There is no single "best" bank for every business
The right business bank account depends on what your business actually does, how many transactions you run monthly, whether you need in-person service, and what you're willing to pay in fees. A freelancer working solo has different needs than a retail shop with employees. A startup that moves money constantly needs different tools than a consulting firm that invoices quarterly.
The banks that work well for one type of business often work poorly for another. This guide walks you through what to compare, which banks offer what, and how to match your actual situation to an account that won't waste your money or your time.
Key Takeaways
- Monthly fees, per-transaction costs, and minimum balance requirements vary widely — a $0-fee online account works for some businesses and costs others hundreds per year in hidden charges.
- Banks differ on what they require to open an account: some take an EIN alone, others demand a business license, articles of incorporation, or an in-person visit.
- Decide first whether you need a physical branch for deposits and checks, or whether online-only banking with mobile deposit works for your workflow.
- Compare the specific services you actually use — ACH transfers, wire transfers, merchant processing, payroll integration — not just the headline fee.
- Many banks offer introductory periods with waived fees; read the fine print to see what the account costs after the promotional period ends.
What to compare before opening an account
Start by listing what your business actually does with money each month. Do you receive checks from clients? Do you pay contractors via ACH transfer? Do you need to process credit card payments? Do you have employees and need payroll integration? Do you make wire transfers? Do you deposit cash? The answers determine which features matter and which are irrelevant.
Then list the costs. Monthly maintenance fees range from $0 to $25 or more. Per-transaction fees for ACH transfers, wire transfers, or checks written can add up fast if you do dozens of transactions monthly. Minimum balance requirements — often $500 to $2,500 — mean you're tying up money that could be elsewhere. Some banks charge for things like paper statements, overdraft protection, or account research. Add these up for a realistic monthly cost.
Finally, decide on access. Do you need to walk into a branch to deposit checks, or does mobile deposit work? Do you need a debit card, or do you pay everything from the account online? Do you travel and need ATM access? Online-only banks often have lower fees but no physical locations. Regional banks and credit unions may have branches near you but higher fees. National banks have branches everywhere but often charge more.
Banks with low or no monthly fees
Chase Business Basic has no monthly fee if you maintain a $500 minimum balance or have $500 in monthly direct deposits. It includes mobile deposit, online bill pay, and ACH transfers. Chase has branches nationwide, which matters if you deposit checks in person. The trade-off: Chase charges for wire transfers ($15 outgoing) and doesn't include merchant processing.
Bank of America Business Fundamentals has no monthly fee with a $1,000 minimum balance. It includes mobile deposit and online banking. Bank of America also has nationwide branches. Wire transfers cost $15 outgoing. Like Chase, it's a national bank with higher fees on some services but reliability and branch access.
Mercury and Brex are online-only and charge no monthly fees. Both are built for startups and small businesses that move money digitally. Mercury includes unlimited ACH transfers and wire transfers at no per-transaction cost — a major advantage if you pay contractors or vendors frequently. Brex integrates with accounting software and offers expense management tools. Neither has physical branches, and both require an EIN and business formation documents to open an account.
Square Cash for Business and Stripe Atlas are designed for very small operations or sole proprietors. Square Cash has no monthly fee and includes mobile deposit. Stripe Atlas bundles a business account with formation services. Both are online-only and best for businesses that don't need traditional banking features.
Banks that work well for specific business types
For retail or food service: You need merchant processing (credit card acceptance) and possibly point-of-sale integration. Square, Toast, and Clover offer accounts bundled with payment processing. Traditional banks like Chase and Bank of America offer merchant services but often at higher rates. Weigh the all-in cost of processing fees plus account fees.
For service businesses with employees: You need payroll integration and ACH transfers. Gusto, ADP, and Rippling all offer business accounts that tie directly to payroll. If you use one of these platforms already, their integrated account often costs less than opening a separate bank account and paying per-transaction fees for payroll transfers.
For consulting or freelance work: You likely invoice clients and need to receive ACH transfers or checks. You may not need merchant processing. Online banks like Mercury, Wise, or even a basic Chase or Bank of America account work well. The key is low per-transaction costs and reliable ACH receipt.
For nonprofits: Many banks offer nonprofit accounts with fee waivers or reduced fees. Chase, Bank of America, and Wells Fargo all have nonprofit programs. Credit unions often have lower fees for nonprofits than traditional banks. You'll need 501(c)(3) documentation to open.
What banks require to open an account
Most banks need an EIN (Employer Identification Number) or a Social Security number if you're a sole proprietor. Some need a business license or articles of incorporation. A few require an in-person visit; most allow online opening.
Online banks (Mercury, Brex, Square) typically need an EIN, business formation documents, and a personal ID. They verify everything online and fund the account within one to three business days.
National banks (Chase, Bank of America, Wells Fargo) vary by location. Some branches open accounts online; others require an in-person visit. They usually need an EIN, a business license or formation documents, and a personal ID. Funding takes one to five business days.
Local banks and credit unions often require an in-person visit and may ask for more documentation — a business plan, proof of address, or references. This can take longer but gives you a relationship with a local banker who knows your business.
How to avoid hidden fees and surprises
Read the fee schedule all the way through before opening. Banks often bury charges in the fine print: $3 per ACH transfer, $25 per wire transfer, $1 per check deposited, $5 per month for paper statements. If you do 50 ACH transfers monthly, a $3 per-transfer fee costs $150 — far more than the headline monthly fee.
Check what happens after any promotional period. Many banks waive fees for the first three to six months. After that, the real fees kick in. A $0-fee account for six months becomes a $15-per-month account in month seven. Calculate the true annual cost, not just the introductory cost.
Ask about minimum balance requirements and what happens if you fall below them. Some banks charge a $35 fee if your balance dips below the minimum even once. Others waive the fee if you have direct deposits. Know the rule before you open.
Test the account with a small transaction before you move all your business banking there. Deposit a check via mobile, send an ACH transfer, and verify the money arrives on time. A $0-fee account is worthless if deposits take a week or transfers fail.
Comparing accounts side by side
| Bank | Monthly Fee | Minimum Balance | Mobile Deposit | ACH Transfers | Wire Transfers | Physical Branches |
|---|---|---|---|---|---|---|
| Chase Business Basic | $0 (with conditions) | $500 | Yes | Included | $15 | Yes, nationwide |
| Bank of America Business Fundamentals | $0 (with conditions) | $1,000 | Yes | Included | $15 | Yes, nationwide |
| Mercury | $0 | None | Yes | Unlimited, free | Unlimited, free | No |
| Brex | $0 | None | Yes | Included | Included | No |
| Square Cash for Business | $0 | None | Yes | Included | $10 | No |
Frequently Asked Questions
Do I need a business account or can I use my personal account?
Legally, you can use a personal account for a sole proprietorship, but it's risky. Mixing personal and business money makes tax time harder and can hurt you if you're ever sued — a court may not protect your personal assets if you didn't keep them separate. A business account costs little and protects you. Most banks require a business account for LLCs and corporations.
What if I need a physical branch but want low fees?
Regional banks and credit unions often have lower fees than national banks and still have physical locations. Ask your local credit union about business accounts — they frequently waive fees for members. If you're in a major city, regional banks like Umpqua, Mechanics Bank, or Connexus often undercut national banks on fees while maintaining branches.
Can I switch banks later if I pick the wrong one?
Yes. Switching takes a few weeks because you need to update your banking information with clients, vendors, and payroll providers. Some banks offer a switching service that moves recurring payments for you. Plan to switch during a slow period so you don't miss payments. There's no penalty for closing a business account, though some banks charge a fee if you close within a certain period (usually 90 days).
What if my business is brand new and I haven't formed an LLC yet?
You can open a business account as a sole proprietor using your Social Security number instead of an EIN. You don't need to have filed formation documents yet. Once you form an LLC or corporation, you can update your account information or open a new account under the business entity. Some banks let you convert a sole proprietor account to an LLC account without closing and reopening.
Do I need separate accounts for different business lines?
No, but many owners open separate accounts to keep finances organized. One account per business entity (LLC, corporation) is standard. If you have multiple business lines under one entity, you can use one account and track income and expenses by category in your accounting software. Separate accounts cost more in fees but make bookkeeping simpler if you plan to sell one line later.