If you run a business, you will surely want a separate account for your business transaction, different from your personal checking account. Opening a business checking account is relatively easy. But note that you may need to make an initial deposit to activate the account. What if you wish to find an alternative different from the offline option? In that case, can you open a free business checking account online with zero deposit and no credit check?
To open a free business checking account online with zero deposit and credit check, you need to look for a financial institution that offers such an option. Afterward, follow these steps:
- Enter your basic information
- Enter information about your business
- Agree to terms and conditions and submit your application
Read on as I highlight important information regarding business checking accounts and how to open a free account online with zero deposit and no credit check.
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How to Open a Free Business Checking Account Online With No Deposit and No Credit Check?
No small business owner would imagine running their business without a business checking account. Not only does having a specific account for business dealings make small business accounting much easier, but also, a business checking account is needed for any business run as a separate legal entity from the owner.
But in the contemporary world where side hustles, gigs, and several income streams are the norm and where the internet has made it possible to establish a small business from your home, who needs a business checking account is quite obvious. If you aren’t launching a traditional small business, do you need a business account? If yes, how do you open one online without a deposit or credit check? Before I reveal the answer to you, let’s understand the difference between a business and personal checking account.
What Is the Difference Between Business and Personal Checking?
Though a business and personal checking account have identical features, they aren’t the same. For instance, both business and personal checking accounts can offer things like check writing and debit cards. However, a business checking account can come with a feature that a personal checking account lacks.
When you open a business checking account, your bank may offer access to helpful business features such as:
- Merchant services for processing card payments
- Bookkeeping integrations
- Debit cards for employees
- Payroll processing services
- Bookkeeping integrations
- Financial advisory services
These are all tools and services that a business owner may require to help in the smooth running of their business. Aside from business checking accounts, you may be able to open other accounts, like a business savings account.
Business checking accounts can also vary from the personal checking account when it comes to things such as:
- Minimum deposit requirements
- Minimum balance requirements
- Fees
- Account opening
For instance, to open a business account, you must prove that you own the business. Depending on the bank, you could do this by submitting a copy of your articles of incorporation, your “Doing Business As” (DBA) documentation, or a business license.
While some personal checking accounts can be opened with just $1, a business checking account might need around $500, $1,000, or even more to open, depending on the bank or credit union.
You may also be required to keep a higher minimum balance in your account to stop a monthly maintenance fee. Compared to personal checking accounts, business checking accounts may generally charge more or higher fees.
Do You Need a Business Checking Account?
Creating a business checking account is an easy decision for any budding entrepreneur who wishes to launch a traditional business or hopes to make their nontraditional business a major source of income. If you have a traditional business plan or you wish to see your side business grow and succeed, a business checking account is ideal for your business.
The decision is a little less clear when your business is a side hustle, gig, or way to survive. But, unless you are willing to keep detailed records of your business dealings within your personal checking account, even an occasional side hustler may find that a business checking account is a good addition to their financial plan.
Selecting a business checking account that suits your business’s needs can help ensure that you protect yourself, your assets, including your sanity (when tax time comes), and your business.
Best Options for Free Online Business Checking Accounts With No Opening Deposit or Credit Check:
Although you may be able to get a free business checking account that you can open online with zero minimum opening deposit from your local brick-and-mortar bank, you are very likely to find one from a big national bank such as Chase or Bank of America.
Here is how to open a free business checking account online with zero deposit and credit check.
- Enter your basic information
Here is where you’ll have to fill in some basic information. In some cases, you may be first asked to create an account, where you will be required to fill in your name, email address, and create a password, then log in after getting an email confirmation.
As the business owner, you will be asked to provide your first and last name, home address, email address, phone number, SSN, a copy of your driver’s license, or other valid government ID as proof of identity.
- Enter information regarding your business
After filling in your personal info, you will be required to provide necessary information about your business. This information ranges from your business’s legal name, DBA, address, entity type, industry, approximate annual revenue, etc.
- Agree to the terms and conditions and submit your application
This is the simplest part. As soon as you have filled in all the necessary information regarding your business and affixed your business information documents, you will be asked to review an agreement before submitting your application.
Why Should You Open a Business Account?
Why should you open a business account? Why shouldn’t you use your personal account instead?
- Safeguard your personal funds
If you use a single account for your personal and business finances, your personal savings could be at risk if you are faced with a lawsuit. That means if an individual sues your business and the court awards them compensation, your money could be fair game, even if it isn’t profit made from your business. A separate small business banking account safeguards your personal savings in these unpleasant situations.
- Escape tax
Maintaining a separate business bank account makes it easier to monitor business earnings and expenditures. This can save you a lot of troubles when you decide to file your taxes, and it can help you steer clear of issues with the IRS. Separating your personal and business finances shows the IRS that you are running a legit business and not a hobby business, which is not permitted business tax deductions.
- Accept credit cards
You cannot accept debit or credit card transactions via a personal bank account if you have customers that often pay with cards. You need a business bank account to process them. Or else, you must make it a requirement that your customers pay with cash or a check, and that would stop some from doing business with you.
- Give others access to company funds.
When you are ruining a partnership or corporation, you probably won’t be the only individual who needs to make a business purchase or access the company’s money. You don’t want your business associated using your personal bank account, so a business bank account for an LLC or corporation is an ideal arrangement.
- Maintain a professional appearance
Your business will take a professional appearance if you can write your vendor checks from an LLC bank account rather than a personal account. Customers may also feel more inclined to write checks to a business name than to you as an individual.
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What Factors Should I Consider When Comparing Business Checking Accounts?
So you have finally decided to open a business checking account. However, to ensure that you open a business checking account that suits your business, you should consider a few factors before deciding on the business checking account to open. Here are a few factors to consider.
- Minimum opening deposits: A minimum opening deposit is an amount you are required to deposit when you create your business checking account. These amounts can differ, and not all accounts require that you adhere to a certain minimum.
- Monthly fees: A monthly fee is often paid to maintain your business checking account. The best business checking accounts have little or zero monthly fees. Some banks charge a monthly fee but offer ways that you can qualify to escape from them. In this case, ensure you can meet those qualifications regularly to avoid incurring fees in the future.
- Transaction limits: Banks always limit the number of transactions a business can initiate with its account, including electronic transactions and checks. If you surpass your assigned number of monthly transactions, you will be charged a little fee for every transaction you make. You will want to select an account that can accommodate your average transaction volume.
- Cash deposit limit: This is the amount of cash you can deposit into your account for free every billing period. Again, after you reach the allotted threshold, you will have to pay a little fee for every cash deposit you initiate.
- ATM access: Before you select a business checking account, you need to make some research regarding the bank’s ATM access. Where can you use your business debit card? If you use your card out of the bank’s ATM network, will you be charged? Does the business checking account offer any ATM fee reimbursements? Does your ATM access include both cash withdrawals and deposits? It would be best if you thought about these important questions before opening a business checking account with a bank.
- Extra fees: Before opening a business checking account, you need to inquire about additional fees. What other fees does the bank charge for using your business checking account? Fees to keep an eye out for are nonsufficient funds fees, overdraft fees, wire fees, stop payment fees, and returned items fees.
- Included tools: What tools come with your business checking account? Many accounts come with free online and mobile banking, including mobile check deposits and online bill pay. Some accounts also offer alternatives for customizing your business banking, like invoicing, online payments, third-party integrations, etc.
- Interest: Some business checking accounts offer interest. With interest-earning accounts, ensure you can meet any minimum balance requirements and that fees don’t affect the earning power. Contrarily, if you are looking to save on a longer-term basis and don’t need regular access to your funds, you might look at a business savings accounts as the ideal option for earning interest.
- Type of bank: Is the business checking account from a national, regional or local bank? Is it from an online bank, or probably a credit union? There are lots of features linked with these different types of financial institutions that might help your business.
An online-only bank, for instance, may offer a free account that can be opened easily online but does not include access to a physical branch location. On the flip side, a local brick-and-mortar bank may offer a more personalized customer experience but need that you apply for an account in person and only work with businesses within their county.
Can You Open a Business Account for Free?
Are you a business owner? If yes, you’ll need to open a separate account dedicated to business transactions. If you are a newbie, there are certain questions you should ask before proceeding to open one. One of those questions is, can you open a business account for free?
You can open a business account for free. Online institutions, local banks, big banks, and credit unions offer free business checking accounts. These accounts don’t charge a yearly or monthly fee. However, they may charge less fees for some services, such as wire transfers, etc.
Don’t know the right business account to open? Talk to someone at your bank.
