When you decide to strike out on your own as a freelancer, there’s a lot that goes into securing your financial future. Among the first, is opening a freelancer bank account. From keeping your income organized for tax purposes to facilitating seamless interactions with clients, you’ll need a freelancer bank account to get your one-person enterprise off the ground. Thankfully, it’s easier than you think if you work with the right online bank.
Not sure how to set up a bank account for your freelancing endeavors? Here’s a rundown of everything you need to know.
Do Freelancers Need a Business Bank Account?
When they strike out on their own for the first time, many freelancers wonder if they actually need a business bank account. The answer is, not necessarily; however, it can be good practice to set one up to support a future where you incorporate.
It’s also smart to separate your personal funds from the revenue you bring in as a freelancer, so you can better-understand the financial operations of your venture. It’s why many enterprising freelancers use online banking: it’s simple, convenient, and designed to support them.
Banking Features to Look Out for As a Freelancer
Choosing the best freelancer or self-employed online banking option saves you time and hassle in so many ways. Not only does opening an account online save you the time and effort of visiting a physical bank branch, many online bank accounts include time-saving features that help you streamline the management of your budding business. Key features to look for include:
- App Integration: Streamlining business is the name of the game when it comes to online business bank accounts. Online banks like NorthOne offer seamless integration with all the apps you need to help you do business, including accounting and e-commerce apps like QuickBooks, Shopify, Etsy, PayPal, Wave, CashApp, and more.
- Mobile Check Deposits: As a freelancer, you’re responsible for your livelihood. You need to get paid, and you need to get paid fast. Express deposit options like mobile check deposits gives you peace of mind that you’re getting the money you’re owed as quickly as possible—even when clients and customers pay with physical checks.
- Budgeting Tools. For freelancers, it pays to stay organized and on top of your cash flows. Look for a business checking account that offers the convenience of budgeting or allocation tools, like NorthOne Envelopes. It’s the simplest way to track your funds and plan for the future.
Which Bank Account is Best for Freelancing?
If you’re a freelancer or you’re running your own small business, you need a bank account that’s tailored to your specific needs. NorthOne is a bank made for freelancers, small businesses, and startups—the perfect partner for getting your finances in order. With features specifically designed for business owners, you’ll get access to everything you need to feel good about your freelancing financial structure.
How to Open a Business Bank Account for Freelancers
It’s easy to open a business bank account as a freelancer, especially if you do it online. Once you’ve found the right bank—one that has all the features and resources you need—it comes down to gathering and submitting appropriate documentation. At NorthOne, you can apply for an account in a matter of minutes! Just make sure you have the following documents on hand:
- Social Security Number (SSN)
- Personal identification
- Certificate with name and date of birth
- Business license
Benefits of Opening a Business Bank Account
While freelancers aren’t legally required to open a business bank account, many do. Here’s why:
- Legitimacy. Having a business bank account for your freelancing venture shows the world your professionalism. Sending and receiving payments from a business bank account helps you look legitimate, increasing your chances of getting repeat business. Many customers and clients simply feel better about transacting with a partner that operates as a business.
- Flexibility. As you grow your business, you need a bank account that offers transaction flexibility. This is where business bank accounts shine. These accounts often have fewer limits than personal accounts, allowing you to send and receive countless transactions every month. As your earning power as a freelancer grows, your account will support increasing cash flow demands.
- Convenience. With an online business bank account, you can access the banking services you need anywhere in the world, as long as you have Internet access. You never have to step foot in a brick-and-mortar location, saving you time so you can focus on running your business. This convenience equates to peace of mind as you focus on growth.
Frequently Asked Questions
Can you open a business bank account if you are self-employed?
Yes, you can open a business bank account if you’re self-employed. Keep in mind that institutions will require a Taxpayer Identification Number (TIN) or Employer Identification Number (EIN), in addition to documents that prove your legitimacy.
Can I open a business bank account as an independent contractor?
Yep, you can open a business bank account as an independent contractor, either at a local bank or online. Mobile banking is the preferred option, since you won’t have to go to a physical location to deposit or withdraw funds.
Are freelance bank accounts considered bank accounts?
Freelance bank accounts are bank accounts, but they’re different from personal accounts. As a freelancer, you’re not legally required to open a separate business account, but it’s helpful for tracking expenses, managing cash flow, and simplifying taxes.
It’s Time to Simplify Your Freelance Operation
Many people enjoy freelance work because of the freedom and lifestyle it provides. Banking for freelancers should be no different. Open a freelancer bank account with NorthOne and enjoy a seamless banking experience that saves you time, money, and hassle, so you can focus on creating a successful freelancing career.