- Qonto Basic – Best business bank account for freelancers and self-employed in Germany. Everything is in English.
- N26 Business Standard – Great for freelancers. Everything is in English.
- Finom Start – Stress-free banking for freelancers and solopreneurs. Everything is in English.
Basic fee for monthly payment: €9 (€10.71 with VAT)
Basic fee for monthly payment: €11 (€13.09 with VAT)
Why do freelancers need a separate business bank account?
While it might be tempting for freelancers or small businesses to manage customer payments through their private accounts initially, maintaining a separate account for business purposes is crucial. However, the process is not as daunting as it may seem.
Separation of personal and business expenses
Operating without a business creates challenges, keeping your financial records clear and distinguishing between private and business finances.
Mixing private and business transactions makes it nearly impossible to identify your business’s profit, but also delayed customer payment and problematic financial trends promptly.
Opting for a separate business account enhances visibility of business payments in terms of incoming revenue and outgoing expenses, facilitating bookkeeping for yourself and your tax advisor. This knowledge empowers you to make informed financial decisions for your business. So, if you are opening a business, you should also directly apply for a business account.
Business bank account obligation — for corporations only
Whether a statutory business account obligation exists depends on the company’s legal form. Companies, which are legally regarded as corporations, such as GmbH, Unternehmergesellschaft (UG), and Aktiengesellschaft (AG), and all other entrepreneurs who are listed in the commercial register, must maintain a corporate account. Freelancers and solopreneurs, on the other hand, can also use their private bank account for business banking, at least in theory.
Nevertheless, opening a business account is strongly recommended as well for freelancers and self-employed persons in Germany to streamline their financial management and to optimize the transparency of business transactions.
In addition, most banks expressly exclude business transactions on private accounts. If you violate this rule, you must expect your private account to be terminated.
How do private and business bank accounts differ?
Foremost, you maintain a private account to handle cash payments in and out. Payments for rent, loans, mobile phone, internet, and landline are debited from your checking account. Using a debit card, you withdraw cash and make cashless payments for your purchases. The expenses are typically offset by a salary, alimony payments, or social benefits as income. You may also receive a credit card for your current bank account, and with good creditworthiness, a disposition credit can be granted to bridge short-term payment bottlenecks.
Special functions of a business bank account
However, business-related expenses such as office rent, utilities, professional services, and supplies should be managed through a separate account for business purposes.
Essentially, a company account functions similarly to a private one. It facilitates cashless transactions, payments to suppliers, and the receipt of payments from customers for services rendered.
The significant difference, particularly for medium or larger companies, is the availability of specials business banking services as direct debits of customers and other special business payment solutions. Additionally, many business account providers aim specifically at business customers and offer customized advice and support for business clients. These can be, for example, start-up and financing advice or expert support for the expansion of the company.
Some business account services are generally not offered for private accounts. These include:
- Direct debits of invoices and customer contributions
- Credit notes to customers
- Card payments from customers
- Salary payments to employees
- Integrated digital tools for accounting and taxes
Integration of accounting and tax software
In practice, the integration of accounting and tax software in a company account is becoming increasingly important in business banking. Fintech business account providers, in particular, have brought here powerful solutions into the market. You can use them to optimize accounting, invoice, and tax matters or even completely digitalize them.
Business overdraft facility and corporate loans
If the bank assesses your creditworthiness positively, a business overdraft can be granted for your business bank account. Individual growth financing for your company is also possible.
Without a business bank account, you will not have these options. You should also be aware that many banks in Germany are very restrictive to grant personal loans to freelancers and self-employed persons.
Creditworthiness is a measure of your ability to repay debts, and a positive assessment can lead to better banking options and lower fees. To make their assessment, the banks obtain a Schufa report. With corporations, they may take a look at your annual finance report or tax documents. For founders, the business plan is an important document for obtaining financing.
Tax advantages of a business bank account
There are also tax advantages associated with a company account. The costs for account management, as well as interests on an overdraft facility and other loans, are fully tax-deductible as business expenses.
However, the prerequisite for uncomplicated recognition of account costs and other business expenses by the tax office is the strict separation of private and business finances, which you can only achieve with a business bank account. In the case of mixed business and private account use, all deductible items must be proven with individual receipts — in the case of a business account, the account statement is often sufficient as proof to the tax office.
How to compare different business accounts?
A few years back, as a freelancer or solopreneur in Germany, your choices for a business account were limited. Nowadays, most business account providers have recognized freelancers as valuable and stable business customers. Consequently, they offer a wide range of account options.
Branch banks, direct banks and fintechs
High-performance business account offers you find at established banks such as Commerzbank and Postbank, as well as at direct banks and fintechs. Neobanks and fintechs such as Qonto, N26 or Finom typically equip their business accounts with innovative features.
Before selecting an account: Comparison of account conditions
Given the significant differences in costs and services among business account providers, it’s essential to review carefully the conditions before opening a business account. Consider which services are vital for you and your company.
Conduct a thorough comparison of the offerings to find a business bank account that perfectly aligns with your requirements at reasonable costs. Once your account is set up and your business partners are informed, changing it later is time-consuming and takes away valuable time that could be better spent on your clients.
When comparing business bank accounts, pay close attention to the costs associated with transactions. Some banks limit the number of paperless bookings per month, and exceeding this limit may result in high additional transaction fees. If a credit card is necessary, check how many cards the bank issues. While many business account providers limit the number of credit cards, this might not be sufficient if you have employees requiring additional cards.
Please note: Most banks do not issue credit cards with overdraft facilities for their business bank accounts, but provide a debit payment card (VISA or Mastercard). With these cards, payments are debited directly from the account. Depending on the business account provider, you can also apply for a real credit card.
The following table gives you an overview of the conditions for selected business accounts:
| Business account | Annual fee | Booking fees | Cards and user accounts included | Special features |
|---|---|---|---|---|
| Holvi Lite | €128,2 | 500 free, then €0,25 |
1 Debit Mastercard, 1 user account | Integrated accounting function |
| Holvi Pro | €214,20 | 500 free, then €0,25 |
3 Debit Mastercards, 3 user accounts | Integrated accounting function |
| N26 Business Standard | €0.00 | unlimited €0,00 | 1 Debit Mastercard | 0.1% cashback on Mastercard payments |
| FYRST Base | €0.00 (freelancers/solopreneurs) | 50 free, then €0.19 | 1 Girocard, 1 Debit Mastercard, 1 user account | Integrated accounting function |
Optimizing financial management with subaccounts
Consider the number of subaccounts, especially if your business is expanding rapidly. Some business account providers offer a single account for all transactions, while others allow you to set up multiple subaccounts without extra charges. This feature can help you stay organized and keep track of your business’s financial activities.
Free subaccounts are mainly offered by neobanks and fintechs. Branch banks almost always charge a fee to set them up.
Digital business accounts from neobanks and fintechs
Explore the offerings of fintechs, often small start-ups specializing in online banking products. Neobanks such as Qonto and N26 also have their roots in the fintech scene.
Business account offers from fintechs and neobanks can be an ideal solution for freelancers and solopreneurs with predominantly digital business models. They excel in fast and straightforward cashless transactions.
Such an account you manage only via online banking or mobile apps. Many of these providers offer comprehensive additional digital services for their business accounts and see themselves as integrated digital business platforms.
Although the price for fintech products can be appealing, be aware that some providers may adjust the costs based on transaction volume, potentially making account management expensive as the number of transfers increases.
However, with a cash-intensive business model, you should consider wisely, if you really want to open a business bank account with a fintech or neobank. These business account providers usually operate exclusively digitally and do not operate a branch network. To deposit cash is usually only possible at third-party banks at high transaction fees. Free cash withdrawals are either not offered or are limited to a few monthly withdrawals.
One exception is the fintech FYRST, which belongs to the Deutsche Bank Group and uses their infrastructure for cash transactions and paper-based bookings.
What are the costs of a business bank account for freelancers?
In general, the bank is entitled to charge a fee – the account maintenance fee – for managing your business bank account. Typically, this covers executing all kinds of incoming and outgoing bookings.
However, all banks will charge additional fees for paper-based bookings and to deposit cash. However, these services are offered almost exclusively by the established banks with branch business. Certain providers, like Deutsche Bank, offer up to five free deposits.
Additional fees may apply for the debit cards and ATM cash withdrawal. Nevertheless, some business account providers offer a free debit card with the business bank account, so a careful comparison is essential. There are always fees for real credit cards.
Moreover, don’t underestimate the interest rates if you have a credit line granted.
All in all: The range of business accounts for freelancers, solopreneurs, and companies is highly diverse, with significant pricing differences from one bank to another. Before selecting a business account provider, closely examine the fee structure. Some banks for freelancers offer various account models depending on the number of transactions or subaccounts and credit cards.
How does a free business bank account work?
Some neobanks and fintechs refrain from charging monthly fees in exchange for offering only the most important services, such as making cashless deposits and withdrawals to your account. For freelancers and solopreneurs at the beginning of their development, such business accounts can still be an interesting option.
With a free bank account, you should carefully check which services are offered and for what a fee may be charged.
Additional services such as the integration of accounting and tax software are often not available or only available to a limited extent for free accounts.
Generally, free business accounts are only offered by a few neobanks and fintechs. Branch bank accounts are always subject to a fee.
Can you open a business bank account despite a Schufa entry?
When opening a business account, the Schufa score of the applicant is usually queried. The bank uses this to check whether any irregularities in payment behavior have been detected in the past.
Additionally, the opening of the new account is entered in the Schufa and stays listed there as long as the business relationship exists. With this measure, the bank protects itself, especially if a credit is to be established for the business account.
However, you can open a business account without Schufa with some neobanks and fintechs. At least initially, no account credit is granted for such an account. With some Schufa-free business account providers, it is possible to set up a credit line at a later date.
Checklist for opening a business account for freelancers and solopreneurs
Here is a summary of the most significant things you should consider before opening a business account for freelancers and solopreneurs in Germany:
- Account maintenance fees: Explore different account models to find one that suits your business and identify the services you truly need. Check, if there are hidden fees.
- Consulting options: Especially crucial for freelancers and solopreneurs, as questions often arise in the beginning that a bank advisor may better address than an online FAQ.
- Credit options: A noteworthy criterion for freelancers and self-employed people, as this group often doesn’t have a high start-up capital. An overdraft facility can be beneficial, especially in the beginning.
- Costs for paperless transactions: Check which costs apply and whether the business account provider provides free quotas for paperless transfers and direct debits that correspond to your monthly transaction volume.
- ATM availability: If you plan to make many cash withdrawals, having a suitable ATM nearby is essential. Pay attention to whether and how much cash withdrawal fees are charged.
- Availability and costs for paper-based bookings and cash deposits: Many fintechs and neobanks do not offer this service. With third-party banks, you have to expect very high additional costs.
- New customer bonus – Many business account providers offer special bonuses that can lead to significant savings in the first year or longer.
Best banks for freelancers in Germany
Qonto
Basic fee for monthly payment: €11 (€13.09 with VAT)
N26 Business
How to open a business bank account in Germany for freelancers and solopreneurs?
The documents needed to open a business account depend on the form of your business. If you open the account with a direct bank or a fintech, the account opening is carried out completely online. You fill out the application form in their online banking and upload the required documents. Alternatively, you can send them sometimes via email or post.
If you opt for a branch bank, you can visit the local branch and open a business account with the assistance of your bank advisor. The requested documents typically include your identity card as proof of identity and the Schufa report. If your company requires a partnership agreement, such as for corporations, the bank will also request it.
If you run your business with a partner, it needs to be clarified whether each business owner can independently dispose of the account or if joint authorization is required.
After applying, the bank will set up your account. If you open a business account online, the identity check must still be carried out through PostIdent or VideoIdent procedures. Account opening with a direct bank and fintechs usually includes legitimation per VideoIdent. Directly afterward, your new business account has all its functions and can be used immediately.
When opening a business bank account, consider your specific requirements. Young founders often have different needs than established businesses. Therefore, first, check which services are significant for you. Then, carefully compare the offers from different banks for freelancers before deciding on your preferred option.
Conclusion – a business bank account makes your everyday work easier
While not mandatory for solopreneurs or freelancers in Germany, a separate business account can significantly enhance your management of financial affairs, streamline record-keeping, and professionalize your business image.
Similar to a private checking account, a business bank account facilitates regular payment transactions, deposits, cash withdrawals, transfers, and account card service. Yet, it comes with additional benefits not offered by a personal bank account.
Many providers specialize in business current accounts, providing expert advice on various business aspects, especially beneficial for startups. Account management fees often cover at least one business credit card (regularly debit cards). Some providers offer extra features like accounting integration, tax services, subaccounts, cashback, discounts, or insurance packages. These benefits can greatly simplify your day-to-day operations.
Importantly, a business bank account doesn’t have to be costly – some providers offer a free business account with essential features. If uncertain, comparing options can help you find the right account to meet your needs.
Frequently Asked Questions — FAQ
Many digital banks offer the convenience of opening a business bank account via online banking in only a few minutes. This quick process is particularly beneficial for entrepreneurs managing their business banking and personal financial transactions alongside their own business.
Certain business account providers — especially neobanks and fintechs — specialize in catering to freelancers and self-employed, offering tailored features like free financial transactions and efficient accounting tools. If opening a business account, explore the options provided by these banks to support your freelance endeavors.
Many banks facilitate international financial transactions, even for small businesses. With features like Google Pay and Apple Pay, managing transactions globally becomes more accessible for your business.
If you make frequent international payments, consider to open a business account that supports them at favorable conditions.
Digital banks often offer attractive features such as a free plan and efficient accounting integration. Some neobanks and fintechs offer free accounts or a business account without Schufa.
In contrast, established banks score with individual advice and support, as well as start-up and financing advice. These banks also arrange public funding for companies. We also recommend a company bank account with a branch bank account for cash-intensive business models.
Many business accounts offer tax services as part of their features. Look for crucial aspects like a DATEV interface for simplified accounting integration and easy access to account statements, making tax-related processes smoother.
