How to Get Started With a Free Business Checking Account

Starting your own business is an exciting adventure with many factors to consider. In addition to your business strategy, you need a strong financial plan in place for a solid foundation. Maintaining clear business financial records is essential to covering operational expenses, overhead, paying employees, etc. How do you get started?

Opening a free business checking account is a key first step to establishing your business financial footing separate from your personal accounts. Having a separate account for your business legitimizes it to customers and to the government. A business checking account is also necessary if you want to accept credit cards for payments, so there are more than a few reasons to consider opening a checking account for your business.

What to expect from a business checking account

A checking account is the hub of your business financial activity. It’s not only important to find the best checking account for your business needs, but the right banking partner who cares as much about your business as you do. Your goal with opening a business checking account is to have a secure and simple way to access your company’s finances.

Partnering with a bank that makes your life easier and provides you with reliable access to your finances is the best way to find the right business checking account for your needs. To get the most out of your business checking account, there are certain checking account features to look for.

The first step in finding the right account is researching free business checking options. Any way to minimize costs or fees as a new business starting out is beneficial and can help you save your hard-earned funds. Look for accounts that have no monthly fees and no minimum balance or transaction requirements. An account that comes with a free business debit card will also come in handy.

Other beneficial free or low-cost business checking account features include:

Free coin and currency deposits
Free online banking and bill pay
Access to surcharge-free ATMs

Once you’ve found account options you like, talk with your local banking experts to learn more about the accounts and the features most important to you so you can make the right choice for your business.

Are there eligibility requirements to open a business checking account?

Like with any checking account, you’ll need to provide the bank with specific information regarding your identity and that of your business. The most common requirements are your Tax Identification Number and government-issued photo ID. Some banks may also require a minimum balance or initial deposit to open the account.

Depending on the type of business you have—sole proprietorship, LLC, corporation, non-profit, etc.—you may want to call the bank to learn which documents you will need to provide.

Consider a business savings account

Opening a business savings account in addition to a checking account can provide you with competitive interest rates for growing your savings. Look for savings account options with no monthly fee and that don’t have a minimum balance requirement to earn the interest rate. This way, you can confidently keep your cash flow liquid between your accounts to best meet your needs.

Next steps: Business lending options

A business checking account is often a requirement for securing a business loan or line of credit. When you need additional capital or funds for your business, there are several options available specifically for businesses.

Business Term Loan

Ideal for financing long-term assets such as buildings, equipment, leasehold improvements and permanent working capital needs.

Business Line of Credit

Ideal for short-term funding needs and can be used for many business expenses. Your line of credit funds are immediately accessible for whatever business need arises, are flexible based on your needs and you only pay for what you borrow.

Talk with your bank to discuss your specific borrowing needs and what makes sense for your business.

We are here to help business owners navigate their financial journeys, big and small. Find a Dollar Bank location near you to take the next step with your business today.

This article is for general information purposes only and is not intended to provide legal, tax, accounting or financial advice. Any reliance on the information herein is solely and exclusively at your own risk and you are urged to do your own independent research. To the extent information herein references an outside resource or Internet site, Dollar Bank is not responsible for information, products or services obtained from outside sources and Dollar Bank will not be liable for any damages that may result from your access to outside resources. As always, please consult your own counsel, accountant, or other advisor regarding your specific situation.

Posted: October 21, 2021