It comes with lots of important steps to get your small business off the ground. You’re still not through, even after you get through a lot of paperwork (okay, not an actual ton — but close). Next you’ll need to set up a business bank account for your client.
The good thing is that with the advent of online business banking, the right checking account for your small business is now much easier to find — with many free options online business checking accounts.
The real question, however, is whether or not you can open a free online business account without a deposit. After all, you may not have many loads of cash reserves waiting in your wings before your EIN flies into your mailbox. Given that it might take you a while to get income going, and that you have put everything you can into your company, maybe you don’t have any other choice, but you can open a free online business checking account without a deposit.
You can find some options for opening a free online business checking accounts without a deposit, plus some options if that isn’t an option.
Firstly, why open a checking account at all for business?
Let’s start with a good question here. Why would you like to find out how to open a Free Business Checking account when you can use your own checking account?
Because you just can’t.
It’s imperative that you differentiate your personal and business finances once you are running your small business, and not just because keeping your receipts apart is simply easier. For your accounting, it’s best to split your personal and business bank accounts, and then your taxes.
Your business is regarded as a separate accounting entity to itself— this is known in accounting, FYI, as the “principle of assumption of economic entity.” Connecting your personal checking account with your business expenses will not only cause headaches when you need to distinguish them, but mixing the two might also cause you to interrupt the IRS ledger. (That is why you should also receive a separate business credit card.)
Here are the four main reasons why you need a business management account:
- You’ll have your working capital in a safe but open house.
- You can gain access to business debit cards (because it is not exactly practical or safe to carry around a wad of cash).
- You will be acquiring an invaluable tool to keep track of the finances of your company.
- And, as we said, to apply for virtually every financial product down the line, whether you need a business credit card or a business loan, it is absolutely necessary.
Consider what you really want from one before opening a Business Checking account
What exactly are you looking for in a checking account for companies? Is the division of those companies and personal finances just somewhere? Will you hardly be making transactions with an LLC as a new freelancer, or is this, possibly, the start of something big?
When you go into a checking account for profit, make sure you think about these factors:
The frequency of monthly transactions
You should also allow deposits in cash and checks, withdrawals in cash, check payments and electronic money.
Average daily account balance
Can you commit to a number every month in that checking account?
Opening a deposit account
That brings us back to that issue about no deposit versus a small deposit — and if you have it you might want to be okay with putting down some cash.
Presence of a physical branch
Many account checking companies are all online now! And if you’re a really cash-intensive company, perhaps that may not be your best bet.
These are all things to consider — and essentially all things that are likely to affect the fees you are going to pay for your account of checking your company.
Because even if you open a free online checking account without deposit, signing up for one that doesn’t provide you with the right fit for your business means you’ll end up overflowing with fees. And after all this isn’t out of charge.
Is there no deposit available for Free Online Business Checking Accounts?
Now that you are being sold on a checking account, let’s get back to the original question: Is it possible to open a free online checking account without deposit? Could it be! Yet, actually do those accounts exist, too?
Good news and not – as-good news are kind of there.
Finding a free business checking account online is actually fairly easy. The catch, however, is that finding a banking system that allows you to open a free business checking account without a deposit when you sign up on the pointed line is a lot harder. (Whereas you are looking for an entirely digital banking experience — more about this later).
Banks that offer online non deposit required, free business checking accounts
Two options are available for free business accounts without a deposit.
Allows new customers to open a free online company account without a deposit, minimum balance or monthly maintenance charge.
This allows businesses set up a free business account without any deposit, no monthly charges and 200 free transactions a month.
The Alternative to Free Business Checking Accounts More Common — But Still Affordable
So, yeah, there are a couple of free online business checking accounts with no deposit required. But many brick-and-mortar corporate bank accounts are set up a little different.
Generally speaking, what you’ll see is that many banks need some amount of money to go into the account to kick things off. But don’t be scared off by this! Some of these sums are as small as $1 (like you’ll see, very literally). And while others ask for a monthly maintenance fee legally, again, if you maintain a certain balance, certain fees may be waived— making your checking account after all basically free.
Although some business-checking accounts with no deposit may not be technically free, they are darn nearby. And some of these accounts, like no ATM fees, unlimited withdrawals, and more, come with more business benefits.
So, if you end up putting your business checking account in some deposit to open, think of it as an investment not only in your company but also in your partnership with a bank. Particularly since many of the organizations that allow you to open a free online business checking account will also reward you with better perks and lower rates for basic services if you can put up some cash to get things started.