Should You Get a Free Business Checking Account?

“Having a separate business account is crucial to protecting your business and personal financial lives,” said accountant Crystal Stranger, president of 1st Tax and author of “The Small Business Tax Guide.” 

Stranger explained that if personal accounts are used for business and the business is audited, your personal returns could possibly be audited as well. “This is why co-mingling of funds should be avoided at all cost,” she said. “Also, [a business checking account] simplifies accounting to separate expenses carefully, then your bookkeeper only has to reconcile against one account.”

You might also want to open a small business checking account at a different bank than your personal accounts. “This also prevents accidentally depositing funds in the wrong account,” said Stranger. “I admit to having learned that the hard way by accidentally depositing funds in the wrong account and then wondering why my business account was perilously low.”

Stranger also advised small business owners to look for hidden charges, such as check printing, wire transfers, basic payroll services and safe deposit box fees. Some banks bundle these services for free, which can make carrying a higher minimum balance or paying a small monthly fee worth the cost.

10 Best Free Business Checking Accounts

Searching for a free business checking account? “I find online institutions and smaller banks often have the lowest rates; however, price isn’t everything,” said Stranger.

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