Business checking account

[cercidiphyllum]

How did you all decide which business checking to sign up for ? I have an approved LLC now and am ready to open my first Business checking.

Very small operation - no employees, weekends only...got to start somewhere right?

How did you all decide which bank to go with? I am in Massachusetts by the way.

 

[Z'sTrees]

Local banks are generally much more receptive when it comes time to borrow money or just having a line of credit for your biz.

If you have a bank your using personally and like them then keeping it the same works too.

A good online banking setup makes getting paid and taxes much more streamlined. Pay for all your biz stuff out of that acct and all you need to do is give your accountant access to your statements and check stubs if you use them.

 

[ATH]

Before you do that, did you get an EIN? https://www.irs.gov/businesses/smal...-an-employer-identification-number-ein-online Even if you aren't going to have employees, you should use the EIN for the LLC's identification number at the bank (instead of your personal SSN)

I choose a different bank than our personal accounts. Not necessary if they are different accounts...but I feel like it gives a little extra separation. I also have business credit card through a different institution.

Things I would look for:
*How easy are mobile deposits for checks (and what is the daily/monthly cap on those)?
*Can clients transfer money to you digitally - Venmo/Zelle, etc? Mine doesn't take those. I think I've had one client ask....but I assume it will be a growing trend.
*Credit card processing would be a different question...I don't do that through the bank, but worth asking how easy it is and what their rates are. For very infrequent use, I'd use Square to take cards...but compare what the bank can offer.
*Will you use a debit card? Get info on that if so.
*Finally, how I chose the bank where my business accounts are: my brother-in-law introduced me to the loan officer. I didn't necessairly intend to take loans (I did get a vehicle loan last year though as a truck went down right after I just paid for a building...). So relationships would be included on the list. (FWIW, he's had me take care of the trees at his house a couple of times now...so it is a two-way business relationship!)

 

[cercidiphyllum]

Before you do that, did you get an EIN? https://www.irs.gov/businesses/smal...-an-employer-identification-number-ein-online Even if you aren't going to have employees, you should use the EIN for the LLC's identification number at the bank (instead of your personal SSN)

I choose a different bank than our personal accounts. Not necessary if they are different accounts...but I feel like it gives a little extra separation. I also have business credit card through a different institution.

Things I would look for:
*How easy are mobile deposits for checks (and what is the daily/monthly cap on those)?
*Can clients transfer money to you digitally - Venmo/Zelle, etc? Mine doesn't take those. I think I've had one client ask....but I assume it will be a growing trend.
*Credit card processing would be a different question...I don't do that through the bank, but worth asking how easy it is and what their rates are. For very infrequent use, I'd use Square to take cards...but compare what the bank can offer.
*Will you use a debit card? Get info on that if so.
*Finally, how I chose the bank where my business accounts are: my brother-in-law introduced me to the loan officer. I didn't necessairly intend to take loans (I did get a vehicle loan last year though as a truck went down right after I just paid for a building...). So relationships would be included on the list. (FWIW, he's had me take care of the trees at his house a couple of times now...so it is a two-way business relationship!)

Thanks I appreciate the tips, super helpful. - I did get an approved LLC with an EIN, just got QuickBooks, my next step is the Business checking account just to separate everything + credit card.

The ability to invoice clients/send estimates etc. instantly/electronically via quickbooks and online banking seems rather important. But I want to be able to do both oldschool as well.

 

[jtarb]

I just opened one myself - I wanted a credit union, because of personal reasons around banks (basically what they're doing with your money, investing in areas I don't support). I decided on Chase instead since it seemed versatile, full of options and readily accessible no matter where I went. But it was a headache trying to open accounts online, they closed them, flagged as fraud etc so I gave up.

I ended up with a credit union as originally planned and I'm pleased with their service so far. I have my personal account with a different credit union and I was also happy with how that one has worked out, I don't "miss" anything that my bank didn't have. Some smaller banks may not have apps for mobile check deposit for example, which would be a problem for me as I don't want to have to go to the branch to make a deposit.

I figure if the credit union ends up being a mistake I can always close the account and move elsewhere, but I didn't want to spend that much time dissecting a relatively minor decision since my mentor told me that banks are pretty similar.

 

[evo]

How did you all decide which business checking to sign up for ? I have an approved LLC now and am ready to open my first Business checking.

Very small operation - no employees, weekends only...got to start somewhere right?

How did you all decide which bank to go with? I am in Massachusetts by the way.

Well, I live on an island. Our banks suck, and more so now the local community one sold out.
Managed to get an account with a BIG credit union with great rates, and perks. BUT they don’t even have an atm here, this hasn’t really messed me up at all. Just photo deposit, and call every once in a while for a LOC, Credit card etc.

Point is this day in age, the horizon is much broader

 

[Reach]

In my opinion, pick a local, small bank where you can build a relationship if there is one. Make sure that they are able to handle business banking effectively, not all banks specialize in businesses. And make sure that they have a good QuickBooks interface, and don’t bill you for it. Truist, for example, will bill you $15 a month for the privilege of being able to download your bank transactions into QuickBooks.

 

[Chris Schultz]

I went with my local bank(which has locations statewide) whom I’ve been banking with since 2003. I have my checking, savings, credit card, and now business checking with. It was much easier to set up than I anticipated. You will need your LLC name, and likely your EIN number. My bank requires a minimum of 1000$ in the business account. I went this route because I can use my one mobile app. to view all of my accounts (personal/business) in one place. I can Zelle, mobile deposit, and transfer funds all there too….. it is SO handy.

 

[TreeCo]

My bank will accept photos of checks for deposits.

It saves a trip to the bank.

 

[Z'sTrees]

Mobile deposits are a huge timesaver. That would definitely be on my must list.

My local bank only requires a positive balance, no minimums and no fees of any kind. Very different experience from the big banks.

 

[southsoundtree]

Absolutely must have mobile deposits and good online banking. My CU doesn't have Business Zelle, unfortunately.
Customer's can use a BillPay from their bank for electronic deposits.

 

[Reach]

Absolutely must have mobile deposits and good online banking. My CU doesn't have Business Zelle, unfortunately.
Customer's can use a BillPay from their bank for electronic deposits.

Our bank has all of the above, and a couple other features unique to a bank that focuses on Amish businesses. They have a couple buses that act as mobile branches; they sat up for about three or four hours at a time at many local businesses around the area, so that there is always a bank branch close to you once a week. Fortunately for us, one of those locations is half a mile from our front door. Hard to beat that.

And not only do they offer mobile check deposit (up to $30k per month, I believe), they also have a courier service that will pick up a bank bag of checks from us twice a week, at no cost to us. They’re really the most friendly bank I have ever seen, by far.