The Grey Blog

For someone planning to start a business, the filing fee is only part of the cost of setting up an LLC. The amount you pay depends heavily on the state where you register, while other expenses can appear during the first year and beyond, from registered agent services to annual reports and business documents.

That makes the question of how much does it cost to start an LLC in 2026 more useful when you look beyond the headline filing fee. Some states charge relatively little to form an LLC, while others can cost several hundred dollars before you have even opened the business bank account. Optional services can add to the bill, particularly if you use a professional registered agent or pay someone to prepare your operating agreement. In practice, starting an LLC costs between roughly $35 and $500 in state filing fees, depending on the state. A registered agent may cost another $100 to $300 a year, while an operating agreement and annual report fees can add to the total.

The good news is that some parts of the process cost nothing. For example, the IRS does not charge a fee for obtaining an Employer Identification Number (EIN). Overall, total first-year costs are often around $100 to $800, depending on your state, the services you choose and what your business requires.

How much does it cost to set up an LLC?

Setting up an LLC generally costs $50 to $500 or more in state filing fees, depending on where you register. This filing fee is the main cost of creating the LLC, but your total cost can be higher once optional setup expenses and ongoing state requirements are included.

One-off costs

The main one-off cost is the Articles of Organisation filing fee. This is the document you submit to the state to officially create your LLC. Depending on the state, the fee can range from $50 to $500 or more.

You may also pay for optional services, such as professional formation assistance, reserving your business name or meeting a state publication requirement. These costs vary and may not apply to every LLC.

Recurring costs

Once your LLC is registered, you may have ongoing costs to keep it in good standing. These commonly include:

• Annual or biennial report fees: Payments for submitting required updates about your LLC.
• Franchise taxes: State charges that some LLCs must pay for the right to operate.

Together, these recurring costs can range from about $20 to $800 or more each year, depending on the state.

Also read: Open a USD business account without a US address

What you can expect to pay for an LLC

Forming an LLC involves both state fees and optional costs, so the amount you spend can vary depending on where you register and whether you handle the process yourself. The basic state filing fee may be relatively low, but additional expenses can increase the amount you need to budget for when setting up and maintaining the business.

The table below breaks down the main LLC costs, showing which expenses are paid once and which may continue each year.

LLC costs by state: the cheapest and most expensive options

LLC costs vary widely by state, with some offering low-cost formation and others imposing significant annual fees or taxes.

How much does it cost to run an LLC in 2026?

The cost of forming an LLC does not always end once your Articles of Organisation have been approved. Depending on your state and how your business operates, you may have ongoing costs that need to be included in your budget.

• Annual reports: Many states require LLCs to submit an annual or biennial report with updated business information. A filing fee may apply even if your business has not made much money.
• Franchise tax: Some states charge an annual tax simply for having an LLC registered there. The amount can depend on the state, your business structure or other factors.
• Compliance costs: You may spend money keeping business records, renewing licences, maintaining a registered agent or getting professional help with tax and legal requirements.
• Foreign qualification: If your LLC operates in another state, you may need to register there as a foreign LLC and pay additional filing and ongoing fees.

These expenses can make the true cost of running an LLC higher than the initial formation fee.

Funding and running your LLC from anywhere

Running a US LLC from outside the country can become complicated when your business earns money in USD but your personal bank account is in another currency. You need a practical way to receive payments, keep those funds in dollars and pay for business expenses without converting money unnecessarily.

For non-US founders, a USD account can make this process easier. You can receive payments from clients or platforms, keep your money in USD and use those funds when paying business expenses. This can be particularly useful for software subscriptions, advertising, contractors and other services that charge in dollars.

Grey offers cross-border account setup for eligible customers, giving you access to supported USD account details for receiving international payments. The USD accounts are provided through Lead Bank, which means your account details are connected to a US banking partner rather than being a traditional local bank account in your home country.

Once your USD balance is available, Grey also provides a virtual card for eligible users, allowing you to spend from your balance on supported online purchases. This gives non-US founders a simpler way to manage USD income and business spending from wherever they are based.

Frequently asked questions

Is an LLC expensive to maintain?

Maintaining an LLC can be relatively affordable, but the cost depends on your state and business needs. You may need to pay annual report fees, franchise taxes, registered agent fees and licence costs. Some states charge little or nothing each year, while others can make ongoing compliance considerably more expensive.

Is the EIN free?

Yes. The IRS provides an Employer Identification Number (EIN) free of charge. You can apply directly through the IRS without paying a third-party service. Be careful when using formation companies that offer to obtain an EIN for an additional fee, as this is an expense you generally do not need to pay.

What is the cheapest state to form an LLC?

Montana is among the cheapest states for initial LLC formation, with a filing fee of around $35. However, the cheapest state is not always the best choice. Annual fees, taxes, business requirements and where you actually operate can make another state more practical for your business.

Do I need a registered agent?

Yes, an LLC generally needs a registered agent in the state where it is formed. The agent receives official government correspondence and legal documents for the business. You can often act as your own registered agent if permitted, or pay a professional service to handle this responsibility for you.

Does an LLC have annual fees?

Many states require LLCs to pay ongoing fees, although the amount and frequency vary. These may include annual or biennial report fees, franchise taxes or other state charges. Some states have no annual report fee, while others can charge hundreds of dollars each year to keep the LLC active.

Can I form an LLC without living in the US?

Yes. Non-US residents can generally form a US LLC, although the requirements depend on the state and your circumstances. You may need a registered agent and appropriate tax documentation, and forming an LLC does not automatically give you the right to work or live in the United States.

Tax season can raise a simple but important question for LLC owners: where do you actually begin? Filing taxes is not the same for every LLC, because the way your business is taxed determines which forms you complete, what income you report and when everything is due.

A single-member LLC will usually report its business income on the owner’s personal tax return, while a multi-member LLC generally files a separate partnership return and provides K-1 forms to its members. There is also the option to have an LLC taxed as an S-corporation or C-corporation, which changes the filing process.

This guide walks through how to file taxes for an LLC, from identifying your tax structure to understanding the forms, records and deadlines that apply. The aim is to make tax season easier to understand before you sit down to file. Tax laws vary, so confirm what applies to you for the tax year and speak to a qualified tax professional if you’re unsure.

This guide is for general information only and isn’t tax advice.

Also read: Open a USD business account without a US address

By default, an LLC is taxed as a pass-through: a single-member LLC files on Schedule C with the owner's personal return, and a multi-member LLC files Form 1065 plus K-1s. An LLC can also elect S-corp or C-corp taxation. Deadlines and forms depend on the structure you choose.

How is an LLC taxed by default?

An LLC does not automatically pay federal income tax as a separate business. By default, the IRS uses a pass-through tax treatment, meaning the business income and losses generally pass through to the owners and are reported on their personal tax returns. The exact process depends on whether the LLC has one owner or several.

A single-member LLC is usually treated as a disregarded entity for federal income tax purposes. The owner normally reports the LLC’s income and expenses on their personal tax return, often using Schedule C. The business itself generally does not file a separate federal income tax return.

A multi-member LLC is normally treated as a partnership unless it chooses a different tax classification. The LLC files an information return, Form 1065, while each member receives a Schedule K-1 showing their share of the business’s income, deductions and other tax items. Members then report these amounts on their individual returns.

An LLC can also elect to be taxed as an S corporation or C corporation, which can change how the business and its owners are taxed.

How to file taxes as a single-member LLC

For a single-member LLC, understanding the right forms, tax payments and filing dates can make tax season much easier to manage.

1. Report your LLC income on Schedule C

A single-member LLC is usually treated as a disregarded entity for federal income tax purposes. This means the business does not normally file a separate federal income tax return. Instead, the owner reports the LLC’s income, expenses and profit or loss on Schedule C, which is filed with Form 1040.

2. Account for self-employment tax

If the LLC has net earnings from self-employment, you may also need to pay self-employment tax, which covers Social Security and Medicare taxes. Schedule SE is generally used to calculate this tax, and the amount is reported on your personal tax return.

3. Make quarterly estimated tax payments

Tax is not usually withheld from business income, so setting money aside throughout the year is important. If you expect to owe $1,000 or more when you file, you may need to make estimated tax payments during the year using Form 1040-ES.

4. Know your filing deadlines

Your annual federal return is generally due on April 15. Estimated tax payments are normally due in April, June, September and January, although weekends, holidays and special IRS rules can change the exact dates.

Read also: LLC vs sole proprietorship: Which is right for you?

How to file taxes as a multi-member LLC

Imagine two friends running an LLC together. The business earns $120,000 during the year, but that does not mean the LLC simply pays tax on the full amount and the owners move on. The business first reports its financial activity, then each member reports their share on their own tax return.

1. Start with Form 1065

A multi-member LLC is generally treated as a partnership for federal tax purposes unless it elects to be taxed differently. The LLC usually files Form 1065, U.S. Return of Partnership Income. This return reports the business’s income, deductions, gains, losses and other relevant tax information. The LLC generally does not pay federal income tax at the entity level.

2. Give each member a Schedule K-1

Once the partnership return is prepared, each member receives a Schedule K-1. It shows that member’s share of the LLC’s income, deductions, credits and other tax items. The amount reported on the K-1 may differ from the cash the member actually received from the business.

3. Report your share personally

Each member uses the information from their K-1 when completing their individual tax return. If the LLC has several owners, keeping accurate records and agreeing on how profits and losses are allocated can make the filing process much easier.

4. Keep the deadlines in mind

For calendar-year LLCs taxed as partnerships, Form 1065 is generally due March 15. Members generally have until April 15 to file their individual federal tax returns.

When should an LLC choose S-corp or C-corp taxation?

An LLC can keep its default tax treatment or elect to be taxed as a corporation. The right choice depends on the business’s profits, how owners take money from the company and whether the business plans to reinvest or grow.

When S-corp taxation may help

An LLC can elect S-corporation taxation by filing Form 2553 with the IRS. For some profitable businesses, this can change how employment and business income are treated. However, S-corp taxation also brings extra payroll, record-keeping and tax filing responsibilities, so the potential savings need to justify the added work.

When C-corp taxation may make sense

An LLC can generally elect C-corporation treatment by filing Form 8832. This may suit businesses that plan to retain profits in the company, bring in investors or build a structure designed for larger-scale growth. The trade-off is that C-corporations are generally subject to corporate income tax, and distributions to owners can create another layer of tax.

Weigh the trade-offs first

Changing your LLC’s tax classification can affect how profits, salaries, distributions and taxes are handled. Before making an election, consider the business’s expected profits, future plans and administrative costs. A tax professional can help determine which structure fits your situation.

Also read: Virtual US accounts explained: who they work for

Keeping records when your LLC earns money from abroad

Once an LLC starts earning from international clients, keeping the money and records organised becomes just as important as filing the right tax forms. Record each payment clearly, including the amount received, date, client, currency and any fees charged. Keep invoices, contracts, bank statements and receipts so you can explain where the business income came from and how expenses were calculated.

For LLC owners who regularly receive money from overseas clients, a service such as Grey can be a practical option. Grey provides supported foreign-currency account details for receiving international payments, allowing eligible users to receive and manage currencies such as USD. Keeping overseas income in a dedicated account can make your records easier to track before transferring money to your main business account or converting it when needed.

If you also want tighter bookkeeping (and fewer missing receipts at tax time), it helps to separate spend from day one. For instance, you can track deductible expenses on a virtual card and keep business transactions in one place.

Frequently asked questions

How do I file taxes as an LLC?

It depends on how your LLC is taxed.  A single-member LLC usually reports business income and expenses on the owner’s personal tax return, while a multi-member LLC generally files Form 1065 and gives each member a Schedule K-1. An LLC taxed as a corporation follows different filing requirements.

Does a single-member LLC file taxes separately?

Usually, no. A single-member LLC is generally treated as a disregarded entity for federal income tax purposes. The owner reports the LLC’s income, expenses and profit or loss on their personal tax return, typically using Schedule C. The LLC may still have separate state, local or other tax filing requirements.

What is the LLC tax deadline?

The deadline depends on how your LLC is taxed. For a calendar-year LLC taxed as a partnership, Form 1065 is generally due March 15. Individual tax returns are generally due April 15. An LLC taxed as a corporation may have different deadlines, so check the rules that apply to your tax classification.

Do LLCs pay quarterly taxes?

They can. LLC owners who expect to owe $1,000 or more in federal tax when they file may need to make estimated tax payments during the year. The payments are generally made in April, June, September and January. The exact amount depends on your income, deductions and other tax obligations.

Does an LLC have to pay self-employment tax?

In many cases, yes. Owners who actively operate an LLC may owe self-employment tax on their share of business earnings, depending on the LLC’s tax classification and circumstances. Self-employment tax generally covers Social Security and Medicare taxes, separate from federal income tax.

Can an LLC choose how it is taxed?

Yes. An LLC can generally keep its default tax classification or elect to be taxed as an S corporation or C corporation. Each option has different tax and administrative consequences, so the best choice depends on factors such as profits, owner compensation, business plans and record-keeping requirements.

The Meta Pixel is the single most important thing to install on your website before spending money on Facebook or Instagram ads. Without it, Meta cannot track what visitors do after clicking your ad. You cannot optimise for purchases. You cannot build retargeting audiences. You cannot measure whether your ads are making money or wasting it.

Most Nigerian businesses skip the Pixel when starting Facebook ads. They run Traffic or Engagement campaigns, see some clicks and likes, but have no idea whether those clicks turned into sales. Then they move to Conversion campaigns and wonder why Meta cannot deliver results. The answer is always the same: the Pixel was never installed, so Meta has no data to work with.

This guide covers what the Meta Pixel does, how to install it on every major website platform Nigerian businesses use (Shopify, WordPress, WooCommerce, custom sites), which events to set up for your business type, how to verify it is working, and what the Conversions API adds for advanced tracking.

What the Meta Pixel does (and why it changes everything)

The Meta Pixel is a small piece of JavaScript code you add to your website. When someone visits your site, the Pixel fires and sends data back to Meta about what the visitor did: which pages they viewed, which products they looked at, whether they added something to their cart, and whether they completed a purchase or form submission.

This data powers three capabilities that are impossible without it:

1. Conversion tracking. The Pixel tells Meta exactly which ad clicks led to purchases, signups, or other valuable actions. Without this, you see clicks in Ads Manager but have no idea which clicks made you money. With it, you see cost per purchase, cost per lead, and ROAS (return on ad spend) for every campaign, ad set, and ad.

2. Conversion optimisation. When you run a Sales or Leads campaign, Meta's algorithm uses Pixel data to find people most likely to convert. The more conversion data the Pixel collects, the better Meta gets at finding buyers. Without the Pixel, Meta has nothing to optimise against. It shows your ads to people likely to click (not buy), which is why Traffic campaigns get clicks but not sales.

3. Retargeting audiences. The Pixel lets you build Custom Audiences of people who visited your website, viewed specific products, added items to their cart but did not purchase, or completed a specific action. These audiences are the highest-converting audiences you can target because they already know your brand. Retargeting typically costs 30-50% less per click and converts at 2-5x the rate of cold prospecting.

Every day you run ads without the Pixel is a day of wasted data. Install it before spending your first naira on anything beyond basic Awareness campaigns.

Before you start: what you need

A Facebook Business Page and Meta Business Suite account. If you do not have these, see the prerequisites section in How to Run Facebook Ads in Nigeria.

A website you own. You can only install the Pixel on websites you own or have explicit permission to modify. Do not install your Pixel on someone else's site. This violates Meta's terms.

Admin access to your website. You need the ability to add code to your site's header or install plugins. On Shopify, this means store owner access. On WordPress, admin access. On custom sites, access to the HTML files or CMS.

A payment method for when you start running conversion campaigns. The Pixel itself is free to install and collects data passively even without running ads. But its full value is unlocked when you run conversion campaigns, which require a funded ad account. Nigerian businesses can pay via bank transfer (naira accounts) or a Grey virtual dollar card (USD accounts). Full payment setup: How to Pay for Facebook Ads in Nigeria.

Step 1: Create your Pixel in Events Manager

1. Go to Meta Events Manager.

2. Click Connect Data Sources.

3. Select Web.

4. Choose Meta Pixel.

5. Give your Pixel a name (your business name is fine).

6. Enter your website URL.

7. Click Continue.

Meta creates your Pixel and gives you a Pixel ID (a unique number). You now need to add the Pixel code to your website. How you do this depends on your website platform.

Step 2: Install the Pixel on your website

Shopify (easiest setup)

Shopify has a native integration that handles Pixel installation automatically, including e-commerce events (ViewContent, AddToCart, Purchase).

1. In your Shopify admin, go to Settings > Apps and sales channels.

2. Click Facebook & Instagram.

3. If not installed, add the Facebook & Instagram sales channel from the Shopify App Store.

4. Connect your Meta Business Suite account.

5. Select your Pixel from the dropdown.

6. Shopify automatically adds the Pixel to every page and sets up standard e-commerce events.

Shopify also supports the Conversions API through this integration, which sends server-side data to Meta alongside the browser Pixel. This gives you more accurate tracking, especially when browser-based tracking is blocked by ad blockers or iOS privacy settings.

If you run a Shopify store and use a Grey virtual card to pay for Facebook Ads, Shopify, your domain, and other SaaS tools, one card covers all your e-commerce expenses from a single USD balance.

WordPress (with or without WooCommerce)

Two installation methods:

Method 1: Plugin (recommended). Install the Meta Pixel for WordPress plugin (official, by Meta). Activate it, connect your Meta account, and select your Pixel. The plugin adds the base code to every page and provides a UI for setting up events. If you also have WooCommerce, the plugin detects it and adds e-commerce events automatically.

Method 2: Manual code. Go to Events Manager > your Pixel > Settings > Install Code Manually. Copy the base Pixel code. In WordPress, go to Appearance > Theme Editor > header.php, and paste the code in the <head> section before the closing </head> tag. Save. This installs the base code but you need to add event code manually for specific actions (purchase, add to cart).

For WooCommerce stores, Method 1 (the plugin) is strongly preferred because it handles event tracking for the full checkout funnel automatically.

Custom websites (HTML, React, Next.js, etc.)

1. In Events Manager, go to your Pixel > Settings > Install Code Manually.

2. Copy the base Pixel code.

3. Paste it in the <head> section of every page on your website.

4. Add event code for specific actions. For example, on the order confirmation page, add the Purchase event code with the transaction value and currency.

If your site uses a JavaScript framework (React, Next.js, Vue), install the Pixel base code in your root layout or app component so it loads on every route. Use Meta's JavaScript SDK to fire events programmatically when users complete actions.

Using Google Tag Manager

If you already use Google Tag Manager (GTM) for other tracking codes, you can deploy the Meta Pixel through GTM:

1. In GTM, create a new Custom HTML tag.

2. Paste the Meta Pixel base code.

3. Set the trigger to All Pages.

4. Save and publish.

5. For events, create additional tags with the specific event code and set triggers based on page URL (for example, the thank-you page URL triggers the Purchase event).

GTM is the preferred method for businesses with complex websites or multiple tracking codes because it keeps all your tags in one place without touching website code directly.

Step 3: Set up the right events for your business

The base Pixel code automatically tracks PageView. Everything else requires you to set up specific events. Which events you need depends on what your business does:

Start with two events: PageView (automatic) plus the one event that matches your primary business goal. For e-commerce: Purchase. For lead generation: Lead. For SaaS: CompleteRegistration. Add more events as your campaigns mature.

Each event can include parameters (additional data). The most important parameter for e-commerce is value (the transaction amount) and currency (NGN or USD). Including value data enables ROAS reporting and allows Meta to optimise for highest-value purchases, not just the most purchases.

Step 4: Verify the Pixel is working

An incorrectly installed Pixel is worse than no Pixel because you think you are tracking but you are not.

Meta Pixel Helper (browser extension)

Install the Meta Pixel Helper extension for Chrome. Visit your website. The extension icon shows a green number indicating how many Pixel events fired on that page. Click the icon to see which events fired and whether they passed parameters correctly. A green checkmark means the event is working. A yellow or red warning means something needs fixing.

Events Manager test events

In Events Manager, go to your Pixel > Test Events. Enter your website URL and click Open Website. Navigate through your site (view a product, add to cart, complete a test purchase if possible). Events Manager shows the events firing in real time. This confirms the data is reaching Meta.

Common verification issues

Step 5 (advanced): Set up the Conversions API

The Conversions API (CAPI) sends event data directly from your server to Meta, bypassing the browser entirely. This is increasingly important because browser-based tracking (the Pixel) is being degraded by ad blockers, iOS privacy settings (App Tracking Transparency), and cookie restrictions.

With CAPI, you get two data streams: the Pixel (browser-side) and the API (server-side). Meta deduplicates them using event IDs, so you do not count the same event twice. The result is more complete data and better optimisation.

For Shopify: The Facebook & Instagram sales channel supports CAPI automatically. When you connect your Pixel through the sales channel, Shopify sends both browser and server events.

For WordPress/WooCommerce: The Meta Pixel for WordPress plugin supports CAPI. In the plugin settings, enable the Conversions API and follow the prompts to generate an access token.

For custom sites: CAPI requires server-side development. You send HTTP POST requests to Meta's Conversions API endpoint with event data. This is a developer task. Meta's documentation covers the technical implementation.

CAPI is not required for getting started, but it significantly improves tracking accuracy for businesses spending N300,000+ per month on ads. If your Pixel data and Ads Manager data consistently mismatch (Pixel shows 50 purchases but Ads Manager shows 30), CAPI is the fix.

After installation: what the Pixel enables for your ad campaigns

With the Pixel live and collecting data, you unlock the advertising capabilities that actually drive revenue:

Run conversion campaigns

Create campaigns with the Sales or Leads objective. Meta's algorithm uses your Pixel data to find people most likely to purchase or submit a form. This is where the real ROI from Facebook Ads comes from, and it is only possible with the Pixel.

Conversion campaigns require a larger budget than Traffic campaigns because Meta needs 50 conversion events per week to exit the learning phase. At N2,000 per conversion, that is N100,000 per week (N14,300 per day). Budget accordingly. For full budget guidance, see Facebook Ads Cost in Nigeria.

Build retargeting audiences

In Ads Manager, create Custom Audiences based on Pixel data:

Retargeting audiences cost 30-50% less per click than cold prospecting and convert at 2-5x the rate. Once your Pixel has collected 1,000+ visitors, retargeting should be part of every campaign structure.

Create Lookalike Audiences

Upload your Purchase or Lead event data as a source for Lookalike Audiences. Meta finds Nigerians who share characteristics with your actual customers. This is the most effective prospecting strategy: instead of guessing at interests, you let Meta's algorithm find people similar to the ones who already buy from you.

Paying for conversion campaigns from Nigeria

The Pixel unlocks conversion campaigns. Conversion campaigns need a real budget (N10,000-N25,000 per day). That budget needs a reliable payment method.

For naira billing, bank transfer is the simplest option. For USD billing (required if you also run Google Ads or TikTok Ads), a Grey virtual dollar card handles all your ad platform payments from one USD balance. Convert naira to USD in the Grey app (1% fee, capped at the naira equivalent of $6), create a virtual card ($5 one-time), and add it to Facebook Ads Manager.

The same Grey card also covers the tools your e-commerce business runs on: Shopify subscription, domain renewal, email marketing (Mailchimp, Klaviyo), design tools (Canva Pro), and analytics (Google Analytics Premium). One card, one balance, all your digital business expenses.

For a full payment setup with both naira and USD payment methods, see How to Pay for Facebook Ads in Nigeria.

Privacy and compliance

Do not share prohibited information. Meta’s Business Tools Terms prohibit sharing health data, financial account data, children's data, and other sensitive information through the Pixel. If your website collects sensitive data (medical forms, financial applications), ensure the Pixel does not fire on pages containing this information, or strip sensitive parameters before sending events.

Cookie consent. Depending on your audience and applicable regulations, you may need to implement cookie consent before the Pixel fires. For businesses targeting only Nigerian audiences, Nigerian data protection law (NDPR) applies. Consult your legal adviser on whether explicit consent is required for your specific use case.

Regular audits. Review your Pixel setup quarterly. Check that events fire correctly, parameters are accurate, and no prohibited data is being shared. Website updates, theme changes, and plugin updates can break Pixel installations without warning.

Frequently asked questions

Is the Meta Pixel free?

Yes. The Pixel is free to create and install. It collects data passively even without running ads. The cost comes when you run ad campaigns that use the Pixel data.

Do I need a website to use the Meta Pixel?

Yes. The Pixel is code that goes on your website. If you do not have a website, you cannot use the Pixel. However, you can still run Facebook Ads without a website using Lead Form and Messaging objectives.

Can I install the Pixel on multiple websites?

One Pixel can be installed on multiple websites, but Meta recommends using one Pixel per business. If you run multiple separate businesses, create a separate Pixel for each one in Events Manager.

How long does it take for the Pixel to start collecting data?

Immediately. As soon as the code is on your website and someone visits, the Pixel fires. You can see events in Events Manager within minutes of installation.

Will the Pixel slow down my website?

The Pixel code is lightweight and loads asynchronously, meaning it does not block your page from loading. The performance impact is negligible for most websites.

Why is my Pixel showing fewer conversions than my actual sales?

Browser-based tracking is not 100% accurate. Ad blockers, iOS privacy settings, and cookie restrictions prevent the Pixel from firing for some users. The Conversions API (CAPI) helps close this gap by sending data from your server directly to Meta.

Do I need the Pixel for Click-to-WhatsApp campaigns?

Not for the messaging part (WhatsApp conversations are tracked directly by Meta). But if you want to track what happens after the WhatsApp conversation (website visit, purchase), the Pixel is needed on your website.

I installed the Pixel but Events Manager shows no data. What is wrong?

Common causes: the code is in the wrong location (must be in the <head> section), your website has caching that serves an old version without the Pixel, or a JavaScript error is preventing the Pixel from loading. Use the Meta Pixel Helper extension to diagnose.

Related reading

  How to Run Facebook Ads in Nigeria (2026) is the full step-by-step campaign creation guide, covering objectives, targeting, budgets, and optimisation.

  Facebook Ads Cost in Nigeria (2026) covers cost benchmarks, budget tiers for conversion campaigns, and ROAS calculations.

  How to Pay for Facebook Ads in Nigeria (2026) covers naira and USD payment methods for funding your ad account.

  How to Pay for Google Ads in Nigeria (2026) covers Google's equivalent conversion tracking setup (Google Ads tag).

A business can hire someone in another country without having an office there, but that does not mean it can employ them without following local rules. Someone still has to handle the contract, payroll, taxes, statutory benefits and employment requirements that come with putting a person on the company’s payroll.

An Employer of Record (EOR) is the company that takes on that legal employment role. It officially employs the worker in their country while the client business directs their everyday work, from their responsibilities to their working hours and performance.

The arrangement has become useful as companies build international teams without establishing a legal entity in every country where they hire. This article breaks down how EORs work, why businesses use them, what they handle, what they cost and where the model may not be the right fit. It also explains how EOR hiring compares with using contractors or setting up a local entity.

What does an Employer of Record do?

An Employer of Record is the legal employer of a worker, even though another company is responsible for the person's actual job. Think of a software company hiring a developer who lives in another country. The developer works for the software company, but the EOR officially employs them in that country.

This means the EOR takes responsibility for the employment obligations that the hiring company would normally have to manage itself. Depending on the country and arrangement, this can include:

• Preparing and signing the employment contract
• Running payroll and withholding required taxes
• Providing statutory benefits
• Managing employment records
• Following local employment and labour regulations

The hiring company still controls the important parts of the job. It decides what the employee works on, manages performance and remains involved in the working relationship.

The core idea is therefore simple: the EOR provides the legal employment structure, while the client company provides the work. This allows international hiring without requiring the client to become the worker's direct legal employer.

Also read: Receiving foreign income as a solo founder

What does an EOR do?

The easiest way to understand an EOR is to look at everything that has to happen after an international hire accepts a job. The employee needs a valid contract, regular pay, the right tax deductions and whatever benefits local law requires.

Payroll: The EOR calculates the employee’s salary, deductions and other required payments, then makes sure they are paid correctly and on time.

• Tax: It handles applicable payroll taxes and statutory deductions, helping the business meet its obligations in the employee’s country.
• Benefits: Where required, the EOR can arrange statutory benefits such as social security, pension contributions, leave and other employee entitlements.
• Contracts: The EOR prepares an employment agreement that reflects the relevant country’s employment rules, rather than simply using a contract designed for another market.
• Local compliance: Employment laws can cover everything from working hours and leave to termination procedures and required records. The EOR helps ensure the employment arrangement follows these local requirements.

The business still manages the employee’s everyday work. The EOR handles the legal and administrative side that sits behind the employment relationship.

Also read: Can non-residents open a US bank account online in 2026?

EOR or your own entity: what changes for your business?

An EOR and your own foreign company can both help you hire internationally, but the experience is very different. One gives you an existing employment structure; the other means building and maintaining your own.

EOR: faster, simpler setup

An EOR already has the local employment structure in place. That means a business can hire an overseas employee without first incorporating a company in that country.

• Speed: Faster because the local employment infrastructure already exists.
• Cost: You pay the EOR for its service rather than absorbing the full cost of establishing and running an entity.
• Risk: The EOR handles much of the local employment administration and compliance.
• Control: Less control over the legal employment structure because the EOR is the formal employer.

Your own entity: more control, more responsibility

Creating a foreign entity gives the business its own legal presence in the country. It can make sense when international operations are expected to become a permanent part of the business.

• Speed: Slower because incorporation, registration and local setup come first.
• Cost: Higher upfront and ongoing costs for accounting, payroll, tax and administration.
• Risk: More responsibility sits directly with the business.
• Control: Greater control over employees, operations and the local business structure.

For a single hire or an early international expansion, an EOR can remove a lot of unnecessary setup. A company planning a substantial, long-term operation may eventually find its own entity more practical.

How much does an EOR cost?

The price of using an Employer of Record can vary widely, so the monthly fee is only one part of the calculation. Most providers use one of two pricing models: a fixed fee for each employee or a percentage of their salary.

A flat monthly fee

Some EOR providers charge a set amount for each employee they employ on your behalf. A typical range is around $200 to $1,000 per employee each month. This can make budgeting easier because the EOR fee stays relatively predictable, regardless of the employee’s salary.

A percentage of salary

Other providers calculate their fee based on the employee’s gross salary. Rates commonly fall between 3% and 10%. For example, an employee earning $5,000 a month could generate an EOR service fee of $150 to $500, depending on the provider's rate.

What affects the final price?

The headline fee does not always tell the whole story. Location, employee benefits, payroll requirements and the complexity of the employment arrangement can all affect what a business ultimately pays.

Before choosing an EOR, check whether the quoted price includes payroll, benefits administration, compliance support and other required services. A lower monthly fee is not necessarily cheaper once additional charges are included.

When does an EOR make sense for your business?

An EOR is not automatically the best answer every time a business wants to hire abroad. The right option depends on how long the person will work with the company, where they are based and how much of a local presence the business wants to build.

An EOR can be a good fit when:

• You want to hire an employee in a country where your business does not have a legal entity.
• You need someone to start quickly without waiting for your company to be incorporated locally.
• You are entering a new market and want to test it before committing to a permanent local operation.
• You want the employee to receive local payroll, benefits and employment protections while the EOR handles the formal employment requirements.

A contractor may make more sense when:

The person is genuinely self-employed, works independently and is responsible for their own taxes and business obligations. Contractors can offer more flexibility, but incorrectly classifying an employee as a contractor can create legal and tax problems.

A PEO may be worth considering when:

The business already has a legal entity in the country but wants help managing HR, payroll and employee administration. Unlike an EOR, a PEO arrangement does not normally become the legal employer.

How do you pay an international team with an EOR?

Hiring through an EOR solves the employment side of working across borders, but the business still needs a reliable way to fund payroll. The EOR usually calculates salaries, taxes and other deductions in the employee’s local currency, then pays the employee according to local requirements.

That means the business first sends the money needed for payroll to the EOR. If the company operates in the US but its employees are spread across Africa, Europe or Asia, this can involve moving money across currencies and banking systems before salaries reach employees.

Grey can help with the payment side by providing supported currency accounts for sending international funds. A business can use these accounts to organise money before sending it where it is needed, rather than relying entirely on traditional international transfers

Frequently asked questions

What does EOR stand for?

EOR stands for Employer of Record. It is a company that legally employs a worker for another business in a particular country. The EOR handles employment responsibilities such as payroll, taxes, benefits and local compliance, while the client business manages the employee’s actual work and responsibilities.

What is the difference between an EOR and a PEO?

The main difference is who legally employs the worker. With an EOR, the EOR becomes the legal employer while your business manages the employee’s day-to-day work. A PEO usually works alongside your existing company, meaning your business remains the legal employer. PEOs, therefore, generally require a local entity.

How much does an EOR cost?

EOR pricing varies by provider and country. Many charge a fixed monthly amount per employee, while others take a percentage of the employee’s gross salary. A typical range is around $200 to $1,000 per employee monthly, or roughly 3% to 10% of salary, before additional costs.

Is an EOR the same as a staffing agency?

No. A staffing agency typically helps find and place workers, while an EOR provides the legal employment structure after someone has been hired. The distinction matters because an EOR does not usually recruit the employee or decide what work they perform; it manages formal employment obligations.

When should I use an EOR?

An EOR can make sense when a business wants to hire an employee abroad but does not have a legal entity in that country. It is particularly useful for testing a new market, making a first international hire or building a small overseas team without setting up a company.

How do I pay international contractors?

Contractors are usually paid directly rather than through an EOR, but international transfers can involve currency conversion, bank fees and delays. Grey can help eligible businesses manage supported currencies and send money to supported destinations, making it easier to pay overseas contractors from a central account.

If you are already running Google Ads from Nigeria, you have solved the payment problem. Your virtual dollar card or domiciliary account card works, your campaigns are running, and money is leaving the account. Now the questions change: Where do I find my invoices? Why does the charge on my card not match my daily budget? How do I record USD ad spend in my naira-denominated books? How do I reconcile billing across four client accounts?

This guide is for Nigerian businesses, agencies, and freelancers who are past the setup phase and need to manage Google Ads billing at scale.

If you are still setting up your first Google Ads payment method, start with How to Pay for Google Ads in Nigeria and come back here once your campaigns are running.

How Google Ads billing works for Nigerian accounts

Every Google Ads account created from Nigeria is billed in USD. There is no naira billing option. This has three consequences for how you manage billing: all invoices and receipts are in dollars, all threshold charges hit your card in dollars, and any reconciliation with naira-denominated accounting requires a conversion step.

The three billing models

Google Ads offers three billing models. The one your account uses depends on when you set it up and your eligibility:

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Most Nigerian advertisers are on automatic payments. The rest of this guide assumes that model unless stated otherwise.

Billing threshold: why your charges do not match your daily budget

This is the single most confusing aspect of Google Ads billing for Nigerian businesses, and the one most likely to cause a mismatch between what you expect to pay and what actually hits your card.

Google does not charge your card daily. It charges when your accumulated ad spend reaches a billing threshold. New accounts start at $50. As your payment history builds, Google raises it:

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On top of threshold charges, Google also charges any remaining balance at the end of each calendar month, even if it has not reached the threshold. So you may see two types of charges: mid-month threshold charges and an end-of-month sweep.

A $20/day advertiser with a $200 threshold sees a $200 charge roughly every 10 days, not a $20 charge every day. If your accountant is looking for daily charges that match your daily budget, they will not find them. The charges match your threshold, not your daily spend.

Daily budget overshoot: why Google sometimes charges more than your daily budget

Google can spend up to 2x your daily budget on any single day to compensate for low-traffic days. If you set a $20/day budget, Google may spend $40 on a high-opportunity day and then spend less on subsequent days to balance it out. Over a calendar month, your total spend will not exceed your daily budget multiplied by 30.4 (the average number of days in a month). So a $20/day budget caps at $608 per month.

This is not a billing error. It is how Google optimises delivery. But it means your Billing Activity may show individual threshold charges that seem higher than expected. Check the monthly total, not the individual daily or threshold charges, when reconciling.

Google Ads billing documents: what exists and where to find each one

Google Ads generates several types of billing documents. Nigerian accounts on automatic payments have access to most of them, but not all.

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How to download invoices

1. Sign in to Google Ads.
2. Click the tools icon in the top navigation.
3. Under Billing, select Documents.
4. Use the filters to select the document type (invoice, statement, etc.) and date range.
5. Click on an individual document to view it, or select multiple and click Download selected for bulk export.
6. Documents download as PDF.

If you do not see an invoice for a specific month, check whether your account generates invoices at all. Accounts on automatic payments may only produce payment receipts and billing activity, not formal invoices. In that case, the Billing Activity export serves as your primary accounting record.

How to download payment receipts

1. Go to Billing > Summary.
2. Expand the card for the month you need.
3. Find the Payments section.
4. Click the link next to the specific payment to view the receipt.
5. Print or save as PDF from your browser.

Each receipt corresponds to one threshold charge or one end-of-month sweep. If your account was charged three times in a month (two threshold charges plus one month-end sweep), you will have three receipts.

How to export billing activity for your accountant

1. Go to Billing > Billing Activity.
2. Set the date range (default is last 3 months, but you can go back further).
3. Click the download icon.
4. Choose CSV for spreadsheet import or PDF for direct filing.

The CSV export is what your accountant or finance team will use for reconciliation. It includes every line item: ad charges, payments, credits, refunds, adjustments, and taxes. Export monthly and store alongside your Grey transaction history for cross-referencing.

Reconciling Google Ads spend with your business accounting

This is where most Nigerian businesses struggle: the billing is in USD, and the books are in naira. The reconciliation has three layers: matching Google's charges to your card transactions, converting USD charges to naira for your records, and allocating costs to the correct expense category.

Layer 1: Match Google charges to your card transactions

Every threshold charge Google makes appears as a transaction in your Grey app (or your bank statement if using a domiciliary account). Export your Google Ads Billing Activity for the month and your Grey transaction history for the same period. Match each Google charge to a Grey transaction by date and amount.

They should match exactly in USD. If they do not, look for:

Authorization holds that is settled at a different amount (rare but possible).

Credits or adjustments applied by Google between the charge and your export date.

Charges from non-Google merchants if you use the same Grey card for other platforms (Facebook, TikTok).

Layer 2: Convert USD charges to naira for your books

Nigerian businesses filing accounts in naira need to convert USD ad spend to naira. The question is: which exchange rate do you use?

There are two defensible approaches:

Option A: Use the Grey conversion rate on the day you funded. When you converted naira to USD in the Grey app, you received a specific rate. That rate represents your actual cost basis. If you deposited N141,500 and received $100, your cost per dollar was N1,415. Record your Google Ads charges at N1,415 per dollar for that funding batch.

Option B: Use the CBN rate on the date of each Google charge. Some accountants prefer to use the official CBN rate on the transaction date. This may differ from the rate you actually paid through Grey, but it aligns with the method prescribed for foreign currency transactions under Nigerian tax rules.

Whichever method you choose, apply it consistently throughout the financial year. Switching between methods creates reconciliation problems. Consult your accountant for the approach that fits your specific tax situation.

Record the Grey 1% conversion fee as a separate line item under financial charges or bank fees, not as part of your advertising expense. The $4+$1 card creation fee (if applicable) is also a financial charge, not an ad cost.

Layer 3: Allocate to the correct expense category

Google Ads charges should be recorded under advertising and marketing expenses in your chart of accounts. Do not combine them with other card transactions. If you use the same Grey card for ad spend and non-ad purchases (subscriptions, SaaS tools, domain renewals), separate them in your bookkeeping.

For agencies managing client accounts: each client's ad spend should be tracked as a separate cost center. If you use per-account billing in Google Ads, each charge already maps to one client. If you use consolidated billing, cross-reference the Google Ads account-level spend reports with the consolidated charges to allocate correctly.

Setting a backup payment method

Google allows you to add a backup card alongside your primary card. If your primary Grey card fails (insufficient balance, card expired, Grey server downtime), Google charges the backup instead of pausing your campaigns.

To add a backup: go to Payment Methods, add a second card (a domiciliary account card, a second Grey card, or any other USD card), and select "Set as backup." Only debit or credit cards can serve as backup methods.

Managing billing across multiple Google Ads accounts

Agencies and businesses running multiple Google Ads accounts (whether for different brands, markets, or clients) need to decide how billing is structured. The decision affects invoicing, reconciliation, and how easily you can track spend per account.

Per-account billing (recommended for most agencies)

Each Google Ads account has its own payment method. You add your Grey card to each account individually. Charges appear separately per account in your Grey transaction history. When Google charges Client A's account $200 and Client B's account $150, those are two distinct transactions in your Grey app.

Its advantages? Clean reconciliation, isolated billing (one account's issues do not affect others), a clear audit trail per client. One Grey card can be added to multiple Google Ads accounts. The card number is the same across all of them.

Consolidated billing through a Manager account (MCC)

Google's Manager account (MCC) can pay for all linked client accounts from one payment method. One Grey card, one set of charges. Google issues a consolidated invoice or billing summary covering all accounts.

The downside: reconciliation is harder. A single $800 charge from Google might cover four client accounts. You need to cross-reference Google Ads account-level reports to allocate the $800 across clients. For agencies with 10+ clients, this becomes time-consuming.

For most Nigerian agencies, per-account billing is the cleaner setup. Use consolidated billing only if you have a specific operational reason (for example, a single corporate card policy that requires all charges on one payment method).

Billing documents in Manager accounts

If the Manager account is the paying account, invoices and billing documents are generated at the Manager level, not the individual client account level. Users who only have access to a client account will not see billing documents. Grant billing access at the Manager level to anyone who needs to view invoices or export billing data.

Tax considerations for Nigerian businesses running Google Ads

This section provides general guidance. Consult a qualified Nigerian tax adviser for your specific situation.

VAT on Google Ads in Nigeria

Google charges 7.5% VAT on all Google Ads costs for accounts with a Nigerian billing address. This has been in effect since April 1, 2022, under the Finance Act 2021, which requires non-resident digital service providers to collect and remit VAT in Nigeria. The 7.5% is added to your ad spend, meaning a $100 campaign actually costs $107.50 before your card is charged.

Google issues VAT invoices to Nigerian accounts, available for download under Billing > Documents > Tax and statutory documents. These invoices show the 7.5% VAT separately from your ad spend. Your accountant will need these for VAT reporting and any input tax credit claims.

Withholding tax

Nigerian businesses making payments to non-resident companies may have withholding tax obligations. Google Ads payments are made to a Google entity outside Nigeria (Google Ireland or Google Asia Pacific, depending on your account). Since Google already collects and remits 7.5% VAT, the withholding tax treatment may differ from other international payments. Consult your tax adviser on whether additional withholding applies.

This is an area where professional advice is essential. The amounts involved (particularly for agencies spending hundreds of thousands of naira monthly on ads) can create significant tax exposure if handled incorrectly.

Deductibility of Google Ads spend

Google Ads costs are generally deductible as a business expense for companies' tax purposes under Nigerian tax law, provided they are incurred wholly, exclusively, and necessarily for the purpose of the business. Keep your Google Ads billing exports, Grey transaction history, and reconciliation records as supporting documentation.

Month-end billing workflow for Nigerian businesses

A structured month-end process prevents billing surprises and keeps your accountant productive. Here is a practical workflow:

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Run this workflow in the first three business days of each month. If you manage multiple accounts, repeat steps 1 and 2 for each account (or export from the Manager account if using consolidated billing).

Managing ad spend with a Grey multi-currency account

If your business runs advertising across multiple platforms (Google, Facebook, TikTok) and manages spend in USD, a Grey multi-currency account can centralize your advertising finances.

How it fits the workflow described above:

Single USD balance for all ad platforms. Fund once, pay Google Ads, Facebook Ads, TikTok Ads, and any Visa-accepting platform from one account. One transaction history covers all your ad spend.

Conversion fee visibility. Grey's 1% conversion fee (capped at the naira equivalent of $6) is shown before you confirm every conversion. No hidden spreads. Your accountant can record the exact fee for each funding event.

Transaction history export. Grey's transaction history shows every charge, organized by date and merchant. Export it alongside your Google Ads Billing Activity for a clean month-end reconciliation.

Separate ad spend from operations. If your business uses Grey for both ad payments and regular expenses (receiving client payments, paying suppliers), the transaction history distinguishes them by merchant name. Google charges appear as GOOGLE*ADS or similar. This simplifies allocation in your accounting software.

For agencies managing multiple clients, Grey's transaction history shows individual charges per Google Ads account (if using per-account billing), making per-client cost allocation straightforward.

Troubleshooting billing issues

Invoice is missing for a specific month

Not all accounts on automatic payments generate formal invoices. Check whether your account produces invoices by going to Billing > Documents. If the Documents page is empty, your account only generates payment receipts and billing activity. Use the Billing Activity CSV export as your primary accounting record. The data is the same; the format is different.

Charge amount does not match any single campaign's spend

This is expected. Threshold charges cover your total account spend across all campaigns, not individual campaigns. If you run three campaigns and your total spend reaches $200 (your threshold), Google charges $200 in a single transaction. To see per-campaign costs, use Google Ads reporting (not billing). Campaign-level costs appear in the Campaigns tab, not in Billing Activity.

Charged at month end for a small amount

Google sweeps any remaining balance at the end of the month. If you spent $130 during the month and your threshold is $200, Google charges $130 on the first of the next month (or the last day of the current month). This is normal behaviour, not an error.

Double charge or unexpected second charge in the same week

If your campaigns are spending faster than usual (a new campaign launch, a budget increase), you may hit your threshold more than once in a short period. Check Billing Activity to confirm each charge corresponds to a threshold event. If you see a genuine duplicate (two charges for the exact same amount at the same time), contact Google Ads support.

Billing Activity shows a credit or adjustment you did not expect

Google applies credits for various reasons: promotional credits, overcharge corrections, invalid click refunds, and service credits. These reduce your next billing charge. They appear as negative amounts in Billing Activity. Record them as credits against advertising expense in your books, not as income.

How promotional credits interact with VAT

Google charges 7.5% VAT on total ad spend, including the portion covered by promotional credits. If you receive a N10,000 promotional credit and spend N20,000 total (N10,000 from your card + N10,000 from the credit), Google charges 7.5% VAT on the full N20,000 worth of ad spend. The VAT on the credit-covered portion appears as a line item in your billing, even though your card was only charged for half the spend.

Your accountant needs to know this because the VAT amount on the invoice will be higher than what seems proportional to your card charge for that period. The credit reduces your ad cost but not the VAT obligation. Record the promotional credit as a reduction in advertising expense, and the full VAT amount as reported on the invoice.

Cannot see billing documents in a client account

If you are using a Manager account (MCC) as the paying account, billing documents are generated at the Manager level. Users with access only to the client account will not see them. Grant billing permissions at the Manager level, or export billing data from the Manager account and share it.

Refund timeline when closing an account or overpaying

If you close your Google Ads account with a remaining balance, or if Google overcharges due to a billing error, Google refunds to the card on file. For active account overpayments, refunds typically process within 1 to 4 weeks. For account closure refunds, the timeline is longer: 4 to 12 weeks is normal. Google processes the refund after all final charges, adjustments, and credits are settled.

Plan for this delay in your cash flow. If you are closing a Google Ads account with a significant balance, do not count on those funds being available in your Grey account for at least 4 weeks. For agencies closing client accounts, communicate the timeline to the client upfront.

Frequently asked questions

Can I change my Google Ads billing currency from USD to naira?

No. Google Ads does not support naira billing for Nigerian accounts. Your billing currency is set when the account is created and cannot be changed afterwards.

Why is my Google Ads charge different from my daily budget?

Google charges at billing thresholds, not daily. A $20/day advertiser with a $200 threshold sees one $200 charge every 10 days, not daily $20 charges. Google also charges any remaining balance at the end of the month.

Can I get Google Ads invoices emailed to me?

Monthly invoicing customers may receive invoices by email. Advertisers on automatic payments need to download billing documents from the Billing section in Google Ads. Google does not email receipts or billing summaries automatically for most accounts.

How do I record Google Ads spend in my naira accounts?

Convert each USD charge to naira using either the Grey conversion rate on the day you funded, or the CBN rate on the date of each Google charge. Apply one method consistently throughout the year. Record the Grey 1% conversion fee separately as a financial charge.

Is Google Ads spend tax-deductible for Nigerian businesses?

Generally yes, as a business advertising expense, provided the spend is incurred for business purposes and properly documented. Keep your Google Ads billing exports, Grey transaction records, and reconciliation files. Consult your tax adviser for specifics.

Does Google charge VAT on Google Ads for Nigerian businesses?

Yes. Google charges 7.5% VAT on all Google Ads costs for Nigerian accounts, effective since April 2022. This appears on your billing as a separate line item. Google also issues VAT invoices available under Billing > Documents > Tax and statutory documents.

Can I download all my Google Ads invoices at once?

Yes. Go to Billing > Documents, select a date range, check all documents, and click Download selected. They download as PDFs.

What should I give my accountant each month?

Four files: the Google Ads Billing Activity export (CSV), any invoices or statements from the Documents page (PDF), the VAT invoice from Tax and statutory documents (PDF), and your Grey transaction history for the same period. The VAT invoice is critical for input tax credit claims.

Related reading

How to Pay for Google Ads in Nigeria (2026) covers setting up your first payment method, including virtual dollar cards and domiciliary accounts.

How to Pay for Facebook Ads in Nigeria (2026) covers both naira and USD payment paths for Meta Ads.

Best Virtual Dollar Cards in Nigeria (2026) compares virtual card options for international business payments.

Alternatives to Domiciliary Accounts in Nigeria compares Grey to traditional bank-issued dollar accounts for businesses.

Choosing a business bank account usually begins with the question of how much it will cost to keep the account running? Chase is a popular option for US businesses, but its business checking accounts come with different fees, transaction limits and waiver conditions, so the cheapest-looking option is not always the best fit.

Chase currently offers three main business checking accounts: Business Complete Banking, Performance Business Checking and Platinum Business Checking. They are designed for businesses at different stages, from a small operation handling regular deposits and payments to a larger business with higher transaction volumes.

The important part is knowing what you are getting for the monthly fee. Depending on the account, Chase may waive the fee when you meet certain balance, deposit or activity requirements. Understanding those conditions before opening an account can help you avoid paying for features your business does not need.

Which Chase business checking account fits your business?

Chase currently has three main business checking tiers, aimed at different stages of business growth.

Business complete checking

This is best if you’re starting or running a small business. The $15 monthly fee can be waived in several ways, including maintaining a $2,000 minimum balance. You also get tools such as QuickAccept for taking card payments.

Performance business checking

This is a better fit once your business has more money moving through the account. It has a $40 monthly fee, waived with qualifying average balances of $35,000. You also get up to 250 monthly banker-assisted transactions and incoming wires at no additional charge.

Platinum business checking

It's built for established businesses with heavier transaction and cash-management needs. The $95 monthly fee can be waived with a $100,000 average beginning-day balance, or $50,000 with certain linked Chase accounts. It includes up to 500 banker-assisted transactions and $25,000 in branch cash deposits without additional charges.

How do Chase business checking accounts compare?

The right Chase account depends on how much money your business keeps in the bank and how often you make deposits, payments and other transactions.

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In simple terms: Business Complete suits smaller businesses with lighter activity. Performance makes more sense when you have larger balances and more transactions. Platinum is aimed at established businesses moving substantial amounts of money.

Chase business banking features and benefits

Online and mobile banking

Chase gives you several ways to manage the account without constantly visiting a branch.

• Chase Business Online lets you view transactions, download account activity and set access controls for employees.
• The Chase Mobile app includes Chase QuickDeposit, so eligible business owners can deposit checks by taking a photo.
• Built-in invoicing tools allow you to create, customise and send invoices digitally, including by text.

Business cards and employee spending

Chase also gives you more control when other people need to spend or deposit money on behalf of the business.

• Business debit cards include chip security and transaction alerts.
• Employee deposit cards can be restricted to deposits at Chase ATMs and branches.
• Additional employee debit cards can be issued with individual spending limits.

Payments and integrations

Chase can connect your banking with other parts of your business.

• Chase QuickAccept lets you take card payments through your phone or a compatible card reader.
• E-commerce businesses can connect to supported payment platforms, including Authorize.net.
• Chase also provides payroll and other payment services to help manage business operations.

Also read: Bank of America business account: Fees, features and how to open

How to open a Chase business account

Opening a Chase business account is mostly about having the right information ready. The exact process depends on your business structure, and not every business type can apply online.

1. Check your eligibility: Choose the business account that suits you. Business Complete Checking can be opened online or in a branch, while some other Chase business accounts require a branch visit.
2. Prepare your documents: You will generally need two forms of ID, including one government-issued ID, plus your SSN, ITIN or EIN. Chase may also request business registration documents, such as formation papers or a DBA certificate.
3. Provide business details: Be ready to explain what your business does, where it operates, expected sales, number of employees and the types and volume of transactions you expect.
4. Apply online or visit a branch: If your business qualifies for online opening, complete the application through Chase. Otherwise, schedule a branch appointment and bring the required documents and people who need to be present.

Also read: Can non-residents open a US bank account online in 2026?

What are the best alternatives to Chase business banking?

Digital business banking providers and credit unions can offer a different experience from a traditional bank like Chase. The best choice depends on whether you value online banking, international payments, low fees or access to local branches.

Mercury business banking

Mercury is a digital business banking platform built mainly for online businesses and startups.

• Best suited for: Tech startups, e-commerce companies and venture-backed businesses
• Main advantage: $0 monthly fees, no transaction limits and strong software integrations
• Best fit if: You want to manage your business entirely online and connect banking with accounting or financial tools.

Wise business

Wise Business is designed for companies that regularly send or receive money internationally.

• Best suited for: International freelancers, agencies and import/export businesses
• Main advantage: Mid-market exchange rates and local account details in multiple currencies
• Best fit if: You regularly receive foreign currencies or pay contractors overseas.

Novo business banking

Novo is a digital business banking option for small businesses and independent workers.

• Best suited for: Solo entrepreneurs, contractors and small service businesses
• Main advantage: Free invoicing and integrations with popular business apps
• Best fit if: You want simple online banking without relying on physical branches.

Local credit unions

Credit unions are member-owned financial institutions that can provide more personalised local banking.

• Best suited for: Cash-heavy retailers, local shops and family businesses
• Main advantage: Personalised service and potentially lower cash-deposit costs
• Best fit if: You handle significant physical cash or expect to need local business lending.

Grey Business Banking

Grey Business is designed for businesses that work across borders, particularly SMEs, agencies, startups and digital teams serving international clients.

• Best suited for: Businesses in emerging markets receiving international payments and managing overseas clients or teams.
• Key advantage over Chase: No monthly maintenance fee, with access to virtual USD business accounts without requiring a physical US operating address.
• Best fit if: You need a simpler way to receive and manage international business payments without setting up traditional banking infrastructure in another country.

A simpler way to manage cross-border business payments

Chase can be a strong choice for running a US-based business, but international money movement can require a different setup. If you receive payments from clients abroad, pay overseas contractors or regularly move money between countries, a traditional US business account may not cover everything you need.

Grey is a multi-currency financial platform that can complement your business banking setup. Instead of converting every international payment immediately, you can use supported currency accounts to receive and manage money, then convert currencies when needed through the Grey app.

For example, a US business receiving money from an international client could receive the supported currency through Grey, convert it and then use the funds for other payments. Grey also lets eligible users send money across supported countries, which can be useful when paying suppliers, contractors or moving business funds internationally

Chase works well for businesses that mainly operate in the US, but international payments can introduce extra steps. If clients pay from overseas or contractors work in other countries, moving money between accounts and currencies can become more complicated than expected.

Grey can sit alongside your Chase account to make the international side easier. With supported currency accounts, you can receive and hold foreign currency before deciding when to convert it, rather than converting everything immediately.

Frequently asked questions about Chase business accounts

What does a Chase business account cost?

Chase business checking fees depend on the account you choose. Business Complete Checking currently has a $15 monthly fee, while Performance and Platinum accounts cost more but offer higher transaction and cash-deposit allowances. Some fees can be waived if you meet specific balance or activity requirements.

How can you avoid the Chase business checking fee?

The easiest way depends on your account. Business Complete Checking's $15 fee can be waived through qualifying activities, including maintaining the required balance. Performance requires a qualifying $35,000 average balance, while Platinum generally requires $100,000 or a lower balance with certain linked Chase accounts.

Can you open a Chase business account online?

Yes, eligible businesses can apply online, although some business types or applications may require a branch visit. Online applicants provide ownership, tax and business information and may need to upload identification or registration documents. Chase's online process also asks about how the business operates and expects to use the account.

What documents do you need to open one?

Expect to provide government-issued identification, your SSN, ITIN or EIN, and information about owners. Chase may also request formation documents, business licences, Articles of Organisation or a DBA certificate, depending on your business structure. Requirements vary, so prepare your registration documents before starting the application.

Does Chase support international business transfers?

Yes. Chase business accounts can send and receive international wires, although fees vary by account and transfer method. For example, Performance Business Checking currently charges $40 for outgoing international USD wires made through chase.com, while qualifying international FX transfers can cost less.

What are the alternatives to Chase business banking?

If your business operates internationally, you may want something built around cross-border payments rather than traditional US banking. Digital providers such as Mercury, Wise Business or Novo can suit online businesses, while a multi-currency platform such as Grey can complement your bank account for international money management.

Choosing a business structure can feel like a small decision until taxes, personal liability and registration requirements start affecting how you run your company. For international entrepreneurs setting up a business in the US, the choice between a sole proprietorship and an LLC can have important financial and legal implications.

A sole proprietorship may offer a simpler way to start, while an LLC provides a separate legal structure that can offer greater protection for your personal assets. The right option depends on your business activities, risk, tax situation and plans for growth.

Before registering your US business, it is worth understanding how each structure works and what it means for you as a business owner.

Also read: How to Register as Self-Employed: UK and US Guide

LLC vs sole proprietorship: the key differences at a glance

If you are deciding between keeping things simple or creating a separate legal business entity, these are the differences that matter most.

What is a sole proprietorship?

A sole proprietorship is the simplest business structure in the US. It is essentially you and your business under the same legal identity. If you start freelancing, sell products, offer consulting services or run a small business without registering another business entity, you may already be operating as a sole proprietor.

How does it starts?

Unlike an LLC, you generally do not create a sole proprietorship by filing formation documents with the state. It can arise automatically when you carry on a business by yourself without choosing a different legal structure. You may still need to register a trade name, obtain licences or permits and deal with local requirements depending on where you operate.

Why do people choose it?

The appeal is straightforward: less administration and lower setup costs.

• Easy to start
• Fewer ongoing formalities
• Simple tax reporting
• Complete control over business decisions

For someone testing a business idea or working independently, that simplicity can be valuable.

The biggest drawback is personal liability. Because the business and owner are not legally separate, business debts and certain claims can put your personal assets at risk. If the business grows or takes on greater financial or legal risk, an LLC may provide a more suitable structure.

What is an LLC and how is it different from a sole proprietorship?

If you are comparing an LLC vs sole proprietorship, the biggest difference is what happens when the business and the owner are treated as separate. A limited liability company (LLC) is a business entity created under state law. Unlike a sole proprietorship, the LLC generally creates a legal separation between you and the business.

How an LLC is formed

Setting one up usually involves a few practical steps:

• Choose an available business name that meets your state’s rules.
• Appoint a registered agent.
• File Articles of Organisation with the state.
• Pay the required formation fee.
• Create an operating agreement where appropriate.
• Apply for an Employer Identification Number (EIN) if needed.

For example, imagine you run a small web design business. As a sole proprietor, a business debt is generally your personal responsibility. With an LLC, the company generally stands separately, meaning your personal assets may receive protection from business debts and certain claims. That protection is not absolute, however, and personal guarantees, fraud and some other circumstances can still create personal liability.

How taxes work

For federal income tax purposes, a single-member LLC is generally treated as a disregarded entity by default, meaning its business income typically passes through to the owner's personal tax return. An LLC can also elect different tax treatment if eligible.

So, when weighing an LLC vs sole proprietorship, think beyond the registration fee: liability, administration, taxation and the level of risk your business carries all matter.

Also read: Freelancer vs Employee Tax: What You Owe Compared

What are the key differences between an LLC and a Sole Proprietorship?

Choosing between an LLC vs sole proprietorship often comes down to three practical questions: what happens if the business owes money, how will the income be taxed, and how much will the structure cost to maintain?

Personal liability

A sole proprietor and the business are legally the same. If the business cannot pay a supplier or faces a qualifying lawsuit, the owner’s personal assets can potentially be exposed.

An LLC generally creates a legal separation. For example, if your design business owes $20,000 in business debts, the LLC structure can generally protect your personal savings and property from those business obligations. That protection has limits, particularly where you personally guarantee a debt or engage in wrongful conduct.

Taxes

A sole proprietor normally reports business income on their personal tax return and generally pays self-employment tax on net earnings.

A single-member LLC is usually taxed similarly by default for federal income tax purposes, so forming an LLC does not automatically eliminate self-employment tax. However, an eligible LLC can choose a different tax classification, such as S corporation treatment, which may change how some income is taxed.

Cost

A sole proprietorship is usually the cheaper option because there is generally no state formation filing simply to create the structure.

An LLC normally involves a state filing fee and may have recurring annual or biennial fees, reports or taxes depending on the state. So while an LLC can provide valuable protection, it also comes with additional administrative costs and responsibilities.

Which is right for you: an LLC or sole proprietorship?

There is no universal winner in the LLC vs sole proprietorship decision. The better choice depends on what you are building, how much risk you are taking on and where you expect the business to go. A freelancer testing an idea with a few clients has different needs from someone signing large contracts or employing staff.

Start simple when the risk is low

A sole proprietorship can make sense when you are working alone, keeping costs down and testing whether your idea can make money. For example, a freelance writer earning modest income from a handful of clients may prefer the simpler setup while getting established.

Consider an LLC as things grow

An LLC may become more attractive when the business starts taking on greater financial or legal risk. You might consider one if you are:

• Signing larger contracts
• Hiring employees or contractors
• Taking on business debt
• Holding significant business assets
• Working in an industry where liability is a bigger concern

You do not necessarily have to start with an LLC. Some people begin as sole proprietors, prove that the business works, then form an LLC when their income, clients or exposure increases. The important thing is to review the decision as the business changes rather than choosing a structure and forgetting about it.

How to get paid as a US Based business

Once your business starts bringing in money, getting paid is only half the job; you also need a sensible place to receive, hold and move that money. A US business bank account can handle everyday expenses, payroll, subscriptions and payments from domestic customers while keeping business finances separate from personal spending.

International clients can make things slightly more complicated. A client in the UK, for example, may need to pay you in USD, while another client in Europe may prefer a different payment route. That is where having access to suitable foreign-currency payment options can make receiving international income easier.

[Grey](https://app.grey.co/auth/register?) can complement your business banking setup when you work with clients across borders. You can receive and manage supported currencies, including USD, through your Grey account, then convert or move funds when needed. This can be useful for freelancers, agencies and online businesses earning from international clients. Download the Grey app to create an account and check the currencies and services currently available to your business.

Frequently asked questions on LLC and sole proprietorship

Is an LLC better than a sole proprietorship?

Not necessarily. A sole proprietorship is usually simpler and cheaper, while an LLC generally offers personal liability protection and a more formal business structure. The better option depends on your business risk, income, plans for growth and willingness to handle additional state filings, fees and administrative requirements as your business develops.

Do I need an LLC to start?

No. You can start many small businesses as a sole proprietor without forming an LLC. For example, a freelancer testing an idea with a few clients may prefer the simpler route. You may still need local licences, permits or a registered business name depending on your location and activities.

Can I switch from sole proprietor to LLC?

Yes. Many business owners start as sole proprietors and later form an LLC as their income, clients or business risks increase. You generally create the LLC through your state, obtain any required tax identification numbers and update contracts, accounts, licences and registrations so the business operates under its new structure.

How are they taxed differently?

A sole proprietor generally reports business income on their personal federal tax return and pays self-employment tax on net earnings. A single-member LLC is usually taxed the same way by default. However, an LLC may be eligible to elect different tax treatment, potentially changing how some income is taxed.

Which is cheaper?

A sole proprietorship is generally cheaper because you typically do not pay a state formation fee simply to create the structure. An LLC usually requires an initial filing fee and may have recurring state fees, reports or taxes. The exact cost varies significantly by state, so check local requirements before deciding.

Does an LLC protect my personal assets?

Generally, yes. An LLC creates a legal separation between the business and its owners, which can protect personal assets from many business debts and claims. However, protection is not absolute. Personal guarantees, fraud, certain taxes and wrongful acts can still create personal liability, so an LLC is not complete immunity.

Hiring people in different countries can open up access to great talent, but paying everyone correctly is where things can become complicated. Different countries have their own tax rules, employment laws, currencies and payroll requirements, making international payroll far more difficult than simply sending a monthly payment.

Global payroll services take much of this administrative work off a company's hands. Depending on the provider, businesses can use them to pay international employees and contractors, manage taxes and deductions, handle local compliance and, in some cases, hire workers through an employer of record. This can make expanding a remote team much easier.

The right provider will usually depend on factors like where your team is based, how you hire and how much support you need. Some platforms focus on payroll, while others combine payroll with contractor management, benefits and HR tools. Below, we compare 15 global payroll services for remote teams, including what each offers and who they may suit best.

Also read: How companies run bulk payouts to international contractors

What is a global payroll service and how does it work?

A global payroll service helps businesses pay employees and contractors who work across different countries. Instead of managing every country's payroll rules separately, a company can use one provider to handle payments, tax requirements, payroll calculations and other administrative tasks across multiple locations. This becomes especially useful as a remote team grows.

Unlike domestic payroll, international payroll has to account for different tax systems, currencies, employment regulations, reporting requirements and payment schedules. A company paying someone in the UK, for example, may have very different obligations from one paying a worker in Brazil or Germany. A global payroll provider helps businesses manage these differences without building separate payroll processes for every country.

Some providers also offer Employer of Record (EOR) services. While payroll services primarily help manage payments and compliance, an EOR can legally employ workers on a company's behalf where the business does not have its own local entity. The two services can therefore work together, but they are not the same thing.

Read also: 5 red flags when choosing an international payment platform.

15 best global payroll providers for international teams

Deel: Comprehensive international hiring engine offering fast onboarding alongside powerful contractor management workflows.

• Strength: Rapid, automated global contractor onboarding and multi-currency payouts.
• Best fit: Fast-growing startups heavily relying on cross-border freelance teams.

Remote: Fully owned-entity legal infrastructure delivering highly stable, compliant cross-border payroll processing.

• Strength: Tighter risk management via direct entity ownership over third-party aggregators.
• Best fit: Compliance-focused organisations seeking transparent EOR and payroll combinations.

Rippling: Unified global workforce solution connecting localised payroll with domestic IT hardware provisioning.

• Strength: Deep cross-departmental automation linking employee data, applications, and hardware.
• Best fit: Tech companies wanting consolidated IT, finance, and global HR systems.

Papaya Global: Advanced fintech-driven engine delivering powerful gross-to-net reporting across global jurisdictions.

• Strength: Unified payments network automating direct cross-border worker bank deposits.
• Best fit: Mid-market and enterprise finance teams requiring deep accounting analytics.

ADP GlobalView: Heavy-duty global compliance network backed by unparalleled legacy payroll processing infrastructure.

• Strength: Robust governance designed to scale across complex multi-country operational structures.
• Best fit: Fortune 500 multinationals with existing domestic ADP infrastructure configurations.

Oyster HR: Dedicated international employment platform offering straightforward pricing and clear global onboarding.

• Strength: Intuitive, mission-driven dashboard minimising local worker misclassification risks.
• Best fit: Distributed remote-first companies expanding rapidly across diverse foreign markets.

Globalization Partners (G-P): Enterprise-grade employment framework providing high-touch legal guidance across many foreign jurisdictions.

• Strength: High-touch premium legal support reducing risks for multi-country expansions.
• Best fit: Established corporations prioritising strict risk management without local entities.

Multiplier: Highly cost-effective global platform delivering predictable flat-rate international employment service pricing.

• Strength: Instantly generated, fully localised benefits packages meeting specific country regulations.
• Best fit: Budget-conscious businesses requiring flat-rate multi-country employee management.

Remofirst: Budget-friendly international EOR provider omitting complex setup or costly onboarding fees.

• Strength: Exceptional cost transparency featuring lowest-in-industry baseline monthly service rates.
• Best fit: Capital-efficient early startups executing basic global remote hiring plans.

CloudPay: Specialised cloud-based treasury management platform organising multi-currency worker salary distributions.

• Strength: Integrated on-demand earned wage access feature for global payroll teams.
• Best fit: Mid-market operations requiring specialised global payroll and unified treasury apps

Safeguard Global:

• Strategic managed services provider blending modern software with regional payroll experts.
• Strength: Hybrid service architecture assisting companies navigating regional local tax regulations.
• Best fit: Mid-market organisations desiring an expert outsourced local payroll department.

Velocity Global: Advisory-led international growth firm providing tailored, high-touch workforce mobilisation solutions.

• Strength: Specialised human guidance assisting with complex corporate cross-border transition phases.
• Best Fit: Midsize firms seeking consultative advisory partnerships over basic self-serve software.

Lano: Modular multi-country network enabling unified management of existing local payroll providers.

• Strength: Aggregates disparate localised vendor dashboards into one centralised interface.
• Best fit: Businesses holding established local entities wishing to consolidate independent providers.

Atlas HXM: Direct international entity owner delivering centralised end-to-end global workforce management capabilities.

• Strength: Fully localised internal corporate compliance chain skipping volatile partner networks.
• Best fit: Middle-market companies seeking non-aggregated, single-source international workforce frameworks.

Justworks: Domestic payroll extension providing effortless, compliant cross-border independent contractor payments.

• Strength: Seamless international payment transitions for businesses already using Justworks domestically.
• Best fit: U.S. small businesses scaling globally by utilising international independent freelancers.

How to choose the right global payroll provider

• Countries covered: Check that the provider supports every country where your team currently works and any markets you plan to enter. Coverage matters if your remote workforce is likely to expand.
• Compliance support: Look for providers that keep up with local tax rules, employment regulations, reporting requirements and statutory payments. Strong compliance support can reduce mistakes and the risk of penalties.
• Pricing: Compare the full cost rather than looking only at the advertised starting price. Check transaction fees, employee charges, contractor costs, currency conversion fees and additional charges for extra services.
• Integrations: Choose a platform that connects with your existing HR, accounting, finance and time-tracking software. Good integrations can reduce duplicate data entry and make payroll administration much easier.
• Customer support: Consider how quickly you can reach the provider when something goes wrong. Responsive support is particularly important when dealing with payroll deadlines, international payments or country-specific compliance questions.

Do you need payroll to pay international contractors?

For a small business working with a few independent contractors, a full payroll service can sometimes be more than you actually need. If contractors are responsible for their own taxes and benefits, you may simply need a reliable way to pay them.

Direct contractor payments can make sense when you have a small, straightforward team, particularly if everyone works independently and you are not managing employees across multiple countries. In these cases, paying invoices directly can keep your setup simpler and reduce unnecessary payroll administration.

A full payroll service becomes more useful as your team grows or your hiring becomes more complex. If you are paying employees in several countries, managing tax requirements or dealing with different employment rules, specialist support can save considerable time and reduce compliance risks.

How to pay international contractors

Paying international contractors becomes more complicated as your team grows, especially when you have multiple contractors across different countries and need to make payments on a regular schedule. Businesses need a payment solution that can handle these payouts efficiently without creating a separate banking process for every contractor.

Grey Business helps companies simplify international contractor payments with bulk payouts, allowing businesses to pay multiple contractors across borders in one streamlined process. For example, a US company with contractors in the Philippines can use Grey Business to send payments in USD to its contractors, making it easier to manage recurring international payroll from one enabling businesses to pay multiple contractors across borders in a single, place.

This is particularly useful for businesses with distributed teams, agencies and companies working with contractors across multiple markets. Rather than processing each payment individually, finance teams can manage multiple contractor payments together, making international payroll faster and easier to manage.

Frequently asked questions on the best global payroll services for remote teams

What is global payroll?

Global payroll is the process of paying employees and contractors who work across different countries while managing the tax, reporting and employment requirements that apply in each location. A global payroll provider can bring these processes together, making it easier for businesses to manage international payments without running separate systems for every country.

Do I need payroll for contractors?

Not necessarily. If you only work with a small number of independent contractors, you may be able to pay them directly based on their invoices and agreed terms. A payroll service becomes more useful when your contractor network grows or you need help managing payments, compliance and records across multiple countries.

What is the difference from an EOR?

A payroll provider helps manage payments, tax requirements and payroll administration, while an Employer of Record (EOR) legally employs workers on your behalf in countries where you do not have a local entity. An EOR therefore handles employment responsibilities that go beyond simply processing someone's pay.

How much does global payroll cost?

Global payroll pricing varies depending on the provider, number of workers, countries covered and services included. Some charge per employee each month, while others use different pricing structures. Extra costs may apply for contractor payments, currency conversion, tax support, integrations or EOR services, so compare the complete cost.

How do contractors get paid?

Contractors usually submit an invoice or payment request based on the agreed work and payment schedule. Businesses can pay them through bank transfers or international payment platforms. For overseas contractors, services such as Grey can make it easier to receive international payments, manage supported currencies and move money.

What is the best option for a small team?

For a small team, the simplest option is often the most practical. If you only have a few contractors, paying them directly may be enough. As your team expands across countries, a payroll provider can reduce administrative work and help you manage international payments and compliance more efficiently.

Choosing a business bank account can feel like a small decision until monthly fees, transaction limits and account requirements start affecting how you manage your money. For US businesses, Bank of America is one of the major options, offering business checking accounts designed for different stages and banking needs.

The bank currently offers two main business checking options: Business Advantage Fundamentals™ Banking and Business Advantage Relationship Banking. Both come with monthly maintenance fees, but those charges can be waived when you meet certain balance or qualifying activity requirements. The main difference is how much banking activity your business expects to handle and the additional features you may need as it grows.

This guide breaks down the Bank of America business account fees, features and requirements, including what each account offers, who it suits, how to avoid the monthly fee and what you need to open an account.

Which Bank of America business account is right for you?

Bank of America currently offers two main business checking options: Business Advantage Fundamentals Banking and Business Advantage Relationship Banking. Fundamentals is aimed at newer or smaller businesses with straightforward banking needs. It includes everyday tools such as a business debit card, Zelle for business, QuickBooks integration and digital banking. After the introductory 12-month period, the account has a $16 monthly fee, which can be waived by maintaining a $5,000 combined average monthly balance, meeting qualifying debit-card spending requirements or qualifying for Preferred Rewards for Business.

Relationship Banking is designed for businesses with more complex or higher-volume banking needs. It costs $29.95 per month after its introductory period, with the fee waived through a $15,000 combined average monthly balance or Preferred Rewards eligibility. It adds benefits such as an additional Relationship Banking account, a Business Advantage Savings account and no-fee incoming wires

Also read: Grey Business vs Grey personal banking

What does a Bank of America business account really cost?

Understand the monthly charges, waiver options, transaction limits and cash-deposit fees before choosing an account.

• Monthly fees: Bank of America’s business checking accounts charge monthly fees, but meeting specific balance or qualifying activity requirements can reduce your regular banking costs.
• Waiver conditions: Keep the required minimum balance, meet qualifying activity requirements or join Preferred Rewards for Business to have eligible monthly fees waived.
• Transaction limits: Business accounts include monthly limits on free paper transactions, so businesses handling frequent checks or deposits should consider their expected activity before choosing.
• Cash-handling charges: Cash deposits are free up to the account’s monthly allowance. Once you exceed it, Bank of America charges additional fees based on deposited amounts.

What benefits do you get with a Bank of America business account?

See how Bank of America’s digital tools, business cards, integrations and rewards can make everyday business banking easier.

• Online and mobile banking: Manage balances, transfers, deposits, payments and account activity from your computer or phone, giving you convenient access to everyday banking wherever your business takes you.
• Business debit cards: Issue business debit cards to authorised employees, helping separate company spending from personal expenses while giving you greater visibility and control over everyday purchases.
• Business integrations: Connect your account with tools such as QuickBooks, making it easier to organise transactions, track business finances and simplify accounting without manually moving information between systems.
• Rewards programmes: Eligible businesses can join Preferred Rewards for Business, unlocking potential benefits such as fee waivers, interest-rate boosts, credit-card rewards and other banking advantages as their relationship grows.

How to open a Bank of America business account

Check your eligibility, prepare the right documents and follow the application steps to get your business account up and running.

• Step 1: Check eligibility: Make sure your business meets Bank of America’s requirements and that you have the authority to open an account on its behalf.
• Step 2: Select tier: Choose Business Advantage Fundamentals Banking for straightforward needs or Business Advantage Relationship Banking if your business needs additional banking features.
• Step 3: Gather paperwork: Prepare your business license, Employer Identification Number (EIN), articles of organisation, and other formation documents Bank of America may request.
• Step 4: Provide identification: Have two forms of personal identification ready, including at least one government-issued photo ID, for each required applicant or owner.
• Step 5: Submit application: Apply online when eligible or schedule a branch appointment, then provide the requested information and documents to complete the account-opening process.

Who is a Bank of America business account best suited to?

Bank of America’s business checking accounts can work particularly well for LLCs, corporations and established small businesses that need regular access to business banking. Companies with steady revenue may benefit from the account structure, cash-deposit allowances, digital banking tools and options for managing business expenses. The right tier depends on how much your business banks each month and whether you need additional features such as savings, wire services or rewards benefits.

For businesses with straightforward ownership, applying online can be the most convenient route, allowing you to provide information and upload documents without visiting a branch. Businesses with more complicated ownership structures, unusual entity types or specific documentation requirements may find a branch appointment more practical. Alternatives such as local banks, credit unions and digital business banking platforms may also be worth considering, particularly if lower fees, simpler requirements or more specialised tools are a priority.

Also read: Can non-residents open a US bank account online in 2026?

How to handle international business payments

Bank of America is built mainly for businesses operating in the US. That makes it useful for domestic banking, but businesses working with clients, suppliers or contractors overseas may need more flexibility when managing money across currencies.

Grey provides a multi-currency account that lets you hold and manage different currencies while also allowing you to send and receive money from the US. Grey also supports sending money to many other countries, depending on the available transfer corridors. Everything is managed through the app, making it easier to keep track of your international payments. To get started, simply download the Grey app, create your account and complete the required verification.

Frequently asked questions on Bank of America business accounts

What does a Bank of America business account cost?

Bank of America’s two main business checking accounts have monthly fees after their introductory periods. Business Advantage Fundamentals™ Banking costs $16 per month, while Business Advantage Relationship Banking costs $29.95. Both accounts offer ways to waive the monthly fee by meeting qualifying balance or activity requirements.

How do I avoid the monthly fee?

You can avoid Bank of America’s monthly maintenance fee by meeting the waiver requirements attached to your account. Depending on the account, this can include maintaining the required combined average monthly balance, meeting qualifying activity requirements or qualifying for Preferred Rewards for Business.

Can I open one online?

Yes. Bank of America allows eligible businesses to apply online for business checking. The online route can be convenient when ownership is straightforward and you have the required information ready. Businesses with more complicated ownership structures or documentation needs may benefit from arranging an appointment at a Bank of America financial centre.

What documents do I need?

Bank of America generally asks for business formation and identification documents when opening a business account. Depending on your business structure, you may need your EIN, business license, articles of organisation or incorporation, plus personal identification for owners or authorised applicants.

Does it support international transfers?

Yes. Bank of America business accounts can support international wire transfers, although fees, requirements and available services depend on the account and transaction. Businesses regularly moving money internationally should compare exchange rates and transfer costs rather than looking only at the account’s monthly maintenance fee.

What are the alternatives?

Alternatives include traditional banks, credit unions and digital business banking platforms. Your choice depends on what matters most: lower fees, branch access, accounting integrations, international transfers or multi-currency capabilities. Businesses working across borders may also consider Grey, which provides multi-currency account features and international money transfers through its app.

If you start and operate a business alone without creating a separate legal business entity, that’s a sole proprietorship. You are the business, the business is you. You keep all the profits, make every decision, and file taxes on your personal return.

A sole proprietorship is an unincorporated business owned and run by one person, with no legal separation between the owner and the business. It is the simplest structure to start, needs little paperwork, and its profits are taxed as the owner's personal income. The owner is personally liable for business debts.

Sole proprietorship is the most common business structure in the United States and around the world. Understanding exactly what it means and where its limits are matters before your business grows beyond a certain point.

What is a sole proprietor?

A sole proprietor is a person who owns and operates an unincorporated business by themselves. There is no legal distinction between the individual and the business. The owner and the business are the same entity in the eyes of the law.

It is the simplest business structure in the US. If you start freelancing, selling products online, or providing consulting services under your own name without registering an LLC or corporation, your business most likely fits into the definition of sole proprietorship. You do not need to file paperwork to create the business, although you may still need local licences or permits depending on what you do and where you operate.

The lack of separation is quite important and can be a disadvantage. The sole proprietor owns the business’s assets, and that makes the sole proprietor primarily responsible for all business debts and obligations.

Pros of a sole proprietorship

Here are some reasons sole proprietorships might be a great idea:

• Simplicity: You can start operating without creating a separate legal entity. If you begin doing business under your own name, you are generally a sole proprietor automatically.
• Low cost: States don’t charge a fee to create a sole proprietorship, unlike when you are starting an LLC or corporation. The registration fee of an LLC or corporation ranges from $50 to several hundred dollars, depending on the state.
• Full control: As the sole owner, you are in charge. You make every business decision without needing to consult partners, a board, or shareholders.
• Simple tax filing: Business income is reported on your personal tax return using Schedule C. You do not generally need to file a separate federal income tax return for the business.
• Easy to dissolve: Just the way you started on your own, you can also stop the business whenever you think is right. Since the business has no separate legal existence, closing it simply means stopping business activities. There is no formal dissolution process required, like there is for an LLC or corporation.

Also read: How to register as self-employed in the UK and US

Cons of a sole proprietorship

Being a sole proprietor has its downsides, especially the inability to separate the business from the owner. They include:

• Unlimited personal liability: This is the most significant disadvantage. Because the business and owner are legally the same, your personal assets, including your home, car, and savings, may be at risk if the business has unpaid debts or faces a lawsuit. Creditors can potentially pursue your personal property.
• Harder to raise money: Sole proprietors generally pay self-employment tax of 15.3% on net business income, covering Social Security and Medicare. This is in addition to regular income tax. If you were an employee elsewhere, your employer typically splits these payroll taxes with you.
• Self-employment tax: Sole proprietors pay self-employment tax (15.3%, covering Social Security and Medicare) on net business income, in addition to regular income tax. This is a meaningfully higher tax burden than the equivalent income earned as a W-2 employee, in which the employer covers half of these taxes.
• Credibility with larger clients. Some businesses and government contracts require working with a formally registered entity such as an LLC or corporation, which can limit the clients a sole proprietor is able to work with.
• No separation of business and personal credit: A sole proprietorship does not create a separate legal credit identity from its owner. Your personal financial history can therefore play a larger role when you apply for business financing.

How sole proprietorship taxes work

Sole proprietorships use “pass-through taxation”. The business itself generally does not pay federal income tax. Instead, its profits or losses are reported on the owner's personal tax return. Here are some details you should understand about taxation for sole proprietors.

Schedule C: Business income and expenses are reported on Schedule C (Profit or Loss From Business), which is filed with the owner's Form 1040. The business's net profit is added to the owner's other income and taxed at their individual income tax rate.

Self-employment tax: Sole proprietors generally pay self-employment tax on their net business income. The current rate is 15.3%, covering both the employer and employee portions of Social Security and Medicare that would normally be split between an employee and their employer.

Quarterly estimated taxes: Their employer withholds their taxes from each pay. But for a sole proprietor, if you expect that you will owe up to $1,000 in federal tax for the year, you might be required to pay an estimated tax during the year. Failing to make required payments can result in penalties.

Deductions: Some legitimate business expenses, including home office costs, equipment, supplies, business travel, and certain health insurance costs, can be deducted from your income. This, in turn, reduces the net income subject to tax and reduces the eventual tax you pay. Understanding what you can deduct meaningfully reduces your overall tax burden.

If clients pay you as an independent contractor, you may receive a 1099 form documenting income paid to you during the tax year, which you use to complete your Schedule C accurately.

How to start a sole proprietorship

The thought of starting a sole proprietorship might be overwhelming. But once you have a clear direction on how to proceed, it becomes relatively more straightforward.

• Choose a business name: You can operate under your legal name without registering a separate business name. If you want to use a different name, you may need to register a “Doing Business As” (DBA) name with your state or county.
• Get the licences and permits you need: The requirements depend on your industry and where you operate. Check your city, county, and state requirements to see which licences or permits apply to your business.
• Get an EIN if you need one: Sole proprietors without employees can usually use their Social Security Number for tax purposes. However, getting a free Employer Identification Number (EIN) from the IRS can be useful if you plan to hire employees or open a business bank account.
• Open a separate business bank account. A sole proprietorship does not legally separate you from your business, but keeping your business income and expenses in a separate account makes bookkeeping and tax filing much easier.
• Consider forming an LLC as you grow: A sole proprietorship may work well when your business is small and low-risk. As your revenue, responsibilities, or liability risks increase, an LLC can provide personal liability protection.

Getting paid as a sole proprietor

Getting paid should be simple, especially if you work with clients in other countries.

International clients may pay by bank wire, but these transfers can come with high fees, poor exchange rates, and delays. A multi-currency account can give you local account details to receive different currencies, making it easier for clients to pay you.

With Grey, you can receive and hold currencies such as USD, GBP, and EUR using local banking details. Opening a multi-currency account with Grey means clients can pay you through local payment methods instead of sending an expensive international wire. You can also receive payments from US clients and platforms.

You can use a Grey virtual card linked to your foreign currency balances to spend directly in the currencies you hold. This helps you to avoid unnecessary foreign transaction fees when paying for things abroad.

Get paid in USD with Grey and access EUR and GBP accounts to manage your local and international business income in one place.

Frequently asked questions about sole proprietorship

What is a sole proprietorship in simple terms?

A sole proprietorship is a business owned and run by one person, with no legal separation between the owner and the business. If you start freelancing, consulting, or selling products without registering an LLC or corporation, you are generally operating as a sole proprietor.

Do I need to register a sole proprietorship?

Not usually if you operate under your legal name. If you want to use a different business name, you may need to register a “Doing Business As” (DBA) name with your local or state government. Some businesses may also need specific licences or permits.

How is a sole proprietorship taxed?

Sole proprietorship income is taxed as the owner's personal income using pass-through taxation. Profits and losses are reported on Schedule C, filed with the owner's personal Form 1040 tax return. The owner also pays self-employment tax (15.3%) on net business income, covering Social Security and Medicare contributions.

Is an LLC better than a sole proprietorship?

Not necessarily. A sole proprietorship is easier and cheaper to start, while an LLC provides personal liability protection but comes with additional costs and requirements. Many business owners start as sole proprietors and switch to an LLC as their business grows.

Am I personally liable as a sole proprietor?

Yes. Because there is no legal separation between the owner and the business in a sole proprietorship, the owner is personally liable for all business debts, obligations, and legal judgments. This means personal assets, including savings, property, and other belongings, can be pursued by creditors or claimants if the business cannot cover its liabilities.

How do I get paid as a sole proprietor?

You can get paid by bank transfer, cheque, or payment platforms such as PayPal and Stripe. If you work with international clients, a multi-currency account can give you local receiving details, making it easier for clients to pay you without using expensive international wires.