SECTION 1
Why a Business Bank Account Matters
Even if you’re a solo consultant, you’re not “just freelancing” – you’re running a company. Your bank account should reflect that. Here’s why it matters:
- Keeps personal and business expenses separate, which is critical for LLCs, corporations, and even sole proprietors when filing taxes (see more tax and accounting tips here).
- Simplifies invoicing and bookkeeping, especially if you’re tracking write-offs or submitting tax filings.
- Enhances credibility with clients, reinforcing that you’re a professional, not a side hustle.
- Required for many business tools. Many platforms require a business bank account for set up (e.g., payment processors, accounting platforms).
Pro Tip: Don’t wait until your first invoice to open a business account. Set it up early—you’ll avoid backtracking and build habits from day one.
Not all business accounts are created equal. Many traditional banks charge high monthly fees or bury useful features behind premium tiers. When considering a banking partner, look for:
- No or low monthly maintenance fees (many big banks charge $15–$30/month)
- Ability to receive ACH and wire payments easily
- Strong online banking + mobile app experience
- Integration with tools like QuickBooks, Xero, or Stripe
- Responsive support, especially for resolving payment holds or fraud issues
SECTION 2
What to Look For in a Banking Partner
Not all business accounts are created equal. Many traditional banks charge high monthly fees or bury useful features behind premium tiers. When considering a banking partner, look for:
- No or low monthly maintenance fees (many big banks charge $15–$30/month)
- Ability to receive ACH and wire payments easily
- Strong online banking + mobile app experience
- Integration with tools like QuickBooks, Xero, or Stripe
- Responsive support, especially for resolving payment holds or fraud issues
SECTION 3
Common Transactions & Features to Prioritize
You don’t need a complex setup—just something that handles the essentials well.
- Receive ACH or wire payments from clients quickly and reliably
- Send payments to subcontractors or freelancers
- Connect to tools like Stripe, Wise, PayPal, or your invoicing software
- Export transactions to simplify tax prep and bookkeeping
- Access a business debit card for purchases and subscriptions
Pro Tip: Prioritize banks that offer free or low-cost incoming wire transfers—some charge $10–30 per wire, which adds up fast if you work with larger clients.
SECTION 4
Credit Cards and Expense Separation
Keeping personal and business purchases separate is a tax-time lifesaver.
- Apply for a business credit card tied to your business EIN
- Track work-related expenses across tools, travel, and subscriptions
- Build business credit in case you want a loan or line of credit later
- Earn rewards or cashback—some cards offer solid benefits for common expenses
Pro Tip: Put recurring charges (Zoom, M365, Canva, etc.) on one card. This makes price creep easier to catch and gives you one-click cancel visibility.
SECTION 5
International Considerations
If you’re based outside the U.S. or working with clients or vendors abroad, plan ahead for currency and transfer logistics.
If you pay or receive money across currencies:
- Many countries offer USD accounts through local banks. This lets you receive U.S. client payments without foreign wire fees or FX spreads.
- Avoid converting currency through your bank—they often use unfavorable rates.
- Use low-cost FX platforms like Wise or Payoneer to hold, convert, or send money across currencies at mid-market rates.
- Check for SWIFT/IBAN compatibility if dealing with global clients
Pro Tip: Even if your work is local today, setting up global-friendly banking early gives you flexibility as your client base grows.
SECTION 6
Final Thoughts
Business banking doesn’t need to be fancy. What matters is that it’s clean, separate from personal accounts, and built for the kinds of transactions you’ll be handling weekly.
Start with:
- A no-fee business checking account from a modern provider
- A basic business credit card to track expenses
- Tools like Wise if you expect to invoice or pay across borders
Pro Tip: A clean banking setup can save you hours each month—and hundreds at tax time. That’s time and money better spent on growing your business.