Business Checking

Business checking accounts designed with you in mind 

Investing in a business checking account isn’t simply a decision to store your funds — it’s a strategic move that will affect numerous areas of your business. Your checking account impacts daily operations and long-term financial health.  

With many banking options to choose from, we’ve put together a quick guide that highlights the factors to consider when comparing checking accounts and the steps you can take to open your account. 

What is business checking? 

A business checking account allows you to separate your personal and business finances, by providing a dedicated checking account for your business. It helps you track and manage spending, maximize tax deductions, and strengthen your business credit score.  

What to consider when comparing checking accounts 

Every small business is unique and has specific banking needs. How your business accepts payments, how often you receive cash payments, and what vendors you work with can all factor into what type of bank account works best for you. 

5 questions to ask before you get started 

Knowing how you plan to use your business checking account will help you understand what you need.

Here are some questions to ask yourself before researching account options: 

1. How many monthly transactions do you expect to make? 
2. What types of transactions do you expect: cash, checks, or credit card payments? 
3. Do you invoice clients?  
4. If so, do you want an integrated payment option that includes ACH or credit card? 
5. Do you need to make cash deposits? Or would an online bank provide everything you need? 

Once you’ve answered these questions, you’ll have a better idea of your banking needs and can narrow down your search.   

Do I need an account from a local bank? 

One common question among small business owners is whether they should work with a local bank with physical locations. Not every business needs access to a local bank branch. In fact, many businesses can work with banks that offer a robust mobile app or online platform. Mobile check deposit, online payments, and ATM systems all reduce the need for a nearby physical branch. Online banks are available 24/7 and can often have cheaper fees than banks with brick-and-mortar locations.  

Debit card benefits 

Most business checking accounts come with a debit card. While rewards are more common in business credit cards, some debit cards may offer perks like cash back on select purchases. Your business checking account may also offer a virtual debit card, which provides a unique account number to use for online purchases.  

Features like security, monitoring, and the ability to set spending limits are common features banks offer for their checking account holders. When choosing a bank, it’s important to make sure you have access to these critical features to ensure the protection of your account. 

Personal banking vs business banking 

When starting a business, it’s recommended to separate your personal finances from your business finances — and for good reason. Having separate business finances allows you to understand your business’ financial health and easily manage your accounting and taxes. A dedicated business bank account provides asset protection and allows lenders or investors to easily verify your business revenue.

What do I need to open a business bank account?

There are three main elements you’ll need to open a business bank account. These include:

1. Personal information: Your name, address, date of birth, and other personal identifiable information (PII) will be used to verify your identity.  
2. Business information: If your business is incorporated, you need to provide the Employer Identification Number (EIN). You also may need to provide a business license and any partnership agreements.  
3. Credit score: Some banks may require a credit check in order to open an account for your business. 

With this information, you can often apply for a checking account online and get a decision quickly. Remember to compare your options and select the bank and checking account that meets your unique needs.  

The best time to open a business bank account is right when you start your business. But, if that time has already passed, don’t worry. Simply follow the process above to easily open an account and keep your revenue secure.