Guide to Business Checking

Choose a business checking account you can manage online

Look for a bank that allows you to automate business checking tasks. For instance, choose a business checking account that lets you download account information for integration with your accounting software. Also look for automated features to handle payroll and to bill your clients.

I recommend: Bank of America gives you more than just online access to your business checking account – they offer online payroll services, free checking accounts for your employees (with some restrictions) and a full Online Business Suite, including online invoicing, payments and the ability to synchronize with financial software. WellsFargo offers numerous online solutions, including account access, bill payments and tax payments. Washington Mutual, Wachovia, Citibank and Regions also offer online banking options for business checking accounts.

Save money with free business checking accounts

If you don't need all the bells and whistles, then consider free business checking accounts that give you the basic features you need, but don't nickel-and-dime you to death with service charges. Free business checking accounts usually translate into no transaction, account or check-writing fees and usually, free checks.

I recommend: Wachovia’s business checking account comparison chart sets forth the details of its business checking accounts, including which features are free (or fee-based), which accounts offer online banking services and which accounts offer free additional accounts. Washington Mutual offers free business checking accounts – simply choose your state to see a comparison chart of free and fee-based features. Check out additional free business checking accounts from Regions. You can also avoid monthly fees with Citibank business checking accounts if you meet certain criteria.

Earn interest on your business checking account

Many banks offer small businesses - especially sole proprietorships and nonprofits - interest on their business checking accounts. Some may require specific minimum account balance requirements, so be sure to ask for details, and read the fine print.

I recommend: Simply choose your state at the Wells Fargo website to review several business checking accounts, including some with interest. The Citibank Account and the Citibank Everything Counts are interest-bearing business checking accounts.

Begin accepting credit cards through your business checking merchant account features

Because you can make more money by allowing your customers to pay by credit card, take advantage of banks that offer merchant account services tied in with your business checking account. The bank simply processes the payments and deposits the funds right into your account. What could be easier?

I recommend: Commerce Bank offers business checking accounts tied into merchant accounts through their Small Business Options program, which gives you plenty of incentives, including no service fees for merchant account set-up (for your first location) and premium rates on business money market accounts. Some restrictions apply, so check the account requirements first.