When you're first starting your business, it's not uncommon for personal and business funds and expenses to mix and mingle a bit. As your business grows, though, keeping those finances separate becomes increasingly important. If you want to manage your cash flow while simplifying tax time, your routine accounting, and your day-to-day financial knowledge, it might be time to open a separate online business bank account.
Setting up a new account doesn't have to be cumbersome—it doesn't even require a trip to the bank. Depending on your needs, you can open an online business bank account in as little as ten minutes.
Unless you've been in business for a long time and have a lengthy and healthy financial history, working with a traditional bank to set up a new account might prove to be cumbersome. Many brick-and-mortar banks typically want to see proof of your well-established financial history, including monthly credit card receipts and deposits, which can be hard to provide if you're starting a new business and setting up your first business bank account.
The barriers to entry are much different when it comes to online-only banking. When you open a business bank account online, the process is more straightforward, and so are the initial requirements. Online banks have removed many of the more complex requirements of traditional banks.
Digital or online banks are relatively new to the financial marketplace, but are very popular with small business owners for several reasons:
Simplicity is a beautiful thing in business, and an online business bank account has it in spades.
Though it may be tempting to open an account with the first online bank you find, it helps to spend a bit of time exploring your options. If your goal is to simplify your business and personal life by separating your finances, evaluating banks should not complicate this goal.
As you assess your best online banking options, consider which key elements your business may require. What are your unique banking needs?
Banks have to make money to stay in business. But that doesn't mean you have to subsidize their business with yours. Understand that there will be costs involved with a business bank account, but make your choices based on your company's needs and avoid paying for services or fees that don't benefit you.
There are dozens of online banks to choose from, and even more when you factor in banks like Capital One and Wells Fargo with both traditional and online platforms. Finding the best bank for your small business can feel tricky, but it doesn't have to be. If you're looking for a streamlined and straightforward online business bank account with minimum fees, it's hard to beat these online-only banking options.
After you move in a $50 minimum opening deposit, almost everything is free with Bank NOVO. There are no monthly maintenance fees, no minimum balance requirements, no ATM fees, and no fees for transfers or mailed checks. ACH payments and incoming wires are free too, but you need to pay for outgoing wire transfers. Bank NOVO is completely online and is primarily run through a fully integrated mobile app. Bank NOVO does not have its own network of ATMs, but does refund fees from other ATMs, including those located internationally. Learn more.
Pros: No monthly fees or balance requirements. No fees for incoming wire transfers.
Cons: No dedicated ATM network.
Best for: Companies looking for streamlined online banking.
If you are running a freelance business, Lili keeps your banking and bookkeeping simple. With no fees on debit cards, checking accounts, mobile deposits, or cash withdrawals, Lili has all of the basics of a business account plus tools for linking to digital wallets and business management tools. Lili helps freelancers track spending for tax reporting as well. Lili also offers 32,000 ATMs in the United States and Puerto Rico. Learn more.
Pros: No fees for most transactions and business management tools.
Cons: Designed for individuals, not companies.
Best for: Sole proprietors looking to track spending and linking to other apps.
What started as peer-to-peer lending has blossomed into a company with a variety of banking services. LendingClub offers business loans as well as essential banking services, including business debit cards and bank accounts. You can even bundle LendingClub services with Accracy's full-service platform for small business financials to gain access to bookkeeping, tax filing, advisory, and banking. With LendingClub's recent acquisition of Radius Bank, LendingClub customers now have access to more than 20,000 ATMs nationwide.
Pros: Comprehensive financial packages including loans and lines of credit.
Cons: Multiple platforms required for the full bundled services, and no credit cards.
Best for: Companies looking to scale up into full accounting and banking services.
A NorthOne business checking account includes easy online transfers, unlimited debit card transactions, and mobile check deposits, as well as a well-designed mobile app and online banking. In both the app and their website, NorthOne allows business owners to create sub-accounts within their main account to keep track of spending for payroll or tax purposes. NorthOne charges qualifying accounts a flat fee of $10 for unlimited transactions and no hidden fees. NorthOne has more than 37,000 ATM locations available for customers as well. Learn more.
Pros: Predictable, flat fee, sub-accounts available.
Cons: Mobile platform only for online banking.
Best for: Businesses already on mobile devices, businesses with multiple users and spending categories.
A free online business bank designed for start-ups and tech businesses, Mercury offers a business checking and savings account with no monthly fees. There are no transaction fees or minimum monthly deposits for accounts, but you can scale up to more features and perks in the Mercury Tea Room if you hold $250,000 in your Mercury accounts. The Mercury Tea Room includes perks like free domestic and international wires, exclusive partner discounts, and a Mercury Treasury cash management account. All Mercury customers can use more than 55,000 ATMs nationwide. Learn more.
Pros: Single platform for savings and checking, no minimum monthly deposit, ability to join Mercury Tea Room.
Cons: Can't deposit cash, no Android app available, not available to sole proprietors.
Best for: Companies that can use electronic deposits instead of cash deposits.
The Axos Basic Business Checking account is free for customers with a minimum deposit of $1,000. Axos allows 200 transactions per month without any fees, and customers can also make mobile deposits up to 60 times without fees. Axos also allows free ATM withdrawals. Keep an eye out for welcome bonuses for new account holders as well—Axos has been known to offer these. The Axos network also includes more than 91,000 ATMs nationwide. Learn more.
Pros: Expansive ATM network, Sign-up bonus, multiple account options.
Cons: Can't deposit cash, limited number of fee-free transactions every month.
Best for: Businesses who don't handle cash and make less than 50 or 200 transactions per month.
How Accracy can help
If you're looking to streamline your online business banking and financials, we can help. As a complete small business financial solution, Accracy offers more than banking—we handle your bookkeeping and tax filing too. Our core services package includes a free business bank account and debit card. You'll have real-time accounting and financial insights at your fingertips, tax assistance, payroll, and more through our partnerships with LendingClub, Gusto, and other financial services. Maintain all your business financial needs through a single platform. Accracy handles the back office of your business so you can focus on running your business. Learn more about our services.
Opening your online business bank account is an extremely straightforward process.
Once you've settled on the right bank to suit your needs, just fill out the online application for a new account. Be sure to have the following necessary documents at hand when you complete the application:
Helpful resources:
If your business structure is a more complicated entity like a corporation or partnership, you may also need additional documents like:
Further reading: How to Open a Business Bank Account
Once you have your documents in hand, complete the online business bank account application on the bank's website. The process may take only a few minutes of inputting information and uploading digital copies of the necessary documentation before you're approved for your bank account.
The process for applying for a business account online is very similar to opening a new personal bank account or a new credit card. Fill out the online application, submit the documents required, get approved, and start using your new account right away.
There may be a slight wait for funding in your account before you can write checks or send payments, of course, but online transfers of funds are quick and painless.
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We are offering free 1 Month Basic Bookkeeping to all new customers so you can experience Accracy's seemless and professional services.
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