The 7 Best Banks for Startups and Entrepreneurs Show
In this best banks for startups review, we offer some of the best business checking account services in 2022, breaking down their advantages and disadvantages, and explaining how you can go about registering with each one. The seven best banks for startups and entrepreneurs offer some of the best business checking accounts spanning a range of industries.
Best Business Checking Accounts for Startups and EntrepreneursIt is important to consider the best business checking accounts for startups and entrepreneurs. This is because business banking is a fundamental requirement for every business and is a prerequisite for taking care of payroll, paying business insurance, collecting money, and having a merchant account to accept credit card payments. Your business type will determine the best business checking accounts or best banking platform you might want to consider. The top seven best banks and banking platforms for startups and entrepreneurs:
Ideal for Freelancers and Solopreneurs: LiliLili’s online banking platform offers two packages — Lili Standard and Lili Pro — with the latter requiring a small monthly fee of $4.99 a month. BenefitsLili comes with a large number of features, including an automatic “savings” tool for business taxes, as well as a service that prefills users' 1040 Schedule C form annually. Moreover, Lili users have the ability to get paid up to two days earlier on certain ecommerce platforms (e.g., Uber, Shopify, etc.). Here are some benefits of Lili’s banking platform:
What to Look Out ForDespite its large amount of benefits, Lili can be quite “limited” in some aspects. You will likely want to consider these before making a final decision:
Who Is Lili Best For?Lili is best for microbusinesses, freelancers, and solopreneurs due to its low fees and banking limitations. Recommended Service: Lili’s digital banking platform is ideal for microbusinesses and solopreneurs. Disclaimer: Lili is a financial technology company, not a bank. Startup banking services provided by Choice Financial Group, Member FDIC. Best Online Banking Platform: RelayRelay is an online banking and money management platform. We placed it as our number one small business online banking option because of its very low fees, high flexibility, premium customer reviews, and rewarding accounting and payment processing integrations. BenefitsRelay offers two business checking accounts, both of which include no monthly checking account fees, no minimum balance requirements, up to 50 virtual or physical debit Mastercards, 20 business accounts or sub-accounts for easy budgeting, and much more. It also has a decent amount of third-party integrations, including Quickbooks Online, Xero, Expensify, Gusto, Plaid, and wise. Here are some additional digital banking benefits offered by Relay:
What to Look Out For
Who Is Relay Best For?Relay is ideal for all small businesses, but it should be noted that its accountancy and payment-processing integrations make it particularly effective for both ecommerce and accounting businesses. Recommended Service: Check out Relay's online digital banking and money management platform. Great for Ecommerce Businesses: NovoAs of 2022, Novo’s business account has no fees for international incoming wires, mailed checks, or ACH transfers. It also has no monthly account fees. BenefitsOne of the largest benefits of Novo is its high number of online service discounts. These are highly diverse (e.g., bookkeeping services, online ad discounts, etc.). Here are some benefits of opening a Novo Business Checking Account:
What to Look Out ForEven though Novo offers a top-tier business checking account, users should keep in mind that not everyone will be eligible for their services. Here are some things to look out for when opening a Novo Checking Account:
Who Is Novo Best For?Due to its high number of discounts, integrations, and almost non-existent fees, we believe Novo is the best small business banking platform for ecommerce businesses. Disclaimer: Novo is a fintech platform, not an online bank. Banking services provided by Middlesex Federal Savings F.A.; Member FDIC. Recommended Service: Check out Novo's online digital banking solution and expense management software. Built for Venture-Backed Startups: BrexBrex is an ideal option for tech startups, but its extraordinarily low fees and large number of bonus-based initiatives make it a great business banking option for all small businesses. BenefitsBrex offers expedited payments on a variety of eminent ecommerce platforms, partner parks that are worth over $150,000, and 3x reward points on eligible Apple purchases. Here are some additional business checking benefits offered by Brex:
What to Look Out For Even though Brex is a great option, there are a few factors you should keep in mind:
Who Is Brex Best For?We found that Brex was the best online business banking option for tech startups and other ecommerce businesses. Recommended Service: Check out Brex's online digital banking platform for an easy way to manage your revenue and spend. Good for In-Person Banking: ChaseChase is one of the most "conventional", brick and mortar bank account options on our list. It operates in similar ways to other eminent startup bank and money management account services (e.g., US bank, Silicon Valley Bank, etc.). Chase's business checking account offers “everything you will need” as a small business. They offer no minimum deposit requirement for opening an account, as well as a high number of branches and ATMs throughout the US. BenefitsThe Chase Business Complete Banking℠ account is arguably one of the best bank accounts for startups and entrepreneurs. Here are the main benefits of Chase bank:
What to Look Out ForHere are some things you need to know before you initiate a business checking account with Chase bank:
Who Is Chase Bank Best For?You can “bank” on Chase bank (pun intended) as being the best financial institution for startups and entrepreneurs for those looking for an in-person experience at a branch. Recommended Service: Chase is the best in-person business banking option. Easy Payment Processing Integration: NorthOneNorthOne offers all the “standard” business banking features that you would expect to find and/or need as a small business. It also has a high number of both accounting and ecommerce integrations. Users should keep in mind that NorthOne does not have a free plan, and so all users are required to pay a fee of $10 per month per account in order to access its online startup banking services. BenefitsNorthOne’s largest selling point is its high number of fintech integrations. This includes expedited payment integrations with Amazon, PayPal, Shopify, and Stripe. Here are some benefits of NorthOne’s banking app:
What to Look Out ForHaving said that, there are a few disadvantages of working with NorthOne that you should consider. Here are some things to look out for when using NorthOne’s banking app:
Who Is NorthOne Best For?NorthOne is best for small businesses that need a high number of fintech integrations (e.g., online businesses, ecommerce businesses, etc.). Disclaimer: NorthOne is a financial technology company, not a bank. Banking services are provided by The Bancorp Bank, Member FDIC. Recommended Service: Check out NorthOne's online digital banking and money management platform. Go-to Solution for SBA loans: US BankUS Bank offers one of the best business checking accounts for startups and entrepreneurs looking to build business credit and get a Small Business Administration (SBA) 7(a) loan. It’s helpful to bank and borrow money for your business under one roof. Besides being convenient, it is a great way to build a strong working relationship with your bank to help ensure your business’s success. This can also help you build business credit. Getting a small business loan can be a real challenge if you don’t know what you’re doing. There is a process for getting a business loan that ideally starts when forming your business. The mistake most businesses make is not planning far enough in advance. The SBA 7(a) loan will require some time to get, plus there’s a mountain of paperwork to complete. You will also need to build your business credit in order to have a chance of qualifying. That being said, US Bank is a great bank for businesses starting out. They don’t charge monthly fees for having an account, so new startups can rest easier knowing they’re not being charged money before they’re making money. They are also good at helping small businesses navigate the lending route, and offer great customer service. BenefitsBeing a long-standing business bank with a good reputation, US Bank knows the business of business financing well. It’s no wonder they do such a great job helping startups to get the funding they need through the SBA loan lending program. Here are some benefits of opening a Silver Business Checking Package account:
What to Look Out ForThough US Bank offers the Silver Business Checking Package account with no monthly fees, something we love about this bank, keep in mind that there is no unlimited transactions service, meaning that you will be charged a fee as soon as you go over the 125 free transactions per month. Here are some things to look out for with US Bank:
Who Is US Bank Best For?US Bank is one of the best business checking accounts for startups and entrepreneurs wanting to learn how to build business credit and get an SBA 7(a) loan. This bank has lots of branches; last we checked, they had 3,067 branches. They also have great customer service and tend to work well with businesses seeking out small business loans, especially through the SBA 7(a) loan program. Read our full US Bank Business Checking Review on How to Start an LLC. Why Use a Business Bank Account?One of the most important aspects of running an incorporated business is opening a business bank account. Besides the financial benefits, this can ensure that you do not accidentally pierce your corporate veil. “Piercing the corporate veil” refers to a legal situation in which the courts get rid of your incorporated benefits, including your limited liability under the law. This means that you would potentially be risking your personal assets if your business happens to accrue debt. Having a business bank account protects the owners because it ensures that all business-related expenses are kept separate from personal expenses. From a legal standpoint, this can act as proof that you have been treated your business and yourself as separate legal entities. There are additional benefits to opening a business bank account. It helps you build business credit, establish a working relationship with the bank, and helps ensure you do not pierce the corporate veil. Our Choice for the Best Business Bank AccountChoosing the best banks for startups and entrepreneurs was no easy feat; however, with loads of determination and countless hours of analysis, we feel sure we’ve picked the best business checking accounts for startups and entrepreneurs. The top two banking options, Lili and Relay, are the most notable solutions for startups and entrepreneurs because of what they offer in particular. Relay is the best online money management and business banking platform because of its low fees, high flexibility, and rewarding features. Chase is huge in terms of branch locations and the options they provide businesses for the long haul. Many businesses get started by opening a Chase business bank account and then staying with Chase as their business grows. They have case studies on their website to inspire the entrepreneurial spirit, and we feel they really get the mindset of investors overall. Featured ArticlesWhich bank is best for start up business?10 Best Banks for Startups in 2022. 🏆 Bluevine: Best Online Bank for Startups.. Novo: Best Bank with Financial Tools.. NorthOne: Best Bank with Sub-Accounts.. Chase: Best Big Bank for Startups.. Mercury: Best Bank for Tech Startups.. Axos: Best for Interest-Bearing Checking & Savings.. Lili: Best Mobile Banking App.. Which bank is best suited for small businesses?Best Banks for Small Businesses in 2022. Best Overall: Chase.. Best for Online-Only Checking: Axos Bank.. Best Credit Union: Navy Federal Credit Union.. Best for Number of Branches: Wells Fargo.. Best for Business Analysis: M&T Bank.. Best Fee-Free Brick-And-Mortar Checking: US Bank.. Which private bank is best for business account?So here is the list of top private banks in India and also the best Private banks in India.. ICICI Bank. ICICI Bank is a leading private Bank in India. ... . HDFC Bank – Largest Private bank in India. - Advertisement - ... . Axis Bank Ltd. ... . Kotak Mahindra Bank Ltd. ... . IndusInd Bank Ltd. ... . Yes Bank Ltd. ... . IDFC First Bank Ltd. ... . Federal Bank Ltd.. Which bank is best for online business account?Top 10 Online Business Banking Accounts For 2022. Lili – Best for single-person businesses.. Bluevine — Best for small business.. Novo — Best for entrepreneurs and ecommerce.. NorthOne — Best for fully mobile business banking.. Axos Bank — Best way to include your employees in your online banking.. |