Matthew Sexton

You can open a business bank account without an employee identification number (EIN) if your business is organized as a sole proprietorship or a single-member limited liability company (LLC). In both of those cases, you would use your personal Social Security number to open the account. However, if your business is organized in any other way, or if you plan on hiring employees, you must obtain an EIN from the IRS before opening a business bank account or filing business taxes. Even if your business is eligible to open a business bank account without an EIN, there’s no reason not to get one. Getting an EIN from the IRS is free, and it can be applied for online, by fax, or by mail. Both sole proprietors and single-member LLCs can get an EIN. If your plan is for your business to grow, you’ll eventually need one. If you’re looking for a business checking account that can be opened by a single-member LLC or sole proprietor without an EIN, Bluevine is an excellent choice. You can earn 2.0% APY on balances of $100,000 or less. Visit for more information. What an EIN Is & How To Obtain One An EIN is a nine-digit number assigned by the IRS to identify your business for filing taxes, opening bank accounts, getting business financing, and performing other business activities. The easiest and fastest way to apply for an EIN is through the IRS website. You’ll answer a series of questions and receive your EIN online after completing the questionnaire. The process takes about 10 minutes, and you’ll be able to file taxes on that new EIN about two weeks later. You can also choose to fax or mail in IRS form SS-4 to apply for an EIN. Pros & Cons of Opening a Business Bank Account Without an EIN You might not be able to open an account at your local bank without an EIN. And even if you can get a business checking account, you might not get business loans without one. Also, separating your business and personal finances is harder when both accounts are opened under your Social Security number. This can make tax time very difficult and open you up to audits by the IRS. Another way you could get in trouble with the IRS is to find out that you should have filed for an EIN but never applied for one. There can be tax penalties involved with incorrect filing. Moreover, because your business is being conducted under your Social Security number, your credit is on the line. Your personal credit could be damaged if something goes wrong with the business. It’s also why you should never use a personal checking account for your business. Having an EIN will give your business credibility with banks and vendors. It’ll help speed up obtaining a business loan and allow you to build your business credit. In addition, you can hire employees, which will help your business grow. Who Is Required to Have an EIN The IRS requires businesses to obtain an EIN unless they’re organized as a sole proprietor or a single-member LLC. You must also obtain an EIN to file taxes if any of the following apply to you or your business: You have employees You operate your business as a corporation or partnership You file any of the following tax returns: employment; excise; or alcohol, tobacco, and firearms You withhold taxes on income, other than wages, paid to a nonresident alien You have a Keogh plan You’re subject to a bankruptcy proceeding You purchase or inherit an existing business that you operate as a sole proprietorship In addition, you must obtain an EIN if you’re involved in any of the following organizations: Trusts, except certain grantor-owned revocable trusts, IRAs, Exempt Organization Business Income Tax Returns Estates Real estate mortgage investment conduits Nonprofit organizations Farmers' cooperatives Plan administrators How To Open a Small Business Bank Account Without an EIN If you’re a sole proprietor or have a single-member LLC, you may be able to open a business bank account at your local bank. While we recommend obtaining an EIN before opening an account, here’s how to open a small business bank account without an EIN. Step 1: Gather Required Documents You’ll need to provide your bank with certain documents to open an account. They may include: Social Security number Fictitious business name certificate or doing-business-as (DBA) certificate Business formation documents Organization documents, including your ownership agreements Business licenses Government-issued photo ID, such as a passport or driver’s license Contact information for you Business revenue and tax information, if available Step 2: Select a Business Bank Account Type There are many choices when it comes to the best banks for small businesses. You’ll need to find a bank that will allow you to apply for an account without an EIN. Once you find one, there are several types of bank accounts you can choose from: Free business bank account: Many banks will waive fees or provide fee-free accounts. is our choice for the best free business checking account. Traditional business checking account: Provided by traditional banks like and , these are accounts that offer a wide variety of business services. Online business checking account: Many financial technology (fintech) companies provide online business checking accounts, many of which come with limited fees and unique features. allows you to open a business bank account without an EIN. Business savings accounts: Many business banks offer savings accounts that draw interest, allowing your reserve funds to grow. is an excellent choice for a business savings account. Step 3: Compare Potential Costs While the most obvious cost with any business bank account is the monthly fee, some accounts charge other fees. Some even limit the amount of free monthly transactions and free cash deposits each month. It’s important to understand what type of transactions you’ll have each month and calculate the actual costs of the bank account. Step 4: Open Your Account Online or In Person Once you pick a bank and a bank account, you can open your account. Most institutions will allow you to open accounts entirely online without ever stepping inside a branch. Others require you to visit a branch, so make sure your business is located near there. Step 5: Deposit Funds When you open the account, you’ll want to deposit funds into your new account. Some business bank accounts require a minimum deposit when opening the account. Frequently Asked Questions (FAQs) What documents do I need to open a business bank account? While the documents required may vary depending on how your business is organized, generally you’ll need the following items: EIN or Social Security number if you’re a sole proprietor Fictitious business name certificate or doing-business-as (DBA) certificate Business formation documents Organization documents, including your ownership agreements Business licenses Government-issued photo ID, such as a passport or driver’s license Contact information for you Business revenue and tax information, if available What can I use to open a business bank account if I don’t have an EIN? If you don’t have an EIN, and your business is a sole proprietorship or a single-member LLC, you can use your Social Security number to open an account. However, even if you’re a sole proprietor or a single-member LLC, you can get an EIN. Getting an EIN will protect your personal finances, especially in an LLC. You can obtain an EIN from the IRS website, or you can apply for one via fax or mail. If your plan is for your business to grow, you’ll eventually need one. How much does it cost to get an EIN? Regardless of how you obtain an EIN, it’s free. You can fill out IRS Form SS-4 and fax or mail it to the IRS to obtain an EIN. You can also apply for an EIN from the IRS website directly. The online questionnaire takes about 10 minutes, and there are no forms to fill out. You’ll receive an EIN right away online, and it can be used immediately for most business purposes. However, you’ll need to wait about two weeks before you can use the EIN to file taxes electronically. Bottom Line It’s technically possible to open a business bank account without an EIN, but it isn’t recommended. Sole proprietors and single-member LLCs can use Social Security numbers instead of EINs to open accounts, but it can open your business up to many problems. Obtaining an EIN is free and can be done in 10 minutes on the IRS website. If you plan to see your small business grow, get your EIN before opening any business bank accounts.

You should have a business bank account for your company’s finances, regardless of your business size. With one, you can keep your personal and business assets separated, which protects both your company and your personal finances. Having a business bank account also allows you to build a relationship with your business bank, which will help if you need additional banking products, such as retirement planning, merchant services, and small business loans. If you plan to open a small business checking account,  is an excellent choice. Not only does it offer outstanding checking products to support your company, but it also offers a wide range of business support and lending products. You can even get your business credit score for free through the app. Visit Bank of America for more information. Who Needs a Business Bank Account? Nearly every business owner can benefit from a small business bank account. If you’re operating a business as a separate legal entity, you’re required to have a business account. Many are free to open and have no minimum balance or opening deposit requirements, and some even earn interest. You should strongly consider opening a business bank account if you: Own a business: It’ll benefit you to have a small business checking or savings account as you can separate your personal assets from those of your business. Run a freelance business: Business bank accounts aren’t just for large corporations. A freelancer can keep their business finances separate from personal ones in a business bank account. Have more than one business: A business bank account can help you keep the assets of multiple companies separated. Have a business partner: Because all partners will need access to business finances, you’ll want a separate account that everyone in your management team can check. Own real estate investment properties: If you open a bank account for each investment property, it allows you to keep the finances of each one separate, which not only limits personal liability but also helps your tax professional keep deductions organized. Have employees: Many banks offer payroll services to businesses, which allows you to make sure all payroll and deductions are handled accurately. Some banks even offer discounts on accounts for your employees. Use multiple vendors: Banks also offer accounts payable (A/P) and accounts receivable (A/R) assistance for your business to ensure all your bills are paid and received on time. Need proof of business finances: If your business continues to grow, you’ll need financing at some point. If you take out credit in the business’ name, you’ll need tax documents that support your business's ability to repay the loan. How Does a Business Checking Account Work? A business checking account works very similarly to a personal checking account. Once you open the account, you can make deposits and withdrawals, write checks, send ACH and wire payments, and use a debit card for purchases. With business checking, the account can be set up for one person or multiple people to access. You can usually get several debit cards to help you track spending. As with personal checking, you can download an app or visit a website to access your business account information. Having all your business transactions tied to a business account allows you to use financial software, such as QuickBooks, to manage your finances. Opening a business bank account will often take longer and require more paperwork than opening a personal bank account. However, most banks will allow you to open and fund an account on the same day. Fees for business accounts are usually higher than personal accounts, and thresholds to waive those fees are also higher. Business Bank Account vs Personal Bank Account The table below offers some differences between business and personal bank accounts. Personal checking accounts are often free or have very low waivable fees and usually have no minimum balance and opening deposit requirements. More often than not, they have no limits on transactions, have no cash deposit fees, and can be opened in minutes. However, you won’t have access to a bank’s business services, such as merchant services, with just a personal account. If you operate your business as its own separate legal entity, opening a personal account for your business isn’t an option. While some banks offer free business checking, usually online-only accounts, most traditional banks charge fees that can be waived. Those fee-waiving thresholds are usually higher than with personal accounts. Some banks have minimum balance and opening deposit requirements, and there are fees if you exceed monthly transaction limits or cash deposits. Benefits of a Business Bank Account There’s almost no reason not to open a business bank account to support your small business: It keeps your business and personal finances separated: You need to ensure your business financial records are accurate. Keeping your business and personal assets separated makes this process much easier. It helps you build your business credit: When you open a business bank account, credit bureaus begin tracking the credit history of your business. This will help when you need a business loan or line of credit. It lets you assess your business performance more easily: With your income and expenses running through a dedicated account, it becomes easier to analyze your business’s performance. Some banks even offer software to track business performance. It lends credibility to your business: Customers will see your business as more trustworthy when payments come from a business account instead of your personal account. It helps simplify tax season: Tax preparation will be much easier at year-end because using a business checking account helps maintain a record of income and expenses It helps you build a banking relationship: Building a banking relationship can be beneficial if you need business financing in the future. It allows you to accept credit card payments: Many banks offer merchant services to their customers, which allow you to accept credit card payments into your business checking account. Drawbacks of a Business Bank Account There are very few drawbacks to opening a business bank account. The items listed here shouldn’t deter you from getting an account as these are just things you need to be aware of before opening a business bank account. Minimum balance or minimum opening deposit requirements: If your business is very small, you need to check to see if the business bank account you want has a minimum balance or minimum opening deposit requirement. If you need a business bank account with no minimum balance requirements, check out . Monthly fees, although they usually can be waived: Many business bank accounts come with monthly fees, which can be waived if you meet transaction or balance requirements. If monthly fees are too high for your small business, find a business account with no monthly fees, like . Transaction and cash deposit fees: While most banks have these fees,  has two tiers of business checking accounts with waivable monthly fees that allow you to increase the number of free transactions as your business grows. How To Choose a Bank For Your Business Account Once you decide to open a business bank account, there are a handful of things to consider when choosing a bank for your account: Banking products: Do you just need a business checking account, or do you need a full-service bank for your company’s finances? What services you need now might determine which bank you choose. Physical locations or online-only banks: If you regularly deposit cash, you might want a bank with a physical location. If you don’t need a physical location, you can choose an online-only bank for your business. Bank fees: Most banks charge fees for business accounts and services, although some can waive those fees if conditions are met. Check out our best free business checking buyer’s guide for accounts with no fees or waivable fees. Account perks: Some banks offer promotional bonuses if you sign up for an account and meet specific transaction or balance requirements. Scalability for future needs: While you might only need a business checking account for now, if you plan to grow and expand your business, you might need merchant services or lending products in the future. You should consider what services you might need later before choosing a bank. What Do You Need to Open a Small Business Bank Account? Before opening a new account, there are steps you need to take and documents you need to provide. Check out our guide on how to open a business bank account first. Depending on how your business is organized, additional documents may be needed. Whichever bank you choose will provide you with a list of exactly what you need, but here’s a list of documents that you’ll need to submit, regardless of what kind of business you operate: Employer identification number (EIN) or Social Security number if you’re a sole proprietor Fictitious business name certificate or doing-business-as (DBA) certificate Business formation documents Organization documents, including your ownership agreements Business licenses Government-issued photo ID, such as a passport or driver’s license Frequently Asked Questions (FAQs) Can I use a regular bank account for my business? While sole proprietors and single-member limited liability companies might legally be able to use a regular bank account for business, it isn’t recommended. If your business operates as a separate legal entity, you must open a business bank account. Do you need a bank account for a small business? You should have a bank account for your business, no matter how small your business is. Furthermore, you should use a business bank account and not a personal bank account. If you’re making enough money to include on your tax return, having a separate business bank account will make tax preparation easier. This will help you avoid any potential IRS issues down the road. Can I pay personal bills from a business account? You should avoid paying personal bills from a business account. It makes determining business cash flow more difficult, which could cause tax problems. In addition, if you’re a corporation or limited liability company, you may negate your personal asset protection by paying personal bills out of a business account. This could get you in trouble with the IRS and open you and your fellow owners up to personal liability if the business is sued or fails. Avoid it at all costs. Bottom Line While very small, single-owner businesses might consider using a personal bank account for business, they should open a business account instead. There are few positives to running even the smallest business from a personal account, and the potential tax and liability risks far outweigh the benefits. Plus, you’ll give your business more credibility with customers, build business relationships with your bank, and simplify tax preparation.

You should not use a personal checking account for your company finances, regardless of the size and organization type of your small business. While some small sole proprietors might consider using a personal bank account due to low income and expense volume, the potential headaches involved with not separating personal and business finances make it a bad decision. Having separate accounts for your personal and business finances protects you from potential tax issues and gives credibility to your business. It also allows you to build business relationships with banks, which can help you get financing as your company grows. If you need to open a small business checking account, Bank of America is an excellent choice. No matter your business’ size, it has services that can help your company succeed. Visit the  website or stop by a branch location for more information. Personal Checking Accounts vs Business Checking Accounts The functionality of a personal and business checking account is the same. Both allow you to deposit and withdraw funds, write checks, send automated clearing house (ACH) and wire payments, and use a debit card for purchases. However, there are a few key differences between personal and business checking accounts. Personal checking accounts are often free or have very low waivable fees and usually have no minimum balance or opening deposit requirements. More often than not, they have no limits on transactions or cash deposit fees and can be opened in minutes. However, you won’t have access to a bank’s business services, such as merchant services, with just a personal account. While some banks offer free business checking, usually online-only accounts, most traditional banks charge fees that can be waived. Those fee-waiving thresholds are usually higher than with personal accounts. Some banks have minimum balance and opening deposit requirements, and there are fees if you exceed monthly transaction limits or cash deposits. Due to federal regulations, it can sometimes take a couple of days to open a business checking account. Once you establish that account, you can access the bank’s business services. Drawbacks of Using a Personal Bank Account for Business While any large business wouldn’t even consider using a personal bank account for their company finances, small sole proprietors often just use their personal checking account for their business funds. Their revenues and expenses are usually small, they often don’t have employees to pay, and they see their business as a side hustle or a gig-type job. However, no matter how small your business is, there are drawbacks to not having a dedicated business bank account. Here are some drawbacks of using a personal bank account for business: Your business finances are commingled with your personal finances: Keeping your business finances in a personal account keeps them mixed in with your personal funds, and it can become challenging to determine what are business funds. This can cause major problems during tax season. Your business won’t build credit: Without a dedicated business account, your business will be unable to borrow money under the company’s name, which means you never establish business credit. This may force you to get personal loans for your business, putting your assets at risk. It’s harder to assess how your business is performing: Having business finances in its own dedicated account makes it easier to see how your company is doing. This is much more difficult with your finances commingled. It can be harder for your company to earn credibility: A business seems more credible when payments come from a business account instead of a personal one. Tax preparation can be challenging: Since it’s harder to track income and expenses when your funds are commingled, figuring out your business taxes can become complicated. Your tax professional will appreciate it if you separate your business and personal finances. You won’t build a business banking relationship with your bank: Building a healthy relationship with your business bank allows you to eventually take advantage of all of its product offerings, including lending and merchant services. This helps your business grow and thrive. You might be unable to accept credit card payments: If you don’t have a business account, you won’t be able to use a bank’s merchant services to accept credit card payments. Who Needs a Business Bank Account? Nearly every business owner can benefit from a small business bank account. Many are free to open and have no minimum balance or opening deposit requirements, and some even earn interest. You should strongly consider opening a business bank account if you: Own a business: It will benefit you to have a small business checking or savings account as you can separate your personal assets from your business’s. Run a freelance business: Business bank accounts aren’t just for large corporations. A freelancer can keep their business finances separate from personal ones in a business bank account. Have more than one business: A business bank account can help you keep the assets of multiple companies separated. Have a business partner: Because all partners will need access to business finances, you’ll want a separate account that everyone in your management team can check. Own real estate investment properties: If you open a bank account for each investment property, it allows you to keep the finances of each one separate, which not only limits personal liability but also helps your tax professional keep deductions organized. Have employees: Many banks offer payroll services to businesses, which allows you to make sure all payroll and deductions are handled accurately. Some banks even offer discounts on accounts for your employees. Use multiple vendors: Banks also offer accounts payable and receivable assistance for your business to ensure all your bills are paid and received on time. Need proof of business finances: If your business continues to grow, you’ll need financing at some point. If you take out credit in the business name, you’ll need tax documents that support your business's ability to repay the loan. Benefits of a Business Bank Account There’s almost no reason not to open a business bank account to support your small business because it: Keeps your business and personal finances separated Helps you build your business credit Lets you assess your business performance more easily Lends credibility to your business Simplifies tax season Helps you build a banking relationship Allows you to accept credit card payments How To Open a Business Bank Account Opening a business bank account requires a process similar to opening a personal bank account. Your account can be opened in as little as a few minutes but could take longer, depending on the organization of your business. Many business bank accounts can be opened entirely online, while others might require you to visit a branch location. Though individual banks may require different documents to open a business bank account, here’s a general list of what you’ll need: Employer identification number (EIN) or Social Security number if you’re a sole proprietor Fictitious business name certificate or doing-business-as (DBA) certificate Business formation documents Organization documents, including your ownership agreements Business licenses Government-issued photo ID, such as a passport or driver’s license Frequently Asked Questions (FAQs) Can I run my business through my personal bank account? While very small sole proprietors might be tempted to run their businesses through their personal bank account, it isn’t recommended. You should get a business bank account to separate your finances, which has multiple benefits, including avoiding tax issues. Any incorporated businesses legally must have a business bank account. Should my business bank account be at the same bank as my personal one? It’s a great idea to open a business bank account at the same bank your personal accounts are located since you already have a banking relationship established with the bank. If that bank offers business banking products and services that can benefit your company, opening a business account has many benefits. Also, it may be easier to get business financing with a bank where you have both business and personal accounts than with a new bank where you’re opening your first account. Can I use a personal bank account for LLC? While you can technically use a personal bank account for a limited liability company (LLC), it isn’t advisable, especially if it’s a multimember LLC. Running the finances of a multimember LLC through a personal account opens up all members to personal liability. By using a business account, that account would fall under the liability protection offered by an LLC. This is extremely important when the business begins taking out credit in the company’s name. Bottom Line While small sole proprietors and single-member LLCs might be tempted to use a personal bank account for business finances, it’s strongly discouraged. In addition to potential tax issues, using a personal bank account limits your company's growth potential. You’ll be unable to build business banking relationships, which will make getting loans and credit cards in the company’s name impossible. No matter how limited your revenue is, opening a business bank account will give you peace of mind that your company and personal finances will be protected.

Brex and its cash management account is an excellent product, but in August 2022 it became unavailable to many businesses as the company tightened its qualification requirements. Brex is still a popular choice due to a customer’s ability to obtain FDIC insurance of up to $1 million with Brex’s partner banks, the company’s more stringent requirements require some businesses to look for an alternative. For businesses that lost accounts with Brex, or cannot meet new stringent requirements, the providers on this list offer excellent business checking accounts, other business service products, and great software integrations. Any of these options would make a great alternative to Brex CMA. Here are the eight best Brex CMA alternatives, with links directly to provider websites: *: Best overall for incorporated tech companies and startups *: Best for higher interest rates on checking accounts *: Best digital-only bank for rapid access to funds and faster payments *: Best digital-only provider for cash back on debit card purchases *: Best for digital tax preparation assistance : Best for flexible lending solutions and digital integrations *: Best for businesses needing multiple accounts and debit cards : Best for online-only full-service banking *Providers are financial technology (fintech) platforms backed by and Federal Deposit Insurance Corp. (FDIC)-insured through a supporting bank partnership (Evolve Bank & Trust for Mercury and Relay, Coastal Community Bank for Bluevine, Middlesex Federal Savings for Novo, Choice Financial Group, Inc. for Lili, and The Bancorp Bank for Oxygen). Best Brex Cash Management Account Alternatives At a Glance See fullscreen table × Mercury: Best Overall for Incorporated Tech Companies & Startups Bluevine: Best for Higher Interest Rates on Checking Accounts Novo: Best Digital-only Bank for Rapid Access to Funds & Faster Payments Oxygen: Best Digital-only Provider for Cash Back on Debit Card Purchases Lili: Best for Digital Tax Preparation Assistance Grasshopper: Best for Flexible Lending Solutions & Digital Integrations Relay: Best for Businesses That Need Multiple Accounts & Debit Cards First Internet Bank: Best for Online-only Full-service Banking How We Evaluated the Best Brex Cash Management Account Alternatives When we evaluated the best Brex Cash Management account alternatives, we considered Accounts that had similar offerings to Brex Cash Management Monthly fees, if any, and how easily they are waived Required opening deposit and balance minimums Transaction limits before fees ACH and wire transfer fees ATM fees and availability Cash deposit fees and availability Interest yield, if applicable Other checking account perks Software integrations Other business services provided Lending products provided Customer service Customer reviews How To Appeal Your Brex Cash Management Account Closing If you feel your Brex Cash Management Account was closed in error, there are steps you can take. If your account meets any of the following criteria, email reopen@brex.com with verifying documentation to appeal the decision: Received an equity investment of any amount, such as from an accelerator, angel investor, venture capitalist, or through a web3 token More than $1 million a year in revenue More than 50 employees More than $500,000 in cash Tech startups who are on a path to meeting the criteria above, and are referred by an existing customer or partner Brex also has a link with information about the next steps if your account was closed. What You Need to Open a Business Bank Account Each provider on this list may require different documents to open a business bank account. Generally, you will need: Employer identification number (EIN) or Social Security number if you’re a sole proprietor Fictitious business name certificate or doing-business-as (DBA) certificate Business formation documents Organization documents, including your ownership agreements Business licenses Government-issued photo ID, such as a passport or driver’s license Frequently Asked Questions (FAQs) Who are the competitors of Brex? Many fintech companies are direct competitors to Brex. The biggest ones are Mercury, Novo, Bluevine, Lili, Oxygen, Relay, and Grasshopper. Is Mercury better than Brex? When comparing Brex vs Mercury, Mercury has advantages almost across the board now with the exception of being able to get FDIC insurance of up to $1 million with Brex. Mercury also now has a credit card product, which was the other area Brex had an advantage, and Mercury is easier to qualify for and allows you to access funds through an ATM. If you don’t need a true cash management system, Mercury is the better choice. What bank does Brex partner with? Brex has 10 partner banks. Axos Bank, Member FDIC East West Bank, Member FDIC Hinsdale Bank & Trust Company, N.A., Member FDIC JPMorgan Chase Bank, N.A. Member FDIC Lake Forest Bank & Trust Company, N.A., Member FDIC LendingClub Bank, N.A., Member FDIC Merchants Bank of Indiana, Member FDIC Old Plank Trail Community Bank, N.A., Member FDIC Town Bank, N.A., Member FDIC Wheaton Bank & Trust Company, N.A., Member FDIC Bottom Line Whether you are unable to qualify for a Brex cash management account, or you had your Brex or Nearside account closed, the providers in this guide are great alternatives. They are all online-only banks that can provide many of the same services Brex and Nearside offered. Many surpass offerings by Brex, including some of the best small business checking accounts on the market. Compare the providers on the list and choose the one that best fits your business needs.

The best business bank account promotions should entice companies to sign up for a new business checking, savings or credit card product by providing cash back bonuses or statement credits. These bonuses should be easy to attain with clearly stated qualification requirements. We have searched our recommended business banks to find the best and latest account promotions and offers. Here are the best ones for February 2023: : Fit Small Business exclusive: Earn $300 cash back when you spend $2,000 on your debit card within 90 days : Earn up to $500 in cash back and statement credits for signing up for a new account *: Earn $400 cash back bonus for opening a new account : Earn $300 cash back bonus for opening a new account *: Earn up to $1,000 cash back bonus for opening a new account : Earn up to $500 cash back bonus for opening a new account *: Earn $200 cash back bonus for opening a new account *: Earn up to $2,000 cash back bonus for opening a new account : Earn up to $500 cash back bonus for opening a new account : Earn up to $200 cash back bonus for signing up for a new account *These providers are geographically limited. See our banking reviews for each provider for details or visit the provider’s website for more information. See fullscreen table × *See provider section for details Mercury: Earn $300 Cash Back When You Spend $2,000 on Your Debit Card Within 90 Days of Account Opening Bank of America: Earn Up to $500 in Cash Back & Statement Credits U.S. Bank: Earn $400 Cash Back Bonus For Opening a New Account Chase: Earn $300 Cash Back Bonus for Opening a New Account Huntington Bank: Earn Up to $1,000 Cash Back Bonus for Opening a New Account PNC Bank: Earn up to $500 Cash Back Bonus for Opening New Account Truist: Earn $200 Cash Back Bonus for Opening a New Account Citibank: Earn Up To $2,000 for Signing Up for a New Account M&T Bank: Earn Up To $500 for Signing Up for a New Account Axos Bank: Earn Up To $200 for Signing Up for a New Account Frequently Asked Questions (FAQs) What banks give the best account opening bonuses? The bank that gives the best account opening bonus is Citibank. If you meet certain qualifications, you can get up to $2,000 cash back for opening a business checking account. Which bank offers the best business bank account? Bank of America offers the best small business checking account on the market with waivable monthly fees and scalable banking features that can grow with your business. Which bank is best for a small business? Thanks to its excellent business checking accounts, full-service banking, outstanding lending products, merchant services and investing advice, Chase is the overall best business bank for small business. Bottom Line All of the providers on this list offer great benefits for opening a business bank account. Before you choose an institution, check out our list of the best small business checking accounts and compare account offerings. Choose one that not only provides a great account opening bonus but also has benefits that can help your business in the long term. Be sure to check out this article regularly for the latest business bank account promotions and offers.

The best banks for small business loans should provide your company with financing options needed for both short- and long-term business needs. In addition, they’ll provide outstanding business checking products and great business support services, including merchant services, investment products, and point-of-sale (POS) products. Banks that only offer lending products or have limited business support products should provide services outstanding enough to merit inclusion on this list. Here are the eight best banks for small business loans, with links directly to the company’s website: : Best overall for variety of business loans and providing free business credit score †: Best for long-term owner-occupied commercial real estate (CRE) loans : Best CRE multifamily lender with best business checking and credit cards *: Best small business line of credit : Best CRE loans for multifamily properties : Best digital-only bank with full-service business lending †: Best for smaller Small Business Administration (SBA) 7(a) loans : Best for SBA Express loans up to $25,000 *Providers are financial technology (fintech) platforms backed by and Federal Deposit Insurance Corp. (FDIC)-insured through a supporting bank partnership (Coastal Community Bank for Bluevine). †Providers are geographically limited. See the U.S. Bank geographic limitations and Huntington Bank geographic limitations to check if your business is located in a service area. Best Banks for Small Business Loans At a Glance Bank of America: Best Overall for Variety of Business Loans & Providing Free Business Credit Score U.S. Bank: Best For Long-term Owner-occupied CRE Loans Chase: Best CRE Multifamily Lender With Best Business Checking and Credit Cards Bluevine: Best Small Business Line of Credit Wells Fargo: Best Commercial Real Estate Loans for Multifamily Properties First Internet Bank: Best Digital-only Bank With Full-service Business Lending Huntington Bank: Best for Smaller SBA 7(a) Loans South End Capital: Best for SBA Express Loans up to $25,000 How We Compared the Best Banks for Small Business Loans When comparing the best banks for small business loans, we considered the loan offerings provided by each bank and the other services offered. These services include business checking, business credit cards, and other business support services. We compared their loan products and the following criteria: Number of loan offerings Size of loans offered Loan qualifications required Time in business and minimum revenue requirements Loan rates and maximum terms How widely available the bank is Before applying for any loan, be sure to check out our guide on how to get a small business loan. Frequently Asked Questions (FAQs) Which bank is best for a business loan? Thanks to its wide range of business lending products and the ability to receive your business credit score for free with its checking product, Bank of America is the best bank for small business loans. What bank does the most SBA loans? Huntington Bank has issued the most SBA loans so far in 2023, with more than 1,600 loans approved, according to SBA.gov. Live Oak Bank has issued the most money in SBA loans in 2023, with more than $441 million approved. How do you get a business loan from a bank? To get a loan from a bank, you should follow these six steps listed in our how to get a small business loan guide: Determine what you need the funds for. Determine your eligibility. Determine your capacity to repay. Gather your information. Find the right lender. Submit your application. Bottom Line All the banks listed provide either a wide range of loan product offerings or a limited selection of the best loan products on the market. These products should be readily available for well-qualified borrowers. In addition, except for South End Capital, all the banks listed offer outstanding business checking products and other business support services. Regardless of which bank you choose, you’re getting a great all-around bank that can help your business succeed. If you would rather shop around for loan products from multiple banks, is an excellent option. Its marketplace of more than 75 lenders will allow you to get multiple offers from just one application, which lets you choose the best rates and terms available. Visit Lendio’s website to apply.

The best banks for real estate investors should provide both excellent business bank accounts and commercial real estate (CRE) lending. They should also offer business support services, including expense management systems and rent collection services. Banks with no lending products or limited lending offerings should have banking products and other services that can assist both landlords and fix-and-flip investors. Here are the eight best banks for real estate investors, with links directly to the bank’s websites: : Best overall for outstanding business checking, business support, and CRE loans : Best for wide-range of CRE loans, business checking, and credit cards : Best for all-in-one landlord and real estate investor banking with CRE loan products : Best for online rent collection with banking product : Best small business line of credit with interest-earning checking : Best for long-term owner-occupied CRE loans : Best digital-only bank with full-service business lending : Best for CRE loans for multifamily properties *Providers are financial technology (fintech) platforms backed by and Federal Deposit Insurance Corp. (FDIC)-insured through a supporting bank partnership (Blue Ridge Bank, N.A. for Baselane and Stessa and Coastal Community Bank for Bluevine). †Provider is geographically limited. See the U.S. Bank geographic limitations to see if your business is located in an area served by it. Best Banks for Real Estate Investors at a Glance Bank of America: Best Overall for Outstanding Business Checking, Business Support & CRE Loans Chase: Best for a Wide Range of CRE loans, Business Checking & Credit Cards Baselane: Best for All-in-One Landlord & Real Estate Investor Banking With CRE Loan Products Stessa: Best for Online Rent Collection with Banking Product Bluevine: Best Small Business Line of Credit with Interest-Earning Checking U.S. Bank: Best for Long-Term Owner-Occupied CRE Loans First Internet Bank: Best Digital-Only Bank With Full-Service Business Lending Wells Fargo: Best for CRE Loans for Multifamily Properties How We Evaluated the Best Banks for Real Estate Investors When evaluating the best banks for real estate investors, we considered the following: Monthly fees, if any, and how easily they’re waived Required opening deposit and balance minimums Transaction limits before fees ACH and wire transfer fees ATM fees and availability Cash deposit fees and availability Interest yield, if applicable Software integrations Other business services provided Number of loan offerings Size of loans offered Loan qualifications required Time in business and minimum revenue requirements Loan rates and maximum terms How widely available the bank is Customer reviews What You Need to Open a Business Bank Account Each provider on this list may require different documents to open a business bank account. Generally, you’ll need: Employer identification number (EIN) or Social Security number if you’re a sole proprietor Fictitious business name certificate or doing-business-as (DBA) certificate Business formation documents Organization documents, including your ownership agreements Business licenses Government-issued photo ID, such as a passport or driver’s license Frequently Asked Questions (FAQs) Which bank is best for investors? Bank of America is our choice as the best bank for real estate investors since it has outstanding business checking products that also provide your Dun & Bradstreet business credit score for free combined with outstanding commercial lending options. What kind of bank account should I open for real estate? When you open a bank account for real estate, you should consider an account that earns interest and has limited fees. While savings accounts earn the highest interest rate, finding an interest-earning checking account like Bluevine is best because you won’t be subject to monthly transaction limits that you might find in savings accounts. Which bank is best for real estate loans? Bank of America is the best bank for real estate loans. It offers loans starting at $25,000, and you can get lines of credit, term loans, commercial real estate loans, and SBA loans. Bottom Line Real estate investors should choose a bank that provides outstanding business checking and great commercial real estate lending. All but one of the providers in this guide offer both, but Stessa’s online rent collection and cash management products are strong enough to merit inclusion on this list. Decide which banking features are most important for your real estate investing business and choose the bank that best meets those needs.

When starting your small business, separating your business from your personal finances should be one of your first goals. This will help you build business credit, lend credibility to your business, simplify tax season, and assess your business performance more easily. Keeping your business and personal finances commingled can cause significant long-term problems, including potential issues with the IRS. The steps in this guide will help walk you through separating business and personal finances. When you reach the point where you need a business checking account,  is an excellent choice, as you can earn interest on qualifying balances of $100,000 or less. Step 1: Get an Employer Identification Number (EIN) If you haven’t applied for an EIN from the IRS, that should be your first step. Getting an EIN from the IRS is free, and it can be applied for online, by fax, or by mail. Even if you’re a sole proprietor or a single-member LLC, you can get one. If your plan is for your business to grow, then you’ll need one eventually. This will allow you to open accounts and apply for loans under your business EIN instead of your Social Security number. Step 2: Register Your Business Entity The next step is to formally register your business as a legal entity, such as a limited liability company (LLC), S corporation (S-corp), or C corporation (C-corp). This protects your personal assets in case of legal action against the business. However, this protection can go away if you commingle personal and business funds, which is another reason to separate them. You can register in some states for as little as $50 while others will charge up to $2,000. The image below shows the LLC costs in each state. Step 3: Open a Business Bank Account You’ll need to open a business bank account to separate your business and personal finances. You need a business bank account because using a personal bank account for your company can complicate bookkeeping and could create tax problems in the future. While you should open a business checking account, you can also open a business savings account to earn a higher interest yield on reserve funds. It’s a good idea to choose a business bank that provides both business checking and savings products, along with other business support services. When you open your account, be sure to use your business EIN, although there are banks that don’t require an EIN to open a business checking account if you’re a sole proprietor or a single-member LLC. Step 4: Apply for a DUNS Number To establish a business credit score, you need to apply for a Dun & Bradstreet number (DUNS number). It’s a unique nine-digit identifier that will allow you to build a Dun & Bradstreet business credit score separate from your personal credit. This allows lenders, creditors, and potential investors to check your company's reliability and financial stability. Step 5: Apply for Credit Under Your Business Name Once you have a business credit identity established, you can open credit under the business name. Like when people begin establishing personal credit, a great way to establish your business credit is with a business credit card. The best small business credit cards offer a lower annual percentage rate (APR), great rewards, and other benefits. After establishing business credit, you can apply for other types of credit under the business name. Many banks offer easy business loans that can be applied for in a matter of minutes, with approval in funding in as little as 24 hours. Step 6: Establish Utility Accounts Under the Company’s Name Establishing utility accounts under the business name will also help your business credit. Any regular services you need to operate your company should be in the business name. These include phone lines, mobile service, internet service, leases, and other business-related subscriptions. Use your business bank account or a business credit card to pay these expenses, and be sure they’re tracked for bookkeeping purposes. Step 7: Track Your Business Expenses & Keep Your Receipts You should monitor any business expenses. Business taxes can be complicated, but they can be made much easier if all expenses are tracked and receipts are kept. Many business checking platforms will include expense tracking as part of the app. Failure to track expenses properly could get you in trouble with the IRS. Also, be sure not to pay for personal expenses with business funds and keep business and personal receipts separate. Step 8: Put Yourself on Payroll An important step in separating your personal and business finances is to pay yourself a salary. This earmarks those funds as your personal payment from the company for your work and keeps business owners from considering paying personal expenses with business funds. You can set aside a salary so that your personal needs and expenses are taken care of, and you can budget both your business and personal finances more effectively. Step 9: Monitor Business Use of Personal Items If you use personal items for your business, such as your home office or car, track usage carefully. Document how often you use your home office and try to account for any expenses you incur when you use your home office. If you use your personal internet at home, calculate how much of your monthly internet expense goes toward business use. This also applies to your personal mobile phone being used for business purposes. Business use of personal items can be tax deductible. Be sure to consult your tax advisor for guidance throughout this process. Step 10: Educate Employees & Business Partners While you should follow the steps in this guide, your business partners and employees should also read and understand it. You should create policies that clearly define how to process and report business expenses, and the policy should have steps to correct purchases incorrectly charged to your business. As the owner, you’ll be responsible to the IRS if there are mistakes made by your partners or employees. As such, you have to ensure that they know the importance of separating personal and business finances. Why Separating Business & Personal Finances is Important Helps you build your business credit: When you open a business bank account, credit bureaus begin tracking credit history for your business. This will help when you need a business loan or line of credit. Lets you assess your business performance more easily: With your income and expenses running through a dedicated account, it becomes easier to analyze your business’s performance. Some banks even offer software to track business performance. Lends credibility to your business: Customers will see your business as more trustworthy when payments come from a business account instead of your personal account. Simplifies tax season: Tax preparation will be much easier at year-end because using a business checking account helps maintain a record of income and expenses. Helps you build a banking relationship: Building a banking relationship can be beneficial if you need business financing in the future. Allows you to accept credit card payments: Many banks offer merchant services to their customers, which allow you to accept credit card payments into your business checking account. Frequently Asked Questions (FAQs) Should your business account be separate from your personal account? Yes, your business account should be separate from your personal account. You should open a separate business bank account to keep finances separate, which will help you avoid potential tax problems in the future, and it’s OK to have your business and personal accounts at the same bank. Is it OK to mix personal and business funds and expenses? Not only is it not OK to mix personal and business funds and expenses, but you could get in serious trouble with the IRS. At the least, you or your tax professional will have more work separating those funds when filing your personal and business tax returns. If you have an LLC or an S-corp, you lose personal asset protection if you commingle your finances. If you have a C-corp, it’s against the law to take business funds for personal use. Is it illegal to commingle business and personal funds? If you have a C-corp, it’s illegal to commingle business and personal funds. If you have an LLC or an S-corp, you could lose personal asset protection if you use business funds for personal use. This means if there is litigation against the business, they may be able to take your personal assets even if your business is incorporated. This is why it’s critical to keep business and personal funds separate, regardless of business size or organization type. Bottom Line Separating your business and personal funds is an essential step for the growth and development of your business. Even if you’re a sole proprietor or a single-member LLC, there’s no reason not to separate your funds. You gain no advantages by keeping them together, and you could open up a host of liabilities and even legal issues if you don’t separate them. Separating your funds will help your business establish credit and credibility and simplify tax preparation.