11 Best Banks for Small Businesses
The most important possession for any business, no matter how large or small, is their money. So it only makes sense that you take plenty of due caution when researching which bank you should choose to store your money with. After all, you want to feel comfortable knowing that your money is safe and is being well taken care of. Not only that, but you want to be with an institution that is well-versed in small businesses and knows of the strategies and tactics that can help you save money and reach your goals. Finding a reliable bank is no easy feat though, many will tell you anything to convince you to open an account with them and will say that they’re experienced in working with small business owners when in reality they’re not. You don’t have to stress though, this blog will cover the eleven best banks for small businesses based on real-world examples as well as policies they have that are meant to help out business owners like yourself.
Before we get into that, another area that is just as important as your bank are your employees. You can have the best bank in the world but it means nothing if you don’t have a dedicated team of employees constantly working to service your customers and live up to the ideals of your brand. The best way of helping them is by adopting an employee scheduling platform that makes it easy for them to receive their schedules as well as swap shifts with each other whenever they please. To get a first-hand glimpse of what Deputy can do for your business as well as your employees. Click on the button below to begin your free trial.
How to Open a Bank Account for your Small Business
Before we get into the nitty-gritty, we should take some time to go through the details revolving around how businesses should approach opening up their small business bank accounts. If you go into the situation unprepared, you’re bound to make a mistake that ends up hurting yourself and your business, so take your time analyzing this section to ensure that you’re aware of the order of operations and what you can come to expect.
- Understand the specific accounts that you want to open
Despite what many business owners may think, you don’t what to simply have one bank account for your business that covers everything. This will make it difficult to manage come tax time when you need to have detailed records of different areas of your business. That’s why it’s suggested that you open up a separate account for your business’s income, taxes, and payroll. To be extra sure that you’re not missing any areas, you may want to consult your accountant on what accounts you should open for your business.
- Choose an account name
If you’re going to open the bank accounts under a name that isn’t your own, then you’ll need to be assured that whichever name you do choose isn’t already trademarked by another company or person. To check to see that the name you want to use isn’t already trademarked, go online and use the U.S. Patent and Trademark Office’s trademark search tool to make sure that the name isn’t already taken. Aside from that, make sure that the domain for the name you want to use isn’t already taken, if you haven’t checked already. This will make it easier to conjunct your brand with all areas of your business, so make sure to set time aside to get it done.
If you find that the name is available, then congrats! Head on over to your county clerk office or your state government office to pay your registration fee to file for your chosen business name. Don’t stress about the fee, they’re normally less than $100, and if you want to go the extra mile and protect your business name from trademark infringement, consider applying for trademark protection that is typically less than $300.
- Get all of your paperwork situated
As you may know from past experiences from opening personal bank accounts, you’ll need to have all of your paperwork in order to ensure that the process goes over quickly and efficiently. Since different accounts need different types of documents, you’ll need to conduct some research beforehand to understand which documents are necessary for each type of account so you come in well-prepared.
To ensure that the process goes over quickly and efficiently, make sure that you have the following information handy when you go to open your accounts.
Government-issued I.D. (Driver’s license, passport, etc.)
Business license (this is needed regardless if you’re a sole proprietorship or a Llc.)
Legal incorporation documents (this means bringing all state-filed articles of incorporation). Also, if the business has multiple owners or operates by a board-advisory, the bank will require official documentation stating that the person opening the account has full rights to access funds and transactions.
DBA name registration if you’re doing business under a fictitious name. The law states that you’re required to also register that name with the state.
**Tax identification number, this number is used as a great tool for managing your taxes, paying your employees, and for opening your bank account.**
While these documents are commonly used during the account opening process, make sure to contact your bank beforehand and to conduct your own research to be assured that you are indeed bringing all of the necessary documents to the meeting. Now that you’re aware of what you should bring with you to the appointment, let’s get into which banks are going to be the best fit for you and your small business.
Best Banks for Small Businesses
There are a number of different banks available for you to choose from when you’re considering who to open your business bank account with. While there are many options available, there are only a select few that are tailor-made for small businesses. Continue to read as we list the banks that are the best fit for small businesses.
- Wells Fargo
I know, I know, all of the recent bad PR with the brand may make you hesitant to work with them and leave you wondering why their name is on this list. In reality, despite their recent mishaps, they’re still one of the top choices of banks for small businesses. This is partly because they have so many locations around the country as well as the world. In fact, they actually lead the country with the most locations at 6,314 branches nationally. This is important because you never know when you may need to conduct some important business in regards to the financial side of your business. If you’re on a trip to Washington and you have to deal with a financial issue regarding your business in Florida, you can rest assured knowing that there is most likely a Wells Fargo right around the corner that will be able to help you out with anything you need.
- Navy Federal Credit Union
Although they aren’t technically a bank, just bear with me for a second. Navy Federal Credit Union has a number of offerings for small businesses that makes them a top choice for many business owners. An example of some of these offerings includes business checking and savings accounts, small business loans, retirement and insurance services, payroll and merchant solutions, as well as a number of other offerings. They also have an A- BBB rating as well as online reviews that are generally positive, which speaks to their brand as well as their customer service.
The only drawback is that you must be an active duty military member (Army, Navy, Air Force, and Coast Guard) or an immediate family member of an active service member. So if you or any of your co-owners meet these requirements, you may want to consider opening an account with Navy Federal Credit Union.
- Capital One
With the direction that technology is heading, more and more businesses are handling less physical cash and a few don’t use any cash altogether. This is why Capital One may be a good fit for your organization. Their online banking features are stellar and their Spark checking and savings accounts offer no monthly fees with no minimum balances, which is unheard of for business accounts and will benefit you greatly down the line.
- Bank of America
While Wells Fargo may hold the crown for the largest amount of physical locations in the country, Bank of America gives them a run for their money with over 5,000 branches. They also have very reasonable fees for their accounts that rival most banks, as well as an intro bonus of up to $350.
Chase bank is a favorite amongst business owners for a variety of reasons. One of those reasons is because they offer great business credit cards. One of which is the Chase Ink Business Preferred card, which offers business owners high-value rewards that they can put towards free or discounted travel. Not only that, but they offer a large number of locations to boot.
- US Bank
While they may not be as well-known as some of the bigger names, they are still an effective bank nonetheless and should be considered for your business accounts. They offer a free business checking option referred to as the silver business package, which is best fit for small businesses with few monthly transactions and cash deposits. You’ll find that US Bank is best fit for small businesses that are searching for a free checking account.
- PNC Bank
If you’re looking for a business checking account that you can open for $100, then PNC Bank is the perfect choice for you. Not only do they offer checking accounts with small fees but they will also waive your maintenance fees for the first three months after you open your new account. It also offers a low fee structure that is great for businesses that process a large number of transactions each month.
- BBVA Compass
If you’re a sole proprietor and looking for a business account that is tailor-made for your needs, then look no further than BBVA Compass. They offer the best business checking account for sole proprietors that crave an account with low-costs and limited transactions. They also don’t charge a monthly fee and have no minimum monthly balance for your accounts, which is great if you’re just starting out and are still trying to get your name out there.
- TD Bank
Just because you’re a small business doesn’t mean you have to be limited to opening locations just in the United States, you may have goals of expanding into nearby countries like Canada or already have locations in our neighbors to the north. If that is the case, then look no further than TD Bank. They are the 8th largest bank in the United States and offer low-cost small business checking accounts that have no minimum balance. They also have many locations and ATMs located throughout the United States and Canada which will prove to be convenient whenever you travel back & forth to your Canadian locations.
- M&T Bank
They aren’t the most well-known bank, and unless you live in New York, Pennsylvania, Maryland, Washington, D.C., Virginia, West Virginia, or Florida, you won’t have access to any of their locations. That said, they made it onto this list due to the excellent services they offer their small business clients. An example of this can be seen in their relationship managers, who analyze your business finances to recommend strategies that are tailor-made for the success of your business.
- Bank of Internet USA
If you hate having to go to the bank in person and prefer to stick to online, then look no further then Bank of Internet USA. They are the oldest online-only bank in the United States and offer money market accounts for businesses as well as a host of cash management services. If your business doesn’t handle that much cash and you feel like you can get by with an online-only bank, then you should definitely give Bank of Internet USA a shot.
Running a small business means that you’ll have to make a number of difficult decisions in regards to your business, one of which is choosing the perfect bank to handle your finances. While it may seem like we threw a lot of information at you all at once, take the time to go through each option to assure you’re going with the best choice.
Along with choosing a bank, you’ll also have to figure out how to create and send out employee schedules efficiently so your managers aren’t stuck spending all their time creating schedules and can focus on strengthening your store. To learn more on how an employee scheduling platform like Deputy can help your business, click on the button below to begin your trial.