The best business bank account depends on your company structure, transaction volume, and whether you need in-person banking
There is no single "best" account because banks offer different features at different price points, and what works for a solo freelancer does not work for a retail store. The choice comes down to three things: what your company structure is (sole proprietorship, LLC, corporation), how many transactions you run monthly, and whether you need a physical branch nearby or can work entirely online.
Start by listing what you actually use: Do you deposit checks weekly or monthly? Do you need a debit card for business purchases? Do you send invoices and need to track payments? Do you hold customer deposits or employee payroll? The answers narrow the field fast. A freelancer who invoices five clients a month and deposits checks quarterly has different needs than a restaurant that processes hundreds of card transactions daily.
Key Takeaways
- Online banks typically charge no monthly fees and offer lower minimum balances, but have no physical branches and may not accept cash deposits.
- Traditional banks charge monthly maintenance fees (usually $10 to $25) but offer in-person service, cash handling, and often better check deposit limits.
- Credit unions may offer lower fees and personalized service if you meet membership requirements, but have fewer ATMs and branches than national banks.
- Your company structure (sole proprietorship, LLC, S-corp, C-corp) determines which account types you can open and what tax documents the bank will ask for.
- Compare the actual costs you will pay monthly based on your transaction volume, not just advertised rates, because fees vary by deposit method and account activity.
Online banks versus traditional banks: what each costs and what you give up
Online banks (Novo, Mercury, Brex, Square, Wise) charge no monthly maintenance fee and often have no minimum balance requirement. They are built for businesses that invoice, send payments, and deposit checks by phone or mail. The trade-off is that you cannot walk in with cash, and some do not accept cash deposits at all. If your business runs on card payments or ACH transfers, this is not a problem. If you handle cash regularly—a salon, a food truck, a retail shop—an online bank alone will not work.
Traditional banks (Chase, Bank of America, Wells Fargo, regional banks) charge $10 to $25 per month for a business checking account, though some waive the fee if you maintain a minimum balance (often $1,500 to $5,000) or set up direct deposit. They accept cash deposits at the teller window, offer higher check deposit limits, and have physical branches where you can resolve problems in person. The fee is worth it if you deposit cash weekly or need to speak to someone face-to-face.
A hybrid approach works for many businesses: use an online bank for invoicing and transfers, and keep a small traditional account at a local bank for cash deposits and the occasional in-person need. The online account handles most of your money; the traditional account is your safety net.
Credit unions and community banks: when they make sense
Credit unions often charge lower fees than national banks and may offer better rates on business loans if you need one later. The catch is that you must be a member, which usually means living or working in a specific area, working for a particular employer, or belonging to an organization. Membership requirements vary widely, so check whether you may have access to before you spend time applying.
Community banks operate similarly to credit unions but without the membership requirement. They typically charge monthly fees but offer personalized service and may be more flexible about business structure or account history. If you have been turned down by a national bank, a community bank is worth a call. They also tend to know local business owners and may offer networking opportunities or referrals.
The downside to both is limited ATM access and fewer branches. If you travel for business or need to deposit checks in multiple cities, a national bank or online bank with mobile check deposit is more practical.
What your company structure means for account setup
Banks ask for different documents depending on whether you are a sole proprietor, LLC, S-corp, or C-corp. A sole proprietorship is the simplest: you can often open a business account with just your Social Security number and a DBA (Doing Business As) certificate if you use a name other than your own. Some banks will let you skip the DBA entirely.
An LLC or corporation requires an Employer Identification Number (EIN) from the IRS, which you get for free by applying online at irs.gov. The bank will ask for your Articles of Organization (LLC) or Articles of Incorporation (corporation), proof of your EIN, and a resolution authorizing the account. If you are the sole owner, the bank may not require the resolution, but have it ready anyway—it takes five minutes to write and saves a phone call later.
If you have not formed an LLC or corporation yet, you can still open a business account as a sole proprietor using your Social Security number. You can convert it later when you form the entity, though some banks require you to close the old account and open a new one. Ask the bank upfront what their process is.
Transaction volume and deposit methods: the real cost drivers
Monthly fees are only part of the cost. The real expenses come from how you deposit money and how often. Some banks charge per check deposited, per ACH transfer sent, or per wire. Others include a set number of transactions and charge overage fees. A business that deposits 50 checks a month will pay more than one that deposits 5, even at the same bank.
Mobile check deposit (taking a photo of a check with your phone) is now standard, but limits vary. Most banks allow $5,000 to $10,000 per check and $25,000 to $50,000 per day. If you regularly deposit larger checks, confirm the limit before you open the account. Some online banks have higher limits than traditional banks; others have lower ones.
ACH transfers (moving money between accounts electronically) are usually free or low-cost, but some banks limit how many you can send per month. If you pay vendors or contractors regularly, ask about ACH limits. Wire transfers almost always cost $15 to $30 per wire, so if you send wires frequently, factor that in.
Debit cards, payment processing, and add-on features
Most business checking accounts come with a debit card, but some online banks charge a monthly fee for it ($5 to $10) or limit how many cards you can order. If you need cards for multiple employees, ask about the cost per card and whether there are spending limits you can set per card.
Payment processing (accepting credit and debit cards from customers) is separate from the bank account itself. Some banks offer it built in; others require you to use a third-party processor like Square, Stripe, or PayPal. If you take card payments, compare the processing fees (usually 2% to 3% per transaction) across banks and processors. A low monthly bank fee means nothing if you are paying high processing fees.
Accounting integrations matter if you use QuickBooks, Xero, or another accounting software. Most banks now sync automatically with major platforms, but confirm this before you open the account. Automatic syncing saves hours of manual data entry each month.
What to compare before you decide
| Feature | Online Banks | Traditional Banks | Credit Unions |
|---|---|---|---|
| Monthly fee | $0 | $10–$25 (often waived) | $0–$15 |
| Minimum balance | Usually $0 | $1,500–$5,000 (varies) | $0–$500 |
| Cash deposits | No (or very limited) | Yes, at teller window | Yes, at teller window |
| Physical branches | No | Yes, nationwide | Limited, local |
| Mobile check deposit | Yes | Yes | Yes |
| Debit card | Yes (sometimes fee) | Yes | Yes |
| ACH transfers | Usually free | Usually free | Usually free |
Before you open an account, write down your actual monthly activity: number of checks deposited, number of ACH transfers sent, number of card transactions, and whether you handle cash. Then visit the websites of three banks in each category (online, traditional, credit union) and calculate what you would pay per month based on your activity. The cheapest advertised rate is often not the cheapest in practice.
Most banks let you open an account online in 10 to 15 minutes. You will need your Social Security number or EIN, a government-issued ID, and your business address. Some banks ask for a small deposit to open (usually $25 to $100); others waive it. Once the account is open, you can order checks and set up transfers immediately, though some banks hold new accounts for a few days before allowing large transfers.
Frequently Asked Questions
Can I open a business account without an EIN if I am a sole proprietor?
Yes. Most banks will open a sole proprietor account using your Social Security number and a DBA certificate (if you use a business name). You can get an EIN later for free from the IRS if you hire employees or form an LLC. Some banks prefer an EIN even for sole proprietors, so call ahead and ask.
What happens if I do not maintain the minimum balance?
The bank charges a monthly fee, usually $10 to $25. Some banks charge it once; others charge it every month until you bring the balance back up. Read the account agreement to see the bank's policy. If you cannot maintain the minimum, choose an online bank or a traditional bank that waives the fee for direct deposit or a certain number of transactions.
Can I use a personal bank account for my business?
Legally, yes, but it is not recommended. Mixing personal and business money makes taxes harder and can hurt you if you are sued—a business account shows the court that you kept finances separate. A business account also looks more professional to customers and vendors. Most banks charge the same fee for a business account as a personal account, so there is little reason not to open one.
Do I need separate accounts for different parts of my business?
No, but some business owners find it helpful. One account per business is standard. If you run two separate businesses (a consulting firm and a rental property, for example), you may want separate accounts to keep taxes clear. Ask your accountant whether it makes sense for your situation.
What if my business is just starting and I have no revenue yet?
You can still open a business account. Banks do not require proof of income or business history. You will need your EIN (or Social Security number if you are a sole proprietor), a DBA certificate if you use a business name, and a small deposit to open the account—usually $25 to $100. Start with an online bank if you want to avoid monthly fees while you are getting going.