A business checking account for self-employed professionals can simplify your bookkeeping and provide a clear distinction between business and personal finances. Plus, nowadays it’s easy to open an account and there are many low-cost or fee-free options available. We reviewed the top options based on their features, fees, and overall quality.
Relay offers a simple two-tier pricing plan. You can get started with no monthly fees and no account minimums. When you upgrade to the Pro plan, you’ll benefit from additional features such as free domestic and international wire transfers, or the ability to auto-import bills from QuickBooks and Xero.
Bluevine business checking comes with no monthly fees. Plus, the account provides an impressive list of benefits such as integration with online business tools, sub-accounts to help you manage your finances, and two free checkbooks.
Chase Business Complete Checking comes with Chase QuickAccept which allows card payments to be processed on your mobile device, so you receive deposits the same day to help manage cash flow within your business.
What we like
In person customer support (except Alaska & Hawaii)
Axos Bank business interest checking account earns a competitive rate for cash held within the account, and you'll get your $10 monthly fee waived by holding a minimum balance of $5,000. If you keep a decent amount of cash in your account, this could be an ideal account.
Lili’s business checking account comes with features that help users keep their banking costs low, optimize their taxes, and manage their business’s finances.
Novo allows easy integration with third-party accounting software, including Quickbooks and Xero. You can also link your Novo debit card to your Google Pay or Apple Pay Wallet. Novo also syncs with your Stripe processing account and easily integrates with Slack to get automated updates on your bank account.
If you are looking for a business checking account that is easy to use and with almost no fees, you might want to consider Novo. The bank account is also accessible in the app store for both iOS and Android devices.
What we like
Free ACH transfers, mailed checks, and incoming wires
NorthOne helps you manage your finances with its invoicing app, budgeting tool by creating an unlimited number of sub-accounts with the envelope functionality, and integrating with a suite of business tools and software.
What we like
Budgeting tool to help manage your finances
Smart integrations with business tools
Send invoices from the app
Low minimum deposit
No hidden fees
Unlimited transactions with no fee
What we don't
$10 monthly fee
No in persona customer support
What is a business checking account for the self-employed?
When transitioning into self-employment, a business checking account can seem like a large investment. While you can legally use a personal checking account to manage your business finances, transactions can overlap, which create accounting issues during tax season.
With a business checking account, you can carry out basic transactions such as cash withdrawals, wire transfers, and online bill payments. In addition, many accounts provide integrations with accounting software, such as QuickBooks, Wave, and FreshBooks to help streamline bookkeeping.
Do self-employed professionals need a business checking account?
If you run a small business, a separate checking account for your business can have several benefits including organizing and managing your business finances.
Types of business owners that would benefit include freelancers, retailers, farmers, eCommerce shop owners, creative service providers, and consumer service providers.
What are the pros and cons of a business checking account for self-employed professionals?
There are many pros and cons of opening a checking account for self-employed business owners. Here are a few for you to consider before applying:
Pros
Simplify taxes: Tax season can be a stressful time. A business checking account can help you keep track of expenses and identify incoming and outgoing transactions quickly.Â
Integration with business tools: Some banks offer the ability to integrate with business tools such as QuickBooks, Slack, Stripe, Xero, Shopify, and Zapier.
Credit history: Establishing a credit profile can be an important step for growing your business over the long term. With a positive credit history, you can gain access to financial products such as credit lines, business credit cards, or business loans with preferential rates.Â
Professionalism and credibility: Building confidence and trust with customers is fundamental for any business. A business checking account can portray your business as a legitimate company. Â
Cons
Fees: Unlike a personal checking account which can be largely fee-free, business checking accounts can have multiple fees including, maintenance fees, ATM fees, and overdraft fees. If your business is a side hustle with limited revenue, fees can quickly eat into your profits.
Low interest on balances: Many business checking accounts carry a minimum balance requirement with little to no interest paid.
Minimum balance: If your balance falls below the minimum balance requirement for your account, you could be charged additional fees.
What are the fees for a business checking account for self-employed professionals?
When researching business checking accounts for self-employed people, it’s important to consider the fees imposed and how they might affect you. Here are some of the most common fees for you to consider when looking into an account for your business:
Monthly account fee: Monthly fees pay for the cost of operating your business checking account and typically range between $10 – $15. Some financial institutions waive monthly fees if minimum balances are met each month.
Transaction fees: While some banks offer free unlimited transactions, others may charge a fee for certain transactions including card payments, check payments, and electronic transfers. Once you reach the transaction limit on your account, you’ll typically pay a small fee for each transaction until the end of your billing cycle.
ATM fees: If your business requires a high number of cash withdrawals, ATM fees are important to consider. Many banks charge fees for out-of-network ATM transactions.
Cash deposit fees: Businesses that take cash payments could pay a small cash handling fee for deposits over the specified limit.
ACH and wire transfers: You can expect to pay between $10 – $35 for each wire transfer you initiate. Recipients may also be subject to an incoming fee.
Other fees to consider include foreign transaction charges, overdraft or insufficient fund fees, replacement debit card fees, and paper statement fees. It’s a good idea to read the terms and conditions before opening an account to avoid any unexpected fees.
What are the alternatives to a business checking account for the self-employed?
After a few months of running your business, you may want to consider opening a business savings account alongside your business checking account. This can help you put aside savings for unexpected expenses or help fund business investments. Look out for a high yield savings account as the interest earned could help offset some of the fees for your business checking account.
Alternatively, if your business takes frequent credit or debit card payments, you should consider a merchant account. These accounts can improve your cash flow and streamline the payment process for customers.
How to choose a business checking account for the self-employed
When looking for the best business checking account for self-employed professionals, here are some key factors to consider before you choose a bank:
Accessibility: A user-friendly business bank account that is available on the web and mobile can help you manage your account on the go.Â
Customer service: Managing finances can be stressful, so a helpful customer service team can be important. Look for a customer helpline or banks that have branches available in your state.Â
Research multiple providers: Compare multiple institutions before you open a business checking account to ensure you’re getting the best service and offers for your financial needs. Consider whether the bank offers additional financial products and software integrations to run your business smoothly.Â
