No-Fee Business Banking: What to Look For (Checklist)

Why a separate business account

Mixing personal and business money makes it harder to prove your deductions and track your profit. The IRS asks business owners to keep records that support every income and expense item, and a dedicated account gives you a clean paper trail. If you formed an LLC or corporation, keeping finances separate also helps keep the business distinct from you.

Fees: look past the "no monthly fee" headline

• Monthly maintenance fee: Is it truly $0, or $0 only if you keep a minimum balance or make a certain number of deposits?
• Transaction limits: Many business accounts include a set number of free transactions per month and charge for each one after that.
• Cash deposit limits: If you take cash, check how much you can deposit each month for free and where you can deposit it.
• Other fees: incoming and outgoing wires, paper checks, overdrafts, returned items, stop payments and paper statements.

Access: ATMs, deposits and payments

• ATM network size near you, and whether out-of-network ATM fees are charged or refunded.
• Mobile check deposit and its daily or monthly limits.
• Free ACH transfers, bill pay and any invoicing or card-acceptance tools you'd actually use.
• Whether you can add an employee or bookkeeper with limited access.
• Export to your accounting software or a simple spreadsheet download.

Make sure your money is insured

The FDIC says deposits are automatically insured to at least $250,000 at each FDIC-insured bank. For credit unions, the NCUA provides at least $250,000 in share insurance coverage at federally insured credit unions. Before you open an account, look the institution up yourself in the FDIC's BankFind (opens in a new tab) tool or the NCUA's credit union search.

Some business banking apps aren't banks themselves; they partner with a bank that holds your money. If that's the case, ask which bank holds your deposits and check that bank in BankFind.

What you'll usually need to open one

• Government-issued photo ID for each owner who will be on the account.
• Your EIN (free from the IRS) or, for some sole proprietors, your Social Security number.
• Formation documents for an LLC or corporation (for example, articles of organization) and any "doing business as" registration.
• Requirements vary by bank, so ask for their list before you go.

Side-by-side comparison checklist

Print this or copy it into a note, and fill it in for two or three accounts:

• Monthly fee: $____ · How to waive it: ____
• Free transactions per month: ____ · Fee after that: $____
• Free cash deposits per month: $____ · Where: ____
• ATM network / out-of-network fee: ____
• Mobile deposit limit: ____ · Wire fees (in/out): ____
• FDIC or NCUA insured? Confirmed in BankFind or NCUA search: Yes / No
• Overdraft fee and options: ____
• Interest paid (if any) and the balance it takes to earn it: ____
• Works with my accounting tool or spreadsheet: Yes / No