Top Business Checking Accounts in Massachusetts — What Non-

Top Business Checking Accounts in Massachusetts — What Non-Residents Should Know

Starting a business in Massachusetts can be an exciting journey, but understanding the banking landscape is crucial, especially for non-residents. With numerous options available, it’s essential to choose a business checking account that aligns with your financial needs. This article presents a comparative review of the top business checking accounts in Massachusetts, focusing on key factors that non-residents should consider.

Quick Summary

Massachusetts offers various business checking accounts from established banks and credit unions. When comparing accounts, consider factors such as fees, minimum balance requirements, transaction limits, and additional features like online banking and customer support. Here are some of the top options:

1. Bank of America Business Fundamentals Checking
- Pros: Wide ATM network, excellent online banking features.
- Cons: Monthly fees can be high without minimum balance.
- Fees: $16 monthly fee, waived with a $5,000 minimum balance.

2. TD Bank Business Checking
- Pros: Easy access to branches, no monthly fee with minimum balance.
- Cons: Limited free transactions.
- Fees: $10 monthly fee, waived with a $2,500 minimum balance.

3. Wells Fargo Business Choice Checking
- Pros: Flexible transaction limits, robust online banking.
- Cons: Monthly fees can be high for low-activity accounts.
- Fees: $15 monthly fee, waived with a $7,500 minimum balance.

4. Cambridge Trust Business Checking
- Pros: Personalized customer service, local focus.
- Cons: Fewer ATMs compared to larger banks.
- Fees: $10 monthly fee, waived with a $2,500 minimum balance.

5. LendingClub Bank Business Checking
- Pros: Interest-bearing account, no monthly fees.
- Cons: Limited physical branches.
- Fees: No monthly fees, but some transaction fees apply.

Eligibility & Requirements

Eligibility for business checking accounts typically requires the following:

- Business Structure: You must have a registered business entity (LLC, Corporation, Sole Proprietorship).
- Identification: Valid identification for all signers, usually a driver’s license or passport.
- EIN or SSN: An Employer Identification Number (EIN) for businesses or a Social Security Number (SSN) for sole proprietors.
- Business License: Depending on the business type and locality, a business license may be necessary.
- Operating Agreement: For LLCs, an operating agreement may be required to outline the management structure of the business.

Non-residents may also need to provide additional documentation, such as proof of address and a letter of intent or business plan.

Step-by-Step Opening Process

Opening a business checking account typically involves the following steps:

1. Research Accounts: Compare different banks and their offerings based on your business needs.
2. Gather Documentation: Prepare all required documents, including identification, EIN, and business licenses.
3. Visit the Bank or Apply Online: Depending on the bank, you may need to visit a branch in person, especially as a non-resident. Some banks offer online applications.
4. Complete Application: Fill out the application form, providing necessary details about your business and its owners.
5. Initial Deposit: Make the required minimum deposit to activate your account. This can usually be done via cash, check, or electronic transfer.
6. Set Up Online Banking: Once the account is open, set up online banking for easy management.

Typical Fees & Timelines

Fees vary significantly among banks, and understanding these can help you avoid unexpected charges. Here’s a breakdown of typical fees associated with business checking accounts:

- Monthly Maintenance Fees: Most banks charge a monthly fee that can often be waived by maintaining a minimum balance.
- Transaction Fees: Exceeding the free transaction limit may incur fees ranging from $0.50 to $1.00 per transaction.
- ATM Fees: Using an out-of-network ATM may result in fees from both the bank and the ATM owner.
- Wire Transfer Fees: Incoming and outgoing wire transfers can range from $15 to $50.
- Overdraft Fees: Overdrafts can incur fees of $30 or more per occurrence.

Timelines for account opening can vary; typically, the process can take anywhere from a few hours to a few days, especially if additional verification is needed for non-residents.

Alternatives & Digital Banks

In addition to traditional banks, non-residents may consider digital banks that offer business checking accounts with fewer fees and enhanced features:

1. Novo: No monthly fees, unlimited transactions, and integration with accounting software.
2. BlueVine: No monthly fees and interest on deposits, but limited customer support.
3. Axos Bank: Offers a variety of business accounts with no monthly fees and competitive interest rates.

These digital banks often provide a seamless online experience, making them suitable for tech-savvy business owners.

FAQs

Q1: Can non-residents open a business checking account in Massachusetts?
Yes, non-residents can open a business checking account, but they may need to provide additional documentation.

Q2: What is the minimum balance requirement for business checking accounts?
Minimum balance requirements vary by bank, ranging from $0 to $7,500.

Q3: Are there any fees for wire transfers?
Yes, wire transfer fees can range from $15 to $50, depending on the bank.

Q4: Can I open an account online?
Some banks allow online applications, but non-residents may need to visit a branch.

Q5: What happens if I exceed the transaction limit?
Exceeding the transaction limit may incur fees, typically ranging from $0.50 to $1.00 per transaction.

Q6: Do digital banks offer business checking accounts?
Yes, many digital banks offer business checking accounts with competitive features and lower fees.

Q7: Is there a fee for using ATMs?
Using out-of-network ATMs typically incurs fees from both the bank and the ATM owner.

Q8: How long does it take to open a business checking account?
The account opening process can take a few hours to a few days, depending on the bank’s verification process.

Disclaimer

For informational purposes only; not financial advice.

About the Author

Marks Toms – Editor-in-Chief
Marks oversees editorial policy, compliance, and fact-checking at bankaccountsopen. Read more articles