Business Banking Accounts

[steppinthrax]

Setting up a Federal Contracting company. My entity has been registered as an LLC. I have originally done all my personal banking through BoA. I love them (convenience), but as I understand their fees are crazy. I checked out their BoA business accounts and it seems with their fundamental accounts, you need to have around 15K or 10K sitting in the account (average or daily). Or make around $250 a month in business purchases.

I simply need an account, it may take a year or so before I envision making those kind of purchases. Also, based on what I'm doing, I don't really need a whole lot of capital, just some bond insurance and spending lots of time bidding on contracts.

What do you guys use?

I think I will need at least a checking account as well as a CC. What else would I need?

[Freelancier]

Regular banks do indeed have nutty fees for small businesses. How much can you put in the account to open it? I'd look at the investment banks, like Schwab, Fidelity, etc. to see what they can offer you, but they'll all want a minimum balance to open the account (I think Schwab is $5K). I've used Schwab for years, just because they don't charge me fees and I live near enough to one that I can go periodically to deposit checks.

I've been doing this 25 years and have yet to have a business credit card, just because I'd have to personally guarantee the balance anyway, so what's the point of putting my company name on it? It doesn't impress anyone these days. So, just get a good personal credit card (I go for cards that have cash-back rewards programs, just because points are harder to use and often aren't worth as much as cash).

[steppinthrax]

I just saw my credit union (1st mortgage).

They seem to have a free business checking!!!!

But here's the catch....

Cash In Up to $2,000 per mo free; 15¢ per $100 above $2,000

WTF does this mean. They only allow me to deposit up to 2000 per month?

[Freelancier]

Sounds like it. Again, crazy fees that banks impose on small businesses instead of trying to help them grow. It's almost like they need to hire someone to stamp your passbook... ok, that reference may be lost on a few people.

[Harold Mansfield]

I agree on the credit union thing. They are much friendlier to small businesses and consumers in my opinion. Institutional banks are out of control with the fees and charges these days.

[Business Attorney]

Banks seem to live on fees in these times of super low interest rates and very little spread. Everyone's needs are somewhat different, so it will pay to shop around. For a company with low balances and little activity, a bank with activity based fees rather than a fixed monthly account fee probably makes the most sense.

[steppinthrax]

Thanks everyone I got a real good account with Navy Federal Credit Union. Everything Free. They are also a medium size bank so there will no inconvenience factor.

[Brian Altenhofel]

Just about every small local bank in my area offers 100% free checking with no balance or spending minimums. I figured that would be pretty normal across the country.

[steppinthrax]

Just about every small local bank in my area offers 100% free checking with no balance or spending minimums. I figured that would be pretty normal across the country.

They key here is Business. It has to be a Business account, not personal!

If personal and the Gov get's involved they will consider it commingling monies.

[turboguy]

I have two personal checking accounts and both are free. I have a business checking account and pay about 60 bucks in fees a month (not counting things like credit card purchasing and wire transfers). I don't think any of the banks in my are offer free business checking accounts.

[steppinthrax]

I have two personal checking accounts and both are free. I have a business checking account and pay about 60 bucks in fees a month (not counting things like credit card purchasing and wire transfers). I don't think any of the banks in my are offer free business checking accounts.

That's crazy. You don't have credit unions?

[Brian Altenhofel]

They key here is Business. It has to be a Business account, not personal!

If personal and the Gov get's involved they will consider it commingling monies.

I am referring to business accounts. It seems only the big banks and the credit unions want to nickel and dime businesses around here.

[Fulcrum]

Not to go too far off topic, but


I am referring to business accounts. It seems only the big banks and the credit unions want to nickel and dime businesses around here.

Try importing to Canada from the US. Money markets are showing a 25% exchange, yet I have to factor around a 34-37% rate when working quotes. This is after paying with a Visa/Mastercard (and the 2% they would normally take). Every single business in Canada that imports from the US and sells only in Canada got caught with their pants down back in February/March when this change took place regardless of bank used (not sure on Credit Unions yet). No wonder they're turning 10 figure quarterly profits.

[turboguy]

I am not sure the credit unions here offer business accounts. I know we had someone in from our local credit union that pitched for our employees to become members and bank there and they never said anything about a business account. I have had lots of banks try to get our business. I believe PNC may have had free checking for business but I am not sure. For us it is too much hassle to change.

[tallen]

FWIW, I am involved with two different businesses (corporations) that both have free business checking accounts with Key Bank National Association, so maybe see if there is a Key Bank near you?

[Evan]

Cash In Up to $2,000 per mo free; 15¢ per $100 above $2,000

WTF does this mean. They only allow me to deposit up to 2000 per month?

No. It generally means they'll accept up to $2,000 in cash deposits per month at no charge. Then they charge 15 cents per $100, or 0.15%, on all cash deposits in excess of $2K. Usually checks are free, or they put a count limit on those.

Generally if there are a limit on the number of transactions, 100 or so is more than sufficient for small businesses.