.
You need to note that the bank has one major shortcoming, however. Unlike other online business checking accounts, Axos does not integrate with popular third-party business applications or apps such as invoicing software or online payment systems.
BlueVine Business Checking
BlueVine's business account suite is made up of a single product, their online-based business checking account.
BlueVine Business Checking is a good option for freelancers, home services, construction businesses and more that want to avoid monthly fees. This account has no monthly maintenance fees, and you can also avoid fees on transactions and incoming wires.
With minimal paperwork, you can open a BlueVine business bank account quickly and simply online.
The biggest benefit of this account, however, is its 1.2% APY, which is higher compared to other online business account solutions. For instance, Axos Business Checking offers an APY of 0.81%, and Kabbage Checking accounts earn 1.10% APY.
For your account to earn this interest, you need to have a balance of $100,000 or less.
Bank of America Business Checking
Bank of America offers a comprehensive suite of small business products and services, including checking and savings accounts, merchant services, credit cards, loans, and lines of credit. You can apply for most of these products online, and you’ll have access to the Bank of America business debit card, and mobile banking features with any account.
If you’re looking for a one-stop-shop for all your small business banking needs, Bank of America is a good option. However, if you want the highest interest rates on savings and checking accounts, you may be better off with another bank.
LendingClub Business Checking
The LendingClub Tailored Checking account, which allows you to earn interest and has unlimited ATM fee reimbursements, provides perks similar to those found in LendingClub's consumer business account services.
This online business checking account stands out, though, because it allows customers to make unlimited transactions, receive debit card rewards, and use convenient digital business account tools like bill pay and integrated invoicing.
To open the Tailored Checking account, you'll fill out an online form on the LendingClub website and provide information about yourself, your company, and any other company owners. Before submitting your application, you must also link an existing bank account or debit card to fund your new account, pending approval.
Once you've submitted your paperwork, the review process will take between two and five business days. You'll be able to access online business account and download the mobile app after you receive approval from LendingClub to create and manage your checking account.
Final Thoughts
A business bank account is a valuable tool for any business owner. It can help you manage your finances, make payments, and receive deposits.
By doing your research and carefully comparing the fees and features of different banks, you can find the perfect account for your business needs. Be sure to read the fine print and understand all the terms and conditions before you make your final decision.
