How to Choose the Right Business Bank Account

Kim Bernstein
Mar 3
2 min read

One of the first steps in running a successful business is opening a dedicated business bank account. Keeping personal and business finances separate is not only a best practice, but it can also protect you from legal and tax complications. Here’s what you need to know to choose the right bank account for your business.

Why You Need a Business Bank Account

✅ Keeps finances organized – Helps you track income and expenses for easier tax filing.

✅ Enhances credibility – Customers and vendors take your business more seriously.

✅ Protects your personal assets – Essential for LLCs and corporations to maintain liability protection.

✅ Simplifies tax filing – Clearly separates deductible business expenses, making tax deductions easier.

What to Look for in a Business Bank Account

When selecting a bank, consider these key factors:

💰 Fees & Minimum Balance Requirements

Look for accounts with low or no monthly fees.
Check if there are minimum balance requirements to avoid extra charges.

🏦 Online Banking & Mobile Access

Ensure the bank offers user-friendly mobile and online banking.
Look for features like mobile check deposits, bill pay, and integrations with accounting software.

💳 Transaction Limits & Perks

Some accounts limit the number of monthly deposits and withdrawals—choose one that fits your business activity.
Check for free ACH transfers, wire transfers, and ATM reimbursements.

📍 Branch Availability vs. Online Banks

If you handle cash transactions, choose a bank with local branches.
If you prefer low fees and digital banking, consider an online business bank.

💳 Business Credit Cards & Financing Options

Some banks offer business credit cards or lines of credit that can help with cash flow and building business credit.

Best Business Bank Account Options

Choosing the right business bank account depends on your specific needs. Here are some of the best options based on fees, features, and accessibility:

🏦 Traditional Banks:

Chase Business Complete Banking® – Great for in-person banking & small businesses.
Bank of America Business Advantage – Offers cash back & interest-earning options.

💻 Online Business Banks:

Novo – No monthly fees & integrates with QuickBooks.
Bluevine – Offers high-interest checking & free ACH transactions.

How to Open a Business Bank Account

To open an account, you’ll need:

📌 Employer Identification Number (EIN) (or Social Security Number for sole proprietors)

📌 Business formation documents (LLC or corporation paperwork)

📌 Ownership agreements (if applicable)

📌 Initial deposit (varies by bank)

Final Thoughts

Choosing the right business bank account helps streamline financial management and protects your business legally. Take the time to compare options and select a bank that meets your needs.

What’s been your experience with business banking? Drop a comment below! Need help setting up your business finances? KB2 Bookkeeping & Tax is here to guide you!