The 9 best (business*) banks for an author starting out.
In 2020, I started my business, Hartsfield Homestead & Press. But I started making money with my poetry back in 2017. Before starting a business, I put all my author royalties and book sales into my personal savings account. Quickly I realized that even if writing wasn’t a livable income yet I needed to separated my business from personal accounts. That didn’t happen until after I established HH&P, but I remember trying to figure out which bank or service platform to use and being overwhelmed. Well, I’ve tried all these banks so that you don’t have to. If you find a bank or service below that really resonates with you and what you currently need, go for it! All of these are free and easy to set up and most of these do not require that you maintain a monthly minimum!
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FOUND is a small business banking app that markets itself on being a one-stop-shop for businesses. Their website is super easy to navigate, and their app is clean and elegant. Their whole brand feel is clean and elegant. I love the look of their cards, and it’s one of the few that I can fit my whole business name on the front. They’ll help you figure out how much to save for your taxes, and you can pay the IRS directly from FOUND. You can send invoices and pay invoices from their website and app, and they’ll help you track your transactions and generate income and expense reports. Now that I’ve tested out the other guys, I’m moving the base of my financial operations to FOUND! With FOUND there are no account fees, no monthly minimums (yay!), and no credit checks. Which makes this ideal for authors (and other artists) just getting started. Sure, there are better business bank accounts out there, but when you’re living paycheck to paycheck and just building your career in your chosen art field the chances of being eligible for those accounts are slim. And FOUND is FDIC insured up to $250K. So happy banking!
Check them out here and get $20 back on the first $100 you spend from your account.
This is actually the POS system that I first started using in 2017 when I published the first printing of Aesthetic Blindness. Their free card reader fit in my wallet and allowed me to make sales on the go through their app. I absolutely love SQUARE, so I was thrilled when they shot me an email saying that they were launching their own business banking products. Even though they rank number two on my list, I’m keeping this account because when I am doing in-person events I can access my money immediately. SQUARE also has automatic tax savings and you can host your products on their virtual terminal so if you can’t splurge on a website of your own yet, you can still sell your products. With the business savings account you can create folders to save for specific projects and expenses.
SQUARE is a one-stop-shop of a different sort, in that you can order a complete POS system and have all of your business needs under one roof (or website!). Seriously, when you’re just getting started, this is a stellar platform.There is a processing fee for using Square, though.
Want $1,000 in fee-free processing? You can check out SQUARE here!
Until recently, this has been my main bank for HH&P. Like FOUND, it has invoicing, no minimum balance, and no fees. I can not stress enough how helpful it has been to not have to worry about maintaining a monthly amount in my account in order to avoid fees. My income stream from writing isn’t steady enough to bank on yet (pun intended!). NOVO was super easy to set up, super easy to use, and you can even upload your DBA paperwork and write and cash checks under a different name (authors with pen names!). So why is it only in the number three spot? Because NOVO is an actual business account and you do need to have filed a business with your state in order to open an account. When you’re just getting started having a business filed with your state might not be necessary yet.
Already have your ducks in a row paperwork-wise and need a real* business account? Open a NOVO account here.
If you are just getting started, just dipping your toes in to see if you could turn your art into a side hustle (and eventually into your main gig) I think using CashApp is a great way to go. You can deposit up to $500 for a $1 fee at any Walmart or Dollar General (and a few other stores, but almost everywhere has one of these two) which means you don’t have to carry cash on you after a vendor show, farmers market, or book reading. They’ll let you design your own card, which was fun. You can use it as a virtual tip jar by advertising your $Cashtag on social media and at events, which is amazing. Plus, you can add bonuses to your card for cash back and rewards AND dabble in bitcoin and stocks with your spare cash.
While not technically a bank account, money stored in your CashApp account is FDIC insured.
I think CashApp is perfect for side hustles, and if you want $5 for opening your account use this link!
Venmo is very similar to CashApp. One is a SQUARE extension and the other is PAYPAL’s version. Venmo also has no monthly fee, offers a debit card, and has no credit check and needs no minimum balance. While the card personalization is limited to color preference, Venmo offers a line of credit to individuals and business that are eligible. This is something that none of the above are offering (yet) and can be beneficial if used wisely to help build credit and pay for inventory or travel expenses up front while you wait for your venue or sales to cover or recoup those expenses. Although, especially in the beginning, putting business expenses on a credit line can be a dangerous gamble. I’d be careful there. Which is one of the reasons why this is slightly lower down on the list.
However, I think Venmo is pretty popular and the general public is familiar with.
Earn $5 for signing up and making a purchase of at least $5 within 14 days.
Ah, Paypal. This used to be it when it came to online banking and retail for small businesses. Honestly, it’s not my favorite platform to use but it is so widely accepted that it was impossible for me to not include it on this list. I’m not sure how new PayPal cards are, but you can get up to four cards to allow employees and families to help make business purchases, which I do appreciate. I’ve had to send Seth out for purchases and then move money around, so having his own card to make HH&P purchases for me would be really nice. You can also manage invoicing and subscriptions and PayPal has a donation feature which Seth uses at Engage Outreach Ministries. I don’t see this one going away anytime soon, so this might be a good option to get on board with.
Ally*
So, this one isn’t a business account, but it is free and pretty easy to set up. I love the savings account feature that allows you to create folders or reserves and designate your savings to specific projects or expenses. Why include non business accounts on this list? For those of you that aren’t ready to make a business out of your art yet but are ready to take your side-hustle to the next level with a real bank account that’s separate from your ‘personal’ account. It’s easier to track ‘business’ transactions that way, and it can keep you from draining your personal account to keep your art gig afloat. And who knows, you might be in high school and college and not have a personal account at all yet, or not one that is easily accessible while on the go. Not all local banks have an easy to use online interface.
This one is new for me, but I’m excited to try it out. Besides a checking and savings account, Chime offers a credit card to eligible customers that can help build (or rebuild) good credit. Their credit card has no anual fees or interst, no credit check, and you set the credit limit by moving money into the credit builder account. Since you are borrowing your own money, it’s really hard to tank your credit score on this account. But Chime reports back to the credit bureaus when you make (or miss) payments and so if you are young and need to establish credit or if you’re rebuilding your credit this is a great opportunity. And with Chime’s SpotMe! you can overdraft up to $20 with no fees. Again, it’s not a business account but it could still be beneficial.
You can learn more here, and get $100 when you join Chime (after setting up and recieving a direct deposit).
Varo also has a line of credit, and is very similar to Chime. However, instead of borrowing against your own account, you can get an advance of up to $100 in between paychecks and set your own repayment date. There are also cash back offers you can apply to your debit card and you can deposit cash at several gas stations and stores. For someone working a mostly gig/paid in cash job, being able to easily deposit cash without relying on a ‘local’ bank is a god-send. When my husband and I first graduated, that wasn’t something readily available and we had to travel with large amounts of cash which was just so stressful. It seems like a few online banks are offering this now, and I am here for it!
Get $50 when you open an account at Varo and spend $20 within the first 30 days.
I hope this list was helpful! As an artist or an author trying to use your craft to make ends meet, sometimes the business side of things can feel daunting. Hopefully you were able to check at least one thing off your never-ending list and start a business* bank account.