Cash Flow Solutions

Can you open a free business checking account online?

A businessman smiling as he opens a business checking account on his laptop

Can you open a business checking account online

As the owner of a small business, one of the most important steps to take is opening a business bank account. Unfortunately, it can also be one of the most challenging. Can you get to the bank before it closes at 5 pm? Can you find a babysitter to take care of the kids? 

Guess what. Opening a business checking account no longer needs to be so difficult. You can now open a business checking account online

There are now several online-only banks that offer business bank accounts comparable to what you’d get from a brick-and-mortar bank. Even some brick-and-mortar banks now allow you to apply online.

How do you open a business checking account online

Opening a business bank account is easy once you’ve picked your bank. Simply go online and get started with the application process. Here are some of the most common documents that banks ask for when you open a business bank account: Employer Identification Number (EIN) or a Social Security number, if you’re a sole proprietorship, your business’s formation documents, ownership agreements, and a business license.

What are the benefits of opening a business checking account online

As a business owner, you have many things on your plate. So, whatever you can do to save time, you’ll do. Opening a checking account online is one such activity that can save you time. You don’t need to go to the bank. You don’t need to collect all of the necessary documents. When you open a bank account online, you simply enter the information. A few banks will require you to scan and upload ID documents, but most won’t. 

What are the benefits of having an online small business checking account

A bank that allows you to open a checking account online will offer all kinds of other great online banking services, including: 

• Accessibility: An online-first presence gives you 24×7 accessibility to your checking account, which means anytime, anywhere banking. Whenever you need to, you can check account balances and view transaction records. You can pay bills automatically using electronic bill pay. You can transfer funds between accounts. You can download or print statements for your tax records. 

• Mobile banking services: These include mobile check and cash deposits, estatements, and the ability to link your account to QuickBooks or Quicken. 

• Better online banking experience: With online banking, the bank is really serious about giving you a good customer experience with your business bank account. 

• High security: Online banks use modern security measures to keep their customers’ information safe. Make sure to opt for security features such as encryption and fraud monitoring. 

• Backed by FDIC: The Federal Deposit Insurance Corporation will insure a legitimate online checking account. 

• Fewer overhead costs: Online banks often pass on their savings to their customers. From a lower monthly fee to better interest rates. The upside to opening an online business checking account is plenty. 

What else should I look for from my business account

In addition to making sure your bank offers online services, it’s important to check for: 

● Good terms: no transaction limits, no ATM fee, low or no monthly maintenance fee, no minimum opening deposit, no minimum account balance requirement, unlimited free monthly transactions, no wire fees and a high-interest rate 

● Free business checking account: A fee-free business checking account is essentially a free account. Just be careful when you see an advertisement for free business checking because often there are hidden fees. 

  • Merchant services to allow for credit and debit card payment processing 
  • Good ATM availability
  • QuickBooks compatibility
  • High-interest accounts
  • Availability of a business credit card or debit card
  • Reasonable early termination fees
  • 24/7 customer support
  • FDIC insured

If you anticipate needing a business loan, you’ll want to check on this too. Be sure to review the financial institution’s website or call them to learn more about each of these important banking elements. 

What is needed to open a business checking account online?

In the early days, opening a business banking account online was almost as difficult as going to a bank. You needed to provide a lot of documentation and it took a lot of time. You just didn’t need to drive to the bank. 

Today, it’s much easier to open a business checking account online. While each bank has its own specific requirements, and these requirements can differ depending on what type of business entity you have, most banks will require you to provide some of the following to open a business checking account online: 

  • Personal identification (driver’s license, social security number) 
  • Basic business information (EIN, address) 
  • DBA certificate or articles of incorporation
  • Basic information about yourself and any additional business owners

The benefits of a small business checking account 

Whether you choose a bank that offers online services or doesn’t, having a small business checking account is critical, it sets the professional tone for your business. A business checking account is one area that you can rest easy knowing that you are keeping your personal and business finances separate. This is extremely important when it comes to taxes. A business checking account also helps you plan your business budget, manage payroll, deposit and receive payments, and prepare for future funding options. 

Kabbage is your full online banking solution 

The online Kabbage Checking account comes with all the features you want, plus a 1.10% APY on all of your funds. From opening your account online to online checking accounts, funding options, and a way to take payments, Kabbage is your full online banking solution. 

To learn more about Kabbage Checking and our other small business offerings, please visit



Why should you open a business checking account online with Kabbage? 

It saves time. You don’t need to go to the bank. You can open your banking account in under an hour. There is no minimum opening deposit, no hidden monthly maintenance fee, the ability to make cash deposits, multiple ATMs, and no need to have a separate bank account for your business

When can you open a business bank account?

Now. Anytime. The good news is online banks do not have set business hours. It is as easy as going to their website and filling out the forms. 

What should a small business look for in a bank account online? 

When evaluating online bank accounts, you’ll want to look at several things, including interest rates for savings and checking, interest rates for lines of credit, transaction fees, early termination fees, minimum account balance fees, and introductory offers.

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