It can be very difficult for entrepreneurs, freelancers and contractors to know everything you need to thrive in your business. You have a lot of balls in the air because you do everything you can to run your business on your own. Understandably, it can be challenging to manage everything.

So I will make one aspect easy for you and I will help you know what kind of business checking account you want… and you need one!

Can I open a commercial bank account as an independent contractor?

If you work as an independent contractor, you may think that you do not need the same things you might want to do with your employees, but a commercial bank account should definitely be on your list.

If you work as a sole owner, LLC or corporation, you can open a commercial bank account with a traditional bank, credit union or online bank.

Why independent contractors need a commercial bank account

The main reason business owners need a commercial bank account is to keep personal and business expenses separate. It not only gives you a better understanding of your business’s finances and cash flow, but also makes it easier to file business taxes.

Many contractors pay by check, debit or credit card, and require payment from merchant processing services such as Paypal or Stripe. That’s where online banking comes in handy. Others can be paid in cash, and if you have a bank account you can deposit that cash at your local branch or ATM.

What kind of bank account do independent contractors want?

There are many types of commercial bank accounts to consider for your personal contract business. You can consider with a local bank as well as an online commercial bank account. If you do not need to enter a physical branch and do not need to deposit cash, you can opt for mobile banking.

In addition to opening a business checking account, you may want to consider a business savings account so that you can allocate money to unexpected expenses.

Money market account is a combination of a checking account and a savings account, which is interest-free but you can trade and make purchases.

Best banks for independent contractors

The best business checking account provides everything you need, and your needs may be different from any other business. Here are a few account options that we recommend on Nav.

The chess business is over

If you need local branches, there are more than 4,800 branches nationwide. Chase Business Complete’s bank account allows you to withdraw money in and out, and you can receive payments on your phone and online with the QuickAccept app.

Currently, there is a $ 300 bonus to open an account with certain fitness activities.

Commercial Bank of America

Another traditional banking option to consider is the Bank of America with Business Advantage Accounts. If you are looking for business services such as credit or business credit cards, Bank of America may offer these.

Also, the preferred rewards program offers no deposit on certain banking services and offers a bonus of 25-75% on business credit cards.

You can get a bonus of $ 100-500 when you open a new account with qualified activities.

Bluvin

If you like the idea of ​​running your business online (or mobile app) And Watch Bluvin at 1% interest. There are no monthly service fees, no unlimited transactions, and the company offers small business loans and credit lines.

Axos Bank

Another option for online banking is Axos Bank, especially if you are looking for a free business checking account. There are no minimum requirements, and you can earn $ 100 when you open a new account.

How to be selected as an independent contractor bank

These are just a few of the banking options available to you. Decide what is important to you in your bank account before logging in to each of them. You may want to have business accounts where you already have personal accounts, but decide if your current bank offers all the benefits and features you need.

If a free account is a priority, some brick and mortar banks will often leave it if they meet certain requirements. Others may charge only if they go beyond certain monthly transactions.

Also, some banks require this, so check out the small opening deposit.

You may also want to work with a bank that offers other business services. Some banks offer small business loans and credit lines, as well as credit cards, cash back and other rewards. Many of these financial products offer low interest rates to existing customers.

Also look at features such as employee debit cards, wire transfers, online billing and financial services such as receipts and merchant services, as some banks offer more than others.

And finally, look at what the bank charges. These may include wire transfers, overpayment fees, and ATM fees.

How to open a bank account as an independent contractor

If you already have a personal checking account with a bank, the process of opening a business checking account can be easier. If not, you can open your account online or you will need to go to a physical bank branch.

You will be asked to provide information about your business and yourself as a business owner, including:

  • Company name and address
  • Time in business
  • Employer ID number
  • Industry
  • Your Social Security number

It usually takes a few days to receive your debit cards and checks, but you can open an account right away.

Small commercial bank for contractors

If you are serious about growing your company over time, it is important to have check or savings accounts for your small business banking needs. It is important to zero in on what you want in your bank account, then explore the options available, including those Nav partners.

In the long run, you need a bank that caters to your growing business needs.

This article was originally written on November 1, 2021.

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