Best Business Bank Accounts for Freelancers in 2023

Freelancing gives you the freedom to work on what you want, when you want, from anywhere in the world. A trusted business bank account is an essential financial tool to having that freedom. Freelancing can be an exciting way to earn a living, but you also have to treat your work like a business.

“Do I need a business bank account if I'm self-employed?” is a common question for freelancers to ask. While it isn’t strictly required in some cases, it’s almost always a good idea. We’ll break down some of the best options available.

Best Business Bank Accounts for Freelancers

How to Choose a Business Bank Account for Freelancers

There are a few factors you should consider when finding the right bank account for your freelance business.

For bank accounts, service fees are possibly the most important factor. Many accounts come with minimum balance requirements and monthly fees that you have to pay if you can’t meet those minimums. These fees can quickly eat away at your balance, leaving you with nothing left in the bank.

Look for a bank account with no monthly fees or, at the very least, a minimum balance requirement that you can easily meet.

Next, consider how easy it will be to use the account.

For example, if you do most of your work online, you can easily use an online business bank and take advantage of their typically lower fees and minimum balance requirements. However, if you do your work in person and deal with lots of cash, you’ll want a bank account from a bank that has branches and ATMs in your area.

It’s also a good idea to look at the other perks and features the account comes with. Many business bank accounts will integrate with account software and other popular business tools. This can make it easier to handle essential bookkeeping tasks or to pay your vendors. If you can get valuable services built into your bank account, that makes your life easier and can help you save money.

Depending on your future plans for your freelancing, you might also consider whether the bank can help your business grow. For example, if you want to go from freelancing to operating a larger company, you might want to choose a bank that also offers lending services.

Bottom Line

Opening a business bank account as a freelancer is generally a good idea. It can help you keep your personal finances and your freelance money separated and give you access to valuable business services. It’ll also be essential if you plan to grow your freelancing into a more established business in the future.

FAQs

These are some of the most frequently asked questions about business bank accounts for freelancers.

Do Freelancers Need a Business Bank Account?

A business bank account isn’t required for freelancers that are operating as a sole proprietorship. However, there are many benefits to opening one that freelancers should consider. For example, they offer useful tools like invoicing clients, account integrations, and ways to pay vendors.

A business bank account will be essential if you intend to form an LLC, corporation, or other formal business entity.

What do you need to open a freelancer's business bank account?

Opening a freelancer business bank account is pretty simple. You need all of the same information that you’d need to open a personal bank account, including your personal identification and an opening deposit.

If you have one, the bank will also want your business tax info, such as an Employer Identification Number.

Which bank account is best for freelancers?

If you’re a freelancer, the best type of bank account to open is typically a checking account. Your freelance company likely doesn’t need to store a huge amount of excess cash, so the interest offered by a savings account won’t be a huge help.

The checking account, on the other hand, will come with a debit card and make it easy to access your freelance funds whenever you need them. They also come with perks and features like business software integrations.

About The Author

Andy Chang

Founder of TheCreditReview

Andy Chang is the founder of TheCreditReview, a review site started in 2017 that is dedicated to helping consumers find the best companies in financial services. Andy is passionate about financial education and wellness, and helping others reach financial freedom. He consistently writes about topics ranging from credit to banking and lending.

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