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Choosing the best bank account for sole proprietors empowers your small business for long-term growth and sustainability. However, each sole proprietorship has different banking needs depending on the type of business. The best business bank accounts for sole proprietors offer low or no fees, generous transaction limits, and mobile banking tools.
Best Bank Account for Sole Proprietors
- Bluevine – Best Overall
- Novo – Best for Small Businesses
- Axos – Best for Free Basic Business Checking Account
- Bank of America – Best for Traditional Banking
- Capital One – Best for Customer Service
- US Bank – Best for Business Loans
Bank
Monthly Fees
Minimum Opening Deposit
Annual Percentage Yield (APY)
Transaction Limits
Lending
Rewards and Benefits
No monthly fees
No minimum opening deposit
Earn up to 1.5% APY
Unlimited transactions
Lines of credit
Deposit cash and checks at Green Dot partner locations
No monthly fees
$50
No APY
No transaction fees and minimum or maximum deposits
Charge or credit cards are available
Free ACH transfers and mobile check deposits
No monthly fees
No initial deposit requirement
Earn up to 1.25% APY
Unlimited item processing (debits, credits, and deposited items)
Lines of credit and loans
Unlimited domestic ATM fee reimbursements
$16 or $29.95/month (waivable), depending on chosen plan
$100
No APY earnings on business checking account
200 or 500 free transactions per month
Loans, business credit cards and lines of credit
Waivable monthly fees with minimum monthly balance of $5,000 or $15,000
$15 or $35/month (waivable), depending on chosen plan
$250
No APY
Unlimited transactions
Loans and lines of credit
Waivable monthly fees with minimum monthly balance of $2,000 or $25,000
$0, $20, or $30/month, depending on chosen plan
$100
No APY
125-500 free transactions per statement cycle
Loans, credit cards, lines of credit
Send and request money features
Bluevine: Best Overall for Sole Proprietors
Pricing: No monthly fees or minimum balance requirements.
Bluevine is a digital banking solution that offers a business checking account for sole proprietors. With Bluevine, there are no minimum opening deposit or balance requirements. Furthermore, there are no monthly maintenance fees. You can also earn up to 1.5% APY with a Bluevine business checking account.
Since digital banking users expect to exceed 65% of the US population, it’s crucial to have access to a full suite of mobile banking tools through Bluevine.
Why we chose it: Bluevine is the best overall bank account for sole proprietors because there are no monthly fees, and you can open your account within minutes. Furthermore, you receive unlimited fee-free transactions and can deposit cash at Green Dot locations.
- Unlimited fee-free transactions
- No maintenance fees or balance requirements
- Earn up to 1.50% interest
- No joint accounts
- Can only deposit cash through Green Dot Services
- No physical branches
Pricing: It’s free to create a Bluevine business bank account for sole proprietors. You can incur fees through outgoing wires, Bill Pay with credit card, cash deposits, and from using out-of-network ATMs.
Maintenance Fees
Bluevine business checking accounts do not have monthly fees or minimum balance and deposit requirements. There are also no in-network ATM fees, and you receive two free checkbooks per year.
Transaction Limits and Charges
Bluevine offers unlimited fee-free transactions. However, all accounts are subject to the aggregated monthly withdrawal and deposit account limits. With Bluevine, there are no overdraft fees, incoming and outgoing ACH fees, and incoming wire fees. However, it costs $15 per transaction for outgoing wire fees.
Cash Deposit Limit
Through Bluevine’s collaboration with Green Dot, you can use your Bluevine business debit card to deposit up to $7,500 in cash each month. Green Dot has over 90,000 locations throughout the US, making it easy to find an eligible cash deposit location.
Interest
Bluevine’s business bank accounts offer up to a 1.5% annual percentage yield on balances up to $100,000. Unlike most interest-bearing bank accounts, Bluevine doesn’t require you to maintain a daily or monthly minimum balance to earn interest.
Included Tools
Bluevine features excellent flexibility for sole proprietors running small businesses. It offers all the tools you need to manage your finances, including recurring and one-time payments as well as mobile check deposit. Bluevine also offers integrations with QuickBooks, Wave, and FreshBooks.
Novo: Best for Small Businesses
Novo is a comprehensive digital banking solution for sole proprietors. It’s free to create an account as long as you deposit the $50 initial requirement. However, there are no hidden fees, and you can apply online in under 10 minutes. Novo makes transfers easy by offering free ACH transfers, mailed checks, and incoming wires.
Why we chose it: Novo is the best bank account for small businesses because of its no monthly fees or minimum balance requirements. You also receive unlimited refunds for ATM charges and can access Novo’s comprehensive suite of third-party integrations.
- No monthly fees or minimum balance requirement
- Refunds on all ATM fees globally
- Integrations include QuickBooks, Xero, Stripe, and Shopify
- $27 fees for insufficient funds and uncollected funds returned
- No recurring payments available
- Can’t deposit cash
Pricing: There are no monthly fees or minimum balance requirements to create a Novo business bank account.
Maintenance Fees
Novo’s business checking account has no monthly fees or minimum balance requirements, similar to Bluevine. Therefore, you can create your business bank account for free.
Transaction Limits and Charges
There are no transaction fees and no incoming wire fees. Furthermore, there are no fees for outgoing or incoming ACH transfers, stop payments, debit card replacements, or paper statements. Novo business checking also provides free mobile check deposit, free bill pay with physical checks, and free bank checks.
Cash Deposit Limit
Novo business checking accounts cannot accommodate standard cash deposits. If you want to deposit cash, you must purchase a money order and use Novo’s mobile check deposit feature to deposit the check into your business bank account.
Interest
Novo does not offer APY earnings on account balances. As a sole proprietor looking to grow your business, it may be more optimal to put your cash to use instead of slowly earning interest. If you want to earn interest on your account balances, we recommend using a business savings account.
Included Tools
Novo offers an integrated invoicing feature that allows you to create, send, and manage an unlimited number of invoices. You can accept payments through AHC transfer or Stripe if you use the Novo Stripe integration. There is also a Novo Bank perks program granting discounts on certain business software like Stripe, QuickBooks, Gusto, and HubSpot.
Axos: Best for Free Basic Business Checking Account
Pricing: No monthly fees or minimum balance requirements.
Axos made significant improvements to its business checking accounts in 2022 by adding cash deposit capabilities and removing transaction limits. With 24/7 customer support and free nationwide ATM access, Axos is one of the best bank accounts for sole proprietors. Axos also offers your first set of 50 checks for free.
If you‘re interested in incorporating your sole proprietorship into an LLC, Axos is also the best bank account for LLCs. This is because Axos offers a $200 bonus for newly incorporated business owners.
Why we chose it: Axos is the best free basic business checking account because there are no maintenance fees and unlimited domestic ATM fee reimbursements. You also receive a Visa debit card, and two reimbursed domestic wire fees per month.
- No monthly maintenance fee and unlimited transactions
- Unlimited domestic ATM fee reimbursements
- 24/7 customer support
- Lack of third-party app integrations
- Negligible checking account APY
- Business Interest Checking requires a $100 deposit
Pricing:
Axos offers two business checking accounts for sole proprietors:
- Basic Business Checking: No monthly fees, initial deposit requirements, or minimum balance requirements.
- Business Interest Checking: $10 per month, waivable if you maintain an average daily balance of at least $5,000
Maintenance Fees
It’s free to apply and create an Axos business bank account for sole proprietors. There are no monthly maintenance fees or initial deposit requirements, like Novo. However, the Business Interest Checking account has a $10 monthly fee you can waive with an average daily balance of at least $5,000.
Transaction Limits and Charges
The Basic Business Checking offers 200 free transactions each month. Additional transactions are 30 cents each. You receive 50 free transactions each month with the Business Interest Checking account. Additional transactions cost 50 cents each.
Cash Deposit Limit
Axos business checking account members can deposit cash for free via compatible MoneyPass and AllPoint ATMs. Most digital banking solutions offer cash deposits through Green Dot, which costs $4.95 per deposit. Getting access to free cash deposits is key for cash-heavy sole proprietorships.
Interest
Although the Basic Business Checking doesn’t offer APY earnings, the Business Interest Checking account offers up to 1.01% APY. However, the APY ranges based on your balance. You can earn 1.01% if there is less than $50,000 in your account. The APY decreases significantly to 0.20% if you have $50,000 to $250,000 in your account.
Included Tools
Axos offers comprehensive iOS and Android mobile apps that can handle all of your banking needs with the highest convenience. You receive free Bill Pay and image statements with an Axos business bank account. The mobile app also allows you to manage your business funds, view account balances, deposit checks, and automate bills.
Bank of America: Best for Traditional Banking
Pricing: Starts at $16 per month, but the fees are waivable.
Bank of America offers two comprehensive business checking accounts. Each bank account offers unlimited fee-free electronic transactions, high cash deposit limits, and waivable monthly maintenance fees.
Why we chose it: With 4,200 Bank of America branch locations across 37 states, Bank of America is the best business bank account for sole proprietors who prefer traditional banking. Nonetheless, Bank of America offers digital-friendly options in addition to brick-and-mortar accessibility.
- Unlimited fee-free electronic transactions
- High cash deposit limits
- Business Advantage 360 online banking platform
- No free business checking account option
- High incidental fees
- Fees to use non-Bank of America ATMs
Pricing:
Bank of America carries two separate business bank accounts for sole proprietors:
- Business Advantage Fundamentals Banking: $16 per month, waivable if you maintain a $5,000 combined average monthly balance, spend at least $250 in new net qualified debit card purchases, or become a Preferred Rewards for Business member.
- Business Advantage Relationship Banking: $29.95 per month, waivable if you maintain a $15,000 combined average monthly balance or become a Preferred Rewards for Business Member.
Maintenance Fees
Unlike Novo and Bluevine, both Bank of America business checking accounts come with monthly maintenance fees, but the fees can be waived. Furthermore, the initial opening deposit requirement is $100 for both accounts.
Transaction Limits and Charges
A Bank of America business bank account offers unlimited fee-free transactions, including ACH, debit card, electronic debits, deposits made with mobile check deposit, remote deposit online, or Bank of America ATM deposits. However, the Fundamentals account grants you 200 fee-free non-electronic transactions, and you receive 500 with a Relationship account.
Cash Deposit Limit
The Fundamentals checking account offers up to $7,500 in free cash deposits per month. Afterward, it costs 30 cents per $100 deposited. The Relationship checking account offers up to $20,000 in free cash deposits per statement cycle. Additional fees are the same as the Fundamentals account.
Interest
The Business Advantage Fundamentals Banking account doesn’t offer APY earnings on held account balances. The Business Advantage Relationship Banking offers various rates based on your location. However, you can apply for a Business Savings account to earn interest on your account balances.
Included Tools
Bank of America offers its Business Advantage 360 online banking platform. This platform includes mobile banking, bill pay, mobile check deposit, and integrated cash-flow monitoring tools. You also get access to 16,000 Bank of America ATMs across the US. Other tools include Zelle and third-party integrations with ADP, QuickBooks, Google, and TurboTax.
Capital One’s banks accounts for sole proprietors offer fee-free ATM access, unlimited transactions, and an entourage of small business products. You have the option between the Basic Checking account or Unlimited Checking account. Both bank accounts have monthly maintenance fees that can be waived based on your average account balance.
Why we chose it: Capital One is a great fit for sole proprietors looking for comprehensive banking with the best customer support. In-person support at Capital One branch locations offers more effective customer service solutions.
- Robust traditional banking tools
- Waivable monthly service fee
- High cash deposit limits
- $250 minimum opening deposit
- Only available in a handful of states
- Can only apply at a physical branch
Pricing:
Capital one provides two business checking account options for sole proprietors:
- Basic Checking: $15 per month, waivable if prior 30 or 90-day balance averages $2,000 or more.
- Unlimited Checking: $35 per month, waivable if prior 30 or 90-day balance averages $25,000 or more.
Maintenance Fees
Both Capital One business checking accounts include monthly service fees. However, like Bank of America, you can waive these fees. Just meet the account balance thresholds. Furthermore, the initial deposit for both accounts is $250.
Transaction Limits and Charges
With either Capital One solo proprietor checking accounts, you get unlimited fee-free transactions. These include deposits, withdrawals, and transfers. However, there is a $15 fee for incoming international wire transfers and a $40 fee for outgoing international wire transfers. You also get charged for overdraft and nonsufficient funds at $35 for each.
Cash Deposit Limit
The Basic Checking account allows up to $5,000 in cash deposits each month. Afterward, it costs $1 for every $1,000 deposited. The Unlimited Checking Account offers up to $40,000 in cash deposits each month for free.
Interest
Capital One does not offer APY earnings on its business checking accounts for sole proprietors. However, you can earn 0.2% APY with a Capital One Business Savings account.
Included Tools
Capital One offers overdraft coverage, free debit cards, mobile banking, online bill pay, and fee-free digital transactions. You also get access to over 70,000 fee-free ATMs, including MoneyPass, Allpoint, and Capital One ATMs.
US Bank offers three business bank accounts for sole proprietors, including a free plan with Silver Business Checking. With the Silver account, you receive 125 free transactions per statement cycle. It costs 50 cents for each additional transaction. Furthermore, US Bank has over 2,000 branches across 27 states, perfect for individuals who prefer to bank in person.
Why we chose it: US Bank offers several different business loans, including quick loans, business term loans, commercial real estate loans, and small business administration (SBA) loans.
- Offers a basic plan with no monthly maintenance fees
- Specialized merchant services
- 25 free cash deposits per month
- Transaction fees on additional cash deposits
- Terms and fees not easily accessible on website
- No APY earnings potential
Pricing:
US Bank carries three different small business checking account options for sole proprietors:
- Silver: $0 per month
- Gold: $20 per month, waivable with US Bank Payment Solutions Merchant Banking, $10,000 average collected balance, or $20,000 combined average collected business deposit balances or $50,000 combined average collected business deposits and outstanding credit balances
- Platinum: $30 per month, waivable with $25,000 average collected balance or $75,000 combined average collected business deposits and outstanding business credit balances
Maintenance Fees
US Bank offers three business bank accounts: Silver, Gold, and Platinum. Silver has a $0 monthly fee, Gold has a $20 monthly fee, and Platinum has a $30 monthly fee. However, the fee is waivable if you meet the requirements listed above. Furthermore, the minimum opening deposit requirement on each plan is $100.
Transaction Limits and Charges
Silver offers 125 free transactions per statement cycle and 50 cents for each additional transaction. Gold offers 300 free transactions per statement cycle and 45 cents for additional ones. Platinum offers 500 free transactions per statement cycle and 40 cents for each additional transaction.
Cash Deposit Limit
Silver customers are allowed $2,500 in cash deposits per month. Gold members can deposit $10,000 in cash each month, and Platinum members can deposit $20,000 cash each month.
Interest
US Bank’s Gold and Platinum checking accounts earn interest at a negligible rate and only on balances of $20,000 or more. If you are looking for an interest-bearing account, we recommend another option like Bluevine.
Included Tools
US Bank offers a range of payment processing solutions, including point-of-sale options such as a mobile app and card reader to a portable touch-screen terminal.
Methodology for the Best Business Bank Account for Sole Proprietor
Opening a business bank account for your sole proprietorship legitimizes your business. It also allows you to separate your personal and business finances, offering clarity and accuracy when tax season arrives.
Consider the following features when choosing a business bank account:
- Maintenance fees: Maintenance fees include monthly fees and minimum opening deposit requirements. As a sole proprietor, it’s beneficial to find a business bank account that offers low or $0 monthly fees and initial deposits. Most business checking accounts with a monthly fee can be waived if you meet certain requirements.
- Transaction limits: Banks may place limits on the number of transactions your sole proprietorship can make, including electronic transactions and checks. If you exceed your monthly transaction limit, you’ll need to pay a small fee for each additional transaction. You should choose a business bank account that can accommodate your transaction volume.
- Cash deposit limits: Cash deposit limits determine how much cash you can deposit into your account for free each statement period. If you exceed your allotted limit, you’ll need to pay a small fee for each additional cash deposit. Find a business bank account with an adequate cash deposit limit for your sole proprietorship.
- Interest: Some business bank accounts offer interest earnings through standard APY rates. This is beneficial if you’re looking to save and earn interest on a longer-term basis and don’t need daily access to your funds.
- Included tools: It’s important to consider what type of tools each business bank account offers. Many banks offer free online and mobile banking apps, including online bill pay and mobile check deposit. Some banks may also offer online payments, third-party integrations, and invoicing features.
Frequently Asked Questions (FAQs) for Best Bank Account for Sole Proprietor
Below are a few common questions we receive about the best bank account for sole proprietors.
Bottom Line on Best Bank Account for Sole Proprietor
Opening a business bank account as a sole proprietor is crucial for future growth and accurate bookkeeping. Every business checking account on this list is better than using your personal checking account for your sole proprietorship. The best business bank account for sole proprietors is Bluevine. It carries no fees, no minimum balances, and you can open your account within a few minutes.
Best Business Bank Accounts by State
Below you will find an interactive U.S map that can help you locate and compare different banks and financial institutions that offer business accounts in your area.
Larry is a finance graduate and entrepreneur who loves educating others on various business software through his own experiences. Larry loves to write about all topics, from fashion editorials to tax advice. On his days off, you can find him at a basketball court or gym working up a sweat.
