A business bank account is a great way to separate your income from your personal cash. Whether you have a side hustle, work as a freelancer or sole proprietor, or fall under another form of self-employment, there are plenty of business bank accounts to compare that don’t require LLCs or EINs.
A business bank account can include great perks like tax tools, invoice creation and tracking, expense tracking, earning interest on your balance, software integrations, lending resources and so much more.
And an LLC is not required to open a business bank account.
Many side hustlers and freelancers operate as sole proprietors, which means you can set up a business account using just your name and Social Security Number (SSN). And if you don’t have an SSN, some banks accept Individual Taxpayer Identification Numbers (ITINs) instead.
Forming an LLC does offer benefits, such as limited liability protection, but it’s not a requirement for separating your business and personal finances. Whether you’re already a sole proprietor or looking to start a business, you’re still able to open a business account and enjoy the advantages that come with it.
Here’s how to set up a business bank account in six basic steps:
There are business bank accounts that don’t require an EIN. In place of an EIN, you can usually use your SSN or ITIN.
For example, Novo doesn’t require an EIN for sole proprietorships. Novo also offers an online EIN application process if you do decide you want an EIN later on. Bluevine also lets applicants submit their SSN if they don’t have an EIN.
Some banks may still ask for an EIN, so it may be worth it to call the institution to ask so you don’t waste your time applying.
Here are a few great options for side hustlers who don’t need an LLC:
Bluevine Business Checking
Novo Business
Heavily designed for freelancers and sole proprietors, Lili offers multiple plans to choose from, including a Basic plan with no monthly fees, minimum opening deposit or overdraft fees. Unlike others that may require third-party app integrations or extra setup, Lili’s early pay feature works right out of the box. Lili also includes tools like automatic emergency savings, support for domestic and international wires and access to a large network of fee-free ATMs. If you upgrade to a paid plan (starting at $9 per month), you can also set aside a percentage of your income for taxes automatically. Lili allows cash deposits at Green Dot locations, which can be great for side hustlers who deal in cash.
Bluevine offers one of the highest-yield business bank accounts, with up to 3.7% APY depending on your plan. Choose from three options: Standard ($0), Plus ($30 per month, waivable) or Premier ($95 per month, waivable). The Standard plan has no monthly or overdraft fees, up to 1.5% APY, and free ACH transfers and domestic wires. Paid plans unlock higher APYs, priority support and free checks. Bluevine also supports cash deposits at Green Dot and Allpoint locations and provides up to $3 million in FDIC insurance through partner banks.
Novo’s business checking account is a solid pick for side hustlers thanks to free invoicing, payment processing and the $0 monthly maintenance fee. You can send customized invoices, accept ACH and check payments without extra charges, and connect with tools like Stripe, Square and Venmo to accept card payments. Novo even offers up to $5,000 in free Stripe payment processing. You’ll also get discounts on services like QuickBooks and other popular business tools. On the downside, customer support is limited to email only.
The terms “sole proprietor” and “freelancer” are often used interchangeably, but they refer to different concepts.
It depends on the type of business you’re running and your location. Some states require businesses to register for certain permits or licenses based on the industry.
Even if you’re a sole proprietor, you might need a business license to operate legally. These are often called “business operating licenses” or “business tax receipts.” Additionally, you might need special licenses or permits if you work in fields such as health care, food service or financial services.
Check with your local city or county offices and state agencies to see if a business license is required for your specific situation. Even if it’s not required, getting one can help establish your business as legitimate.
You don’t need an LLC to open a business account, and setting up an account for your side hustle can help organize your finances and keep things straight during tax season.
By selecting the right account type and taking advantage of key features like mobile deposits and spending categories, you can keep your side hustle finances organized and streamlined.
See more business banking guides and comparisons.
Sure! This option might even be the better way to go if you’re a freelancer. You don’t have to use a business bank account if you don’t want to. If you decide to use a personal account for your business, just be sure that everything is truly separated, especially for tax season.
That said, business accounts often come with tools like invoice creation, payment processing, software integrations and so on, which could make it easier to manage your business.
Keeping your side hustle income in a separate account helps you stay organized, makes tax time easier and gives your business a more professional appearance. It also helps you track your earnings and expenses more clearly.
Though your EIN is important, it’s not the only thing banks require when you apply for a business bank account.
Business accounts tend to require more documentation than personal accounts, but it’s pretty straightforward.
Compare the top banks with QuickBooks integration for your business. Find accounts with no fees, APY on balances and smart tools.
Business bank accounts are not always required, but they can be a good idea anyway. Find out if opening one is right for your situation.
Top business checking offers we’ve found are from Bluevine, Chase, PNC, Truist, Huntington, AMEX and Bank of America. See requirements here.
There isn’t a separate Zelle business account, but there are plenty of accounts compatible with this popular payment service.
Navigate your business taxes with these forms, deadlines and filing tips for small businesses.
Find the best business bank accounts for LLCs with low fees, software integrations and extra perks like ATM reimbursements.
Relay has a free business account, but the paid plan comes with more perks.
North One Bank offers a well-rounded business account North with no monthly fees and a ton of management tools, but no international wires.