Best Bank for Small Business in South Dakota | A Comprehensive Review

Steve Bennett
Business Formation Expert  |   Fact Checked by Editorial Team
Last updated: 
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The Best Bank For South Dakota Small Business

Best Bank for Small Business in South Dakota: If you would like to start an LLC in South Dakota, you must have a bank account for your business to be organized and maintainable. A small business owner must find the right bank with the support, services, and resources to help your business grow and thrive. But with so many banks in South Dakota, how can you determine the best fit for your small business?

To help you make that decision, Webinarcare Editorial Team has compiled a list of the Best Banks for Small Businesses in South Dakota. We’ll discuss the factors that make these banks stand out, including their fee structures, lending options, customer service, and additional resources they offer to support small businesses.

What is a Business Bank in South Dakota?

A business bank in South Dakota is a financial institution that provides banking services and products to small and large businesses. These banks cater to the specific needs of businesses by offering a range of financial products, including business checking and savings accounts, loans and lines of credit, credit cards, cash management services, online banking, and more.

Business banks in South Dakota offer different levels of support to businesses of all sizes, from startups to established corporations. They also provide customized solutions for the banking needs of each business, including financing options, investment strategies, and risk management services. Business banks in South Dakota are vital to the growth and prosperity of the state’s economy, as they help businesses access the capital they need to expand their operations and create jobs. Overall, business banks in South Dakota are crucial in providing businesses with the financial resources they need to succeed.

The Best Banks For Small Business in South Dakota

The best banks for small businesses in South Dakota can vary depending on location, specific financial needs, and preferences. If you are starting a business in South Dakota, having a business bank is beneficial. Here is a list of some top banks for small businesses in South Dakota indicating the pros and cons (in no particular order):

1. Wells Fargo

wells fargo

Wells Fargo is one of the largest banks in the United States and offers various financial services tailored to small businesses. They provide business checking and savings accounts, business credit cards, lines of credit, small business loans, and merchant services.

wells fargo home page
Pros πŸ‘
  • Wells Fargo is one of the largest banks in the United States, with a vast network of branches and ATMs.
  • They offer a variety of financial products and services, including savings accounts, checking accounts, credit cards, loans, and investment options.
  • Their online banking platform is user-friendly and accessible.
  • They have a strong reputation for customer service, with multiple channels available for customer support.
  • Wells Fargo offers financial education and resources, such as financial planning tools and webinars.
Cons πŸ‘Ž
  • Wells Fargo has faced several scandals recently, including their unauthorized account scandal, which damaged its reputation and eroded customer trust.
  • Their products and services can be more expensive than those other banks offer.
  • Their attention to cybersecurity has been questioned, as they have experienced several data breaches.
  • There have been reports of Wells Fargo employees engaging in unethical behavior to meet sales targets, raising concerns about their corporate culture.
  • Their lack of transparency in their fee structure can lead to customer confusion and frustration.

2. Bank of America

bank of america

Bank of America offers various financial services specifically designed for small businesses. These services include small business checking and savings accounts, business credit cards, lines of credit, South Dakota Small Business Loans, payroll services, and merchant services.

bank of america home page
Pros πŸ‘
  • Bank of America has the largest branch and ATM network in the United States.
  • They offer various financial products and services, including checking and savings accounts, credit cards, loans, and investment options.
  • Their mobile banking app is highly rated and easy to use, with features like mobile check deposit and bill pay.
  • Bank of America offers excellent educational resources for financial planning and investing.
  • They strongly focus on corporate social responsibility and are committed to sustainability and philanthropy.
Cons πŸ‘Ž
  • Bank of America has a reputation for high fees, including maintenance fees for their accounts and ATM fees.
  • Their customer service is inconsistent, with some customers reporting poor experiences with representatives.
  • Bank of America has experienced data breaches and security issues in the past.
  • They have faced criticism for their practices in mortgage lending, particularly during the 2008 financial crisis.
  • There have been reports of questionable sales tactics by Bank of America employees similar to those of Wells Fargo.

3. JPMorgan Chase

jp morgan

JPMorgan Chase Bank offers a comprehensive suite of South Dakota small business banking services, including business checking and savings accounts, credit cards, lines of credit, small business loans, and payment processing solutions.

Pros πŸ‘
  • JP Morgan Chase Bank is one of the largest and most well-established banks in the United States.
  • They offer various financial products and services, including checking and savings accounts, credit cards, loans, and investment options.
  • Their online and mobile banking platform is highly rated and user-friendly, with advanced features like mobile check deposit and balance notifications.
  • JP Morgan Chase Bank strongly focuses on innovation, investing heavily in technology and digital transformation.
  • They have a reputation for excellent customer service, with multiple channels available for support.
Cons πŸ‘Ž
  • JP Morgan Chase Bank has faced regulatory fines and lawsuits for mismanagement and illegal practices, particularly in mortgage lending and consumer protection.
  • They have a reputation for high fees, including maintenance fees for their accounts and overdraft fees.
  • JP Morgan Chase Bank has experienced data breaches and security issues.
  • They are not focused on smaller businesses or individuals, which can make them less accessible to certain segments of the population.
  • JP Morgan Chase Bank has a wide range of financial products and services, which can be overwhelming and confusing for some customers.

4. U.S. Bank

us bank

U.S. Bank provides various financial services for South Dakota small businesses, including business checking and savings accounts, credit cards, lines of credit, small business loans, cash management services, and payment processing solutions.

us bank home page
Pros πŸ‘
  • US Bank is one of the largest banks in the United States, with a significant branch and ATM network.
  • They offer a variety of financial products and services, including checking and savings accounts, credit cards, loans, and investment options.
  • Their online and mobile banking platforms are well-designed and user-friendly, with features like mobile check deposit and budgeting tools.
  • US Bank offers excellent customer service, with multiple channels available for support.
  • They strongly focus on corporate social responsibility, committed to sustainability and community development.
Cons πŸ‘Ž
  • US Bank has a reputation for high fees and charges, including maintenance fees for their accounts and ATM fees.
  • Their products and services may not be as accessible or affordable for low-income or underserved populations.
  • US Bank has experienced data breaches and security issues, which can raise concerns about customer privacy and protection.
  • They may not have a broad range of financial products and services like other large banks.
  • Some customers report difficulty resolving issues or disputes with US Bank.

5. PNC Bank

pnc

PNC Bank offers tailored financial services for South Dakota small businesses, including business checking and savings accounts, credit cards, lines of credit, term loans, and cash management services.

pnc bank home page
Pros πŸ‘
  • PNC Bank has a significant branch and ATM network, particularly in the Mid-Atlantic and Northeast regions.
  • They offer a variety of financial products and services, including checking and savings accounts, credit cards, loans, and investment options.
  • PNC Bank’s online and mobile banking platforms are highly rated and user-friendly, with features like mobile check deposit and account alerts.
  • They offer excellent customer service, with multiple channels available for support.
  • PNC Bank strongly focuses on community development and philanthropy, demonstrating a commitment to social responsibility.
Cons πŸ‘Ž
  • PNC Bank has a reputation for high fees and charges, including maintenance fees for their accounts and ATM fees.
  • Their rates on savings accounts and other deposits may not be as competitive as some other banks.
  • PNC Bank has experienced data breaches and security issues in the past.
  • They may not have as broad a range of financial products and services as some of their larger competitors.
  • Some customers report difficulty resolving issues or disputes with PNC Bank, particularly around fees and charges.

Through thorough research and market study, Webinarcare Editorial Team selects these banks for small businesses. You must cross-check all the factors before choosing the right one for your business.

Importance of Choosing the Right Bank in South Dakota

Choosing the right bank for your small business in South Dakota is a critical decision that can significantly impact your business’s overall success and growth. Even if you need to form an LLC, the right bank can provide financial resources, support, and services that cater to your business’s unique needs. Here are several reasons why selecting the right bank is crucial for small businesses in South Dakota:

  • Financial Stability: A bank that understands and supports your business’s financial needs provides a solid foundation for growth. Access to reliable credit facilities, checking and savings accounts, and cash management services ensure your business can maintain financial stability during expansion and challenging times.
  • Lending Options: The right bank should offer various options for small businesses, such as Small Business Administration (SBA) loans, lines of credit, term loans, and commercial real estate loans. These options allow business owners to access funds for various purposes, including working capital, equipment purchases, or business expansion.
  • Customized Services: Each business has unique financial requirements, so it’s essential to choose a bank that offers customized services, fee structures, and account options. This flexibility allows you to select the products and services that best suit your business’s needs and budget.
  • Local Market Knowledge: Banks with a strong presence in South Dakota are more likely to understand the local market conditions and your business’s specific challenges. This knowledge can lead to better financial advice, faster loan approvals, and more relevant support.
  • Networking Opportunities: Many banks host events, workshops, and seminars that can provide valuable educational resources, networking opportunities, and a chance to connect with other local business owners. These connections can lead to potential partnerships, collaborations, or referrals, ultimately benefiting your business growth.
  • Customer Service and Support: Having a dedicated team of small business specialists available to assist with questions, concerns, or financial advice can significantly impact your business’s success. The right bank should prioritize customer service and support, ensuring your business’s needs are met promptly and efficiently.

Tips For Choosing The Right Bank in South Dakota

When choosing the right bank in South Dakota, consider the following tips to help you make an informed decision that meets your specific financial needs and preferences:

  • Assess Your Banking Needs: Evaluate your personal or business banking requirements. Consider the type of accounts you need (checking, savings, or both), loans or credit lines, credit cards, and any additional financial services like wealth management or payment processing. Also, be informed that you should file for an Employer Identification Number in South Dakota before opening a bank account because you will use this account for yourself, your clients, and your employees. You can look up the Internal Revenue Service on how to file for an EIN. Once you have your EIN, make sure that your Registered Agent has already filed for the Articles of Organization of your LLC in the South Dakota Secretary of State. You can get business permits and pay other taxes in South Dakota Department of Revenue.
  • Compare Fees and Interest Rates: Various banks in South Dakota compare their fees for monthly maintenance, ATM usage, wire transfers, and overdraft protection. Additionally, compare the interest rates offered on savings accounts, loans, and credit cards.
  • Evaluate Customer Service: Quality customer service is essential for a smooth banking experience. Read customer reviews, ask for recommendations from friends or colleagues, and visit local branches to assess each bank’s level of customer service.
  • Accessibility and Convenience: Choose a bank with convenient branch locations and ATMs. Additionally, consider their operating hours and whether they offer online or mobile banking options for easy access to your accounts anytime, anywhere.
  • Online and Mobile Banking Features: In today’s digital age, having a bank with robust online and mobile banking capabilities is crucial. Compare the digital features offered by different banks, such as bill pay, mobile check deposit, account alerts, and budgeting tools.
  • Financial Stability and Reputation: Research the financial stability and reputation of the banks you are considering. Opt for a well-established and reputable bank to ensure the security of your funds and a reliable banking experience.
  • Special Promotions or Incentives: Some banks in South Dakota may offer promotions or incentives for opening a new account, such as cash bonuses, waived fees, or higher interest rates. Consider these offers and weigh them against long-term fees and interest rates.
  • Local or National Presence: Determine whether you prefer a local community bank or credit union that may offer personalized service and a focus on the local market or a large national bank with a more extensive range of services and resources.
  • Business Banking Services (if applicable): If you are looking for a bank for your business, consider banks that offer specialized services tailored to small businesses, such as payroll services, merchant services, and business loans or lines of credit.

By researching and comparing banks in South Dakota based on these factors, you can choose the best bank that meets your financial needs and preferences.

Why Do You Need a Bank For Your Business?

Having a bank for your business is essential for several reasons, ranging from financial management to growth and expansion. A business bank account helps you separate your personal finances from your business finances, making it easier to manage cash flow, track expenses, and maintain accurate financial records. It also allows you to accept payments under your business name, which helps build trust with customers, suppliers, and other stakeholders.

Business bank accounts typically offer more robust fraud protection measures than personal accounts. They have features like two-factor authentication, transaction monitoring, and account alerts that help safeguard your business from unauthorized transactions and fraudulent activities.

Is It Necessary To Have a Bank For Your Business?

While it may not be legally required to have a dedicated bank account for your business, it is highly recommended and considered a best practice for several reasons:

  1. Separation of personal and business finances
  2. Professionalism and credibility
  3. Access to credit and financial services
  4. Efficient cash management
  5. Enhanced fraud protection

FAQs

What is the best bank for small businesses in South Dakota?
The best bank in South Dakota for small businesses varies based on individual needs, but some popular options include First Dakota National Bank, Wells Fargo, and BankWest.
Are there any local banks in South Dakota that cater specifically to small businesses?
Yes, there are several local banks in South Dakota that specialize in small business banking, including Black Hills Federal Credit Union and First Dakota National Bank.
What types of business accounts do banks in South Dakota offer?
Most banks in South Dakota offer a variety of business accounts, including checking accounts, savings accounts, and merchant services accounts.
Can I apply for a business loan through a bank in South Dakota?
Yes, many banks in South Dakota offer business loans to qualifying companies. You will need to meet certain requirements to qualify.
What types of business loans are available in South Dakota?
You can find short-term, long-term, and secured business loans in South Dakota.
Is it better to get a business loan from a local bank rather than a national chain?
Not necessarily. It is important to research the loan terms and interest rates from both local and national chain banks.
What is the Small Business Administration (SBA), and does it work with banks in South Dakota for loans?
The SBA is a federal agency that offers loans, grants, and other aid to small businesses. Yes, the SBA works with banks in South Dakota and other states to provide loans that are guaranteed by the agency.
What are some factors I should consider when picking a bank for my small business?
Some factors to consider include interest rates, customer service, location, and security features.
Does online banking have any disadvantages for a small business?
Online banking can pose a security risk if you do not take basic precautions like strong password usage, but overall it can be convenient for small businesses.
Can I use a personal bank account for my small business?
It is generally not recommended to use a personal bank account to conduct business transactions as it can make accounting and taxes more difficult to manage.
What is the difference between a checking account and a savings account for small businesses?
A checking account is generally used for everyday transactions like paying bills and writing checks, while a savings account can be used to save money for future expenses or emergencies.
Are there special account features that are helpful for small businesses, such as mobile banking or integration with accounting software?
Yes, many banks in South Dakota offer special account features aimed at helping small businesses. Ask your bank about mobile banking, online accounting integration, and other options.
Does opening a business bank account affect my credit score?
No, opening a business bank account will not affect your personal credit score.
Can I transfer money internationally through my South Dakota bank account?
Yes, most banks in South Dakota will allow you to transfer money internationally, although you may need to pay a fee.
Does my business need a credit check to apply for a loan through a South Dakota bank?
Yes, many banks in South Dakota will run a credit check as apart of their loan application process.
How long does it take to get approved for a business loan in South Dakota?
The amount of time it takes to get approved for a business loan in South Dakota varies depending on the lender and type of loan you are applying for.
Can I get a credit card for my business through a South Dakota bank?
Yes, most banks in South Dakota offer business credit cards.
What types of expenses can I use a business credit card for?
You can use a business credit card for business-related expenses like office supplies, travel expenses, and client dinners.
Are there any tax benefits to having a separate business bank account or credit card account?
A separate account allows you to easily track business expenses for taxes and other accounting needs.
Do all banks in South Dakota offer online banking for their business customers?
Yes, most banks in South Dakota offer online banking for business customers so that banking can be done from anywhere at any time convenient for the business.
Is there are credit union network in South Dakota that offers bank services to small businesses?
Yes, there are several credit unions in South Dakota that offer banking services to small businesses across the state.
Does a small business require a physical address in South Dakota to apply for lending at a local bank?
Yes, you must provide your business’ location in the loan application process.
Are there any minimum deposit requirements for starting a business bank account in South Dakota?
Some local banks in South Dakota may cater to small businesses without deposit requirements, while larger banks may have set deposit conditions.
What happens if I bounce a check for my small business through a South Dakota bank?
There may be a penalty fee imposed by the bank, but otherwise the process is generally very similar to when a check is bounced on a personal account held with the bank.
Does the Limited Liability Company structure impact my ability to open a business bank account in South Dakota?
No, being registered as an LLC doesn’t affect a business’ ability to open bank accounts, get loans or otherwise control its finances.
Can I wire transfer funds directly into my employee’s bank accounts put through my small business’s bank account?
Yes, many banks in South Dakota offer wire transfer services for businesses.
Do any banks in South Dakota offer free checking accounts for small businesses?
Yes, some banks in South Dakota offer free checking accounts for small businesses with a minimum deposit or average balance.
How can I find the best bank for my small business in South Dakota?
You can research banks online or ask other small business owners for their recommendations on the best option for you based on your business banking needs.
What is the best bank for small business in South Dakota?
The best bank for small business in South Dakota varies depending on individual needs, but some popular options include First Dakota National Bank, Home Federal Bank, and First Bank & Trust.
Does South Dakota have any local small business banks?
Yes, South Dakota has several local small business banks including First Dakota National Bank, Dakota-Plains Federal Credit Union, and CorTrust Bank.
What are the benefits of banking with a local bank in South Dakota?
Banking with a local bank in South Dakota allows for more personalized service, better rates on loans and deposits, and a deeper understanding of the local market.
Does South Dakota have any online-only banks for small businesses?
Yes, South Dakota has several online-only banks available for small businesses including Azlo, Axos Bank, and Live Oak Bank.
What are some fees to consider when choosing a bank for my small business in South Dakota?
Some fees to consider when choosing a bank for your small business in South Dakota may include monthly maintenance fees, overdraft fees, wire transfer fees, and transaction fees.
What kind of loans are available for small businesses in South Dakota?
Small business loans available in South Dakota include SBA loans, equipment loans, lines of credit, and commercial real estate loans.
Can I open a business bank account online in South Dakota?
Yes, many banks in South Dakota offer online account opening for small businesses.
Are credit unions available for small businesses in South Dakota?
Yes, credit unions such as Dakotaland Federal Credit Union and Black Hills Federal Credit Union offer services to small businesses in South Dakota.
What documentation is needed to open a bank account for my small business in South Dakota?
Required documentation may include your business license, tax ID number, proof of ownership, and your social security number.
What kind of online banking services are offered for small businesses in South Dakota?
Many banks in South Dakota offer online banking services for small businesses, including bill pay, mobile check deposit, and account management.
Can I get ACH payment processing for my small business in South Dakota?
Yes, many banks in South Dakota offer ACH payment processing services for small businesses.
Does South Dakota have any banks with ATMs or branches outside of the state?
Many national banks have branches and ATMs in South Dakota, but few South Dakota-based banks have locations outside of the state.
What is the typical interest rate on a small business loan in South Dakota?
Interest rates on small business loans in South Dakota vary depending on the loan type and lender, but they typically range from 6-10%.
Can I get a business credit card in South Dakota?
Yes, many banks in South Dakota offer business credit cards with various reward programs and interest rates.
Are online business banking platforms available for small businesses in South Dakota?
Yes, many banks offering online business banking platforms to small businesses in South Dakota, including First Dakota National Bank, Home Federal Bank, and Dacotah Bank.
Are there any diversity-lending programs available for small businesses in South Dakota?
There are various publicly-funded organization offering diversity-lending programs in South Dakota with comprehensive offers in SBA and non-SBA term loans, working capital, credit lines, and factoring facilities.
Can I get a mortgage for my small business property in South Dakota?
Yes, commercial mortgages are available in South Dakota for small business owners looking to purchase or refinance a property that they will operate as a business.
What is the FDIC limit for small business bank accounts in South Dakota?
The FDIC limit for small business bank accounts in South Dakota is up to $250,000 per depositor.
Can I set up a merchant services account through my bank for my small business in South Dakota?
Yes, many banks in South Dakota offer merchant services solutions to small businesses, which allows them to accept credit card payments.
What are some good South Dakota banks for entrepreneurs?
First Dakota National Bank, Black Hills Federal Credit Union, and Wells Fargo are some good options for entrepreneurs in South Dakota.
Can I get payroll services for my small business in South Dakota?
Yes, some banks in South Dakota offer payroll services for small businesses. However, they may charge a fee.
Can I get a personal loan to fund my small business in South Dakota?
Yes, many banks in South Dakota offer personal loans that can be used to fund a small business.
Is it possible to have multiple business accounts at one bank in South Dakota?
Yes, many banks in South Dakota offer the ability to have multiple business accounts, each with unique features and requirements.
Can you recommend a good South Dakota bank for a startup business?
Some banks that may be good for a startup business in South Dakota include West River Bank, Pioneer Bank and Trust, and Farmers State Bank.
What is the average fees I should be concerned about with a checking account for my small business in South Dakota?
The average monthly maintenance fee for a checking account at a bank in South Dakota is around $10-$15, but local and community banks might charge anywhere from $5 up to $18.
Can I get investment services for my small business in South Dakota?
Yes, many banks in South Dakota offer investment services for small businesses to help manage their cash flow and plan for the future.
Is it possible to apply for a loan at multiple banks in South Dakota at the same time?
Yes, it is possible to apply for a loan at multiple banks in South Dakota to compare offers and get the best deal.
What is the minimum amount that my small business needs to deposit into a South Dakota bank in order to open a checking account?
The minimum amount varies by bank and account type, but it typically ranges from $500 to $1,500 in South Dakota.
What options are available for giving employee payroll from my small business account in South Dakota?
Banks with payroll services options by two of the largest HCM Software providers i.e ADP & Gusto are select-able. Local banks might have similar financial products available as well.
Can I get multi-user functionality (or several authorized users) with my account in a South Dakota bank?
Yes, most banks in South Dakota offer multi-user functionality with business accounts, allowing multiple people to access and manage the account according to credentials and perhaps transactional limits established by owner of the account.

Also Read

How to Choose Best Bank for Your South Dakota Small Businesses

First and foremost, you must assess the bank’s understanding of the unique needs and challenges faced by small businesses. While larger banks often dominate the financial landscape, they might not always provide tailored solutions for small businesses. Therefore, it is crucial to search for a bank that truly understands the specificities of running a small business and offers customized services to cater to those needs.

Another crucial aspect to consider is the bank’s accessibility and convenience. Running a small business entails wearing multiple hats simultaneously, usually leaving business owners pressed for time. It becomes inherently vital to choose a bank with convenient locations and accessible online services. Opt for a bank that allows you to efficiently manage your finances, with features like electronic payments, online banking, and mobile banking applications to handle your banking needs from anywhere and at any time.

Fees and rates also play a crucial role in selecting the best bank for your small business. Small businesses often have tight margins and limited cash flow, making it essential to minimize unnecessary expenses. Compare the fees charged by different banks for services such as overdraft protection, wire transfers, and monthly maintenance. Ensure you choose a bank that offers fair rates and doesn’t burden your business with excessive charges, potentially eating into your profits.

Business owners should prioritize building a relationship with their bank. Establishing a rapport with the bank’s staff, especially the relationship manager or business banker, can be invaluable. Seek a bank that values long-term relationships and provides personalized attention. Your bank should be willing to understand your business goals, offer advice, and provide financial solutions that align with your aspirations. Effective and open communication channels with your bank are essential components of fostering a beneficial partnership.

Safeguarding your business finances is of utmost importance, which is why you should consider the bank’s reputation and stability. Thoroughly research the bank, refer to reviews and customer feedback, and evaluate its financial standing. Opt for a bank renowned for its stability and dependability. You need a bank that will be stable even during challenging economic timesβ€”an ally that will support your business, even in times of crisis.

Finally, banks play an active role in the community as well. Small businesses are integral to any community’s growth and vitality, and partnering with a bank that shares these values can make a significant difference. Choose a bank that demonstrates involvement in local initiatives, actively supports small businesses, and contributes to the economic development of your community.

Ultimately, choosing the right bank for your small business is a decision that requires careful consideration. While this editorial comment provides general guidelines, every business has unique requirements. Take the time to thoroughly research and evaluate banks based on your specific needs before making a decision. The chosen bank should not only meet your current needs but also support your long-term financial goals.

Conclusion

When choosing the best bank for your small business in South Dakota, it’s essential to consider factors such as fee structures, lending options, customer service, and each bank’s additional resources. The banks listed above each offer unique advantages and services tailored to the needs of small businesses, making them strong contenders for the title of the best bank for small business in South Dakota.

Ultimately, the best bank for your small business will depend on your specific needs and preferences. By carefully evaluating these banks and considering how their services align with your business requirements, you can choose the bank that best supports your small business’s growth and success.

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