6 Best Business Bank Accounts for Sole Proprietorship 2023
This article is part of a larger series on Business Banking.
Because sole proprietorships are one-person companies and are often smaller businesses, it is critical to find a business banking provider that offers an affordable and convenient checking solution. The providers in this buyer’s guide offer business bank accounts that are either free or have easily waivable monthly fees. In addition, they provide services critical for a sole prop’s day-to-day operation, including bookkeeping, merchant services, lending solutions, and payment processing.
After reviewing more than 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 who need integrated business 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 available line of credit product
- Bank of America Member FDIC. : Best traditional bank for ongoing rewards and low cash deposit fees
- Novo Provider is a fintech platform backed by and FDIC-insured through a supporting bank partnership with Middlesex Federal Savings. : Best for ecommerce sole proprietorships that need rapid access to funds and faster payments
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 | No limit | N/A | Accepted at certain retail locations for a fee |
 | Silver Business Checking | None | 125 | N/A | $2,500 per month |
 | Business Complete Banking | $15; waivable | 20 | N/A | $5,000 per month |
 | Business Checking | None | No limit | 2.0% on qualifying balances of $250k or less | $4.95 per deposit (Green Dot) |
 | Fundamentals Business Checking | $16; waivable | 200 | N/A | $7,500 per month |
 | Business Checking | None | No limit | N/A | No fee; cash deposited through money orders |
Found: Best Overall for Sole Proprietors Who Need Integrated Business 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 free cash deposits
- 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 eBay
- 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
- Customer service via email, online form, and support guides on the website
| |
|---|---|
Required Opening Deposit | None |
Required Balance Minimum | None |
Transaction Limit Before Fees | None |
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
Because it provides an all-in-one solution banking and bookkeeping solution for sole proprietors, Found is our choice for best overall. It is an online-only financial technology company that offers banking services through its backer bank, Piermont Bank. Its checking account has no monthly fees or minimum transaction requirements.
In addition to an excellent online bank account, you get a powerful bookkeeping tool integrated directly into the app. You can categorize expenses, capture receipts, and set custom rules with its app. Found also offers unlimited free and customizable invoicing, and you can accept payment for those invoices through payment apps like Cash App, PayPal, Square, Venmo, and eBay.
Another huge perk for sole proprietors is built-in contractor management, which allows you to request and manage W-9s, 1099 payment reports, contractor tax forms 1099-NECs, and more. Finally, Found provides robust tax tracking and preparation software, allows you to complete and send your Schedule C directly from the app, and lets you pay your tax bill directly.
While most of the features with Found are free to use in its basic account, some are only included in Found Plus, which is $14.99 per month. Found Plus also provides an interest-bearing checking account, as you can earn 1.5% APY on balances up to $20,000.
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 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 | $40 for outgoing, $14 for incoming |
International Wire Fees | $75 for outgoing, $15 for incoming |
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
For sole proprietors who don’t want to have to worry about waiving monthly fees to get free business checking from a traditional bank, U.S. Bank is the right choice. Its Silver Business Checking account is one of the few traditional bank accounts with no monthly fee. You get 125 free transactions and $2,500 in cash deposits monthly, making it a good choice for sole props with lower transaction volumes.
Now available nationwide, U.S. Bank and its free business checking account is our choice for the best small business checking account on the market.
U.S. Bank has two higher-tier accounts with more free transactions, but those 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 (promo code: Q3AFL23) and complete qualifying activities, subject to certain terms and limitations. The offer is valid through Jan. 8, 2024.
If your sole proprietorship is a nonprofit, U.S. Bank has you covered with its Nonprofit Business Checking. That account offers you up to 1,800 free transactions and $30,000 in free cash deposits yearly, perfect for businesses with large occasional fundraising events or inconsistent transaction schedules. See our buyer’s guide on the leading nonprofit business banks for more details.
Chase: Best for Full-service Banking and In-person Customer Service
What We Like
- $300 bonus when you open an account
- Easy-to-waive monthly fee
- Built-in card acceptance with QuickAccept℠ via the Chase MobileⓇ app
Drawbacks
- Limited number of free transactions
- ATM fees not reimbursed
- Fee for cash deposits of more than $5,000 per statement period
Features
- 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 depending on type ordered
- Chase Merchant Services
- 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 |
Automated Clearing House (ACH) Fees | $25 for first 25 items per month, 15 cents per item above 25 per month, $2.50 return fee |
Monthly Fees | $15; waivable if conditions are met |
Domestic Wire Transfer Fees | Up to $35 for outgoing wires, up to $15 for incoming wires |
International Wire Transfer Fees | Up to $50 for outgoing wires, up to $15 for incoming wires |
ATM Fees | $3 per transaction at any non-Chase ATM, plus ATM operator fees |
Cash Deposited | $2.50 per $1,000 after you deposit $5,000 in a billing cycle |
APY | N/A |
Why We Like Chase
Sole proprietors who prefer a traditional bank for full-service business banking needs should consider Chase. It offers three types of business checking accounts, business savings accounts, credit cards, lines of credit, POS systems, and software solutions.
Its entry-level checking, Business Complete Banking, has a $15 monthly fee that can be waived with a minimum daily ending balance of at least $2,000, aggregate eligible deposits of at least $2,000, or at least $2,000 in spend on a Chase Ink Business Credit Card. You can also get the fee waived by maintaining a linked Chase Private Checking Client checking account or meeting Chase’s Military Banking requirements.
The account allows you up to 20 free transactions and $5,000 in free cash deposits monthly. If you exceed those limits, you can upgrade to one of Chase’s other business bank accounts, but those come with a higher waivable monthly fee.
Chase has an expansive network with over 4,700 branches in 48 states and more than 16,000 ATMs. There is a good chance that wherever your sole prop business takes you, Chase will be nearby.
You can also earn a cashback 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.
Bluevine: Best for Earning Interest on Deposits and Available Line of Credit Product
What We Like
- Interest-earning checking on balances of $250,000 or less
- Integrates with QuickBooks
- Excellent line of credit product
Drawbacks
- No savings, money market, and CD accounts
- No physical branch locations
- Fee for depositing cash
Features
- No monthly maintenance fee
- No minimum balance requirement
- Free debit card and two free checkbook orders per year
- Integrates with QuickBooks and Xero
- Connects with business payment solutions, including Stripe, PayPal, and Expensify
- Has live customer support from dedicated professionals
- Offers line of credit
| |
|---|---|
Required Opening Deposit | None |
Required Balance Minimum | None |
Transaction Limit Before Fees | No limit |
ACH Fees | None |
Monthly Fees | None |
Teller Cash Withdrawal Fee | None |
Domestic Wire Transfer Fees | $15 for outgoing, incoming are free |
International Wire Transfer Fees | $15 for outgoing, incoming are free |
ATM Fees | Free at MoneyPass locations nationally; $2.50 plus operator fees for non-network ATM use |
Cash Deposited | $4.95 fee per transaction, available through Green Dot retail locations |
APY | 2% on balances of up to $250,000, once qualifications are met |
*Bluevine is a business fintech platform backed by FDIC-insured Coastal Community Bank. | |
Why We Like Bluevine
Another online-only banking solution for your sole proprietorship is Bluevine, which is our top-recommended online business bank. Its business checking has no monthly fees or transaction fees and no minimum opening deposit or balance requirement. In addition, you can earn 2.0% APY on qualifying balances of $250,000 or less.
For sole props that might need to send payments overseas, you can send payments internationally to 32 countries in up to 15 currencies with Bluevine. Those payments can be received in as little as 24 hours.
If you operate a large sole proprietorship with account balances exceeding $250,000, Bluevine can ensure those funds are insured. Using a sweep network and Bluevine’s partner banks, the provider can extend your FDIC insurance coverage up to $3 million.
Bluevine 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.
Bank of America: Best Traditional Bank for Ongoing Rewards & Low Cash Deposit Fees
What We Like
- 200 free transactions per month
- Free digital tools to track business performance
- Ongoing rewards
Drawbacks
- Cash deposit fees charged per $100 over monthly allowance
- Doesn’t offer ATM fee reimbursements
- Requires a $100 opening deposit
Features
- Deposit checks, view accounts, make transfers, and pay bills with the mobile app
- Credit card processing and payroll services through ADP
- Cash Flow Monitor®, a cash management tool, lets you connect accounting, analytics, and payroll apps to help you make business decisions
- Check your business credit score through a partnership with Dun & Bradstreet
- Free debit card
- Physical checks’ cost varies depending on type ordered
- Integrations with QuickBooks, TurboTax, and Zelle
- Customer service during business hours in branch and via phone, or via social media messages
- Merchant services available through Expensify
- Other products include business savings, CDs, lending products, and financial analysis through Merrill Financial Advisor
 | |
|---|---|
Required Opening Deposit | $100 |
Required Balance Minimum | None |
Transaction Limit Before Fees | 200, then 45 cents per item |
Monthly Fees | $16 (waivable if conditions are met) |
Domestic Wire Transfer Fees | Fees vary |
International Wire Transfer Fees | Fees vary |
ATM Fees | Free access to approximately 15,000 ATMs nationwide; $2.50 per transaction on out-of-network ATMs |
Cash Deposited | Up to $7,500 per month free, then 30 cents per $100 per statement cycle |
APY | N/A |
Why We Like Bank of America
Like Chase and U.S. Bank, Bank of America is another great choice for a sole proprietorship looking for a traditional bank. Its entry-level account, Fundamentals Business Checking, offers great ongoing rewards and low cash deposit fees. You get 200 free transactions and up to $7,500 in free cash deposits monthly.
Like Chase, it has a monthly fee that must be waived if you want free business checking. The $16 monthly fee is waived by maintaining a $5,000 combined average monthly balance, spending at least $250 on a business debit card, or becoming a member of Preferred Rewards for Business.
You can get up to $500 in combined cashback rewards and statement credits with its business checking and credit card products. In addition, you can earn 25% to 75% bonus rewards on credit cards and get a 5% to 20% higher interest rate on Business Advantage savings accounts.
Bank of America can scale its offerings as your sole prop grows. The bank offers a wide range of additional business products, including savings, certificates of deposit (CDs), lending products, and financial analysis through Merrill financial advisor.
Novo: Best for Ecommerce Sole Proprietorships That Need Rapid Access to Funds & Faster Payments
What We Like
- Refunds all ATM fees at month’s end
- No maintenance fees
- Novo Boost and Express ACH allow faster access to your funds
Drawbacks
- Unable to deposit cash directly
- Lack of savings accounts and lending products
- Non-interest drawing account
Features
- Integrates with other business tools, such as QuickBooks, Slack, Xero, Stripe, Square, PayPal, Wise, and Shopify
- Set aside funds for taxes and other large business expenses with Novo Reserves
- Deposit checks directly through the mobile app
- Online banking includes unlimited invoicing and bill pay
- Novo Boost in coordination with Stripe allows you to access funds faster
- Express ACH lets you accept or receive same-day ACH payments
- Virtual debit card available immediately, one free physical debit card per user
- Paper checks can be sent straight from the app
- Live customer support from dedicated professionals
| |
|---|---|
Required Opening Deposit | None |
Required Balance Minimum | None |
Transaction Limit Before Fees | No limit |
ACH Fees | None |
Monthly Fees | None |
Domestic Wire Transfer Fees | None to receive; cannot send wires domestically but can send fee-free ACH transfers |
International Wire Transfer Fees | Novo partners with Wise to send international wires for a “low” fee |
ATM Fees | All fees refunded at the end of the month |
Cash Deposited | None; money orders can be purchased and deposited through the app |
APY | N/A |
*Novo is a business fintech platform backed by FDIC-insured Middlesex Federal Savings. | |
Why We Like Novo
For sole proprietors who run an ecommerce business, Novo is an excellent option. Its business checking has no monthly fee, transaction limits, minimum opening deposit, or minimum balance requirement. Thanks to its Novo Boost and Express ACH products, Novo allows you to send and receive payments faster than with other financial institutions.
If you accept payments from Stripe, Novo Boost lets you receive payments sent from your Stripe account faster than other providers. Users can connect 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.
For sole props that rely on cash for their business, Novo makes that more affordable by refunding all ATM fees at the end of the month with no limits. It 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.
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 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
You may be interested in our guide on how to open a business bank account. It includes a downloadable checklist of documents banks typically require. We also have a guide on how to open a sole proprietorship bank account.
Additional Resources for Sole Proprietorships
In addition to business banking products, there are many other questions that sole props should consider. Here is a list of some of our articles geared explicitly toward sole proprietors:
- What a sole proprietorship is: 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 prop companies.
- Benefits and drawbacks: Unsure if a sole proprietorship is the right choice for your business? Check out our article on sole proprietorship pros and cons.
- Single-member limited liability company (LLC) vs sole proprietorship: If you’re unsure whether your company should be an LLC or a sole prop, see our single-member LLC vs sole proprietorship comparison.
- Credit card: If you need a credit card for your business, check out our guide to the best sole proprietorship business credit cards
- Payroll: It is essential to know that sole proprietors cannot be employees of their own companies and will never receive a paycheck. Check out our guide to self-employed payroll for more information.
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 how large or small your business is. While they provide different products and services, they 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 best meet your needs.
