In a previous article, I discussed the best ways to make money online. Making money online is a great thing because it allows you to earn extra income outside of your regular job.
Some of you may have seen that information and are now thinking about how you can take that to the next level. Not only are you looking to earn more income outside of your conventional job, but you are also now thinking of going into business for yourself and being your own boss.
I think that’s a great decision! I fully support anyone who has decided to bet on themselves and earn what they deserve outside of or in addition to what your employer decides to pay you.
There are, however, a few steps you should take before starting your new venture or side hustle.
Ideally, you are going to want to separate your income from your business income, at the very least, for tax purposes. Your company is a legal entity and you can get into some tax trouble commingling your personal money with your firm’s income. You’re going to need to find a bank that can handle your business income.
I’m here to lend a helping hand to your ambition! I’m going to help you find the best low or no-cost checking accounts to put your newfound organization’s income! I’m going to tell you the 5 Best Checking Accounts For Businesses in 2020.
You may be wondering what are the criteria to be on my list. The criteria are pretty simple really. I looked for banks that had business checking accounts that offered low or no cost monthly fees, as well as a minimum opening deposit of no more than $500. I also wrote this list with new entrepreneurs in mind, so another criterion is no minimum monthly balance.
With no further delay, here are the 5 best checking accounts for businesses in 2020 (in alphabetical order).
BBVA Business Connect Checking
The first checking account on our list is BBVA Business Connect Checking. BBVA offers no monthly fees, and a $100 minimum deposit. It’s a good option if all you’re looking for is a basic business checking account.
BBVA Business Connect Checking offers free mobile banking, mobile deposit, no fee at any of its 43,000 in-network ATMs, including 7-Eleven gas stations and a few other features.
Chase Total Business Checking
The next checking account on our list is the Chase Total Business Checking account. Chase is a large bank with an excellent reputation for being small business-friendly.
This account offers a low monthly fee of $15 per month. This fee can be reduced to $12 per month if you choose to receive paperless statements. Chase Total Business Checking also offers a $0 minimum deposit, making it a great option if you’re starting your company on a shoestring budget.
Where Chase excels is in the ability to go to a physical branch. They have 4900 physical locations nationwide and 16,000 ATMs. Chase also offers no foreign ATM fees, the Chase Mobile App, online bill pay, 24/7 customer service, and Chase QuickDeposit.
Citizens Bank Clearly Better Business Checking
The third business checking account on our list is the Citizens Bank Clearly Better Business Checking account. Citizens Bank offers no monthly fees and no minimum deposit, making it one of the most affordable business checking accounts on the list.
Citizens Bank also offers 1100 branch banks and over 3100 ATMs in the United States. But its most outstanding feature is the ability to grant your employees controlled access to the account. Once your organization grows, you can grant your accountant his or her own debit card and give them certain permissions on the account.
nbkc Business Checking Account
The next business checking account on our list is the nbkc Business Checking account. Like Citizens Bank, nbkc offers business checking accounts with no monthly fees and no minimum deposits.
But nbkc doesn’t stop there. The bank goes on to offer no fees for many situations such as overdrafts, online banking, and stop payments! You can also use one of their 32,000 MoneyPass ATMs for no charge with their nbkc Business Debit Mastercard.
The only drawback I can see to banking with nbkc if you can call it a drawback, is their very limited amount of physical branches. nbkc positions itself as an online bank, though it does have a total of 4 branch locations in Kansas and Missouri.
Wells Fargo Simple Business Checking
The final business checking account on our list is the Wells Fargo Simple Business Checking account. Wells Fargo often tops most lists of best business checking accounts. The company is a juggernaut in the banking industry with 7400 branch locations and 13,000 ATMs nationwide.
The Wells Fargo Simple Business Checking account is best suited for companies with limited banking activity such as home-based businesses and nonprofits. It requires a $10 monthly service fee and a $25 minimum opening balance. The monthly service fee can be waived if you maintain at least a $500 balance in your account each month. They also offer a very robust small business loan program.
One of the only drawbacks I see with Wells Fargo Simple Business Checking account is that the fees vary according to where you live. This prohibits me from saying it’s fee-free, because the fees in each area may differ.
Opening up a business checking account should be one of the first things an aspiring entrepreneur does with his or her startup. It’s essential to separate your personal money from money the enterprise earns for tax purposes. You’ll want to thoroughly research the options for small business checking accounts and select the one that best fits your firm’s current needs. Remember, there’s nothing wrong with changing business checking accounts as your business grows and changes.
This article is for informational purposes only, it should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions.