A business bank account is essential for running and expanding a small business. However, they typically come with numerous fees that could really put a hole in your wallet. As a small business owner, you need funding for various essentials. Whether you’re in need of financing for business equipment or to hire more staff, you must open a business bank account. Accounting for small businesses can be easy, and in order to do so without drowning in more fees, you will need to open a no fee bank account. Read on to discover what to consider when opening a no fee bank account for your small business.
Open A Separate Business Account
Designated business accounts are imperative. You cannot combine your personal and business bank accounts for a variety of reasons. Firstly, you increase your legal liability when you have a combined account. Secondly, without separate accounts, you are creating a nightmare for yourself when tax time comes. The nightmare consists of spending unnecessary time separating all of your business expenses from your personal ones. Thirdly, you could potentially miss deductions that you are entitled to when your business and personal transactions are mixed up. You and your small business could seriously falter by combining accounts. Avoid these issues by simply opening up a separate, no fee bank account for your business.
Look To Smaller Banks
While you may initially turn to megabanks for your business bank account, you should consider smaller banks. Small banks, along with credit unions, usually offer the best no fee bank account deals. Look into your local, regional banks. You could even check out your local credit union. Credit unions may even provide you with a greater chance of finding no fee banking. Don’t underestimate the power (and inexpensiveness) of smaller banks when opening up a small business bank account.
Account Balance Matters
Similar to many other aspects of life, free banking sometimes comes with a catch. One very popular catch that you should be aware of is your balance. Certain larger banks that offer no fee bank accounts require you to keep a minimum balance in your account. With this in mind, you must understand that becoming a member of a larger bank and having a no fee bank account with them could create more of a struggle for you. You would have to ensure that you can maintain a certain amount in your bank account at all times. As a small business owner, this can be tricky due to the fluctuation of business. Check the requirements of getting a no fee bank account for your business before signing on that dotted line.
Costly Accounts Can Become Free
The price of opening bank accounts can be very deterring depending on the bank. Before completely disregarding those banks, examine the fine print. The price that you see on the surface may not be the price you would have to pay. There is a chance that those high-priced accounts can actually become free. You want to stick to money saving strategies, and picking the right bank is an important step to take to do so. If the bank offers fee waivers, you could end up with a no fee bank account for your small business.
Online, No Deposit Required Accounts
Free online business checking accounts are not hard to come by. What can be difficult to come by is a free online business checking account that doesn’t require a hefty deposit. Luckily, they do still exist. You must, once again, look into the fine print of each bank in order to discover if they require a deposit or not. With some free online business checking account options, you do not need to pay a deposit, keep a minimum balance, or pay any monthly maintenance fees. Those are the kinds of online banking accounts you need. It may also become easier for you, since online payment processing is so popular. If online banking is something that you feel comfortable with as a business owner, consider opening an online, no fee bank account.
If you have finished reading this post, you understand the importance of having a no fee bank account as a business owner. You are aware that you should consider the significance of opening an account designated to your business. You should not underestimate smaller banks or credit unions. Account balance requirements should always be examined. Free accounts can sometimes appear costly at first glance. Lastly, you now understand that online, no deposit required accounts exist as well. Consider all of these factors when opening a no fee bank account for your small business.