Best Bank Accounts for Sole Proprietors [2024]
If you’re a US sole proprietor you may be wondering about the very best bank accounts for sole traders, including options which allow international currency exchange and spending, cash deposits, checking services, overdrafts or other features. The good news is that the US is well served for sole trader accounts – so the biggest challenge may be choosing the right one based on your own transaction needs.
This guide walks through some of the best accounts for US sole traders, from banks like Bank of America and PNC, and from online specialist alternatives like Wise, Revolut and OFX.
Quick summary: Best bank accounts for sole traders
- Wise Business Account: Send, hold, spend or exchange 40+ currencies cheaply and easily
- Revolut Business Account: Choose from different account plans, supporting 25+ currencies
- OFX Global Currency Account: Receive payments in 7 currencies from customers, PSPs and marketplaces
- Bank of America Business Advantage Fundamentals: 200 free transactions/month, with easy ways to waive the monthly fee
- PNC Basic Business Checking: 150 free transactions, options to waive ongoing fees, and no costs to deposit up to 5,000 USD in cash monthly
| Questions | Answers |
|---|---|
| Can I use my personal bank account for sole proprietorship? | Sole proprietors may not legally need to open a separate business account – but it can make life a lot easier if you do. Keep your personal and business finances separate, to more effectively analyze business performance and grow your turnover. |
| Can you open a business bank account as a sole proprietor? | Some banks allow sole proprietors to open business accounts – but not all accounts are available to sole traders in the US. Compare bank and online specialist alternatives like Wise and Revolut to find the right one for you. |
Do I need a business bank account for sole proprietorship?
No. You do not need a business bank account for a sole proprietorship in the US. As a sole trader, your personal and business finances are viewed as the same thing – if you’re liable for a debt through your business activity, that liability still applies to you personally.
That said, even though it is not mandatory to have a business account as a sole trader, it is highly recommended. Having a business account means you can split out your personal and company financial matters, making it easier to monitor business performance and keep on top of your accounts.
What bank account can I use as a sole trader?
Sole traders in the US usually have a few different options – the exact accounts available to you may depend on your situation, including the type of work you do. However, in many cases you’ll be able to choose:
- A business or start up account from a US bank
- A personal account from a US bank
- A business or personal account from an online alternative like Wise, Revolut or OFX
Can a sole trader use a personal bank account?
Yes. A sole trader can use a personal bank account. This is because of the way sole traders are treated for tax – their personal and business dealings are seen as the same thing.
The downside of this is that keeping your personal spending money and your business profits in the same place can become very complicated and make it unnecessarily difficult to grow your business. Opening a dedicated business account simply makes life easier for most sole traders.
Best business checking accounts for sole proprietors in the US
There’s no single best sole trader account in the US, but there are plenty of options for you to review and compare. We’ve looked at some accounts from alternative providers like Wise and Revolut, and also a couple of banks. Here’s a quick overview:
| Provider/Service | Great for | Account fees | Minimum balance requirement | Key features |
|---|---|---|---|---|
| Wise Business account
| Send, hold, spend or exchange 40+ currencies cheaply and easily | No opening fee for personal accounts 31 USD one time opening fee for business accounts No ongoing fees | None | Receive payments with local and SWIFT details. Local account details available in 8+ currencies, and SWIFT details available in 20+ currencies |
| Revolut Business account
| Choose from different account plans, supporting 25+ currencies | 0 USD – 16.99 USD/month for personal accounts | None | Sole traders can open one of 3 different personal account types Cards available |
| OFX Global Currency Account
| Receive payments in 7 currencies from customers, PSPs and marketplaces | No ongoing fees | None | Receive payments with local details in 7 currencies Access currency risk management solutions |
| Bank of America Business Advantages Fundamentals Banking
| Hybrid online and branch service options | 16 USD/month | None – hold 5,000 USD (or transact with your card) to waive monthly fees | Deposit cash and get checking facilities Account offers some free transactions monthly |
| PNC Basic Business Checking
| Easy ways to waive fee, no fee for some cash deposit | 12 USD/month | 100 USD to open account – hold 500 USD to waive monthly fees (other options also available) | No fee to deposit up to 5,000 USD in cash monthly
No fee for PNC ATM use |
*Fees and information correct at time of writing – 17th September 2024
As you can see, some of the available features for sole proprietor accounts in the US can vary quite a lot. So do the fees. This means it’s well worth weighing up a few different account options before you decide on the right one for you.
We’ve given a more detailed overview of the providers and banks we’ve profiled in the table, here:
Wise account
🏅 Great for: Sole proprietors who need to send, receive, hold, spend or exchange foreign currencies cheaply and easily
Sole traders in the US can open either a Wise personal or business account, depending on which they prefer.
Wise accounts support 40+ currencies for holding and exchange, and support international money transfers to 160+ countries.
Currency exchange uses the mid-market exchange rate with low conversion fees from 0.33%, and accounts also offer options to receive payments with local and SWIFT account details in various currencies.
There’s no fee to open a personal account, and while there’s a one time charge of 31 USD for a business account, you’ll get all the features of a personal account with some great extras. Issue debit and expense cards for yourself and your team, send batch payments, integrate with cloud accounting solutions and access a powerful API to streamline workflow.
Eligibility: Sole traders and freelancers in the US and many other countries – apply for either a Business or Personal account depending on your needs. Learn more here Wise Business requirements.
Is Wise regulated in the US?: Wise is registered with FinCEN in the US and also overseen by many other similar bodies around the world, wherever it offers services. In the US it has state licensed in many locations, and offers account services through partnerships with other major financial institutions elsewhere
Best features of a Wise Business account
- Hold and exchange 40+ currencies with the mid-market rate and low fees
- Receive incoming foreign currency payments with local account details in 8+ currencies, and SWIFT details for additional currencies
- No ongoing fees, no minimum balance – just pay low transaction fees based on account use
| Advantages of Wise Business account | Disadvantages of Wise Business account |
|---|---|
| ✅ 40+ supported currencies ✅ Get paid by customers, PSPs and marketplaces in many currencies ✅ Currency exchange with the mid-market rate ✅ No ongoing fees, no minimum balance | ❌ No cash deposit facilities ❌ Some transaction fees apply
|
Learn more: Wise Business Review
Revolut account
🏅 Great for: Sole traders who want to open a personal digital account to hold and exchange currencies, with no extra fees for some weekday conversion
Revolut offers sole traders in the US the option to open one of 3 different types of Personal account, with fees from 0 USD to 16.99 USD a month depending on the features you need. All accounts can hold and exchange 25+ currencies, with some weekday currency exchange with the Revolut rate and no additional fee every month.
All Revolut account tiers have a linked debit card, and allow you to receive payments using either local or SWIFT details. You can also make some no fee ATM withdrawals within the Revolut network. Fees of up to 2% apply out of network.
Eligibility: Sole traders and freelancers in the US and many other countries can apply for a Revolut Personal account – Revolut Business products are not available for US sole traders
Is Revolut regulated in the US?: Revolut is overseen by a selection of regulatory authorities around the world, and offers services through partnerships with other financial institutions where necessary
Best features of a Revolut account
- Choose different account types depending on needs – you can upgrade if your requirements change
- All accounts offer some currency conversion with the Revolut rate on weekdays
- Some accounts have no ongoing fees
| Advantages of Revolut account | Disadvantages of Revolut account |
|---|---|
| ✅ Different account tiers for different customer needs ✅ All accounts have linked debit cards ✅ Some no fee weekday currency conversion every month ✅ 25+ currencies supported for holding and exchange | ❌ Sole traders can not open a business account ❌ Monthly fees of up to 16.99 USD may apply |
Learn more: Revolut Business Review
OFX account
🏅 Great for: Ecommerce sellers and digital businesses getting paid by customers, PSPs and marketplaces in 7 major currencies
OFX is a currency specialist operating in the US and many other countries globally. Business customers and sole traders can open a Global Currency Account to get local account details in 7 currencies, to receive payments from abroad. You can use your account details for invoices, PSPs and marketplaces, and either hold your balance in a foreign currency, convert and withdraw to USD, or send to others – to pay taxes or suppliers for example.
OFX has a strong reputation for customer service, and offers a 24/7 phone line as well as self service online and in app options.
Eligibility: Sole traders, ecommerce sellers and similar business types, in the US and many other countries
Is OFX safe to use?: OFX is regulated in the US and everywhere else that services are available
Best features of a OFX Business account
- Get paid, from 30+ countries, and pay others easily in 50+ currencies
- No ongoing costs, no minimum balance
- Well established business with great customer support through personal brokers
| Advantages of OFX Business account | Disadvantages of OFX Business account |
|---|---|
| ✅ Receive and hold 7 currencies ✅ No ongoing costs, no minimum balance ✅ 24/7 phone service if you need to talk to someone ✅ Currency risk management solutions | ❌ No debit card ❌ Exchange rate markups used |
Learn more: OFX Review
Bank of America Business Advantage Fundamentals Banking
🏅 Great for: Sole proprietors who want an account with both digital and branch transaction options
Bank of America has several account options which may suit sole traders in the US – we’ve selected the Advantage Fundamentals Banking as a good option for newer or smaller businesses and sole traders.
There’s a monthly fee of 16 USD for this account, but you can have this waived either by maintaining a minimum deposit of 5,000 USD, or using your debit card to transact, giving flexibility to customers. You can also spend with your debit card, transact in branches and online, and get checking services.
Eligibility: Available for business owners and sole traders in the US. Applicants must be US resident, and agree to a credit check
Is Bank of America safe to use?: Yes. Bank of America is one of the largest banks in the country, fully licensed and regulated, and safe to use.
Best features of Bank of America Business account
- Waive monthly fee with debit card spend or minimum balance
- Free to enroll in the Bank of America Preferred Rewards Scheme
- 200 free transactions monthly
| Advantages of Bank of America Business account | Disadvantages of Bank of America Business account |
|---|---|
| ✅ Waive monthly fee with debit card spend ✅ Add on second business account or savings account options ✅ Checking services available ✅ Lots of analytical tools and access to credit checking | ❌ Monthly fees apply unless you meet eligibility criteria ❌ 3% foreign transaction fee for card spending, and out of network ATM fees apply |
PNC Basic Business Checking Account
🏅 Great for: Sole proprietors who need to deposit cash monthly, looking for a low cost account with ways to waive ongoing fees
PNC has a basic checking account for businesses which has several easy ways to waiver monthly fees, including a low deposit requirement of 500 USD. You’ll get some free transactions monthly and the option to deposit cash at a branch with no fee for the first 5,000 USD.
Accounts have a card for convenient payments and withdrawals, and you can also unlock tools to track and manage your cash flow, as well as overdraft protections.
Eligibility: Available for business owners and sole traders in the US. Quick switch support available
Is PNC safe to use?: Yes. PNC is one of the largest banks in the country, fully licensed and regulated, and safe to use.
Best features of PNC Business account
- Several ways to waive ongoing fees, including low monthly balance requirement
- Free debit card, no fee for PNC ATM withdrawals
- 150 free transactions monthly
| Advantages of PNC Business account | Disadvantages of PNC Business account |
|---|---|
| ✅ Waive monthly fee with 500 USD balance ✅ No fee to deposit up to 5,000 USD cash ✅ Overdraft protection available ✅ Cash flow insights and analytics tools | ❌ Monthly fees apply unless you meet eligibility criteria ❌ Up to 5 USD international ATM fees apply |
Best online business accounts for sole proprietorship
All of the accounts we’ve highlighted above are digital products, either offered through online specialists which have no branch network, or US banks which also offer digital products. Here’s a roundup of best online business accounts:
- Wise Business Account: Digital only specialist provider, services online and in app
- Revolut Business Account: Digital only specialist provider, services online and in app
- OFX Global Currency Account: Digital first specialist provider, services by phone, online and in app
- Bank of America Business Account: Access services online, in app and in branches
- PNC Business Account: Access services online, in app and in branches
Fees for business checking accounts for sole proprietorship
Pretty much all sole trader accounts will come with various fees, which you’ll need to consider before opening. Because different banks and alternative providers have their own approach to fees, it can be tricky to compare one option to another – make sure you review all ongoing and service fees for the types of transactions you’ll make often. We’ve covered a few here – but other fees may apply depending on how you use your account, so looking carefully at the small print is essential.
| Provider/Service fees | Account opening fees | Account maintenance fees | Minimum balance requirement | Other fees |
|---|---|---|---|---|
| Wise account | No fee for personal accounts 31 USD for business accounts | No ongoing fees | None | Currency conversion from 0.33% Some ATM fees once allowance exhausted |
| Revolut account | None | 0 USD – 16.99 USD/month | None | 0.5% fair usage fee for currency conversion ATM fees of up to 2% |
| OFX Global Currency Account | None | No ongoing fees | None | Exchange rates include a fee |
| Bank of America Business | None | 16 USD/month | None | 3% foreign transaction fee Up to 10 USD international ATM fees apply |
| PNC Basic Business | None | 12 USD/month | 100 USD | Up to 5 USD international ATM fees apply |
*Fees and information correct at time of writing – 17th September 2024
How to open a business account as a sole proprietor online
How you open your business account will depend on the provider or bank you pick.
Here’s a look at step by step how to open a business checking account online or in a branch:
1. Choose the account you want to open
If you’re opening online, download the provider’s app or open the desktop site, and check your eligibility. If the provider requires you to visit a branch, make an appointment to save time when you arrive.
2. Gather all the documents and paperwork needed
You’ll need to be verified as part of your application, which means providing personal and business documents. We’ll cover what’s usually required in just a moment. Pull together the documents needed to open a business account to save time later.
3. Fill out the application in person or online
If you’re opening your account digitally just follow the prompts to give your personal and business details – in a branch the team member will walk you through what’s needed.
4. Complete the verification step by handing over or uploading the documents requested
You should have all your paperwork prepared so you can simply follow the prompts to upload images of your paperwork if you’re applying online. In a branch you can hand over your documents to the team member.
5. Pay any required account opening fee or add money to your account if a minimum deposit is required
Different banks and providers have their own minimum balance requirements – or no minimum balance may be mandated when you open your account. Just add what you need to start transacting.
Sole proprietorship checking bank account requirements
There are a few common eligibility requirements – and you’ll also need to have a stack of paperwork and some key information on hand when you apply.
Here are some common requirements to bear in mind:
- Age: Usually you must be 18 or over to open your account
- Residency: Many bank accounts are only available if you’re a US resident. Options, features and fees may vary depending on where in the US you live
- Business turnover: Some accounts are only available to people with a set level of annual turnover
- Business types: It is common to find that providers can’t offer accounts to all business types – if you’re involved in crypto trading, gambling or other regulated markets you may need a specific account type for example
Here’s a look at the documents and information usually needed to open a US business account:
- Your full name and date of birth
- Your contact information and address
- Proof of ID and address – often a passport for ID, and a utility bill for address
- Your SSN or business EIN
- Information about your business such as address and any assumed name
- Business license (also known as an Occasional Tax License – and not always necessary)
Does a sole proprietor need an EIN?
While the exact requirements may vary depending on the provider you pick, sole proprietorships may usually use either their EIN or Social Security Number (SSN) as part of their application.
What type of checking account is best for sole proprietorship?
There’s no single account that’s best for all sole traders in the US – different people have their own needs and preferences. Instead, you’ll want to compare a few different account types and options to find one which most closely matches your requirements. Here are a few common things to think about:
International features
If you have customers, suppliers, contractors or team members overseas, you could benefit from a sole trader account with strong international features.
Options may include holding a foreign currency balance, sending international payments, and receiving overseas payments with local or SWIFT account details.
- Wise supports 40+ accounts for holding and exchange with local and SWIFT details for receiving payments
- OFX has local account details in 7 currencies which you can use with PSPs and marketplaces – or add to your invoices to get paid easily
Wise and OFX are two of the best international money transfer services in the US, if you’d like to learn more this guide can help: Best money transfer apps for business
Cash and check deposit options
If your business needs ways to deposit cash or checks you may be best off with a business account from a bank which offers branch services. Compare fees for this – most banks and providers have some sort of charge for cash deposits for example.
- PNC allows you to deposit up to 5,000 USD a month with no fee
- From 1 November, 2024, Bank of America allows you to deposit up to 5,000 USD a month with no fee (until this time the limit was 7,500 USD)
No ongoing fees
Ongoing fees can eat away at the profits your business makes. If you’re not completely sure you’ll use all the features your business account gives you, you might choose an account with no monthly fees so you can test drive features with less risk.
- Wise has no ongoing fees – some Revolut accounts also have no monthly charges, and both offer impressive international features
- Bank of America and PNC both offer accounts which have several different ways to waive ongoing fees, including minimum balance requirements and card spending
Conclusion: What is the best bank for the self-employed?
There’s no single best account for US sole traders and self employed people. The right one for you will depend on how you need to transact – but as both banks and online alternative providers have quite varied features and fees, shopping around is essential to get the right option for you.
Consider both bank business accounts and online specialist alternatives.
- If you need to pay and get paid in foreign currencies, Wise could be a good fit, with both Wise personal and business account options available for sole traders.
- If you’re thinking of a multi-currency account with varied account tiers and fees, Revolut may be a good pick, with 3 different personal account types open to sole traders – all with their own unique combinations of features.
Use this guide to start your research and select the very best sole trader account for your needs.
