If you often take on gig work, are a freelancer or just do a lot of side hustles, having a business bank account can help you organize your finances. Keeping your business earnings separate from your personal funds can make tax time easier, and having a business account can make everyday business transactions smoother.
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.
Compare the best business bank accounts for people who work for themselves.
Finder’s banking experts compared dozens of business checking accounts to find the best accounts for freelancers, gig workers or anyone else who identifies as self-employed. To be considered on our best list, the accounts must meet this minimum criteria:
Yes, all six accept sole proprietors. Here’s some extra detail for each:
The terms “sole proprietor” and “freelancer” are often used interchangeably, but they refer to different concepts.
A sole proprietorship is a business structure where an individual operates a business on their own. Sole proprietors are responsible for all aspects of the business, including profits, liabilities and taxes. It’s a common business structure for startups, since they’re pretty easy to set up for the most part.
A freelancer refers to someone who offers services or works independently for clients. Freelancers are also often under the umbrella of a 1099 employee, since their income is usually reported on the IRS Form 1099-NEC or 1099-MISC. They may have similar legal and financial responsibilities as sole proprietors, but a freelancer’s primary focus is generally selling their services to other businesses or people.
Here’s how to set up a business bank account in six basic steps:
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. Compare more of the best business accounts for small business owners.
Read on how to switch business bank accounts, and get common questions answered on the process.
Business accounts tend to require more documentation than personal accounts, but it’s pretty straightforward.
Xero, Wave, FreshBooks and Zoho Books are some of the closest Quickbooks competitors. Compare your options here.
Here’s how we rate business checking accounts, covering what we look for in fees, cash deposit, opening requirements, transaction limits, APY and account features.
Find the best business bank accounts for LLCs with low fees, software integrations and extra perks like ATM reimbursements.
The Square Savings account is a solid choice for business owners who want to automate their savings.
See how the Do More Business Checking business account with no monthly fee compares to others in the market.
Small business owners can earn up to 3% APY with Bluevine’s business checking account that accepts cash deposits.
Compare the best free business checking accounts available with no monthly fees, such as Bluevine, NBKC, Found, Novo and Axos.
The best business savings accounts are available from Axos, Live Oak, Bluevine, First Internet Bank and NBKC.
