As a gig worker and solopreneur, having a good business checking account geared specifically towards people like me is important. There are a few things that I need to have when it comes to a business checking account. These include the following:
- The account must be free and have no minimum balance requirements.
- There needs to be an automatic tax savings feature.
- There needs to be some sort of income-tracking feature.
Automatic tax-savings is a feature that oddly enough, most business checking accounts don’t seem to offer. This is a very useful feature that helps me set aside a percentage of my income so that I don’t get surprised when I do my taxes at the end of the year.
For several years, I’ve used Lili – a business bank account that hit all these marks for me. Unfortunately, as often seems to happen with these fintech apps, Lili changed its business model, now charging a monthly fee to use its main features. I’m always ready to pivot though when these fintech companies make these changes, so when Lili started charging fees, I started looking for a new business checking account for my gig economy income
My research turned up two banks that seemed to fit the bill for me – Found and Indi. I ended up going with Found and so far, it seems to be working for what I need. (It’s a good thing I opted for Found because Indi ended up shutting down shortly after I considered moving to them).
In this Found Business Checking review, I’ll take a deep dive into what Found is, the features Found offers that I think are useful, and why I ultimately opted to use Found over other business checking account options.
Found Business Checking Review
So what exactly is Found? Found bills itself as an all-in-one business banking solution for the self-employed. If you’re a gig worker or solopreneur, then Found is going to be right up your alley.
Like most fintech banks, Found is technically a banking app built on top of a traditional bank. In this case, your funds are held with Piermont Bank, which is an FDIC member bank. Like with any FDIC-insured bank, your funds are insured up to $250,000. In other words, money in your Found account is safe and FDIC-insured,
Found advertises four particular features that are relevant to me. First (and perhaps most important), they have no fees or minimum balance requirements. This is a non-negotiable requirement for me. If a bank charges fees of any kind, I’m not going to use or recommend them.
Second, Found has an automatic tax-savings feature. When you set up your Found account, you’ll enter how much you expect to make from your business and your other income sources for the year. Found will then calculate what percentage you should save whenever you get paid and set that money aside for you in a separate sub-account. If you’d rather set your own savings percentage, you can do that too.
Third, Found has expense tracking, which can help track your expenses and deductions. Found will also calculate how much you save in taxes from your expenses. It also allows you to save photos of receipts if needed.
Finally, Found has an invoicing system that allows you to send invoices to customers and clients. Not everyone will need to use this invoicing feature, but it’s nice that it’s there if you happen to need it.
Like with all fintech banking apps, Found is very easy to open. You complete the account opening process via the app. It should only take you a few minutes to get your account up and running. Unlike some other business checking accounts, Found also seems to approve most people and they aren’t too picky about who opens an account.
Found Business Checking Features That I Like
For me, the two main things I care about with Found are (1) it’s free and (2) it has an automatic tax-savings feature.
When it comes to price, I firmly believe that banks should never charge you any fees or require a minimum balance. This is a principle that I will not budge on. Fortunately, Found meets this requirement. Whether it will stay free for the long term is another matter – and if history is any indication, one day, Found will probably charge fees (but I’ll cross that bridge if we get there). For now, Found is free and I’ll continue to use it so long as it stays free.
For the tax-savings feature, Found’s automatic tax-savings feature works well. There are two ways you can use the tax-savings feature. The first is to have it automatically calculate what it should set aside. To do that, you input what you expect to make for the year from your business, as well as your income from other sources. Found uses that information to determine how much it should save for you each time you get paid.
The second way to use the tax-savings feature is to manually set the percentage you’d like to save each time you get paid. This is the way I prefer to do it. I generally set aside 1/3 of my income for taxes.
The money set aside in your tax account doesn’t earn interest, so every few months, I’ll withdraw the money and move it to a sub-savings account in my Ally bank account that I’ve earmarked for taxes. That way, I’ll earn a bit of interest on the money I’m saving for taxes,
How I Use My Found Business Checking Account
Found acts as my primary checking account for all of my gig economy work. Whenever I earn money from apps like DoorDash, Uber Eats, Grubhub, Rover, etc, the money goes directly into this account. From there, 1/3 of each payment gets set aside for taxes.
I also pay myself the profit I earn from this blog, which I send directly into this account as well (all of the revenue I earn from this blog initially goes to Novo, which is another business checking account I use that is better suited for more complicated businesses).
At the beginning of each month, I pay myself a paycheck from Found that I send to my personal checking account (I use Ally for my personal checking account). While you could use Found as a primary checking account as well, I think it’s best to treat it more as a stopping point for your money. For me, money that I spend for personal reasons goes from Found into my personal checking account.
There aren’t a lot of choices for good business checking accounts geared toward gig workers that are both free and lets you automatically set aside money for taxes. At the moment, Found is one of the only fintech banks I know of that offer this feature, so that’s why I’m using them.
Overall, I think Found does what I need it to do and it fits in well with my money system. I haven’t had any issues with my Found account and I do recommend them if you’re a gig worker looking for a good business checking account. If you’d like to open a Found account and want to support this blog, feel free to use my Found referral link.