Sole proprietors must find a business banking provider that offers an affordable and convenient checking solution. The banks listed in our guide provide business bank accounts that either are free or have easily waivable monthly fees. Further, they deliver services crucial to a sole proprietorship’s day-to-day operation, such as bookkeeping, merchant services, lending solutions, and payment processing.
After reviewing over 100 business banks, here are the six best business bank accounts for sole proprietorships, with links directly to the provider websites:
- Found Provider is a financial technology (fintech) platform backed by and Federal Deposit Insurance Corp. (FDIC)-insured through a supporting bank partnership with Piermont Bank. : Best overall for sole proprietors needing integrated checking and bookkeeping
- U.S. Bank Member FDIC. : Best for free business checking from a traditional bank
- Chase Member FDIC. : Best for full-service banking and in-person customer service
- Bluevine Provider is a fintech platform backed by and FDIC-insured through a supporting bank partnership with Coastal Community Bank. : Best for earning interest on deposits and line of credit
- Novo Provider is a fintech platform backed by and FDIC-insured through a supporting bank partnership with Middlesex Federal Savings. : Best for sole proprietorships needing rapid access to funds and faster payments
- Lili Provider is a financial technology company, not a bank. Banking services provided by Sunrise Banks N.A., Member FDIC. : Best for sole proprietors needing digital tax preparation assistance
Earn up to 4.25% with Bluevine Business Checking |
|
Best Sole Proprietorship Business Bank Accounts At a Glance
Account Name | Monthly Fee | Free Monthly Transactions | Annual Percentage Yield (APY) | Free Cash Deposit Limit | |
---|---|---|---|---|---|
Business Checking | None | Unlimited | N/A | ||
Silver Business Checking | None | 125 | N/A | $2,500 per month | |
Business Complete Banking | $15; waivable | 20 | N/A | $5,000 per month | |
Bluevine Standard | None | Unlimited | |||
Business Checking | None | Unlimited | N/A | ||
Basic Checking | None | Unlimited | Unlimited | ||
Found: Best Overall for Sole Proprietors Needing Integrated Checking and Bookkeeping
What We Like
- No monthly fees, minimum balances, account fees, and sign-up fees
- Excellent expense tracking on both its desktop and mobile apps
- Helps you track tax write-offs and gives you real-time tax estimates
Drawbacks
- No lending products
- Interest earning only through paid-tier Found Plus
- Cannot purchase checks or issue them from the app
Features
- Provides a business debit Mastercard, which allows you to track expenses and receive purchase alerts
- Debit cards can be frozen in the Found app
- Desktop and mobile apps
- Connect to accounting software and payment apps, such as Cash App, PayPal, Square, Venmo, and Stripe
- Integrated bookkeeping allows you to categorize expenses, customize invoices, capture receipts, and set custom rules
- Track tax write-offs in the app
- View your tax estimate update in real-time
- Pay your taxes directly from the app
- Send your Schedule C directly from the app
- Allows cash deposits at over 79,000 retail locations
- Customer service via email, online form, and support guides on the website
Required Opening Deposit | None |
Required Balance Minimum | None |
Transaction Limit Before Fees | Unlimited |
ACH Fees | None |
Monthly Fees | None |
Domestic Wire Transfer Fees | Free incoming wires; outgoing wires only sent to Found customers |
International Wire Fees | Unavailable |
ATM Fees | Found doesn’t charge for ATM usage; third-party ATM fees will likely apply |
Cash Deposited | Accepted at more than 79,000 retail locations; list available in the Found app |
APY | N/A |
*Found is a business fintech platform backed by FDIC-insured Piermont Bank. |
Why We Like Found
With an all-in-one banking and bookkeeping solution for sole proprietors, Found offers our overall choice for the best business bank account for sole proprietors. They can take advantage of:
- A checking account that has no monthly fees and minimum transaction requirements.
- A powerful bookkeeping tool integrated directly into the app that lets you categorize expenses, capture receipts, and set custom rules with its app
- Unlimited free and customizable invoicing
- Multiple options for invoice payments through payment apps like Cash App, PayPal, Square, and Venmo
Other Benefits
Another huge perk for sole proprietors is Found’s built-in contractor management, which allows you to request and manage W-9s, 1099 payment reports, 1099-NECs, and more. Additionally, Found provides robust tax tracking and preparation software, which enables you to pay your tax bill and complete and send your Schedule C directly from the app.
While most of the features with Found are free to use in its basic account, some are only included in Found Plus, which costs $19.99 per month or $149.99 per year. Found Plus also provides an interest-bearing checking account, as you can earn 1.5% APY on balances up to $20,000. See our Found business checking review for more detailed information.
User Reviews
Found has mostly positive reviews on Trustpilot[1], earning 4.4 out of 5 stars. Users raved about the provider’s ease of use and the intuitive and useful tools available for free through the app. Reviewers said that they are very happy with Found’s responsive customer service. A solopreneur even commented that managing bookkeeping and accounting was seamless.
U.S. Bank: Best for Free Business Checking From a Traditional Bank
What We Like
- No monthly fee
- Free mobile check deposits
- Apply in person, online, or by phone
Drawbacks
- Expensive wire fees
- Limited free transaction
Features
- Send and receive money through app
- Digital invoicing and payment systems integrated into your online dashboard
- Mobile app to monitor all of your accounts, transfer funds between accounts, and deposit checks online
- Easy integration with overdraft protection or credit card processing services for your business
- Free debit card and 50% discount on first check order with Deluxe up to $50
- Integrations with QuickBooks and U.S. Bank Payment Processing
- Customer service online, by phone, or in-branch during business hours
- Other products include lending and cash flow products, other checking options, and point-of-sale (POS) services
Required Opening Deposit | $100 |
Required Balance Minimum | None |
Transaction Limit Before Fees | 125 in a month, then 50 cents per transaction |
ACH Fees | None |
Monthly Fees | None |
Domestic Wire Transfer Fees | Up to $16 for incoming; up to $40 for outgoing; $45 for voice wire |
International Wire Fees | $16 for incoming; $75 for outgoing |
ATM Fees | No charge for out-of-network ATMs, although operator fees apply |
Cash Deposited | $2,500 in cash deposits or 25 free cash deposits per cycle, whichever comes first |
APY | N/A |
Why We Like U.S. Bank
If you don’t want to worry about waiving monthly fees, then U.S. Bank’s free business account, Silver Business Checking, is the right choice for a sole proprietorship business bank account. With it, sole proprietors can:
- Get 125 free transactions and $2,500 in cash deposits monthly, which is ideal for sole props with lower transaction volumes; U.S. Bank’s free business checking account, which is available nationwide, tops our list of the best small business checking accounts
- Apply for the U.S. Bank Nonprofit Business Checking account, one of our leading nonprofit business bank accounts, if they are nonprofits; each year, you get 1,800 free transactions and $30,000 in free cash deposits, perfect for businesses with occasional, large fundraising events or inconsistent transaction schedules
Other Benefits
U.S. Bank has two higher-tier accounts with more free transactions, which come with a waivable monthly fee. In addition, you can earn up to an $800 bonus when you open a new, eligible U.S. Bank business checking account online (promo code: Q3AFL24) and complete qualifying activities, subject to certain terms and limitations—offer valid through September 16, 2024. Member FDIC.
User Reviews
U.S. Bank has 3.9 out of 5 stars on WalletHub[2]. Many of the reviews are unrelated to the bank’s business checking product, though there is both positive and negative feedback regarding the bank’s customer service. Some of the negative reviews came from users who were unsatisfied with the results of fraud dispute claims.
Chase: Best for Full-service Banking and In-person Customer Service
What We Like
- $300 bonus when you open an account
- Multiple ways to waive the monthly fee
- Branch presence in 48 states
Drawbacks
- Limited number of free transactions
- Does not earn interest
- Fee for cash deposits of more than $5,000 per statement period
Features
- Built-in card acceptance with QuickAccept℠ via the Chase Mobile® app
- Manage debit, deposit, and ATM card settings for individual employees
- Deposit checks, view account balances, pay bills, and make transfers through the mobile app
- Integrates with QuickBooks and other leading accounting software
- Free debit card, mailed within 10 business days of application approval
- Physical checks’ costs depend on type ordered
- Chase Payment Solutions
- Live customer support online or in branch during business hours
- Other products include business savings, CDs, lending products, credit cards, merchant services, and collection services
Required Opening Deposit | None |
Required Balance Minimum | None |
Transaction Limit Before Fees | 20, then 40 cents per transaction |
ACH Fees | $2.50 per item for first 10 payments & 15 cents for succeeding payments 1% of transaction value for same-day ACH or real-time payments |
Monthly Fees | $15; waivable if conditions are met |
Domestic Wire Transfer Fees | Incoming: $15 Outgoing: Up to $35 |
International Wire Transfer Fees | Incoming: $15 Outgoing: Up to $50 |
ATM Fees | $3 at non-Chase ATMs, plus ATM operator fees |
Cash Deposited | $5,000 free per month, then $2.50 per $1,000 |
APY | N/A |
Why We Like Chase
Chase offers a great business bank account for a sole proprietorship that prefers a traditional bank to access full-service business banking. Chase provides:
- Three business checking accounts, business savings accounts, credit cards, lines of credit, point-of-sale (POS) systems, and software solutions
- An entry-level checking account, Business Complete Banking, with a waivable The monthly fee can be waived by meeting a minimum daily balance of $2,000, aggregate eligible deposits of at least $2,000, or at least $2,000 in spend on a Chase Ink Business Credit Card. The fee is also waived by maintaining a linked Chase Private Checking Client checking account or meeting Chase’s Military Banking requirements. $15 monthly fee; it allows you up to 20 free transactions and $5,000 in free cash deposits monthly (read our Chase Business Complete Banking review to learn more)
Other Benefits
Chase has an expansive network with over 4,700 branches in 48 states and more than 16,000 ATMs. This means that there is a good chance that wherever your business takes you, Chase will be nearby.
You can also earn a cash back bonus by opening an account and completing qualifying activities. See Chase’s website or our guide to the best business bank account promotions for details.
User Reviews
On WalletHub, Chase’s Business Complete Banking received 3.3 stars[3], while the bank earned 3.8 stars[4]. There are limited reviews about the account specifically, but two contain complaints about the minimum balance requirement to waive the monthly fee. Other reviewers of the bank in general said that they are pleased with the customer service.
Bluevine: Best for Earning Interest on Deposits and Line of Credit
What We Like
- Three checking options with competitive interest
- Integrates with QuickBooks
- Unlimited 1.5% cash back business Mastercard
Drawbacks
- No savings, money market, and certificate of deposit (CD) accounts
- No physical branch locations
- Fee for depositing cash
Features
- No monthly maintenance fee
- No minimum balance requirement
- Reduced standard payment fees for Bluevine Plus and Bluevine Premier checking
- Free debit card (with up to 4 free additional debit cards for authorized users) and two free checkbook orders per year
- Integrates with QuickBooks and Xero
- Connects with business payment solutions, including Wise, Venmo, and Expensify
- Has live customer support from dedicated professionals
- Offers line of credit & credit card product
- Automatic transfers with sub-accounts
Required Opening Deposit | None |
Required Balance Minimum | None |
Transaction Limit Before Fees | Unlimited |
ACH Fees | None |
Monthly Fees | None |
Domestic Wire Transfer Fees | Incoming: $0 Outgoing: $15 |
International Wire Transfer Fees | Incoming: N/A Outgoing: $25 (USD); $25 plus 1.5% (foreign currency) |
ATM Fees | None at MoneyPass locations nationally; $2.50 plus operator fees for nonnetwork ATM use |
Cash Deposited |
|
APY | 2.0% on qualifying balances up to $250,000 |
Bluevine is a business fintech platform backed by FDIC-insured Coastal Community Bank. |
Why We Like Bluevine
Another best business bank account for sole proprietors is offered by the online-only banking solution Bluevine, which leads our roundup of the top-recommended online business banks. With it, sole proprietors can:
- Apply for a Bluevine Standard business checking account, which has a 2.0% APY on qualifying balances up to $250,000, no monthly or transaction fees, and no minimum opening deposit or balance requirement
- Send payments overseas to 32 countries in up to 15 currencies; payments can be received in as little as 24 hours
Other Benefits
Bluevine now offers premium checking products called Bluevine Plus and Bluevine Premier, and they earn higher APY and provide reduced fees for wires and ACH transfers. Both accounts have waivable monthly fees, and you can check out our Bluevine business checking review for the list of activity requirements for the fee waiver.
The provider also has the best business line of credit product of the dozens we’ve reviewed. As long as you’ve been in business for at least 24 months, have a personal credit score of at least 625, and have at least $480,000 in minimum annual revenue, you can qualify for a line of credit in minutes.
User Reviews
Trustpilot[5] reviewers have given Bluevine solid ratings, with the provider earning 4.3 out of 5 stars. Users praised the easy account opening process and the company’s excellent online customer support. Customers were also pleased with how Bluevine met their small business banking needs. However, there are a few negative reports regarding phone support.
Novo: Best for Sole Proprietorships Needing Rapid Access to Funds & Faster Payments
What We Like
Drawbacks
Features
Why We Like Novo
Novo offers an excellent business bank account for sole proprietors who run an ecommerce business. It features:
- A business checking account with no monthly fee, transaction limits, minimum opening deposit requirement, and minimum balance requirement
- Novo Boost and Express ACH products, which allow you to send and receive payments faster than with other financial institutions
- Monthly ATM fee refunds of up to $7, making it an affordable option for sole proprietorships that rely on cash
Other Benefits
Novo Boost lets you receive payments from your Stripe account faster than other providers. Also, users can connect to Stripe, Square, or PayPal and get paid via card, Apple Pay, Google Pay, PayPal, or Venmo. Meanwhile, Express ACH enables you to accept or send same-day ACH payments.
Novo also provides up to 10 reserve accounts, unlimited invoicing, and great software integrations with accounting and payment software. You cannot order checks, but paper checks can be sent from the app. Read our Novo business checking review to see if the provider is a good fit.
User Reviews
Novo has 4.4 out of 5 stars on Trustpilot[6]. Users were pleased with how easy Novo made it to set up accounts and pay vendors. Others said it was the easiest online banking experience they’ve had, and many recommended Novo for small businesses and startups due to the lack of monthly fees.
Lili: Best for Sole Proprietors Needing Digital Tax Preparation Assistance
What We Like
- No monthly fees for basic tier
- 4.15% APY on savings accounts
- Paid plans provide tax preparation assistance and bookkeeping tools
Drawbacks
- No physical locations
- Some of the best features are in higher-tier accounts
- No outgoing wire transfers
Features
- Free Visa business debit card The Lili Visa® Debit Cards is issued by Sunrise Banks N.A., Member FDIC, pursuant to a license from Visa U.S.A. Inc..
- Mobile banking
- Unlimited invoice creation (Lili Smart and Lili Premium)
- Prefilled tax forms (Lili Smart and Lili Premium)
- Bookkeeping solutions (Lili Pro, Lili Smart, and Lili Premium)
- Two days early payment via direct deposit
- Integrations with QuickBooks, Venmo, PayPal, and CashApp, among others
- Toll-free phone support Monday through Friday, 9 a.m. to 7 p.m. Eastern time, and by email
- Lili Pro available for $9 per month
Required Opening Deposit | None |
Required Balance Minimum | None |
Transaction Limit Before Fees | Unlimited |
Monthly Fees | None |
Domestic Wire Transfer Fees | Incoming: $0 Outgoing: N/A |
International Wire Fees | Not supported |
ATM Fees | None at 38,000 MoneyPass ATMs (third-party ATM fees may apply); $2.50 for out-of-network |
Cash Deposited | $4.95 fee per transaction, available through Green Dot retail locations |
APY | None |
*Lili is a financial technology company, not a bank. Banking services provided by Sunrise Banks N.A., Member FDIC. |
Why We Like Lili
Included among our best business bank accounts for sole proprietorships is Lili, which offers significant convenience to sole proprietors through its tax preparation tools. Users get:
- A basic tier checking account with no required opening deposit, minimum balance, and monthly fee
- Different Lili business accounts, which allow access to tax assistance software; you can separate funds for tax payments, use prefilled business tax forms, sort transactions into tax categories, scan receipts, and more
- A high 4.15% APY on savings accounts with balances of up to $100,000; this is available under Lili Pro, Lili Smart, and Lili Premium.
- Cash back rewards when they make purchases using their Lili Visa Debit Card, but signing up for a paid plan is required
Other Benefits
Lili offers sole proprietors the option to get paid two days early, receive fee-free domestic wires, and withdraw from MoneyPass ATMs at no cost. Cash-reliant businesses can also deposit cash at Green Dot retail locations for $4.95 per transaction.
As your sole proprietorship scales, you can easily upgrade to a higher-tier account and access expense management and tax preparation tools and accounting solutions. Check out our review of Lili Business Checking to learn what each account provides.
User Reviews
Lili has a high 4.7 rating on Trustpilot[7]. Small business owners praised the app for delivering useful features—such as expense tracking and tax allocation—that help them stay organized. Many said that Lili is simple to use and that they hardly faced issues after several years of banking with the provider.
How We Evaluated the Best Business Bank Accounts for Sole Proprietorships
In compiling this buyer’s guide, we reviewed over 100 banks and their primary business checking accounts. When we evaluated the best sole proprietorship business bank accounts, we considered:
- Account convenience for a one-person business operation
- Account affordability for a one-person business operation
- Required opening deposit and balance minimums
- Transaction limits before fees
- ACH and wire transfer fees
- ATM fees and availability
- Software integrations
- 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
What You Need to Open a Business Bank Account
Though each provider above may require different documents to open a business bank account, here is a general list of what you will need:
- Employer identification number (EIN) or Social Security number (SSN) 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
Related resources:
- How to open a sole proprietorship bank account (for those who haven’t yet registered a business name)
- How to open a business bank account (for those who already have a business name)
Additional Resources for Sole Proprietorships
In addition to business banking products, there are many other questions that sole proprietors should consider. Here are some of our articles for sole proprietorships:
- If you are just starting your business and trying to figure out how it needs to be formed, check out our guide to what a sole proprietorship is. It includes examples of business types that make good sole proprietorships.
- Is a sole proprietorship the right choice for your business? Check out our article on sole proprietorship pros and cons.
- If you’re unsure whether your company should be an LLC or a sole prop, see our single-member LLC vs sole proprietorship comparison.
- If you need a credit card for your business, check out our roundup of the best sole proprietorship business cards.
- Sole proprietors cannot be employees of their own companies and will never receive a paycheck. Check out our guide to self-employed payroll for guidance.
Frequently Asked Questions (FAQs)
While some sole proprietors may be tempted to use a personal bank account for their business, it is best to open a business checking account instead. This can help you avoid potential tax issues down the road that occur when you commingle business and personal finances.
Our choice for the best business bank account for self-employed professionals is Bluevine, thanks to a high-interest checking yield and future access to a business line of credit. It has recently added a premium account as well, which can earn you a higher interest yield and extended FDIC insurance.
You can open a business bank account without an EIN if your business is organized as a sole proprietorship or a single-member LLC. In both cases, you would use your personal Social Security number to open the account. However, if you plan on expanding your business in the future, it is a good idea to obtain an EIN. It is free and can be applied for online, by fax, or by mail.
Bottom Line
The six financial institutions listed in this buyer’s guide can provide your sole proprietorship with the business banking products and services needed no matter the size of your business. While they provide different products and services, all include an affordable business checking product that is easy to apply for and maintain. When choosing a provider, determine which offers the services that meet your needs.
User review references:
[1]Trustpilot | Found
[2]WalletHub | U.S. Bank
[3]WalletHub | Chase Business Complete Banking
[4]WalletHub | Chase
[5]Trustpilot | Bluevine
[6]Trustpilot | Novo
[7]Trustpilot | Lili