Or you can elect to invest your money in a money market fund that pays 4.47% as of August 29, 2024. We picked the First Internet Bank Do More Business™ Checking account because it earns interest and includes perks like unlimited transactions and $10 in monthly ATM reimbursements. It’s also one of the only competitive business checking accounts without a monthly fee. These include the Axos Bank Business Savings, Axos Bank Business Money Market Account and Axos Bank Non-Profit Money Market Account, and the Axos Bank Business Certificate of Deposit. Unfortunately, most savings products earn 0.20% APY or less, which is low compared to other online banks.

There isn’t a common, designated account type for LLCs, for example (although some banks may offer “LLC bank accounts”). But different business bank accounts come with different features and restrictions, making some better for certain businesses than others. Relay offers a straightforward, free online business banking solution that lets business owners open up what is cost of goods sold and how to calculate it to 20 checking accounts and create multiple user roles. If you have any negative marks on your ChexSystems report, like unpaid fees, bounced checks or overdrafts, this could impact your business account application. Use these tips to find out if a bank uses ChexSystems for business checking accounts.

1. Business bank accounts with lower and fewer fees, wider accessibility, better digital and customer experience scores and lower minimum deposit and balance requirements were ranked higher.
2. Report unauthorized transactions promptly and your business won’t be held responsible.
3. This account is not well suited for a business processing a large volume of transactions.
4. Small businesses need to keep accurate records relating to any expenses they incur, particularly for expenses they plan to deduct.
5. Membership is required at credit unions, though it’s often relatively easy to become a member.
6. Our editors are committed to bringing you unbiased ratings and information.

It generally provides higher interest rates than checking but may have monthly withdrawal limits. It’s a low-risk place to hold emergency reserves and collect interest on cash you don’t need right now. Rho’s business checking account us gig economy can be linked to a cash management account, a financial tool to earn extra-high APYs on your balances. Using a comprehensive bookkeeping software program often becomes easier over time. The best bookkeeping software syncs with your business bank account and payroll systems so that you’re easily able to import and export transaction history.

Best Online Business Checking Account

Some online-only banks that offer free business checking accounts include Axos, BlueVine, Grasshopper, Lili and Novo. Interest for this account is compounded and credited monthly on the last day of each month. The Do More Business Checking account has no minimum deposit, balance or monthly maintenance fee. Regardless of your balance, you will be reimbursed up to $10 per month in ATM fees. First Internet Bank also offers several business deposit accounts, including a savings account, money market account and CDs.

Banks We Monitor

Axos, U.S. Bank, LendingClub, and Wells Fargo round out the rest of our top picks. They’re easily accessible and have relatively low fees and minimum balances, with generous transaction limits. We chose the First Internet Bank’s business checking for the treasury management services that come with its Commercial Analyzed Checking account. These include commercial deposit services, payables and receivables, and sweep services.

Pros and Cons of Small Business Bank Accounts

It’s also important to keep records of any agreements with vendors and suppliers, bank statements, documents showing payment of estimated quarterly taxes, and annual tax returns. The IRS encourages small business owners to maintain proper documentation for expenses, such as receipts showing the amount spent, the date, the payment method, and what was purchased. Enroll in Online Banking to review who has access to your business accounts, update authorizations, and manage users. We like Novo for its ability to connect and automate business processes with the apps you’re already using to run your business. You can take a payment in Stripe, update inventory in sheets, and pay your employee in Gusto all while Novo integrates the data in your account.

🏆 Our pick: The best online business account

This package also includes Cash Flow Insight tools for accounts receivable and payable, invoicing, payments and more. Once you’ve decided which business checking account to open, you can visit the financial institution’s website, go to a local branch or call customer support to set up the account. Keep in mind that online-only banks will usually steer you toward opening a business checking account through their websites. Brex partners with multiple banks to offer expanded FDIC insurance on up to $6 million in deposits. Customers can choose to keep their deposits in cash or they can invest in money market fund Dreyfus Government Cash Management Investor Shares (DGVXX). Since Brex isn’t a bank account, you cannot deposit or withdraw cash from this account.

If you’re unsure about your tax obligations, you may want to talk to a professional accountant or tax expert for advice. If you’re already using an accounting software program for small businesses, you may be able to generate these statements automatically using the expense and income information you’ve already entered. A chart of accounts is a list of all accounts available for recording transactions in your accounting software program if you use one or a general ledger if you don’t. To create this chart, you’d first organize your accounts into specific categories, then further break your organization down into relevant subaccounts. Some (but not all) digital wallets require your device to be NFC (Near Field Communication) enabled and to have the separate wallet app available. On the personal side, you’ll need a valid ID like a driver’s license as well as your Social Security number.

Bank of America charges a $10 overdraft fee per item, up to two times daily. The Bank of America Business Advantage Relationship Banking account has a steep but waivable monthly fee of $29.95. It provides fee waivers for common banking activities as well as other business bank accounts and allows 500 free transactions per month. The Bank of America Business Advantage Fundamentals™ Banking is where current property are situated on the steadiness sheet — accountingtools $16 a month and allows 200 monthly transactions. Both offer interest boosts, discounts and more through Preferred Rewards for Business.