When it comes to managing finances, business owners are always looking for the best small business checking account. They know a bank account is more than a place to store money: it’s an integral part of business, and the right account can go a long way in helping owners do business better. 

There are tons of options when it comes to banks that work with small businesses; but, the best option is to partner with an online banking institution. While that narrows the field of choice a little, it’s important to make sure you’re working with a bank that’s equipped to meet your needs as a small business owner. 

Read on to learn how to find and open the best online small business bank account in 2024. 

Do I need a small business checking account?

As a small business owner, you need to focus on generating revenue, rather than getting bogged down in financial details. A business checking account helps you do just that. By separating business transactions from personal ones, you can track your business’ finances so you always know how much is coming in and going out.

Keeping tabs on cash flow, organizing funds, and managing revenues, will lead to better outcomes for the business. Simply put: financial success starts with a small business checking account. 

Best business checking account features

What defines the best business checking account? It comes down to features, flexibility, and support. You’ll need to do your research and find an account that’s designed to support you. Here’s a look at some of the features that distinguish online bank accounts and a few of the necessities to have when it comes to modern business banking:

  • UI and UX. Businesses today need checking accounts designed for digital usability. That means an intuitive User Interface (UI) and a seamless User Experience (UX). When you bank online, you want to be able to check your account balance from any device and execute transactions in just a couple of clicks. It’s also important to have features like low-balance alerts and transaction notices, so you can stay on top of your finances.
  • Money management. A growing number of online banks offer the ability to make mobile check deposits, saving you valuable time by helping you avoid trips to the bank. You also don’t have to wait for mailed checks to show up in your account—with mobile banking, it’s instant. This money management also needs to extend to budgeting tools, like North One Envelopes, which make it easy to plan for upcoming expenses. 
  • Integrations. Every business has its own tech stack that includes things like bookkeeping software, ecommerce platforms, payroll solutions, and more. Anything that involves cash flow also needs to sync up with your small business checking account. Look for a bank that you can connect to this software, to automate the process effortlessly.

The benefits of a business checking account 

There are several benefits small business owners can enjoy when opening a small business checking account. They include:

  • Financial organization. One of the main benefits of business checking accounts is that it gives you an easy way to separate your personal and business finances. This is essential for some business structures like LLCs, which need separation between personal and business finances to prevent liability. 
  • Simplified taxes. Filing taxes can be complicated for any small business owner. With a small business bank account, you can discover tax deductibles and allowable expenses that can make tax filing easier, while saving you money.
  • Access to capital. If you plan on growing your business, you may need access to quick cash. A business bank account provides you with a relationship with your bank, making it easier for you to apply for and secure a loan.

What’s the best small business checking account?

This is a complex question for one simple reason: no two small businesses are the same. The best bank account for your growing business is one that supports its financial needs and allows it to succeed from a fiscal standpoint. That means working with a bank that specifically supports startups, entrepreneurs, solopreneurs, single-entity LLCs, sole proprietorships, and other small businesses. 

The bottom line? While different businesses have different needs, every small business needs the support of a financial institution that understands the challenges they face and the tools they need to succeed.. 

How to open a business bank account

Opening a business bank account is easy, especially if you’re doing it online. The application process only takes a matter of minutes, and all you need is the right documentation and information. If you’re getting ready to open a small business checking account, here’s what you’ll need:

  • Sole Proprietorship: Social Security Number (SSN); personal identification; certificate with name and date of birth; business license; monthly credit card revenue (if opening a merchant account).
  • Partnership: Employer Identification Number (EIN); business license; certificate with name and date of birth; organizing document filed with the state; partnership agreement; monthly credit card revenue (if opening a merchant account).
  • Limited Liability Corporation (LLC): EIN; personal identification; business license; certificate with name and date of birth; LLC agreement with name of business and partners; articles of organization; monthly credit card revenue (if opening a merchant account).
  • Corporation: EIN; personal identification; business license; certificate with name and date of birth; corporate bylaws; articles of incorporation; monthly credit card revenue (if opening a merchant account).

Frequently Asked Questions

Why are digital banking institutions better for small businesses?

Digital banking institutions are better than traditional brick-and-mortar banks for small businesses because they save time, money, and hassle. All your banking activities happen online, with no need to ever visit a physical location. What’s more, going digital gives you access to features like app integration, mobile check deposits, and other tools to simplify and streamline small business operations. 

What are the top features of a small business checking account?

There are several great features of a small business checking account—especially when you choose a native online bank like North One! You’ll have access to app integrations and mobile check deposits, as well as intuitive UI and UX, steadfast customer support, and additional online resources that simplify small business banking. 

Do single-person LLCs need a small business checking account?

While not required, single-person LLCs should open a small business checking account. People form LLCs because of the limited liability protections they provide, and to take advantage of this perception, you need to ensure you’re keeping personal and business finances separate. 

North One supports small businesses

Ready to open the best small business checking account for your budding enterprise? The application process takes as little as three minutes with North One! We offer all the features you need to secure your business’ financial future, and to simplify banking without compromising when it comes to getting the tools and resources your small business deserves. Apply online today!