Whether you are starting a new business journey or looking to shift accounts, it is important to find an account optimized for your needs. Kentucky has hundreds of banks offering a wide range of business checking accounts. The challenge to find the right one for you.
When choosing an account, there are various things to consider are the services provided. Knowing your business’ current and future needs will help you narrow down your options. For example, if you prefer banking on the go while still maintaining person-to-person interactions, an in-branch account with a robust online and mobile platform would be ideal. Other services to look out for are bill payments options, check-writing capabilities, wire transfers, among others.
The next thing to look out for is the account fees. For example, if you are just starting, keeping costs at a minimum is important. Hence, an account with no monthly maintenance fee or with low transaction fees would be best. Shop around and compare the different account fee structures before deciding.
Also, look out for transactional limits and minimum requirements, if any. These may result in additional fees if you go beyond or below the set limits. Most banks offer other perks and benefits. These may include introductory offers and bonuses or free business tools and resources. Look out for the ones that will help your business grow.
We reviewed some of the available options based on their features, fees, requirements and benefits. Compare our top picks for the best business checking account in Kentucky to find the best match for you today.
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
Why do you need a business checking account?
A business checking account is also a good way to keep track of all your business finances. Here are some other reasons why you need a business checking account:
Tax Deduction: If you run your own company, having separate accounts will help keep taxes easier, especially if you’re running multiple businesses. Also, any expenses that are related to the company can be deducted from the income when tax time rolls around.
Quality of service: When you have a business checking account, you can rest easy and enjoy greater security knowing that the bank is committed to keeping your money safe.
Convenience at ATMs: Business checking accounts offer greater convenience when it comes to using ATMs in the case that one is not available near your location. Instead of going out of your way, you can visit another ATM that is affiliated with your bank.
Discipline: Having a checking account for your business helps to keep you disciplined with money management. You will have to record every expense and maintain receipts for tax purposes.
Business Growth: A personal checking account should be used only for personal use and not for the running of a business. Having a separate checking account for the company gives you plenty of room to grow as a business without worrying about any overdraft fees or penalties for bouncing checks.
What do you need to open a business checking account in Kentucky?
Trying to open a checking account without the proper documentation can be frustrating and time-consuming. Below are common requirements for opening a business checking account in Kentucky:
For businesses that are just starting out, many banks will require a Certificate of Incorporation or a Business Registration Certificate from your state.
Tax Identification Number or TIN number. This number usually starts with an “EIN” which stands for Employer Identification Number. This number is used to identify the business when doing taxes and other government documents.
Have a copy of your Articles of Incorporation or LLC
If opening a personal or general partnership account, you will need to provide the name and address of each person on the account
The bank will also want to know the type of business you are starting and what you plan to do with the checking account
Common business checking account fees in Kentucky
Details of the fees imposed vary by bank, so it’s important to take these into consideration before you choose an account. Common fees found on business checking accounts in Kentucky include:
Statement fee: Although it’s rare, some banks charge you for having access to paper copies of your bank statements.
Monthly maintenance fee: Many businesses end up paying a monthly fee whether they need it or not. This can be because they don’t keep a large enough balance in their account or because they receive too many deposits throughout the month.
Minimum balance fee: This is charged by some banks if your balance falls below a certain amount at any point during the month. The minimum balance will vary depending on the bank, but it’s typically $500 to $5,000.
Inactivity fee: This fee is charged for accounts that have no activity for a specified period of time, typically 90 days or more. An inactivity fee is also sometimes referred to as a “dormant” or “inactivity” charge.
ATM usage fees: Even though many merchant service providers offer free ATM access to their customers, some banks still charge their business customers for using ATMs that aren’t owned by the bank that issued their debit card. These charges typically cost around $2 per transaction and will vary by location as well as by bank.
Checks returned for Non-Sufficient Funds (NSF): Issued when your bank account does not have enough money in it to cover a transaction. It will automatically deduct the original amount of the check and any fees charged to you by the business on which you wrote your check.
Service charges: This charge is a flat rate based upon the amount of activity you have on your account, such as the number of checks written or deposited, number of deposits made and other services used. The fee depends on the size of your deposit and the type of service you use.
How to choose the best business checking account in Kentucky
Before choosing a bank account, consider the following factors:
Cost: Some businesses might not even notice the cost of an account. For example, if they have only one employee and they don’t use many features, they might not feel the cost is that high. However, businesses that are growing rapidly or have a lot of employees might find themselves paying a lot in fees. If you do see a large number of fees in your bill each month, consider looking for an account with fewer fees.
Account minimums: Some banks require businesses to have several thousand dollars in their accounts before they can open them. This requirement can be difficult for new businesses trying to get started. Look for a bank that doesn’t have these requirements so you can get started right away.
ATM access: Some banks allow customers to use any ATM in the country while others restrict the number of withdrawals per month or charge extra fees if you go over that number. You should look for an account that allows you to withdraw money without additional charges or limits so you aren’t hit with fees just because your business requires frequent cash flow.
Online Banking and Bill Pay: Does the bank offer online banking and bill pay? This is essential to keeping everything organized and simple. Some banks may offer mobile apps as well, which can make accessing your account easier.
Types of transactions you will be making: If you make frequent cash withdrawals or need checks, choose a checking account that can accommodate these activities without charging additional fees. For example, if you use your debit card often and want it linked to an online payment system, then prioritize a debit card over checks with the provider.
