Whether you are just starting your business journey or looking to shift accounts, Texas has a wide range of available options. The hundreds of banks provide both online and traditional brick-and-mortar business checking account options.
These options vary in terms of features, fees, and benefits. Look out for accounts with basic services and features relevant to your business. For example, if your preferred method to make bill payments is through ACH, wire, or check, a traditional bank is the ideal option. If you prefer having mobile, online access, and low fees, a digital bank is more likely the better option.
Some banks charge monthly fees, ATM access fees, transactional fees, overdraft fees, and others. Also, look out for the bank’s requirements to avoid fees, such as minimum balance. Others offer you an account that can easily integrate with third-party software such as accounting software, credit card payment processors, and other products.
To help you with the process of finding the best checking accounts, we’ve 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
Why do you need a business checking account?
The following are some of the benefits that you may find helpful to your business:
Accounts that can be accessed anywhere: Many banks now offer online banking services to their customers. This allows businesses to easily access their accounts from any location with an Internet connection. This can help you keep track of expenditures and prevent overspending.
Payroll: Payroll checks can also be paid with business checks. This eliminates the need to have actual cash on hand in order to make sure people are paid on time.
Accounting: You will also find it easier to keep track of your expenses since they will all be recorded in one place rather than having them spread out all over the place. In addition, filing your taxes at year’s end will be much simpler since everything will already be recorded in one place.
Separate business account: This keeps the finances of your business separate from your personal finances, which can be helpful when completing tax forms or applying for loans or other financial assistance in the future. Having separate accounts for each aspect of your company’s finances will also help you avoid paying unnecessary fees.
What do you need to open a business checking account in Texas?
Before opening a business checking account, you will generally need the following:
Articles of incorporation or formation from your secretary of state.
Proof of identity. Some banks require all of their customers to provide proof of identity, so be prepared with your driving license, passport, or similar documents establishing who you are and where you live.
Proof of address. The bank may want proof that you live at your stated address, such as a utility bill or cable bill that’s less than 60 days old.
Tax identification number. You’ll also need a federal employer identification number (EIN).
Common business checking account fees in Texas
Most business checking accounts come with several fees, and it’s important to understand what those fees are. Here’s are the most common fees:
Overdraft or non-sufficient funds (NSF): Banks charge overdraft or NSF fees for checks or electronic transactions that exceed the available balance in your account, or for items returned because of insufficient funds. The amount varies by bank and the type of transaction, but the average is about $30 per occurrence.
Minimum balance fee: This is the most common and one of the easiest to avoid if your bank will waive it. It’s a flat fee charged each month if your balance falls below a certain level, usually $1,000 or $2,000.
ATM fees: Banks can charge for using their own ATMs and for using out-of-network ATMs, either separately or in conjunction with another fee. The latter is more common and includes both surcharges and network fees, which go back to the card networks.
Monthly service fee: Many banks charge a monthly service fee for their business checking accounts. This generally ranges from $10 to $25 per month, although some banks may offer a lower rate or waive it if you meet certain conditions.
Teller transactions: If you use a teller to make deposits or withdrawals, there could be additional fees or limits on how many transactions are allowed per month. Online-only accounts usually waive this charge because they don’t involve in-person service, but some banks will allow only a certain number of transactions at an ATM per month before charging extra.
How to choose the best business checking account in Texas
The first thing you need to do before starting to look at the different options is to assess the needs of your business. Here are some factors to consider:
Tiered interest rates: Most new businesses don’t see significant revenue for quite some time. A tiered interest rate structure allows the business owner to accrue interest at a lower rate when initial deposits are small and can increase as balances grow.
Free business debit card: Most people find it easier to manage their finances when they have one card for personal and another for business use. Checking accounts with free debit cards often offer more benefits than those without them. For example, they may include rewards programs or cash-back offers.
Business-friendly services: A business checking account should provide access to basic financial services, such as check writing and online banking. Additional perks, such as bill pay or direct deposit capabilities, are helpful but not necessary.
Online banking: While not every bank offers free online banking, most will offer some sort of free service that allows you to access your account from anywhere in the world. This is important for businesses because it allows them to manage their money even when they are away from their regular location working on other projects or traveling on business.
Account fees: Once you’ve narrowed down the type of checking account that suits your business, look at the fees associated with the different accounts. Different banks charge different fees, such as monthly maintenance fees or per-check charges.
