A business account
Separating your finances is a must if you are self-employed. While you, as a sole trader, are not legally required to open a checking account (you, as an LLC or company, must keep business and personal money separate), opening an account is the best way to organize your finances.
On the one hand, a separate checking account for your income from self-employment and your business expenses simplifies your taxes and saves you hours in sorting through confused fees. This gives you additional credibility as a business owner. Seeing your company's income and expenses in one place makes it easy to assess your performance.
If you are registered as an LLC to protect your liability, blending your business and personal finances can show a court that there is no clear boundary between the two and that someone could find your personal assets more easily.
I opened a business account with Chase because it offered a $ 300 cash sign-up bonus when I deposited $ 1,000 at that time. The process was about as quick and easy as opening a checking account, and since I'm a sole trader, I didn't have to do a lot of additional paperwork. There is a $ 12 monthly fee for this account, but I can do without it by having at least $ 1,500 in my checking account.
When comparing business accounts, you want to use one that either has no monthly service fee or a waiver of a monthly service fee. However, you should choose one if you are sure that you can meet the requirements each month to get them waived. Other traditional banks typically require even higher minimum balances than Chase to waive the monthly fee. However, a number of online banks and credit unions offer free checking accounts.
Axos Bank Business Checking and BBVA Compass ClearConnect for Business are two of my favorite low-cost business checking accounts, although your local credit union may offer a comparable option.
If you are already a member of a credit union, you should first ask them about the business audit options they offer.
People familiar with online banking will find that Axos Bank Business Checking is an excellent free business checking account. Not only do they not charge a monthly fee, they also offer unlimited reimbursements for ATM fees. You must make a first deposit of $ 1,000 to open an account.
For those who prefer to have access to physical stores and need a lower opening deposit, this is BBVA Compass ClearConnect for business account has no monthly fee and can be opened with just $ 100.
If you need an account with a minimum deposit requirement of $ 0, Capital One's 360 exam is a simple, free, personal online checking account that you can use to do your job. You can open a second personal checking account for your business finances at any time, provided that you consent to the use of your personal name instead of your company name and do not require business account functions such as employee debit cards.