How do I choose a business checking account?

The first rule is separation. The SBA recommends opening a business bank account as soon as you start accepting or spending money as your business, and names checking, savings, a credit card, and merchant services as the standard business banking toolkit. This is not bureaucratic fussiness — it is what keeps your bookkeeping readable, protects your personal assets and credit, and makes taxes simpler.

Once you’re ready to open one, start with the documents the bank will want: an EIN, formation documents, ownership agreements, and a business license. Then compare the fee stack. Monthly maintenance, minimum balances, free-transaction limits, wire fees, and cash-deposit caps vary widely between banks — and the account that looks free can quietly cost more than one with a small monthly fee if you deposit lots of cash or run high volumes.

Match the account to how you actually get paid. Heavy card volume means you need clean merchant-services integration so payments reconcile automatically. Cash-heavy businesses need to watch deposit caps, which are often tiered by account level. If you set aside money for taxes, ask whether the bank offers free sub-accounts — pushing 25-30% of income into a tax bucket automatically beats remembering to do it manually.

If you’re still using personal banking as a sole proprietor, do you need a separate business bank account? is the next read. Still deciding on structure? What is an LLC and do I need one? and do I need a business credit card? are the natural follow-ups.