Small Business Checking Account

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wheeldraw
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Joined: Fri Sep 17, 2021 10:08 am

Small Business Checking Account

Post by wheeldraw »

I am planning to open a checking account for a small business. I've searched the forums and seen past recommendations of NBKC and Chase, and they each look quite good from other sources. I'm interested in additional input from anyone who uses either of them for a small business checking account. I'm torn between NBKC's lack of fees and Chase's wider array of options and rewards (e.g., for business credit cards) due to its larger size. Thanks!
niagara_guy
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Re: Small Business Checking Account

Post by niagara_guy »

i don't have a business, but I believe credit unions can offer business accounts. I much prefer credit unions to banks for my personal accounts.
hotscot
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Re: Small Business Checking Account

Post by hotscot »

I do WF.
It's been fine with a minimum balance.
Credit cards...I use Chase all the time.
inverter
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Re: Small Business Checking Account

Post by inverter »

Chase has a suite called Chase for Business you might want to check out. Essentially checking + credit card processing integrated.

I use Ink Business and it's a solid card for business spend. Love that you can consolidate personal and business UR points.
Raycpact
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Re: Small Business Checking Account

Post by Raycpact »

A local bank is valuable for starting a relationship.
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cowdogman
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Re: Small Business Checking Account

Post by cowdogman »

My wife and I each have a business and each business has a Chase business checking account (and a Chase business credit card).

We also have a joint Chase Sapphire personal checking account, which in the past qualified us for a waiver of monthly fees on the business accounts. That waiver went away a couple months ago and now there is a $2,000 minimum balance requirement to avoid the monthly fee on the business checking account.

We have been very happy with Chase and I have found that the Chase Sapphire checking gets us better customer service over all our accounts. It's rare that I don't get a customer service response to a website message in under an hour..
sport
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Re: Small Business Checking Account

Post by sport »

I am curious. How does a business checking account differ from a personal checking account? Are there any advantages? Are there any disadvantages? It seems a checking account is a rather basic arrangement. You put money into an account and remove it by writing checks. What am I missing?
hotscot
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Re: Small Business Checking Account

Post by hotscot »

Well, regarding the IRS, you're not supposed to mix personal and business accounts.
It's not a law though and you can do whatever you feel like.

Mixing accounts though, does make it easier for someone suing you, to attack personal as well as business assets.
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cowdogman
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Re: Small Business Checking Account

Post by cowdogman »

sport wrote: Fri Sep 17, 2021 3:46 pm I am curious. How does a business checking account differ from a personal checking account? Are there any advantages? Are there any disadvantages? It seems a checking account is a rather basic arrangement. You put money into an account and remove it by writing checks. What am I missing?
It doesn't really differ in the basics, but if the business is not a sole proprietorship the account will be in the business name and use the business EIN.

Plus business checking accounts will often have payment services attached to them--ability to take credit cards, etc.

And even for a sole proprietor, a business account offers a clean segregation of personal income and expenses from business income and expenses. Tho lots of SPs run their businesses out of their personal checking accounts.
CFM300
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Re: Small Business Checking Account

Post by CFM300 »

sport wrote: Fri Sep 17, 2021 3:46 pm How does a business checking account differ from a personal checking account?
The account is in the name of the business. You can't deposit a check made out to XYZ Detailing Services to your personal checking account. Nor would a wire transfer with XYZ Detailing as the beneficiary go through.
Finnegan
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Re: Small Business Checking Account

Post by Finnegan »

I opened my business accounts with my local credit union. Took twenty minutes, no fees whatsoever.
hotscot
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Re: Small Business Checking Account

Post by hotscot »

CFM300 wrote: Fri Sep 17, 2021 4:12 pm
sport wrote: Fri Sep 17, 2021 3:46 pm How does a business checking account differ from a personal checking account?
The account is in the name of the business. You can't deposit a check made out to XYZ Detailing Services to your personal checking account. Nor would a wire transfer with XYZ Detailing as the beneficiary go through.
Yes you can. Wells Fargo. I often do this. As long as it has your name and certain details attached to both accounts.
sport
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Re: Small Business Checking Account

Post by sport »

I understand having a separate account, just to keep things organized. However, couldn't that separate account be another personal account? Other than being titled in the business name, is the account any different? Does it have the same consumer protections?
hotscot
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Re: Small Business Checking Account

Post by hotscot »

Depending on the bank it may have different features...free check images, better business loan rates..that sort of guff.
In practice not very different.

If you're wondering if you can use your regular checking account for business dealings. There's no law against that in the slightest. Some may give a severe frown...but no big deal.
I often pay business checks 1M + into personal, and vice versa, I don't fret in the slightest.

However, as I mentioned earlier, if you have a business mixing with your personal you're opening yourself to all your assets being sued, instead of just your business assets.

I have a separate account for my LLC. I don't need it but what the hell, no fees.
sport
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Re: Small Business Checking Account

Post by sport »

Thanks for the reply hotscot. I don't have a business. I just want to understand how all this works. :beer
HomeStretch
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Re: Small Business Checking Account

Post by HomeStretch »

My long-time local bank is being acquired so it’s a good time for me to try another. I just opened a Chase Business Complete checking account which has a $750 bonus for a $10k balance for 60 days and 25 qualifying transactions (including certain debit card transactions) over 3 months(?). Pros include convenient location w/ATM & drive up teller, debit card, app/mobile deposit, online bill pay, no fees with $2k balance for up to some # of transactions. Sole con is paper checks aren’t free. I use paper checks to make Fidelity Solo 401k contributions. I think a work around is to use Bill Pay.

I use the Chase Ink no-fee business card (5% off phone, internet, office supply). I received a $750 bonus for that too a couple years ago. The bonus is still offered.

Check the DoctorofCredit website for bank and credit card bonuses (if you’re going to open an account anyways).
sport
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Re: Small Business Checking Account

Post by sport »

HomeStretch wrote: Fri Sep 17, 2021 5:00 pm My long-time local bank is being acquired so it’s a good time for me to try another.
My local bank was acquired a few years ago. They did not want to lose their new customers, so they offered some incentives to keep you there. I got a checking account with better terms and a free safe deposit box.
hotscot
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Re: Small Business Checking Account

Post by hotscot »

'with better terms and a free safe deposit box'

Interesting...what better terms?

A free safe deposit box...for what? You have some important docs saved way over in another location?
Maybe I need one...I dunno...would love to know..
sport
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Re: Small Business Checking Account

Post by sport »

deleted
Last edited by sport on Mon Dec 06, 2021 11:53 am, edited 1 time in total.
hotscot
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Re: Small Business Checking Account

Post by hotscot »

That's amazing...I don't think I have anything to keep in a box...but it's fascinating.
Do they grow in value or fluctuate. And is it the antiquity aspect or metal value?

Me, comic books, but I'm trying to figure out how to bring them from the UK to US.
CFM300
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Re: Small Business Checking Account

Post by CFM300 »

hotscot wrote: Fri Sep 17, 2021 4:31 pm
CFM300 wrote: Fri Sep 17, 2021 4:12 pm
sport wrote: Fri Sep 17, 2021 3:46 pm How does a business checking account differ from a personal checking account?
The account is in the name of the business. You can't deposit a check made out to XYZ Detailing Services to your personal checking account. Nor would a wire transfer with XYZ Detailing as the beneficiary go through.
Yes you can. Wells Fargo. I often do this. As long as it has your name and certain details attached to both accounts.
What do you mean "both accounts"?
hotscot
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Re: Small Business Checking Account

Post by hotscot »

Sorry.
Let me be precise.

I have a business account under my Business name:xxxxxx EIN XXX
And my business name includes my real name: xxxxx SS XXX


My checking account has my name: xxxxxx and SS XXX


They both include SS/EIN....they all go to the same place.

Bottom line. If you want a business account? Go for it.
You are not required by law to have one.
CFM300
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Re: Small Business Checking Account

Post by CFM300 »

Okay, but if you didn't the have the business account, then you wouldn't be able to deposit a check made out to your business. That was my point.
hotscot
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Re: Small Business Checking Account

Post by hotscot »

No.
They'll take a check anywhere made out to my name xxx xxxx.
Business or regular.
They don't care.

That's WF though. The accounts are all connected.
SuzBanyan
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Re: Small Business Checking Account

Post by SuzBanyan »

For years, I had a personal account and a business account with a local bank. Both were the same kind of account (I think , something like Senior checking) and had essentially the same name (one was for SuzBanyan and one was for SuzBanyan’s Business), but I used one for personal checks and the other for business. When the bank was acquired, the new larger bank made me change the business account to a business checking account. They agreed to waive the fees so it would act just like the personal account, but they could only do the waiver for 1 year at a time.

By year 2, we moved to Chase Private Client, where we have a personal, business and irrevocable trust account (that 3rd one made it tricky to find reasonable options). We moved enough investments in kind from Vanguard to meet the minimum for Chase PC. Chase has been fine. It is convenient and we had no issues.
hotscot
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Re: Small Business Checking Account

Post by hotscot »

'irrevocable trust account'

What does that mean in real life?
sport
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Re: Small Business Checking Account

Post by sport »

hotscot wrote: Fri Sep 17, 2021 5:27 pm That's amazing...I don't think I have anything to keep in a box...but it's fascinating.
Do they grow in value or fluctuate. And is it the antiquity aspect or metal value?

Me, comic books, but I'm trying to figure out how to bring them from the UK to US.
Silver coins pulled out of circulation are sometimes called "junk silver".
Their value follows the price of silver which changes. It is all the metal value.
It is possible that there are some coins in there with some numismatic value, but not likely.
I want through them all when I acquired them.
hotscot
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Re: Small Business Checking Account

Post by hotscot »

Damn..that's amazing...If you don't need the $$ I'd hold on....that's me. Fantastic!
CFM300
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Re: Small Business Checking Account

Post by CFM300 »

hotscot wrote: Fri Sep 17, 2021 5:56 pm No.
They'll take a check anywhere made out to my name xxx xxxx.
Business or regular.
They don't care.

That's WF though. The accounts are all connected.
This is hopeless.
ZWorkLess
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Re: Small Business Checking Account

Post by ZWorkLess »

I recommend a local bank. Local banks really like small business accounts (assuming you’ll have significant cash flow.) This means that they will give you really excellent service on all other things you might need. IME, our local banks are sooooo eager for our business checking (cash flow about 90-100k/mo, avg balance around that.)

So, the branch manager and business banker bend over backwards for whatever I ask. Back when we had lots of business debt, I repeatedly extracted increasingly awesome refinances from local banks competing for our business checking account. We swapped banks at least twice our first few years just fot that purpose.

Now that we aren’t needing loan restructuring, there are still lots of perks. One call from me, and they got my daughter a good mortgage (with no co-signer) last summer a couple months into her first real job, when other banks wouldn’t touch her for a year or more… They get me in on whatever day/time is convenient, including appointments for OTHER people I’m trying to help get an in with a banker… They will let one signatory set up a new account and the other can stop by whenever to add their signature. Etc, etc. It’s just really convenient to have a local banker who will do you favors.

Since checking accounts should be free anyway, so not a lot to shop around for, I also like to keep our money supporting our (poor) town/state economy as much as possible.
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cowdogman
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Re: Small Business Checking Account

Post by cowdogman »

Just to address a couple issues discussed above:

1. If you are a sole proprietor, whether you commingle personal and business funds has zero effect on your personal liability. You are personally liable for all contracts signed by the SP and for your actions and the actions of (if any) your employees (e.g., negligence).

If you are a single member LLC, you are not personally liable for contracts signed by the LLC (and not co-signed by you) and you are not personally liable for the actions of your employees (with some large exceptions), but you are personally liable for your own actions (e.g., you hit a pedestrian while driving the business delivery truck). If you don't honor the status of the LLC as a separate legal entity (e.g., by commingling business and personal funds), you could in theory be liable for LLC contracts and the actions of employees. You could also be personally liable for the actions of an employee if you were negligent in the hiring or training of the employee.

2. Banks will generally not allow checks made out to a business name to be deposited to a personal account. Will some teller at some branch do so occasionally? Yes, but generally it won't be permitted.
hotscot
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Re: Small Business Checking Account

Post by hotscot »

CFM300 wrote: Fri Sep 17, 2021 6:23 pm
hotscot wrote: Fri Sep 17, 2021 5:56 pm No.
They'll take a check anywhere made out to my name xxx xxxx.
Business or regular.
They don't care.

That's WF though. The accounts are all connected.
This is hopeless.
Really....didn't notice that it was hopeless over the past seven years.
How do you mean hopeless?

I still cash the checks.
Do you have problems?
I don't.
hotscot
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Re: Small Business Checking Account

Post by hotscot »

cowdogman wrote: Fri Sep 17, 2021 6:42 pm Just to address a couple issues discussed above:

1. If you are a sole proprietor, whether you commingle personal and business funds has zero effect on your personal liability. You are personally liable for all contracts signed by the SP and for your actions and the actions of (if any) your employees (e.g., negligence).
Not true.

If you are a single member LLC, you are not personally liable for contracts signed by the LLC (and not co-signed by you) and you are not personally liable for the actions of your employees (with some large exceptions), but you are personally liable for your own actions (e.g., you hit a pedestrian while driving the business delivery truck). If you don't honor the status of the LLC as a separate legal entity (e.g., by commingling business and personal funds), you could in theory be liable for LLC contracts and the actions of employees. You could also be personally liable for the actions of an employee if you were negligent in the hiring or training of the employee.
[*][*]Depends
[/img][/img]
2. Banks will generally not allow checks made out to a business name to be deposited to a personal account. Will some teller at some branch do so occasionally? Yes, but generally it won't be permitted.
Not true.
SuzBanyan
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Re: Small Business Checking Account

Post by SuzBanyan »

hotscot wrote: Fri Sep 17, 2021 6:12 pm 'irrevocable trust account'

What does that mean in real life?
I am the trustee of an irrevocable trust and the trust needs a bank account to pay its bills.
Nyc10036
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Re: Small Business Checking Account

Post by Nyc10036 »

wheeldraw wrote: Fri Sep 17, 2021 11:42 am I am planning to open a checking account for a small business. I've searched the forums and seen past recommendations of NBKC and Chase, and they each look quite good from other sources. I'm interested in additional input from anyone who uses either of them for a small business checking account. I'm torn between NBKC's lack of fees and Chase's wider array of options and rewards (e.g., for business credit cards) due to its larger size. Thanks!
If you are near Santander Bank, they are offering a bonus.
https://www.santanderbank.com/pages/business/ntb-500

,
hachiko
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Re: Small Business Checking Account

Post by hachiko »

Lots of incorrect and strange responses.

Every deposit agreement for personal deposit accounts I have seen prohibits running business transactions through the personal accounts.

If your business is doing actual business volume, it shouldn't take too long for the bank to ask you what's going on and force you to move to a business account.

Except for a rare one or two time thing, I've never seen a bank that allows you to deposit a check made out to a business name without the business having a relationship with the bank. If they let you do this consistently it would seem to me that they're violating KYC rules.
Made money. Lost money. Learned to stop counting.
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Aslan18
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Re: Small Business Checking Account

Post by Aslan18 »

Look in your community first. Here is a program for a reference point:

https://www.bankwithunited.com/
Impossible is a word to be found only in the dictionary of fools. ~ Napoleon Bonaparte
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Lee_WSP
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Re: Small Business Checking Account

Post by Lee_WSP »

hotscot wrote: Fri Sep 17, 2021 6:51 pm
cowdogman wrote: Fri Sep 17, 2021 6:42 pm Just to address a couple issues discussed above:

1. If you are a sole proprietor, whether you commingle personal and business funds has zero effect on your personal liability. You are personally liable for all contracts signed by the SP and for your actions and the actions of (if any) your employees (e.g., negligence).
Not true.

If you are a single member LLC, you are not personally liable for contracts signed by the LLC (and not co-signed by you) and you are not personally liable for the actions of your employees (with some large exceptions), but you are personally liable for your own actions (e.g., you hit a pedestrian while driving the business delivery truck). If you don't honor the status of the LLC as a separate legal entity (e.g., by commingling business and personal funds), you could in theory be liable for LLC contracts and the actions of employees. You could also be personally liable for the actions of an employee if you were negligent in the hiring or training of the employee.
[*][*]Depends
[/img][/img]
He more or less wrote a textbook description, I don't understand where you're getting your information.
Average Investor
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Re: Small Business Checking Account

Post by Average Investor »

I just opened a small business checking account at Axos Bank.

They are running a promo now with a $100 bonus if you meet a minimum deposit for two months.

They have two checking account products: no interest and high interest. I chose the latter, it is paying .81% for an average daily balance of $5000.

Too soon to say whether I like them or not.
Tomorrow never knows.
Nyc10036
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Re: Small Business Checking Account

Post by Nyc10036 »

Average Investor wrote: Sat Sep 18, 2021 10:26 pm I just opened a small business checking account at Axos Bank.

They are running a promo now with a $100 bonus if you meet a minimum deposit for two months.

They have two checking account products: no interest and high interest. I chose the latter, it is paying .81% for an average daily balance of $5000.

Too soon to say whether I like them or not.
What documentation did you need to provide?
hotscot
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Re: Small Business Checking Account

Post by hotscot »

Lee_WSP wrote: Sat Sep 18, 2021 9:07 pm
hotscot wrote: Fri Sep 17, 2021 6:51 pm
cowdogman wrote: Fri Sep 17, 2021 6:42 pm Just to address a couple issues discussed above:

1. If you are a sole proprietor, whether you commingle personal and business funds has zero effect on your personal liability. You are personally liable for all contracts signed by the SP and for your actions and the actions of (if any) your employees (e.g., negligence).
Not true.

If you are a single member LLC, you are not personally liable for contracts signed by the LLC (and not co-signed by you) and you are not personally liable for the actions of your employees (with some large exceptions), but you are personally liable for your own actions (e.g., you hit a pedestrian while driving the business delivery truck). If you don't honor the status of the LLC as a separate legal entity (e.g., by commingling business and personal funds), you could in theory be liable for LLC contracts and the actions of employees. You could also be personally liable for the actions of an employee if you were negligent in the hiring or training of the employee.
[*][*]Depends
[/img][/img]
He more or less wrote a textbook description, I don't understand where you're getting your information.

Sorry, was wearing my LLC hat...
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Lee_WSP
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Re: Small Business Checking Account

Post by Lee_WSP »

Responding to the "need" to have one:

If you are a sole prop or single member LLC, there is nothing forcing you to have a business checking other than internal bank policies. You can run everything through your own personal account if you so wished. The wisdom of which is questionable if you bothered to setup an LLC.

If you have a corporation or multi member business, then again, there's nothing preventing you from depositing checks made out to the business (via endorsement), but for many reasons, you really shouldn't.

Also, there's a large difference between what a bank allows, doesn't allow, and what the UCC says. There's a reason they make us endorse all checks we deposit.
Average Investor
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Re: Small Business Checking Account

Post by Average Investor »

Nyc10036 wrote: Sun Sep 19, 2021 10:58 am
Average Investor wrote: Sat Sep 18, 2021 10:26 pm I just opened a small business checking account at Axos Bank.
What documentation did you need to provide?
Driver's license was the only document they asked for but there were a lot of questions to answer (more than I have ever encountered in any account application).

I chose Axos in part for Quicken transaction download support. If you do not need this you might consider Kabbage business checking, paying 1.1% now (but no Quicken or other transaction download support).
Tomorrow never knows.
Nyc10036
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Re: Small Business Checking Account

Post by Nyc10036 »

Average Investor wrote: Sun Sep 19, 2021 12:09 pm
Nyc10036 wrote: Sun Sep 19, 2021 10:58 am
Average Investor wrote: Sat Sep 18, 2021 10:26 pm I just opened a small business checking account at Axos Bank.
What documentation did you need to provide?
Driver's license was the only document they asked for but there were a lot of questions to answer (more than I have ever encountered in any account application).

I chose Axos in part for Quicken transaction download support. If you do not need this you might consider Kabbage business checking, paying 1.1% now (but no Quicken or other transaction download support).
After getting all my information, Kabbage still wanted my tax return. I decided to not continue the application.
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plutoblackhole
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Re: Small Business Checking Account

Post by plutoblackhole »

Average Investor wrote: Sat Sep 18, 2021 10:26 pm I just opened a small business checking account at Axos Bank.

They are running a promo now with a $100 bonus if you meet a minimum deposit for two months.

They have two checking account products: no interest and high interest. I chose the latter, it is paying .81% for an average daily balance of $5000.

Too soon to say whether I like them or not.
Hi Average Investor. I replied to a post of yours about Kabbage and Quicken downloads in another thread, but I also wanted to ask how you are liking Axos so far. Besides Quicken downloads, I'm also looking to be able to ACH any vendor through bill pay, instead of the bank sending a check if it's not a larger vendor. Do you know if Axos allows this? It's kind of frustrating, because Kabbage, Bluevine, etc all allow the ACH payments, but not Quicken. Other banks allow Quicken, but not ACH. :oops:
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PaddyMac
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Re: Small Business Checking Account

Post by PaddyMac »

If you have a relationship with a bank already, then start there as being able to do all your banking with one log in is very convenient.

We have Wells Fargo accounts, and opening another business account was very easy and convenient to transfer between accounts quickly.

I need to keep $500 in the business account to avoid all fees, but since savings accounts aren't paying much these days, that's not a big deal.

And they gave my new business, which had no income at the time, a credit card with no interest for 10 months with a $20K limit. So ask about new business credit cards if you have a good credit rating.

The only problem I have with this new LLC business account is that Ally Bank won't deal with it directly to move funds back and forth. Ally Bank doesn't have "business" savings, but it will move funds between my other WF business account (partnership), so not sure why the LLC is different.
Average Investor
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Re: Small Business Checking Account

Post by Average Investor »

beets wrote: Mon Dec 06, 2021 11:32 am
Average Investor wrote: Sat Sep 18, 2021 10:26 pm I just opened a small business checking account at Axos Bank.

They are running a promo now with a $100 bonus if you meet a minimum deposit for two months.

They have two checking account products: no interest and high interest. I chose the latter, it is paying .81% for an average daily balance of $5000.

Too soon to say whether I like them or not.
Hi Average Investor. I replied to a post of yours about Kabbage and Quicken downloads in another thread, but I also wanted to ask how you are liking Axos so far. Besides Quicken downloads, I'm also looking to be able to ACH any vendor through bill pay, instead of the bank sending a check if it's not a larger vendor. Do you know if Axos allows this? It's kind of frustrating, because Kabbage, Bluevine, etc all allow the ACH payments, but not Quicken. Other banks allow Quicken, but not ACH. :oops:
I'm liking Axos so far. The UI of the website leaves a bit to be desired but the service works fine for my simple needs.

Axos does appear to allow ACH bill payments, I've been using that feature to transfer money to my other bank accounts. Axos also has a bank transfer feature but for some reason it is disabled on my account. The bill pay feature works fine so I just use that instead.
Tomorrow never knows.
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plutoblackhole
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Re: Small Business Checking Account

Post by plutoblackhole »

Average Investor wrote: Mon Dec 06, 2021 9:38 pm I'm liking Axos so far. The UI of the website leaves a bit to be desired but the service works fine for my simple needs.

Axos does appear to allow ACH bill payments, I've been using that feature to transfer money to my other bank accounts. Axos also has a bank transfer feature but for some reason it is disabled on my account. The bill pay feature works fine so I just use that instead.
Thanks for the feedback. A couple of other options I was looking into were First Internet Bank, and DCU, but those are 0.3% and 0.2% APY.

However, I just found out that Amex launched a Business Checking account (separate from Kabbage) that also offers 1.1% APY on up to $500k. I called and asked, and only Excel is offered as a download. Still, I may try them out because of that higher yield.
Average Investor
Posts: 377
Joined: Fri Jul 13, 2012 11:27 am

Re: Small Business Checking Account

Post by Average Investor »

beets wrote: Tue Dec 07, 2021 10:00 am
Average Investor wrote: Mon Dec 06, 2021 9:38 pm I'm liking Axos so far. The UI of the website leaves a bit to be desired but the service works fine for my simple needs.

Axos does appear to allow ACH bill payments, I've been using that feature to transfer money to my other bank accounts. Axos also has a bank transfer feature but for some reason it is disabled on my account. The bill pay feature works fine so I just use that instead.
Thanks for the feedback. A couple of other options I was looking into were First Internet Bank, and DCU, but those are 0.3% and 0.2% APY.

However, I just found out that Amex launched a Business Checking account (separate from Kabbage) that also offers 1.1% APY on up to $500k. I called and asked, and only Excel is offered as a download. Still, I may try them out because of that higher yield.
Good to know on the Amex account, thank you.
Tomorrow never knows.
humblecoder
Posts: 1527
Joined: Thu Aug 06, 2020 8:46 am

Re: Small Business Checking Account

Post by humblecoder »

sport wrote: Fri Sep 17, 2021 3:46 pm I am curious. How does a business checking account differ from a personal checking account? Are there any advantages? Are there any disadvantages? It seems a checking account is a rather basic arrangement. You put money into an account and remove it by writing checks. What am I missing?
You are not missing anything.

My wife is a sole proprietor who does business under her own name. When she first started, she got a so-called "business account". All that meant was that she got a fancy check ledger and the privilege of paying extra fees because it was a business account. But as you say, she wrote checks and she deposited money.

A few years later, we moved our personal accounts to another bank. When we were opening our accounts, we asked the banker about a business checking account and it was pretty much the same deal: more fees for the same product. I asked the banker point blank, "if my wife does business in her own name, her own SSN, etc can we just open another free personal checking account that she could use exclusively for business purposes". The banker said "sure". She has been using the account for 15 years with no issues.

The IRS requirement is that they want to see separation between personal funds and business funds. They don't seem to care if the bank markets the account as a "personal checking" account or a "business checking" account.

My wife might be a special case since she is a sole prop and doesn't do business under a trade name. I would imagine that if you wanted to open an account with the name of the business on the checks, they might force you to go down the business checking route as a way to extract fees.
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