Best Banks for Small Businesses; The Guide Business Owners

[4 Minute Read]

So, you need to choose a bank for your business… Where do you even start? There are so many to choose from, it’s almost overwhelming. Each one claiming to be the best bank to open a business account with. 

‘Why even bother shopping around?’ – You might ask.

To save money and avoid the hassle, mostly. The best bank for small business accounts will offer you great benefits like low fees for international transactions, deposits, and wire transfers. It’ll be easily managed and accessed with a smooth online banking system. It’ll offer you additional benefits like remote registration, insurance, and merchant services. 

The problem is that there isn’t one bank that offers all of these benefits. You’ll have to choose one that matches your needs closely. 

This guide will list the best small business banking solutions, naming their pros and cons. Read it, compare the banks, and decide which one is the right pick for you. 

Wise (former TransferWise); Best Bank for Remote LLC

Wise was formed in 2011 in London, and has come a long way in the 10+ years since its launch. It offers both a personal and a business account. Wise is mostly known for the competitive fees on international transfers.

Opening a Wise Business Bank Account

Wise is an electronic money institution, and as you would expect from a ‘digital bank’, opening an account is easy and 100% remote. You can do this through their website or banking app. 

This is useful for online entrepreneurs, remote business owners, and non-resident aliens with LLCs in the USA. 

If you have a business outside of the USA and you want to gain access to the U.S. banking system, then registering an LLC in the US and opening a Wise business bank account is your easiest option. You can register an LLC online, here. 

Wise will provide you with accounts to receive money from 10 different countries in total, these include US Dollar, British Pound, Euro, Canadian Dollar, and more. They’re working on including more countries. This means you can receive transfers like a local. And if you receive it in a foreign currency, the exchange rates and fees are pretty good at Wise. 

Fees for Wise Business Bank Accounts

Wise offers competitive fees to business owners, you can have the most flexible and modern business bank account for free. There’s no minimum opening deposit or balance requirements. No monthly fees. 

Wise is really making business banking affordable and accessible to small businesses. 

The only fees you’ll have to pay are: the one time setup fee which is around $16, a small conversion fee if you’re converting currency, and small fees for sending/ receiving money. These vary by currency and payment type. 

Here are some examples of fees, as listed on Wise’s website.

Deposit Allowances for Wise Business Bank Accounts 

As you would expect from a digital bank, cash deposits aren’t possible. The only way to deposit cash would be by paying the cash into another bank account, then transferring it to your Wise bank account. 

Is Wise Safe for Business Banking?

Generally speaking, Wise isn’t a bank. It’s an EMI (Electronic Money Institution). Banks are usually regulated by special authorities and your money is protected. So, if a bank goes bankrupt, you’d get your money back through the insurance. 

Wise keeps your money in a bank. So, they will keep your British pounds at Barclays, your dollars at JP Morgan Chase, and so on. If one of these banks goes bust and Wise was holding your money there, then you won’t get it back.

But, if Wise goes bust, you’d get your balance back thanks to the safeguarding regulations in place. You see, Wise can hold your money for you but they have to keep it separate from their business funds, and they cannot lend it out or use it for business development. They also have special plans in place to allow you to access your funds in case they go bust. 

So all in all, yes Wise is a safe business banking option. 

Advanced Features of Wise for Business Banking 

Wise’s business banking offers interesting advanced features that will be useful to many businesses. 

• With Wise you can send bulk payments in multiple currencies. 
• Have multi access for your business bank account, with different permissions.
• Integrate Quickbooks, Xero, of FreeAgent
• Connect with your own interface using the Wise APIs
• Link with Stripe, Amazon, or Shopify to receive payments

Pros of Wise Business Bank Account

Wise is designed for international business. If you deal with clients that pay you in different currencies to that of your bank account, you’ll end up saving significant amounts of money with Wise. 

It has many features that will make running your business banking easier. 

It’s competitive and always improving. You can expect it to get better over time. 

Cons

Wise isn’t a bank so you can’t deposit cash or checks, you also don’t have in-person support at a local branch. 

Wise doesn’t offer credit for businesses, you’ll have to go somewhere else if you need financing. 

Mercury Business Bank Account

Mercury is a digital banking platform exclusively for U.S. businesses. It’s a forward thinking solution in the fast paced world of business. 

Opening a Business Bank Account with Mercury

You can open a business bank account with Mercury online. No queuing, no appointments, no paperwork. Easy and remote account set up is valued in this era. Since we all discovered what it’s like to be a digital nomad, nobody wants a physical appointment. Mercury gets that. 

To set up an account with Mercury you need an EIN (Employer Identification Number). This is only available for LLCs and Corporations. It’s the ‘tax number’ for your business entity. 

So, you might have to incorporate. The good news is that incorporation is easy and also 100% remote. Doesn’t matter whether you’re a U.S. citizen or not. You can incorporate through us at a low cost. Click here to find out more. 

Mercury Bank Account Fees

There’s no monthly fee, no minimum opening deposit, and unlimited fee-free transactions. 

Domestic wires cost $5 per transaction, and international wires cost $20 per transaction with Mercury. The fees are only for sending wires, receiving them is free. 

Sending and receiving ACH payments is free. 

Depositing with Mercury

You cannot deposit cash with Mercury, but you can deposit checks through their online platform. There is no fee for processing checks.

Is Mercury Safe for Business Banking?

Mercury is safe, and it’s FDIC (Federal Deposit Insurance Corporation) insured. So, if anything goes wrong, your money is protected. You can recover up to $250,000. 

Additional Features for Mercury Business Bank Accounts

• Multi-person access with varied permissions
• API access
• Finance Analytics in Dashboard
• Account Upgrade (Mercury Tea Room)

Mercury Tea Room

Mercury upgrades clients to the ‘Tea Room’ if they are holding more than $250,000 in their account. The Tea Room upgrade means free domestic and international wire transfers, and interesting partner perks for business software. And… free tea.

Pros of Mercury Business Bank Account

Mercury is another great solution for businesses who are cost conscious. There are no monthly fees and no minimum opening balance. 

Furthermore, you can use the advanced features to integrate Mercury into your business and give access to multiple team members. 

Cons of Mercury Business Bank Account 

Mercury doesn’t offer a multi currency account, like Wise. If you’re running a business with international payments, Mercury won’t be as cost efficient. 

Mercury doesn’t support cash deposits, so you’ll have to rely on digital payments and transfers. 

A Small Break From the Bank Talk 

Have you already formed your business? If you haven’t, then wait. Why go through all the stress of paperwork, filings, choosing the right state, and the right business formation? Why burden yourself with all this additional headache when you can get someone else to do it for you? 

Get your business formed in just a few days by simply filling out an online form and paying a fee. You can get everything done, including your EIN application, automatically.

Click Here to Read More.

Wells Fargo Business Bank Account

Not a big fan of online banks? Do you prefer something more physical? Wells Fargo is a popular business option, with branches in 37 states. 

It’s not free and doesn’t offer unlimited transactions, but it’s well known for outstanding customer service, with extended office hours.

Opening a Wells Fargo Business Bank Account

You can either go to one of the Wells Fargo branches to open your account or you can do it online/ over the phone.

When you open an account online or over the phone, the bank will send you instructions and forms that you’ll have to sign and return to them. Overall, the process is easy and straightforward.

There is a minimum opening deposit of $25.

Wells Fargo Business Bank Account Fees

There is a $10 monthly service fee for business checking accounts at Wells Fargo. You will be exempt from this fee if your daily balance is at least $500 or your average ledger balance is $1,000. Your average ledger balance would be calculated by dividing the sum of each day’s ledger balance by the number of days in the fee period. 

Transaction* – The definition of transactions refers to all checks deposited and all withdrawals or debits posted to your account, including paper and electronic, except debit card purchases and debit card payments.

Is Wells Fargo Safe for Business Banking?

Yes, Wells Fargo is a safe bank to deposit with. Wells Fargo is under the FDIC, so you’re protected up to $250,000. This is the same amount of protection that’s offered by other banks. 

Additional Features

• Multi person access with varied permissions
• Possible API integrations
• Different business checking account types for additional fee

Pros of a Wells Fargo Business Account

Wells Fargo offers an outstanding customer service experience, you can visit them in branch, call them, or contact them online. They also have a 24/7 fraud monitoring system and extended customer care hours. 

On top of that, you have branch and ATM access. 

Cons of a Wells Fargo Business Account 

Wells Fargo’s wire fees and transaction fees (above the free limit) are high. If you’re planning on doing a large volume of transactions or wires, it could end up costing you a lot. 

The user interface, website, and general operations can be seen as a little outdated. Especially when you compare Wells Fargo to Wise or Mercury. 

Summary

If you’re remote, and you’re not a resident or a citizen of the U.S, then you probably want to go for Wise or Mercury. They’re the current leaders for small businesses and entrepreneurs, because they’re so flexible and competitive with their fees. 

Otherwise, Wells Fargo is a good option. Although the fees are higher than Wise, they’re lower than other physical banks’ fees. 

If you’re running your business remotely, you should consider setting up a place to receive your post. For just $20/ month you can have a street address where you can direct your business mail. Yes, a real street address. Our facilities will scan the mail and upload it onto a modern platform. So, you can read your mail from anywhere in the world. 

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