If you’re running a business outside of the U.S. but have stateside clients, you may well have experienced the headaches of cross-border payments. Traditionally, American banks present a myriad of obstacles for non-citizens and non-residents. These can range from strict identification requirements to limited access to financial services. These obstacles can make it difficult for foreign entrepreneurs and business owners to establish a financial presence in the United States.
1. Set up your LLC
An obvious prerequisite to opening a business bank account in the U.S. is actually having a business in the U.S. This is an absolute necessity. No bank will allow you to open a business bank account if you don’t actually have a business.
Limited Liability Companies (LLCs) and corporations are the most common business entities for non-citizens and non-residents.
Forming a U.S. business entity involves several steps, which may vary depending on where you form your business and its structure. The steps may include:
- Choosing a state of registration.
- Selecting a unique business name.
- Appointing a registered agent.
- Filing the appropriate paperwork.
2. Obtain an Employer Identification Number (EIN)
Another must before applying for a business bank account is to apply for an EIN. An EIN is essentially a tax ID number for your business. It’s required by most banks when opening a business account. You can easily apply for an EIN online through the IRS website.
One precursor to applying for an EIN is having either an SSN or an ITIN. An SSN (Social Security Number) is assigned to American citizens at birth, so if you are an American expatriate, you would apply for an EIN with your SSN.
If you do not hold American citizenship, you must apply for an ITIN (Individual Taxpayer Identification Number). You must apply via post, and it can take weeks to receive. Read our guide on how to get an ITIN if you are in this situation.
In addition to your EIN, you’ll probably need to provide:
- Formation documents: Articles of Organization (for LLCs) or Articles of Incorporation (for corporations)
- Identification: Passport or other government-issued ID like a driver’s license.
- Proof of address: This can be tricky for non-residents, but options include utility bills, bank statements, or official documents from your home country.
- Business address: For non-residents, this is often your registered agent’s address or a virtual office that has a mail forwarding service.
- Business plan: Some banks may request a summary of your business model and financial projections.
3. Choose a business bank account
Before opening an account, it is important to choose a bank that caters to non-residents and fits your business needs. Three banks that are favorites with non-residents are Mercury, Found, and Realy Fi.
|
Visit Found | ||
|
Visit Relay | ||
|
Visit Mercury |
FAQs
Can I open a U.S. business bank account without physically being in the U.S.?
Yes, some banks allow non-residents to open a U.S. business account entirely online. You must have a registered business in the U.S. and provide certain documentation.
Do I need a U.S. Social Security Number (SSN) to open a business bank account?
Not necessarily. While some banks may require an SSN, others accept an Individual Taxpayer Identification Number (ITIN) for non-citizens.
How long does it take to open a U.S. business bank account as a non-resident?
The process can vary depending on the bank and your specific situation. Generally, online applications can be completed in a matter of days, but it may take longer if additional documentation is required.
Can I open a U.S. business bank account with a foreign business?
You must have a business registered in the U.S. to open a U.S. business bank account. This typically means forming an LLC or corporation in a U.S. state.
What documents do I need to provide to open a U.S. business bank account?
The specific requirements may vary by bank. Generally, documents include formation documents, an EIN confirmation letter, valid identification, proof of address, and potentially a business plan.
Are there any monthly fees associated with U.S. business bank accounts for non-residents?
It depends on the bank and the specific account you choose. Some banks offer fee-free basic business banking, while others may charge monthly fees for certain services or advanced features.
Can I deposit and withdraw funds internationally with a U.S. business bank account?
Most U.S. business bank accounts allow international transactions. There may be fees associated with international wire transfers or currency conversions.
Is my money protected in a U.S. business bank account as a non-resident?
Yes, funds deposited in a U.S. business bank account are generally insured by the Federal Deposit Insurance Corporation (FDIC) regardless of the account holder’s residency status.
Can I integrate my U.S. business bank account with accounting software?
Many U.S. business bank accounts, integrate with popular accounting software like QuickBooks and Xero.
What happens if my U.S. business bank account application is denied?
If your application is denied, the bank will usually provide a reason for the denial. You may need to provide additional documentation or clarify certain aspects of your business. If you are still unable to open an account with one bank, you can explore other options that may be more suited to your specific situation.
If Wise and Revolut aren’t banks, what are they? Would they protect my money?
Wise and Revolut are fintech companies that offer banking-like services, but they are not traditional banks. While Wise and Revolut don’t have FDIC insurance or similar deposit guarantees like traditional banks, they do take measures to safeguard funds.
Found
Found is a user-friendly banking platform designed for entrepreneurs and small businesses. It offers a streamlined account opening process and a range of financial tools tailored to growing businesses. Found is best for U.S. citizens or residents who are sole proprietors or single-member LLC owners and desire a straightforward banking experience with basic bookkeeping features.
How to open a Found account
To open a business bank account with Found, follow these steps:
- Your business is a single-owner entity, such as a sole proprietorship or single-member LLC, as Found currently does not support multi-owner businesses, but there are plans for this to change in the future.
- Apply using your name and SSN or ITIN. If you have an EIN, you can add it later.
- Provide the following information:
- Legal name, home address, and cell phone number
- Date of birth
- Basic business details (industry, start date)
- Estimated business income, tax filing status, and total expected income
- Wait up to seven business days to receive your Found debit card. You can use a virtual card in the app in the meantime.
- Fund your account via mobile check deposit (up to $3,000 per day), cash deposit (up to $2,000 per week; $4,000 per month), or through direct deposit, wire transfer, or payment apps like PayPal or Cash App.
Eligibility for a Found business account
To be eligible for a Found business account, you must meet the following simple criteria:
- You are a U.S. citizen or a legal permanent resident
- You are at least 18 years old
- You have a physical address in one of the 50 U.S. states, Washington D.C., or a U.S. military address (APO or FPO)
- You have a valid SSN or ITIN.
Found business account fees
- Found’s core business banking features are free, with no fees for opening an account, transferring funds, creating invoices, sending payments, or maintaining a minimum balance.
- Optional paid services include instant withdrawals (1.75% fee) and Found Plus ($19.99/month or $149.99/year). Third-party fees may apply for ATM withdrawals, international transactions, and invoice payments.
Relay Financial
Relay has no monthly fees and doesn’t require a minimum deposit. The bank also offers virtual cards, a mobile app, and an online platform, making handling international payments a breeze. Relay is ideal for non-U.S. residents with international businesses, as it offers seamless international payments, no monthly fees, and no minimum balance requirements.
How to open a Relay Financial account
To open a business bank account with Relay, follow these steps:
- Provide the following information about your business:
- Business name and address: The address must be a physical address in the U.S. Relay does not accept virtual mailboxes.
- Industry type
- Entity type (corporation, LLC, partnership, or sole proprietorship)
- Estimated monthly account activity
- Beneficial owners’ details (name, address, SSN, date of birth, and percentage of ownership)
- Upload the required documents:
- Articles of Incorporation or Organization
- EIN confirmation letter
- Photo ID for beneficial owners
- Proof of address (utility bill, lease agreement, etc.)
- Review and submit the application. Relay will verify information and normally approve or deny applications within 1-2 business days.
- Once approved, fund the account via ACH transfer, wire transfer, or mobile check deposit.
Eligibility for a Relay Financial business account
Relay accounts are available to Non-U.S. residents, but they must supply the following information:
- Source of income that helped get the business up and running
- Whether their business is new or established
- Annual personal income
- All countries where the business operates in
Relay Financial business account fees
- Relay’s core business banking plan is free. It offers features like up to 20 checking accounts, 50 virtual or physical debit cards, fee-free transactions, and integrations with platforms like QuickBooks Online and Xero.
- Relay Pro, starting at $30 per business per month, includes additional features such as same-day ACH, free outgoing wires, and an accounts payable dashboard for importing, reviewing, and paying bills.
Mercury
Mercury is an entirely online bank that offers services to non-resident US companies. Its easy-to-use platform and low transaction fees make it ideal for foreign startups. Mercury is best for non-U.S. residents with tech-focused startups or established businesses that have a U.S. presence and require a modern online banking platform with low fees for essential services.
How to open a Mercury account
To open a business bank account with Mercury, complete the following steps:
- Provide basic information and company details, and choose a unique calling for your team.
- Confirm your business type fits Mercury’s accepted categories:
- Registered with the SEC
- A publicly-traded company
- Majority owned by a public company
- Mercury will not accept businesses involved in the following:
- Monetary services
- Adult entertainment
- Marijuana
- Online gambling gambling
- Agree to the PATRIOT Act Disclosure, which allows the bank to check business and personal documents, verify identities, and understand the corporation’s activities.
- Create a company profile including info, contacts, owners, business names, formation documents, and EIN verification.
- Review and submit your application, providing as much information as possible for a higher chance of acceptance.
Eligibility for a Mercury business account
To be eligible for a Mercury business account, your company must meet the following criteria:
- Registered in the United States
- One of the supported entity types (e.g., C-Corp, LLC, Non-Profit)
- Not operating in restricted industries
- Able to pass Mercury’s internal risk assessment and comply with legal requirements
Mercury business account fees
- Mercury’s basic business banking features are free, with no account minimums, overdraft fees, monthly fees, or account opening fees.
- Advanced features, such as mass payments, Treasury account management, and international transactions, may incur certain fees. Paid plans with a wide range of features are available starting at $35/month.
Other U.S. bank options
Wise (formerly TransferWise)
Wise is a global fintech company known for its transparent and cost-effective international money transfers. For non-resident business owners, Wise’s multi-currency account is particularly appealing.
It allows you to hold money in multiple currencies, send and receive payments globally at competitive exchange rates, and even get local account details in major currencies. This can simplify international transactions and reduce fees compared with traditional banking.
It is important to note that Wise is not a traditional bank. This means that it does not offer all the services of a full-fledged business bank account, but it can serve as an addition to an existing banking setup. This is especially useful for businesses that deal with multiple currencies or send international payments regularly.
Revolut
Revolut is another innovative fintech company that offers solutions for non-resident business owners. Revolut Business provides a convenient way to manage finances, including international payments, expense tracking, and virtual cards for online spending.
Their multi-currency accounts and competitive exchange rates make them attractive for businesses with global transactions. Revolut also offers additional features like cryptocurrency exchange and stock trading, catering to entrepreneurs who want a versatile financial solution.
Like Wise, Revolut is not a traditional bank. It’s important to note that Revolut’s features and fees can vary depending on your chosen plan. Review the options carefully to find the best fit for your business needs.
FAQs
Can I open a U.S. business bank account without physically being in the U.S.?
Yes, some banks allow non-residents to open a U.S. business account entirely online. You must have a registered business in the U.S. and provide certain documentation.
Do I need a U.S. Social Security Number (SSN) to open a business bank account?
Not necessarily. While some banks may require an SSN, others accept an Individual Taxpayer Identification Number (ITIN) for non-citizens.
How long does it take to open a U.S. business bank account as a non-resident?
The process can vary depending on the bank and your specific situation. Generally, online applications can be completed in a matter of days, but it may take longer if additional documentation is required.
Can I open a U.S. business bank account with a foreign business?
You must have a business registered in the U.S. to open a U.S. business bank account. This typically means forming an LLC or corporation in a U.S. state.
What documents do I need to provide to open a U.S. business bank account?
The specific requirements may vary by bank. Generally, documents include formation documents, an EIN confirmation letter, valid identification, proof of address, and potentially a business plan.
Are there any monthly fees associated with U.S. business bank accounts for non-residents?
It depends on the bank and the specific account you choose. Some banks offer fee-free basic business banking, while others may charge monthly fees for certain services or advanced features.
Can I deposit and withdraw funds internationally with a U.S. business bank account?
Most U.S. business bank accounts allow international transactions. There may be fees associated with international wire transfers or currency conversions.
Is my money protected in a U.S. business bank account as a non-resident?
Yes, funds deposited in a U.S. business bank account are generally insured by the Federal Deposit Insurance Corporation (FDIC) regardless of the account holder’s residency status.
Can I integrate my U.S. business bank account with accounting software?
Many U.S. business bank accounts, integrate with popular accounting software like QuickBooks and Xero.
What happens if my U.S. business bank account application is denied?
If your application is denied, the bank will usually provide a reason for the denial. You may need to provide additional documentation or clarify certain aspects of your business. If you are still unable to open an account with one bank, you can explore other options that may be more suited to your specific situation.
If Wise and Revolut aren’t banks, what are they? Would they protect my money?
Wise and Revolut are fintech companies that offer banking-like services, but they are not traditional banks. While Wise and Revolut don’t have FDIC insurance or similar deposit guarantees like traditional banks, they do take measures to safeguard funds.