How to open a free business checking account online with no deposit
TABLE OF CONTENT
Opening a business checking account really matters to keep your personal and business funds separate. As a business owner, you have tons of things to worry about, including how to open a free online checking account.
For business owners, maximizing profits and minimizing expenses are of prior concern. In which, free business checking accounts can work well for growing businesses in a cheap and cost-effective manner.
This article will show how to open a free business checking account online with no deposit and everything you need to know about a free online checking account.
Benefits of free online business checking accounts
It's a great decision to open a business checking account online nowadays. Although they may not own a local branch, many of them will reimburse you for ATM fees or offer some free ATM transaction.
Here are some reasons why you need to open a business checking account:
This account can be used to deposit money from a small business loan.
It's easier to plan your expenses for tax activities.
Your staff can get access to the account for daily operations.
So, as a business owner, it's wise to separate your business finances from your personal checking account.
How to open a free business checking account online with no deposit
What to consider when choosing a free business checking account
Before opening a bank account, you should take into consideration whether a minimum opening deposit is required or not.
In addition to choosing a business bank account without charging a monthly service fee and minimum balance limits, consider the following features for your business needs.
Account balance requirements
Sometimes, free doesn’t always mean free. Some banks require owners to maintain a monthly balance. To avoid fees, ensure you can maintain the minimum required balance on time.
Opening deposit requirements
Banks can also require some funds as an initial deposit. The funds can vary depending on each bank/financial institution. So, make sure to double-check carefully.
Monthly transaction caps
Some business checking accounts are free because it takes minimal effort from the banks to maintain the account.
These accounts can have a maximum transaction limit. Look for a bank account fitting your business's transaction amount.
Having a physical branch nearby really matters to you. If you regularly make deposits and withdrawals, it’s more convenient to reach a physical branch.
If you want to manage your business funds online, online-only banks will help a lot.
Other banking services
Does your business get wire transfers so often? Do you want to make cash and check deposits? If the answer is yes, search for a bank with these features at lowest cost.
How to open a business bank account without a deposit?
Gone are the days when you opened a business checking account in person. Some banks are still applying this way, but you can save a lot of time by opening an account online.
Once opening your business checking account, you’re required to offer several legal documents and information. Some of them include: Social Security number (SSN) or Employer Identification Number (EIN), personal identification, business license, and organizing documents.
In general, here’s how to open a business bank account:
Provide detailed information on your business
When getting started with applying online for a business checking account, you'll be required to provide your name as the business owner, name, address, email address, and phone number in the name of your business. If you’re not a sole owner, you’ll also need to provide your partners’ names.
If your business is acting as sole proprietorship, it’s required to provide your SSN which is your tax identification number in your business.
The bank can require you to upload a copy of your driver’s license/government-issued photo ID.
If your business is acting as a corporation or a limited liability company, you’ll be asked for your EIN instead of your SSN.
If you don’t have an account yet, you can update an EIN on the IRS website. A photo ID can be required to identify your information.
Provide your business structure documents
Through the form of your business, some certain documents need providing to prove that it’s formed as a business:
Providing your business license is a must. Also, if your business name doesn’t consist of your legal first and last name, you need a legally assumed name certificate or statement of that name.
Again, offering your business license is a must, you need to provide a certificate or statement of your assumed name. If you have a limited partnership, a certificate/document of limited partnership is needed.
With a limited liability partnership, you need a statement of qualification or a limited partnership document.
You’re required to provide your articles, certificate of organization, or certificate of formation.
Your articles of incorporation/a certificate of good standing is compulsory.
They are general documents required by the bank, it’s not a full list. Each bank can have different requirements, so check carefully before applying what they require.
After being approved, download the mobile app
Online banks/institutions have no physical branches, so the institution’s mobile app is the only way to deposit physical checks.
If there is no mobile app, you can get the services in terms of your mobile browser. Try to learn the features of the mobile app. You should know how to send money between accounts, review your balance and schedule bill payments online.
More about DNBC Financial Group
DNBC Financial Group is a financial institution in the Fintech industry, supplying online payment solutions all around the world, especially for online accounts for business and personal purposes. You can open an online business account for free.
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