Running a small business means wearing a lot of hats. You're already managing sales, operations, and keeping customers happy, so password security probably isn't top of mind. But your team is logging in to multiple apps every day, and those credentials need to stay protected.
You need a way to keep your login information secure while making it easy for your team to get their work done. LastPass is a password manager for small businesses that does exactly that. This guide walks you through the features that matter most when you're choosing a team password manager.
Key takeaways: password manager features for small business
- Weak and reused passwords are one of the easiest ways for attackers to get into your systems.
- When choosing a password manager for your team, you'll want a solution that's both secure and easy to use.
- Features like an Admin Console, secure sharing, and dark web monitoring matter most for small businesses.
- LastPass is built for small businesses that need strong security without a dedicated IT team.
Why does a small business need a password manager?
Your business runs on dozens of apps: CRM, email, accounting, project management, and social media. Each one has a login, and each login is a potential entry point for attackers. A password manager keeps all of those credentials encrypted and organized in one place.
It also solves the sharing problem. Teams need to access shared accounts, and without a password manager, those logins end up in Slack messages, emails, or spreadsheets. That's messy and risky. A password manager lets you share securely and revoke access the moment someone leaves.
What features should a small business look for in a password manager?
Admin Console with security policies
An Admin Console is where everything comes together. It's a single dashboard for adding and removing users, organizing people into groups, and setting security rules for your company.
The real value is in customizable security policies. These let you control things like minimum password length, how often passwords need to be changed, and who can share credentials with whom. A finance team might need stricter rules than a marketing team, and an Admin Console lets you set that up without a dedicated IT person.
Directory integrations
If your business uses Google Workspace, Microsoft 365, or another identity provider, a password manager that connects to it saves a lot of manual work. When someone joins the company and gets added to your directory, they're automatically set up in the password manager too.
The same goes for offboarding. Remove someone from your directory, and their password manager access is revoked immediately. No extra steps, no forgotten accounts.
Multifactor authentication support
Multifactor authentication adds a second step to logins, like a code from an app or a fingerprint scan. Even if someone gets hold of a password, they can't get in without that second factor.
A good password manager supports multiple MFA options: authenticator apps, hardware keys like YubiKey, and biometrics like Face ID or fingerprint. This flexibility makes it easier to roll out MFA across your team, since different people may prefer different methods.
Secure team sharing
From your company's Twitter account to your project management tool, there are always logins that more than 1 person needs. Emailing those passwords around or keeping them in a shared doc creates risk.
Secure sharing keeps credentials encrypted while making them accessible to the right people. The best password managers let you organize shared logins into folders by team, project, or department. Some also let you share access without revealing the password itself, which is useful when working with contractors or temporary staff.
Dark web monitoring
When credentials get exposed in a data breach, they often end up for sale on the dark web. Dark web monitoring scans these databases and alerts you if any of your company's logins appear.
This early warning gives you time to change compromised passwords before anyone can use them. It's especially valuable for small businesses that don't have a security team watching for threats around the clock.
What makes LastPass the best password manager for small businesses?
LastPass lets you set different security rules for different teams
With over 120 security policies, you can tailor password requirements to each group in your organization. Maybe your team handling customer data needs stricter rules than your sales team. LastPass lets you set that up.
You can control password length, block reuse, require multifactor authentication, and restrict sharing, all from the Admin Console. Once you set a policy, LastPass enforces it automatically.
LastPass stores and autofills your credentials across every device
LastPass syncs your team's passwords across all their devices, whether they're on a laptop, phone, or tablet. When someone saves a new login on their computer, it's instantly available on their mobile device too.
The browser extension and mobile apps make autofill fast and reliable. Your team can log in to any account with a single click, which means fewer password reset requests and more time spent getting work done.
LastPass makes secure password sharing simple for teams
Sharing passwords with LastPass is straightforward. You can share credentials 1-on-1 or with entire groups and organize everything into shared folders that make sense for your business.
For sensitive accounts, you can share access while hiding the password itself. This is handy when you need to give a contractor access to a tool without revealing the login details. When that contractor finishes the project, you revoke their access immediately.
LastPass tracks user access history and password health
The LastPass Security Dashboard shows password health scores across your entire organization. You can see which passwords are weak, which ones have been reused, and which accounts might be at risk.
You also get visibility into who's accessing which passwords and when. This tracking helps you spot unusual activity early and gives you an audit trail if you ever need to investigate an issue.
LastPass connects to your existing directory services
LastPass integrates with Microsoft Active Directory, Google Workspace, Okta, and OneLogin. New hires get access to LastPass as soon as they're added to your directory, and departing employees lose access the moment they leave.
Federated login lets your team access LastPass using their existing work credentials. This means 1 less password to remember and a smoother login experience for everyone.
What's the difference between a personal and business password manager?
Personal password managers store your logins, sync across your devices, and help you create strong passwords. Some offer family plans for sharing between a few people. But they're not built for managing access across an organization.
A business password manager adds features you need when multiple people are involved. You get an Admin Console to manage users, shared folders for team credentials, and security policies you can enforce across your organization. You also get reporting tools that show you password health and user activity.
For a business, the difference matters. A business password manager gives you control over access, secure sharing, and visibility into what's happening across your team.
How do you handle shared accounts like social media logins?
Most small businesses have accounts that multiple people need to access, like social media profiles, shared email inboxes, or subscription services. The problem is, these accounts usually have 1 username and 1 password.
With a password manager, you create a shared folder for these credentials and give access to the people who need it. Everyone logs in through the password manager, so no one needs to know the password itself. If someone leaves, you remove their access to the folder. No need to change the password and notify everyone else.
LastPass: password management for small businesses
LastPass strikes a balance between security and ease of use, which is why it's a popular choice for small businesses. The interface is intuitive enough that most teams pick it up quickly, and 24/7 support by phone, email, or chat is there if you run into trouble.
LastPass offers a Teams plan for smaller groups and a Business plan for companies that need directory integrations and single sign-on. Both come with a free trial, so you can explore the features before committing. Get started with LastPass.
