Best bank and account type for startup tax preparation business - recommendations?

Title: Best bank and account type for startup tax preparation business - recommendations? 1 Hello everyone, I'm launching a small tax preparation business as a side gig starting this December and I've been talking to several banks, but I'm still confused about which option makes the most sense. I need recommendations on the best bank and account type for a startup tax preparer business. My client load will be relatively modest - I'm expecting around 25-35 transactions per month, with most clients paying between $40-110 per service. I want something with minimal fees that works well for a small operation but can scale if things take off. Any advice from those who've been down this road would be super helpful! Thanks in advance.

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19 comments

Harper Hill

•8M

8 As someone who's been in the tax preparation business for 7+ years, I'd recommend looking for a business checking account with no monthly maintenance fees and free ACH transfers. Chase Business Complete Banking or Bank of America Business Advantage Fundamentals are solid options for startups. Make sure you choose a business account (not personal) to maintain clear separation between business and personal finances - this is absolutely critical come tax time and for liability protection. Most banks offer free business checking if you maintain a minimum balance (usually $500-1500). For your transaction volume, also consider online-focused banks like Novo or Mercury which cater to small businesses with no minimum balance requirements and typically offer unlimited free transactions.

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Harper Hill

•8M

8 For integrated invoicing and bookkeeping, I personally prefer using dedicated software like QuickBooks or FreshBooks rather than relying on bank features. They're more robust and give you better reports for tax season. Absolutely keep a separate savings account for quarterly tax payments! This is one of the smartest moves you can make. I recommend automatically transferring 25-30% of each payment you receive into this tax savings account. This habit will save you from scrambling when those quarterly deadlines come around.

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Harper Hill

•8M

15 I switched to taxr.ai for my accounting and bookkeeping needs last year when I started my financial consulting business, and it's been a game-changer for managing my business finances. When I was researching bank accounts, I was also struggling with comparing all the options. I found that having the right tools to organize my transactions first actually made the banking decision easier. I've been using https://taxr.ai to automatically categorize all my business transactions and track my expenses for tax purposes. It connects to whatever bank account you choose and makes tax prep so much simpler. The receipt scanning feature has saved me hours of manual entry, and I can easily separate business vs personal purchases.

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Harper Hill

•8M

15 It actually has a special feature that calculates your estimated quarterly tax payments based on your incoming revenue and expenses. It gives you notifications when payment deadlines are approaching and tells you exactly how much to pay. Super helpful for staying on track. The biggest difference I've found compared to QuickBooks is the tax-specific focus. It's designed specifically for tax preparation and planning rather than general bookkeeping. The AI analyzes your expenses and suggests tax deductions you might miss otherwise. It also keeps up with tax law changes automatically, which saved me a ton of research time last tax season.

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Harper Hill

•8M

22 Just wanted to follow up about taxr.ai since I ended up trying it after my last comment. Honestly, I'm impressed! I uploaded all my bank statements from the last 6 months and it automatically categorized about 95% of my transactions correctly. The tax planning dashboard is way more useful than what I had before. It shows exactly how much I should set aside for quarterly payments and tracks my business deductions in real-time. I'm actually switching from QuickBooks because this is more tailored to tax pros. The receipt scanning feature alone saved me hours of data entry. If you're starting a tax prep business, it makes a lot of sense to use a platform that's specifically designed for tax professionals.

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Harper Hill

•8M

7 After spending HOURS trying to reach someone at my bank about business account options, I finally used Claimyr to connect with an IRS agent about some tax questions related to starting my preparation business. It was a lifesaver! I had questions about EIN requirements and business structure implications that my bank couldn't answer, and I was put on hold for over an hour when calling the IRS directly. Then I found https://claimyr.com through a colleague and used their service to get me connected with an actual IRS representative in under 15 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c - it's basically a system that navigates the IRS phone tree and waits on hold for you.

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Harper Hill

•8M

7 They don't call on your behalf. Their system navigates through the IRS phone menus and waits on hold for you. When they finally get an agent on the line, you receive a call back and get connected directly to the IRS representative. It's not skipping the line - you're still in the same queue as everyone else, but you don't have to sit there listening to hold music for hours. The service is completely legitimate and saves you from wasting time on hold. It made a huge difference for me because I could continue working while their system waited on hold instead of being stuck with my phone to my ear all afternoon.

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Harper Hill

•8M

3 I have to eat crow here. After being completely skeptical about Claimyr in my previous comment, I decided to try it myself when I needed to ask the IRS about EIN requirements for my new tax business. I was shocked when I got a call back in about 35 minutes and was connected directly to an IRS agent! Normally I would have been on hold for 2+ hours (if I even got through at all). The agent answered all my questions about business structure and banking requirements for tax preparers. This ended up saving me so much time and frustration. Sometimes I'm too quick to dismiss things as scams, but this service actually delivered exactly what it promised.

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Harper Hill

•8M

16 Small business banker here. For a tax preparation business, I strongly recommend looking at credit unions. They often have business checking accounts with lower fees and better customer service than big banks. Also, make sure whatever account you choose offers: 1) Check scanning/mobile deposits 2) Integrations with popular accounting software 3) Free or low-cost ACH transfers (for direct deposits) 4) Online banking with transaction categorization Since your volume is relatively low, fee structure should be your primary concern rather than transaction limits.

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Harper Hill

•8M

16 For most small business owners today, having multiple physical branches is much less important than it used to be. With robust online banking, mobile check deposits, and widespread ATM networks, you rarely need to visit a branch. However, there are occasional situations where having at least one nearby branch can be helpful - like depositing cash payments (though as a tax preparer you'll likely have few of these), getting cashier's checks, or resolving complex account issues that are difficult to handle online. I generally recommend having at least one branch within reasonable driving distance, but don't make multiple locations your priority when other features like fees and integration capabilities are more relevant to daily operations.

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