For the self-employed, freelancers, and contractors, it can be daunting to figure out everything you need to thrive in your business. You’ve got a lot of balls in the air since you’re doing everything to run your business on your own. Understandably, it can be challenging to manage it all.
So I’ll make one aspect easier for you and help you figure out what type of business checking account you need…and you DO need one!
Compare the best business checking accounts
Opening a business checking account can increase your chances of getting financing and simplify your cash flow management. Use our research to quickly and easily find the right account for your business.
Can I Open a Business Bank Account as an Independent Contractor?
If you work as an independent contractor, you might think you don’t need the same things that a business with employees might need, but a business bank account should definitely be on your list.
Whether you operate as a sole proprietor, LLC, or corporation, you can open a business bank account with a traditional bank, credit union, or online bank.
Why Independent Contractors Need a Business Bank Account
The biggest reason business owners need a business bank account is that it’s important to keep personal and business expenses separate. Not only does it give you more of a precise understanding of your business’ financial situation and cash flow, but it also makes filing business taxes easier.
Many contractors get paid with checks, debit, or credit cards, and they need to transfer money from merchant processing services like Paypal or Stripe. That’s where online banks come in handy. Others may get paid in cash, and if you have a bank account, you can deposit that cash at a local branch or through the ATM.
What Kind of Bank Account Do Independent Contractors Need?
There are several types of business bank accounts to consider for your independent contracting business. You can consider an account with a local bank as well as an online business bank account. You may prefer mobile banking if you don’t need to go into a physical branch and don’t need to deposit cash.
In addition to opening a business checking account, you may also want to consider a business savings account so you can set aside money for unexpected expenses.
A money market account is a hybrid between a checking account and a savings account in that it earns interest but you can also conduct business transactions and make purchases.
Best Banks for Independent Contractors
The best business checking account is truly the one that delivers everything you need, and your needs may be different from other business’. Here are a few account options we at Nav recommend.
Chase Business Complete Banking®
If having local branches is important to you, there are more than 4,800 branches nationwide. The Chase Business Complete bank account lets you manage your cash in- and outflows, and with the QuickAccept app, you can accept payments on your phone and online.
Great For Digital Banking
Chase Business Complete Banking®
Earn up to $500 when you open a new Chase Business Complete Checking® account. For new Chase business checking customers with qualifying activities. Multiple ways to waive the $15 Monthly Service Fee, including maintaining a minimum daily balance or purchases on your Chase Ink® Business credit card. Full-service business banking. Convenient access to all your business banking services in one place -- lending, checking, credit card and payment solutions. Your choice of payment types. Choose from a full range of options for accepting payments and making deposits that include Zelle®, Online Bill Pay, wire transfers and ACH payments. Convenient access to payment processing. Process all major debit and credit cards with QuickAccept®. It's a built-in feature with your Business Complete Checking account. Get support you can rely on. Get access to our customer support team, plus a wide array of solutions that carter to every stage of your business Full-featured banking online and on-the-go. Manage your business' finances on your terms with the latest online and mobile banking technology. Associate Debit and Employee Deposit Cards available upon request
Minimum Balance
None
Monthly Cost
$15 with ways to waive
Monthly Free Transactions
Unlimited
Noteworthy Perks
$500 Sign Up Bonus
Bank of America® Business Advantage Banking
Another traditional bank option to consider is Bank of America. If you’re also looking for business services like loans or business credit cards, Bank of America can provide those too.
Great For High Cash Deposit Limit
Bank of America® Business Advantage Banking
Bank of America® Business Advantage Banking is a checking account with 2 options. Pick the 1 that works best for you. $200 bonus offer. Click Get Started for more details Easy, anytime access. Visit Bank of America at thousands of financial centers and ATMs. 24/7 security. Total Security Protection® and fraud monitoring. Secure sign-in, card locking features and more. Convenient ways to pay. Use your debit card immediately for in-store and digital purchases. Digital account management tools when enrolled in Business Advantage 360. Access to Small Business specialists to help find solutions that fit your goals. Our $0 Liability Guarantee means that you’re not liable for unauthorized transactions made using your business debit card, as long as you report them promptly. Eligible Preferred Rewards for Business members can access a wide range of rewards, benefits and savings. Bank of America, N.A. Member FDIC
Minimum Balance
$100
Monthly Cost
$16-$29.95 or $0 if requirement is met
Monthly Free Transactions
20-500
Noteworthy Perks
High Cash Deposit Limit
Bluevine Business Banking
If you like the idea of doing your business online (or through a mobile app) and earning 1% interest, check out Bluevine. There’s no monthly service fee, unlimited transactions, and the company also offers small business loans and lines of credit.
Great For High Interest Rate
Bluevine Business Banking
Earn 4.0% APY on Bluevine Premier and 2.0% APY on Bluevine Standard when you meet a monthly activity goal. Save time and pay vendors with unlimited transactions via ACH, same day ACH, domestic wires, and international payments. Add up to 5 sub-accounts, each with designated account numbers. $95 (waivable) monthly fee for Premier, $0 for standard. No overdraft fees, no minimum balance requirements. To earn the $300 bonus, customers must apply for a Bluevine Business Checking account anytime between now and 12/31/2024 using the referral code above. After opening the account, customers must add funds within 30 days, then meet at least one of the following eligibility requirements every 30 days for the next 90 days from account funding: Deposit at least $5,000 from eligible merchant services to your Bluevine account Make at least $5,000 of outbound payroll payments from your Bluevine account using eligible payroll providers Spend at least $2,000 with your Bluevine Business Debit Mastercard® and/or Bluevine Business Cashback Mastercard®
Minimum Balance
None
Monthly Cost
$0-$95 (Waivable)
Monthly Free Transactions
Unlimited
Noteworthy Perks
Up to 3.7% APY
Axos Basic Business Checking
Another online banking option is Axos Bank, especially if you’re looking for a free business checking account. There are no minimum balance requirements, and you can earn $100 when you open a new account.
Business owners get up to $400 welcome bonus!*
Axos Basic Business Checking
Business owners get up to $400 welcome bonus!* Open a business checking account by September 30 and get up to $400 when you use promo code NEW400 on your application.* No initial deposit requirement. No minimum balance requirement. No monthly maintenance fees. Free domestic incoming wires. Two (2) outgoing domestic wire fees reimbursed per month. Free domestic and international incoming wires. Cash deposits via MoneyPass and AllPoint networks. See disclosures here: https://www.axosbank.com/business/business-checking-accounts/basic-business-checking
Minimum Balance
None
Monthly Cost
$0
Monthly Free Transactions
Unlimited
Noteworthy Perks
Great welcome bonus
How to Choose a Bank as an Independent Contractor
These are just a handful of the banking options available to you. Before you dive into each, decide what’s important to you in a bank account. You might want the convenience of having business accounts where you already have your personal accounts, but determine whether your current bank offers all the perks and features you need.
If a fee-free account is a priority, know that even though some brick-and-mortar banks charge a monthly maintenance fee, they’ll often waive it if you meet certain criteria. Others may charge a fee only if you go over a certain number of monthly transactions.
Also look to see if there is a minimum opening deposit, as some banks require this.
You may also want to work with a bank that offers other business services. Some banks are also lenders and offer small business loans and lines of credit, as well as credit cards with cash back and other rewards. Many offer a lower interest rate on these financial products to existing customers.
Also look at features like employee debit cards, wire transfers, online bill pay, and financial services like invoicing and merchant services, since some banks offer more than others.
And finally, see what fees a bank might charge. These can include fees for wire transfers, overdraft 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 to open a business checking account may be simplified. If not, you’ll either be able to open your account online or be required to go to a physical bank branch to do so.
You will be asked to provide information about both your business and yourself as the business owner, including:
- Name and address of company
- Time in business
- Employer identification number
- Industry
- Your Social Security number
Typically you can open an account right away, though it may take a few days to receive your debit cards and checks.
Compare the best business checking accounts
Opening a business checking account can increase your chances of getting financing and simplify your cash flow management. Use our research to quickly and easily find the right account for your business.
Small Business Banking for Contractors
Having checking or savings accounts for your small business banking needs is important if you’re serious about growing your company over time. It’s important to zero in on exactly what you need in a bank account, then explore the options available, including those Nav partners we’ve covered here.
In the long run, you want a bank that can accommodate your growing needs as a business.
Build your foundation with Nav Prime
Options for new businesses are often limited. The first years focus on building your profile and progressing.
Susan Guillory
Susan Guillory is an intuitive business coach and content magic maker. She’s written several business books and has been published on sites including Forbes, AllBusiness, and SoFi. She writes about business and personal credit, financial strategies, loans, and credit cards.