Sole proprietorship businesses are almost always a one-person show, so owners need a business checking account that is convenient and affordable. Our picks for the best bank accounts for sole proprietors check those boxes and then some, with many offering features to help with invoicing, tax preparation and bookkeeping.
Why you can trust NerdWallet: We evaluated dozens of business checking accounts from national, regional and online banks, scoring them on fees, perks and accessibility, among other factors. Business accounts that earned at least four stars were eligible to be included in this list. All of our picks for the best business accounts for sole proprietors are chosen by our editorial team, who follow strict editorial guidelines to ensure fairness and accuracy in our coverage.
Quick picks for sole proprietor banks
Best Business Bank Accounts for Sole Proprietors
| Bank/institution | NerdWallet rating▼ | Monthly fee▼ | APY▼ | Min. opening deposit▼ | Learn more |
|---|---|---|---|---|---|
Bluevine Business Checking Learn more at Bluevine, Deposits are FDIC Insured | 5.0/5 Best for Earning interest | $0 | 2.00% With $0 min. balance for APY | $0 | Learn more at Bluevine, Deposits are FDIC Insured |
Axos Bank® Basic Business Checking Learn more at Axos Bank®, Member FDIC | 5.0/5 Best for 24/7 customer support + ATM fee rebates | $0 | N/A | $0 | Learn more at Axos Bank®, Member FDIC |
Grasshopper Business Checking Account Learn more at Grasshopper Bank, Member FDIC | 5.0/5 Best for High-yield checking with cash-back rewards | $0 | 2.25% With $0 min. balance for APY | $100 | Learn more at Grasshopper Bank, Member FDIC |
Chase Business Complete Banking℠ Learn more at Chase, Member FDIC | 5.0/5 Best for Branch access, payment processing | $15.00 Waived with $2,000 minimum balance | N/A | $0 | Learn more at Chase, Member FDIC |
Found Small Business Banking Learn more at Found, Deposits are FDIC Insured | 5.0/5 Best for E-commerce businesses | $0 | N/A | $0 | Learn more at Found, Deposits are FDIC Insured |
U.S. Bank Silver Business Checking Learn more at U.S. Bank, Member FDIC | 4.0/5 Best for Sign-up bonus | $0 | N/A | $100 | Learn more at U.S. Bank, Member FDIC |
Bank of America Business Advantage Fundamentals™ Banking Learn more at Bank of America, N.A., Member FDIC | 5.0/5 Best for Cash deposits, dedicated support | $16.00 Waived with $5,000 minimum balance | N/A | $100 | Learn more at Bank of America, N.A., Member FDIC |
nbkc Business Account Learn more at nbkc bank, Member FDIC | 5.0/5 Best for No-fee business checking account | $0 | N/A | $0 | Learn more at nbkc bank, Member FDIC |
Our pick for
Earning interest
Bluevine Business Checking
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Learn more
at Bluevine, Deposits are FDIC Insured
APY
2.00%
With $0 min. balance for APY
Monthly fee
$0
Min. opening deposit
$0
Free cash deposits
No
Fee of up to $4.95 per cash deposit.
Overdraft fees
$0
Sign-up bonus
$0
Bluevine’s free business checking account boasts a competitive APY:
Earn 2.00% interest on account balances up to and including $250,000. Terms apply.
The account can easily sync with popular accounting software, including QuickBooks Online, Wave and FreshBooks, to streamline your bookkeeping. Just beware: Bluevine isn’t for sole proprietors who deal with a lot of cash deposits. While Bluevine offers this function via Green Dot, the fees are high and the deposit limits are restrictive.Pros
- No monthly fees or minimum opening deposit.
- Unlimited fee-free transactions; no overdraft fees.
- Earn 2.00% interest on account balances up to and including $250,000. Terms apply.
- Access up to $3 million in FDIC insurance with Insured Cash Sweep.
Cons
- Cash deposits limited to $500 per deposit, $2,000 per day. Service fee of up to $4.95 per deposit.
- Fee for using out-of-network ATMs.
- No joint accounts or employee debit cards.
Our pick for
24/7 customer support + ATM fee rebates
Axos Bank® Basic Business Checking
Read Review
Learn more
at Axos Bank®, Member FDIC
APY
N/A
Monthly fee
$0
Min. opening deposit
$0
Free cash deposits
Yes
Unlimited
Overdraft fees
$25
Bonus
$200
Requirements to qualify
This online business checking account from Axos Bank ups the ante on ATM accessibility, offering free nationwide ATM access, unlimited automatic refunds for ATM fees charged by third parties, and the ability to deposit cash via compatible AllPoint and MoneyPass ATMs (a feature matched by few other business checking accounts). You also get live, 24/7 customer support — another rarity, particularly among online business accounts.
Pros
- No monthly fees or minimum opening deposit.
- Unlimited fee-free transactions.
- Automatic refunds of all ATM fees (domestic).
- Cash deposits via MoneyPass and AllPoint ATMs.
- 24/7 customer support.
- Welcome bonus for new customers (terms apply).
Cons
- $25 fee for insufficient funds/uncollected funds returned.
- No third-party app integrations.
Our pick for
High-yield checking with cash-back rewards
Grasshopper Business Checking Account
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Learn more
at Grasshopper Bank, Member FDIC
APY
2.25%
With $0 min. balance for APY
Monthly fee
$0
Min. opening deposit
$100
Free cash deposits
No
No cash deposits.
Overdraft fees
$0
Sign-up bonus
$0
Sole proprietors can get a lot of value out of Grasshopper’s free online business account. For starters, the account earns anywhere from 1.51% to
2.25%
APY, depending on your balance. Plus, you can earn unlimited 1% cash back on qualified debit card purchases. Built-in bookkeeping, invoicing and cash management tools sweeten the pot for solo business owners.Pros
- Unlimited 1% cash back on qualified debit card purchases.
- Earn up to 2.25% APY.
- No monthly fees or overdraft charges.
- Free, built-in bookkeeping software.
Cons
- Can’t deposit cash.
- $100 minimum opening deposit.
- No weekend support.
Our pick for
Branch access, payment processing
Chase Business Complete Banking℠
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Learn more
at Chase, Member FDIC
APY
N/A
Monthly fee
$15.00
Waived with $2,000 minimum balance
Min. opening deposit
$0
Free cash deposits
Yes
Up to $5,000 per month.
Overdraft fees
$34
Bonus
$300
Requirements to qualify
This brick-and-mortar business bank has one of the largest branch networks in the country, perfect for business owners who prefer to bank in person. But Chase Business Complete Banking also delivers convenient online banking and a highly rated mobile app that includes QuickAccept, a built-in payment-processing tool that allows you to accept credit card payments right from the app (associated processing fees apply). This account does have a monthly fee, though, and in-person transactions are capped at 20 per month.
Pros
- No minimum opening deposit.
- Unlimited fee-free electronic transactions.
- Integrated credit card processing.
- Welcome bonus for new customers (terms apply).
- No overdraft fee unless account is overdrawn by more than $50; 24-hour grace period applies to overdrafts beyond that amount.
Cons
- $15 monthly fee.
- Monthly limit on fee-free cash deposits ($5,000) and physical transactions (20).
- Fee for using out-of-network ATMs.
Our pick for
E-commerce businesses
Found Small Business Banking
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Learn more
at Found, Deposits are FDIC Insured
APY
N/A
Monthly fee
$0
Min. opening deposit
$0
Free cash deposits
No
No cash deposits.
Overdraft fees
$0
Bonus
$20
Requirements to qualify
Found’s free business checking offers direct integration with Etsy, Stripe and Square, as well as popular payment apps and gig apps, allowing for quick access to payments. Other stand-out features include built-in bookkeeping, unlimited invoicing, and tax-planning tools to estimate and save for your business taxes. Found’s business account does lack some important features, though. You can’t deposit checks or write checks from your account, for example. And the account must be opened in your name, not your business name.
Pros
- No monthly fees or minimum opening deposit.
- Unlimited fee-free transactions; no overdraft fees.
- Free, built-in invoicing, bookkeeping and tax-planning features.
- Integrates with popular business apps, including Stripe, Etsy and PayPal.
Cons
- Weekend and after-hours support via email only.
- Have to open account in your name, not business name, and use your SSN to apply. (Business EIN can be added later.)
- No outgoing wires. Can’t pay by check.
- Cash deposits limited to $1,000 per week; $4,000 per month. A $2 service fee applies.
Our pick for
Sign-up bonus
U.S. Bank Silver Business Checking
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Learn more
at U.S. Bank, Member FDIC
APY
N/A
Monthly fee
$0
Min. opening deposit
$100
Free cash deposits
Yes
Up to $2,500 per month.
Overdraft fees
$36
Bonus
$800
Requirements to qualify
U.S. Bank is one of the only major brick-and-mortar banks to offer a free business checking account. If that wasn’t a draw on its own, you can also earn a generous welcome bonus:
Earn up to an $800 bonus when you open a new, eligible U.S. Bank business checking account online with promo code Q3AFL23 and complete qualifying activities1, subject to certain terms and limitations. Offer valid through January 8, 2024. Member FDIC.
.Pros
- No monthly service fee for Silver Business Checking account.
- Business accounts can be opened entirely online.
- Optional payment processing services ranging from mobile apps to in-store payment terminals. Additional fees apply.
- Welcome bonus for new customers (terms apply).
Cons
- Low cash deposit limits.
- Terms and fees are not easily accessible via the bank’s website.
Our pick for
Cash deposits, dedicated support
Bank of America Business Advantage Fundamentals™ Banking
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Learn more
at Bank of America, N.A., Member FDIC
APY
N/A
Monthly fee
$16.00
Waived with $5,000 minimum balance
Min. opening deposit
$100
Free cash deposits
Yes
Up to $7,500 per month.
Overdraft fees
$10
Bonus
$200
See offer page for more details
Bank of America’s Business Advantage Fundamentals™ Banking includes a generous cash deposit allowance (up to $7,500) — a selling point for sole proprietors who operate a cash-heavy business. Accountholders also have access to Bank of America’s small business specialists, who provide dedicated support to the bank’s business customers. This account does have a $15 monthly service fee, but it’s relatively easy to dodge the charge if you hit the spending or balance minimums.
Pros
- Fee-free electronic transactions.
- High cash deposit limits.
- Business accounts can be opened entirely online.
Cons
- No free business checking account option.
- $100 minimum opening deposit.
- Fee for using out-of-network ATMs.
Our pick for
No-fee business checking account
nbkc Business Account
Read Review
Learn more
at nbkc bank, Member FDIC
APY
N/A
Monthly fee
$0
Min. opening deposit
$0
Free cash deposits
Yes
Unlimited
Overdraft fees
$0
Sign-up bonus
$0
NBKC’s business checking account offers no-frills, no-fees online business banking. While this account lacks the bells and whistles of some competitors — there are no integrations, APY or tax planning tools — it has almost no incidental fees and will refund ATM fees charged by other banks (up to $12 per month). You can also deposit cash, with no fees or limits, at compatible ATMs. That’s a feature few other business banks can match.
Pros
- No monthly fees or minimum opening deposit.
- Unlimited fee-free transactions; no overdraft or incidental fees.
- Up to $12 in monthly refunds for ATM fees charged by other banks worldwide.
- Cash deposits via MoneyPass ATMs.
- Accept contactless payments via the NBKC app (iOS only). Fees apply.
Cons
- High fee ($45) for international wire transfers.
- No weekend or after-hours customer support.
- No third-party app integrations.
Can you open a bank account as a sole proprietor?
Sole proprietors can — and should — open a business bank account. Yes, you can technically use your personal checking account for business purposes, particularly if your business is more of a side hustle than a full-time operation. But even then, using a dedicated business checking account can save you headaches come tax time and put you one step ahead if and when your business grows.
Do sole proprietors need business bank accounts?
A dedicated business bank account can help sole proprietors separate business and personal finances. This makes it easier to track business income and expenses, file taxes, and apply for business loans and grants. Beyond that, many personal checking accounts prohibit using the personal account for business purposes.
What sole proprietors should look for in a business account
Sole proprietors wear so many hats when running their business: CEO, social media manager, accountant, inventory specialist, tax preparer and tech support. Aim for a business checking account with features that let you hang up at least one of those hats, even for a little while.
Bookkeeping: Look for a business account that has built-in bookkeeping software, like Autobooks, or one that easily syncs with your existing accounting software.
Tax planning: Several online business accounts include tax-planning tools that automatically categorize expenses, identify potential deductions and help calculate what you need to save for self-employment taxes. A few will even generate the necessary tax documents, saving you time when you file.
Invoicing: A business account that includes free invoicing can cut down on the time it takes to get paid — that’s a real win. Make sure the account doesn’t limit the number of invoices you can send, and understand whether the invoices can be customized to include your business logo.
Ease of access: The account you choose should also be easily accessible, meaning there aren’t strict limits on transfers or deposits or high fees for activities that are routine for your business (if you do lots of wire transfers, for instance, or make frequent cash deposits). Take note of customer service hours, too. Some online business accounts rely primarily on email for customer support. That might work for some businesses but be a deal-breaker for others.
How to open a business bank account as a sole proprietor
Opening a business bank account as a sole proprietor is pretty straightforward. You can often open an account online or in person with just a few simple steps and the right documentation.
Here’s what you typically need to open a business account as a sole proprietor:
- A government-issued photo ID.
- Business license.
- Business name registration certificate or “doing business as” documentation.
- Employer identification number (EIN) if you have one. Otherwise, your Social Security number.
- Company details: industry and business type, when it was formed, and your business address and phone number.
You’ll also need to provide some personal information, including your date of birth, home address and phone number, and personal email address.
Last updated on September 20, 2023