When you open a business checking account, you’ll have access to financial management tools and a new way to organize your business income and expenses. Unlike when you intermingle your side hustle income with your personal accounts, you’ll be able to clearly see the peaks and valleys of your income over time. 

A business checking account allows you to keep your deductions straight for tax time and create a relationship with a bank. In the future, you may have access to a business line of credit or other financial products that allow you to expand operations or purchase necessary equipment and supplies. If a client issues a check to your business, you may need a business account to access the money. Many banks won’t allow you to deposit a check made out to a business into your personal account. 

When you shop for a business checking account, look for a trustworthy bank with great customer reviews. Check out introductory offers to see if there are any perks associated with choosing one bank over another. Free business checking accounts are plentiful, but they may not offer the perks you want to help you run your business efficiently. If you can avoid the fee by leaving a certain amount of money in the account, it’s smart to choose a bank that offers a few extras with their business checking account. 

Best Small Business Checking Accounts

1. Radius Bank Tailored Checking

Radius Bank Tailored Checking is a great business checking account option that allows you to earn interest while enjoying an unlimited number of free transactions. You won’t pay a fee if your minimum daily balance is at least $5,000. This is also one of the few accounts that lets you use your ATM card anywhere without charging a fee. They also offer unlimited ATM fee rebates anywhere in the United States. 

2. Novo Business Banking

Novo is an online-only digital checking platform that works with Middlesex Federal Savings to offer a free checking account that refunds every ATM fee. You’ll get unlimited free mailed checks, 6% cash back at Booking.com when you pay with your Novo debit card, and up to $20,000 in fee-free card processing via Stripe. You’ll also get $150 worth of Google Ads credits and 30% off your first year of HubSpot. 

Novo is a new company, so if they go out of business in the future, you’ll have to find another bank. 

3. Azlo Business Banking

Azlo Business Banking offers a completely free business checking account that allows an unlimited number of free transactions with integrated invoicing and payment acceptance services. You can’t get checks with this account, nor can you deposit cash. Azlo connects to Xero, Wave, and QuickBooks Online. You can also integrate the account with Stripe, Square, PayPal, and Kabbage. 

With this account, you can create and send personalized invoices to clients using the Azlo app. The only recurring complaint from customers about Azlo is that outgoing transfers can take a few days and incoming transfers can take as long as five business days. 

4. Chase Total Business Checking®

With Chase Total Business Checking, you’ll get up to 100 free transactions per month and unlimited electronic deposits totaling $5,000 without a fee. There is a $15 monthly account maintenance fee if your daily balance dips below $1,500. 

Chase is currently offering a new account holder promotion of $300. To qualify, deposit a total of $1,000 within 20 business days of opening the business checking account. Maintain a $1,000 balance for 90 days, and complete five debit card purchases within 60 days of opening the account. 

5. US Bank Silver Business Checking

This no-frills account is available in 28 states. You’ll get 125 free transactions per month, including transfers and deposits, plus 25 free cash deposits per month. This is a great free account option for side hustles, gigs and small business owners who want a free account and don’t conduct a lot of transactions throughout a normal month. 

The ATM network with US Bank is tiny compared to some other options, though. If you are a frequent ATM user, make sure you can access US Bank’s free ATMs. 

6. AXOS Basic Business Checking

The AXOS Basic Business Checking account is a straightforward account without the extras. It’s compatible with QuickBooks. You’ll get 200 fee-free transactions, including transfers, deposits, and ACH per month. You can’t deposit cash with AXOS bank, though. Pay attention to the minimum balance requirement. If you don’t expect to be able to keep at least $5,000 in your business checking account at all times, this account may not be the best fit for your small business or side hustle. 

7. Navy Federal Business Checking

With the Navy Federal Business Checking account, you are limited to just 30 free transactions per month; after that, NFCB charges $.25 per transaction. While the account is interest bearing, if you go over the 30 free transactions, you’ll quickly reduce your net gain to zero. 

To open an account you must be a Navy Federal Credit Union member. You can get a membership if your are an active duty member of the Army, Marine Corps, Navy, Air Force, Coast Guard, National Guard or Space Force

Delayed Entry Program (DEP), a DoD Officer Candidate or ROTC DoD Reservist, or a Veterans retiree or annuitant. You can also get a membership if you have a close family member who qualifies. 

This business checking account is ideal for side hustlers who already have accounts with NFCU and want a convenient way to keep their small business income separate.

8. BBVA Connect for Business

To open an account with BBVA, you must have a permanent residence in Alabama, Arizona, Colorado, Florida, New Mexico, or Texas. There’s a monthly limit of five checks or in-branch withdrawals per month. After you reach the limit, you’ll incur a $1 charge for each of these transactions. You can make up to 2 free branch deposits each month, after which you’ll pay $4 for each of this type of transaction. 

BBVA will process up to $5,000 in cash each month at no charge. You’ll get free online banking, bill pay, and free mobile banking. 

If you live close to a BBVA branch but do the great majority of your banking online, this account could be a good fit. 

9. Huntington Unlimited Business Checking

There’s a $20 monthly fee if you don’t maintain a $10,000 daily minimum balance, but Huntington Bank is waiving that fee for their business checking customers for the rest of 2020. To open an account, you must have a permanent residence in Ohio or a surrounding state. The ATM network is concentrated mostly in Columbia, Ohio, with just 1,800 ATMs. This is an easy account to get, with a $0 minimum opening deposit and $0 minimum balance requirement. If you are just starting out with your side hustle in or near Ohio, but want to keep your finances straight, this account could be a great fit. 

Huntington Bank also offers integrated Merchant Services so you can accept debit or credit card payments on the go. 

10. Comerica Basic Business Checking

You’ll get at least 75 free transactions each month with a Comerica Basic Business Checking Account. You can also make a maximum of $2,500 in deposits, but then fees kick in. Comerica Web Bill Pay® is $6.95 per month, but your first 12 months are free. 

Among free business checking accounts, this one has a decent network of ATMs. It’s another great starter account if you have a very small business or are venturing out into the world of side hustling. If you decide to upgrade to an account with more features in the future, you can do so without changing account numbers. 

Still have questions about the best business savings accounts? FAQs

Here are some of the most frequently asked questions about business checking accounts:

What paperwork will I need to open a business checking account?

Once you choose your bank, visit their website to start the process of opening a business checking account. You’ll need your driver’s license or passport, Employer Identification Number (EIN), any business formation documents or ownership agreements, and your business license. Your bank may ask for other documentation, as well. 

Where can I go if I have problems finding the right business checking account?

Most communities have a local Small Business Development Center (SCORE), Veterans Business Outreach Center, or Women’s Business Center where you can get free help opening a business checking account, choosing a bank, or forming your business. 

How can I get a Federal Employer Identification Number (EIN)? 

Visit the IRS EIN application site and go through the steps of applying for an EIN online. Anyone who starts a new business should use an EIN number so they don’t have to use a personal Social Security number for business purposes. You can get an EIN even if you are the sole owner of your business. The IRS issues EIN numbers at no charge. 

Who needs a business checking account? 

If you want your business to be a separate legal entity from your personal financial situation, you’ll need a business checking account to make that boundary clear. It can be a confusing topic because so many people now operate a small business from home or have a side hustle in addition to their full-time job. 

Having a business account allows you to represent your business professionally with clients and customers. If you use an account with your business name on it instead of your personal information, you’ll present a well-established image that could translate to increased trust. 

Your business account will also help you keep the records you need to take the proper tax deductions and keep track of your profits. If you don’t show a profit for three out of five years, the IRS will classify your business as a hobby, preventing you from taking money-saving deductions for business expenses. 

The bottom line

There are about as many business checking accounts as there are banks, so shop around until you find a good fit for you and your business. If you have unique needs, contact your local SCORE chapter or talk to other small business owners to find out how they solved similar challenges with their bank’s help. 

When opening a business checking account, be sure you thoroughly understand the fee structure, account limits, ATM fees, and how you can earn interest if it’s offered. Opening a business account is an important step to defining your business as you separate it from your personal finances.