¶ Intro / Opening
Hey guys, Trevor with eCommerce Paradise. Today I'm going to talk to you about the best business bank accounts for high-ticket dropshipping.
¶ Introduction to Business Bank Accounts
If it's your first time watching one of my videos or listening to my podcast, be sure to subscribe as well as get my free niches list and mini course for high-ticket dropshipping at eCommerceParadise.com slash free course. All right, so let's get into it. Best business bank accounts for high-ticket dropshipping. I've been doing this for a long time and I've been through a bunch of different business bank accounts in that time and in that time, I found out that number one, I really like Chase.
Chase is really easy to work with. It's one of my favorite ones. And generally speaking, they offer great customer service and just a great product as well as multiple different types of credit cards, personal and business that work great and provide fantastic value for your spending. So Chase is the number one bank I work with. Back in the day, they did not offer accounts to Wyoming LLCs.
¶ Choosing the Right State for LLC Formation
Now they do. So they work for pretty much any online business because when I talk about how to form a business, it's usually starting with an LLC in Wyoming. Nowadays, that's a little bit different because even though you can still form an LLC in Wyoming very easily, it's now quite difficult to get a seller's permit in Wyoming.
They're no longer, as of 2025, they're no longer offering seller's permits to new sellers without them already meeting the threshold for sales within Wyoming in order to get that seller's permit or having a physical retail location or residence in Wyoming. So the easy way to go now is actually South Dakota. South Dakota has also very good tax laws. So no set, sorry, no income tax in that state as well as no franchise fee on an LLC.
So you can form a South Dakota LLC and get a South Dakota seller's permit. You can also form an LLC in Wyoming and get a South Dakota seller's permit. That's fine too. It really kind of depends on where you're at. But generally speaking, you need to form it in a state that's, you know, tax advantaged. And you know, what I mean by that is obviously no income tax and a smaller population as well.
That helps with sales tax because you really only have to charge sales tax in the very beginning from the state that you're formed in. Later on down the road, when you get sales in other states and they reach the thresholds for the economic nexus, you'll have to get sales permits in those states and collect and remit sales tax. But South Dakota is a great place to start. It turns out as well that South Dakota is very easy to establish residency in.
¶ Establishing Residency for Business Accounts
You can go there and just stay for a night at a hotel or even a campsite, get your receipt, form a virtual mailbox address at the America's Mailbox service, and you can look them up on Google, and then go into the DMV and you just give them your virtual mailbox receipt and address, as well as your hotel night stay, and you can get a driver's license and register to vote in that state.
And it's an old no matters trick, RVers trick. But one of the things is that even though you can do all that, the banks are still going to look for a physical residential address in order to set up your account status. So just keep that in mind. What I do is I use my dad's address, which is in Washington. And Washington is also an income tax-free state for the banks. And then for everything else, I use South Dakota. So it works out pretty well.
However, it's more ideal to have a physical residence in South Dakota. So if you can afford it to go rent a place or rent an office or even to buy a house or something like that. The real estate is quite affordable out there. In South Dakota, there's a city called Rapid City, and it's very near Mount Rushmore and the area called the Black Hills, and it's very beautiful. And real estate is very inexpensive. You can find homes for like $100,000, $200,000.
So it's a great way to go. But I'm getting a little bit off topic here.
¶ Alternatives to Chase Bank
Chase is the best way to go. They have accounts in both those states. If you don't like Chase or you can't use them for whatever reason, I would recommend Wells Fargo. They're also very decent. Bank of America. There's also American Express offers business checking accounts now. And there's other banks as well. If you're overseas, international, I would recommend using Wise.
Actually, I recommend using Wise for your personal anyways, just because if you travel a lot, it's really easy to move money around with Wise. So Wise is really good to go. But those are the best business bank accounts. In my opinion, I recommend using Chase.
¶ Transitioning to Business Credit Cards
If you're looking for information on the best business credit cards for high ticket dropshipping, I'll link that video and blog post below. That's kind of the next step. Once you form your business, you want to get your business checking account set up and then go get business credit cards. You can use personal credit cards for high ticket dropshipping, but using business credit cards is better and separating out your personal and business spend obviously is super important for accounting.
So definitely do that guys. Check out the blog post below for the best business bank accounts. Make sure you subscribe, like, and get your free niches list and mini course at ecommerceparadise.com slash free course. And I'll see you on the inside.