Good bank account for a startup?

#1

Post by forgotmypasswd » Sun, Sep 27, 2009, 5:33 PM UTC

Does anyone know a good bank to have a business account with? I have a some websites that pay for themselves with ad revenue, but they don't make a lot of money. Currently they are attached to my personal account, but I would prefer to have them in a separate account with my LLC's name on it.

I had a business account with Bank of America, but they charged me $13/month for having too low a balance.

Re: Good bank account for a startup?

#2

Post by lsc » Sun, Sep 27, 2009, 5:50 PM UTC

I use wells fargo but they hit you with similar things if your account is low. There are things you can do to get around it if you want to spend some time talking to the teller. (something about setting up a monthly automatic transfer, etc...)

I'm not recommending wells fargo or anything, but I don't think it matters that much. you are talking less than $20 a month in most cases, and with wells fargo, and I believe most banks, that includes the ability to send checks from a web interface, so I don't think it's that unreasonable.

Re: Good bank account for a startup?

#3

Post by ajg1977 » Sun, Sep 27, 2009, 5:53 PM UTC

As with most things in life bank fees like this are more often then not are negotiable. Make an appointment with the branch manager or business specialist at your BoA branch and voice your concerns about fees like these, and how they would make it difficult for you to continue banking with them.

For anyone thinking of opening a separate account for business the first place to start would be the bank you use for your checking/savings account. Not only do you have an established relationship (if only in paper form) but the will work harder to please you if there's a chance they'd lose your non-business accounts too.

Re: Good bank account for a startup?

#4

Post by ramit » Sun, Sep 27, 2009, 5:54 PM UTC

I spent a lot of time researching this and chose the HSBC Business Direct account: http://www.us.hsbc.com/1/2/3/business/checking/direct-checki...

For savings, ING has a new business savings account that I'm looking at: http://business.ingdirect.com/products/ofb_savings.asp?s=Sav...

Hope it helps!

Re: Good bank account for a startup?

#5

Post by patio11 » Sun, Sep 27, 2009, 6:03 PM UTC

Getting hit with low balance fees and caring about $13 a month both suggest to me that this is a color-of-the-bike-shed decision until you get bigger.

Re: Good bank account for a startup?

#6

Post by sarvesh » Sun, Sep 27, 2009, 6:07 PM UTC

lsc wrote: post #2

I use wells fargo but they hit you with similar things if your account is low. There are things you can do to get around it if you want to spend some time talking to the teller. (something about setting up a monthly automatic transfer, etc...) I'm not recommending wells fargo or anything, but I don't think it matters that much. you are talking less than $20 a month in most cases, and with wells fargo, and I believe m…

I use Wells Fargo, Business Account. When I started the account I asked them to waive the account minimum fee and that's the only way they were going to get my business and they waived it. There have been times when I had a low account balance and they didn't charge me anything. When you are opening the account it pays to understands these charges and negotiate with them they usually listen.

Re: Good bank account for a startup?

#7

Post by falsestprophet » Sun, Sep 27, 2009, 6:07 PM UTC

google "free small business checking"

Hopefully, there is a bank in your area among those results. If not, $156 a year is a trivial expense: just forget it and focus on building your businesses.

Re: Good bank account for a startup?

#8

Post by apollo » Sun, Sep 27, 2009, 6:09 PM UTC

I'm in a similar situation and I just wanted to share the little hangup I ran into:

I have a Delaware LLC and I live in California. When I tried applying for a Wells Fargo account in California they said I need a Foreign Qualification, which also means I would have to pay the California minimum franchise tax of $800/year.

I'm sure there's an easy way around this but I just set it aside because it's not a priority for me.

Re: Good bank account for a startup?

#9

Post by quellhorst » Sun, Sep 27, 2009, 6:09 PM UTC

I use a local/regional bank. They charge no monthly fees even if you have a $0 balance. Most banks have fees on checking accounts for corporations. The bank is Amegy Bank (only serves Texas).

Re: Good bank account for a startup?

#10

Post by byoung2 » Sun, Sep 27, 2009, 6:22 PM UTC

ajg1977 wrote: post #3

As with most things in life bank fees like this are more often then not are negotiable. Make an appointment with the branch manager or business specialist at your BoA branch and voice your concerns about fees like these, and how they would make it difficult for you to continue banking with them. For anyone thinking of opening a separate account for business the first place to start would be the bank you use for your…

Another tactic to try is asking other small/medium sized businesses who their bank is. Often if they make an introduction they'll get a referral fee, and the bank might work harder to please you if your friend is a valued client.