U.S. Banking Guide
Your Guide to U.S. Business Banking
For a non-resident entrepreneur, opening a U.S. bank account is a critical step. This interactive guide simplifies the process, breaking down complex requirements into manageable steps. Navigate through the sections to find the information you need, from choosing the right bank to maintaining long-term compliance.
The Path to Your U.S. Bank Account
Form U.S. Entity & Get EIN
The non-negotiable first step.
Choose Banking Partner
Compare Fintech vs. Traditional.
Gather Documents
Prepare for KYC/AML checks.
Apply & Maintain
Navigate compliance and taxes.
Choosing Your Financial Partner
The right banking partner is crucial. The U.S. offers two main paths: modern, remote-friendly fintech platforms and established traditional banks. This section helps you compare them and select the best fit for your global business.
Fintech Platforms (e.g., Mercury, Relay)
Digital-first solutions designed for modern, remote businesses.
- ✔ Fully remote online application
- ✔ Low or no monthly fees/minimums
- ✔ Excellent tech integrations (API, etc.)
- ✘ Indirect FDIC insurance (via partners)
- ✘ Limited services (no loans, etc.)
Traditional Banks (e.g., Chase, Wells Fargo)
Established institutions with a physical presence.
- ✔ Direct FDIC insurance and full service suite
- ✔ Access to loans, credit, and in-person support
- ✔ High credibility and established reputation
- ✘ In-person visit almost always required
- ✘ Higher fees and slower technology
Platform Comparison Chart
A quick visual comparison of key features across different provider types. Higher bars are better.
Platform Deep Dive
Select a platform to see a detailed breakdown of its features, ideal use case, and key considerations for non-resident founders.
Your Application Toolkit
Success in your banking application depends on meticulous preparation. This toolkit provides an interactive checklist of required documents and clarifies the most challenging requirements, like the U.S. address rule.
Master Document Checklist
Gather these items before you begin any application. Check them off as you go.
- Articles of Organization/Incorporation
- LLC Operating Agreement / Bylaws
- EIN Confirmation Letter (CP 575)
- Valid Foreign Passport
- Proof of Foreign Residential Address
- Proof of U.S. Business Address
- Company Website / Business Plan
Decoding KYC and BOI
Banks must verify who you are ("Know Your Customer") and who owns the company ("Beneficial Ownership Information").
Ownership Prong
They must identify anyone who owns 25% or more of the company.
Control Prong
They must identify at least one person with significant managerial control (e.g., CEO, Managing Member).
Be prepared to provide passports and addresses for all individuals who meet these criteria. Consistency is key!
The U.S. Address Dilemma
This is a major hurdle. Banks require a physical U.S. business address and often reject basic mail forwarding or registered agent addresses. Here are your options:
Avoid ⛔
P.O. Boxes and standard Registered Agent addresses are frequently flagged and rejected.
Good ✅
Your verifiable foreign home address. Many fintechs like Mercury accept this for digital businesses.
Best ✅✅
A lease for a U.S. co-working space or a premium virtual office that provides a utility bill.
Compliance & Tax Center
Opening the account is just the beginning. This section demystifies your ongoing U.S. tax and reporting obligations and provides best practices to keep your account in good standing.
Which Tax Forms Do I File?
Your filing requirements depend on your company structure. Select your entity type to see the key forms.
Key Filing: Form 5472 + pro-forma 1120
This is a critical information return for reporting transactions between the LLC and its foreign owner. The penalty for non-filing is a staggering $25,000. It must be filed even if the LLC has no income.
Key Filing: Form 1120
As a separate U.S. taxpayer, the C-Corp must file this U.S. Corporation Income Tax Return annually to report its worldwide income and calculate its tax liability.
FBAR (FinCEN Form 114) Explained
▼The FBAR is filed by a U.S. Person (which includes your U.S. LLC or C-Corp) to report its foreign financial accounts if their total value exceeds $10,000. Your company files this, not you personally. An example is your U.S. LLC holding a balance in a Wise multi-currency account.
FATCA (Form 8938) Explained
▼FATCA reporting on Form 8938 is an obligation for U.S. individual taxpayers (citizens/residents) to report their foreign assets. As a non-resident alien owner, you generally do not have a personal obligation to file this form for your U.S. company's assets.
How to Avoid Account Freezes
- Maintain Meticulous Records: Be ready to document any large or unusual transaction with an invoice or contract.
- Respond Immediately: If the bank asks for information, provide it completely and without delay.
- Keep Information Current: Proactively update the bank with any change in address, ownership, or passport details.
- Use Account as Described: Ensure transactions align with the business purpose you stated in your application.
Practical Case Studies
Theory is one thing, but practice is another. This section explores the specific banking challenges and solutions for common non-resident business models.
Amazon FBA Seller
Amazon requires a U.S. bank account to receive ACH payouts. The process is generally straightforward.
Recommended Solutions:
- Mercury: A full-featured, FDIC-insured (via partner) account for U.S. operations.
- Wise/Payoneer: Excellent for receiving ACH payments and offering low-cost currency conversion to your home bank account.
The Shopify Payments Problem
This is a major compliance trap. Shopify's native payment processor has much stricter requirements than most banks.
The Challenge:
Shopify Payments often requires proof of a physical U.S. operational presence (like an office or warehouse), which most remote founders do not have.
The Workaround:
You must use a third-party payment gateway like Stripe or PayPal. Note that Shopify may charge an additional transaction fee for not using their native processor.
Resources & Glossary
A quick reference for key terms and official links to help you on your journey.
