Best Business Bank Accounts

Discover the top business bank accounts for your company's financial needs. Compare rates and features to find the best option for your business today.

Opening a business bank account is essential for any entrepreneur or small business owner. Not only does it separate personal and business finances, but it also helps to build a financial track record for future loans and credit. Choosing the right bank and account can be overwhelming, but understanding the different types of accounts and their features can help make the decision easier. 

What is a Business Bank Account?

A business bank account is a dedicated account for managing business finances. Unlike personal bank accounts, business accounts offer features and services that cater specifically to business needs. These accounts can be used for depositing and withdrawing funds, making payments, receiving payments, and more. By keeping business finances separate from personal finances, it makes it easier to track business expenses, file taxes, and manage cash flow.

Types of Business Bank Accounts

• Checking Accounts: This is the most common type of business bank account. It allows for easy access to funds through checks, debit cards, and online banking. Some checking accounts offer perks such as ATM fee refunds, no monthly fees, and free transfers.

• Savings Accounts: This type of account is designed to help businesses save money while earning interest. It is typically used for long-term savings goals such as purchasing equipment or expanding the business.

• Small Business Accounts: These accounts are designed specifically for small businesses and offer features that cater to their needs. They may include perks such as free invoicing tools, free transfers, and no monthly fees.

• Commercial Accounts: This type of account is designed for larger businesses that need more advanced features such as cash management and payroll services. It may also offer higher transaction limits and more robust online banking tools.

• Corporate Accounts: This account is designed for large corporations and offers sophisticated cash management solutions, international wire transfers, and other advanced features.

• Startup Accounts: These accounts are designed for newly formed businesses and offer features such as waived fees and free banking for a limited time.

• Freelance Accounts: This type of account is designed for freelancers and independent contractors who need to manage their finances. It may include features such as mobile banking and no monthly fees.

• Credit Card Accounts: Business credit cards offer a revolving line of credit that can be used for business expenses. They may offer rewards such as cashback or points for every dollar spent.

• Merchant Service Accounts: These accounts are designed for businesses that need to accept credit card payments. They may offer features such as point-of-sale systems and payment processing services.

How to Set Up a Business Bank Account

The process of setting up a business bank account may vary depending on the bank and the type of account you choose. Generally, you will need to provide the following information:

• Business name and address

• Business tax identification number

• Business formation documents (articles of incorporation, partnership agreement, etc.)

• Personal identification (driver's license, passport, etc.)

• Business plan (for startup accounts)

Once you have gathered all the necessary information, you can apply for a business bank account either online or in-person. The bank will review your application and may require additional documentation before approving the account.

Best Business Banks

There are many banks that offer business bank accounts, but some stand out above the rest. The best business banks offer a combination of features, low fees, and excellent customer service. Here are some of the best business banks:

• Chase Bank: Chase offers a variety of business bank accounts with perks such as earn $500 after opening a business account, ATM fee refunds, no monthly fees, and accounts insured up to $250K. They also offer a robust online banking platform and excellent customer service.

• Bank of America: Bank of America offers a range of business bank accounts with features such as free invoicing tools, free transfers, and no monthly fees. They also offer a mobile banking app and excellent customer service.

• Wells Fargo: Wells Fargo offers several business bank accounts with features such as free online banking, a mobile banking app, and no monthly fees. They also offer merchant services and cash management solutions for larger businesses.

• Capital One: Capital One offers a business checking account with no monthly fees and unlimited transactions. They also offer cash management tools and a mobile banking app.

Cost

The cost of a business bank account varies depending on the bank and the type of account you choose. Some accounts may have no monthly fees, while others may charge a monthly fee. Some accounts may also have transaction fees or ATM fees. It is important to compare the costs of different accounts and choose one that best fits your business needs.

Choosing the right business bank account is an important decision for any entrepreneur or small business owner. Understanding the different types of accounts and their features can help make the decision easier. Whether you choose a checking account, savings account, or one of the other types of accounts, it is essential to keep your business finances separate from personal finances. By choosing one of the best business banks and managing your finances wisely, you can help your business grow and thrive.