A bank account is a financial account maintained by a bank or other financial institution, where customers can deposit, withdraw, and manage their money. It serves as a secure place to store funds and enables various financial transactions, such as payments, transfers, and savings. It is essential for a business to have a US bank account to effectively manage funds related to its activities in the United States.
Merchant Accounts:
A merchant account is a type of bank account that allows businesses to accept payments via credit and debit cards, as well as other electronic payment methods. It’s essential for any business that wants to process card payments, both in-person and online. A U.S. merchant account allows businesses to accept credit and debit card payments through a payment gateway, such as Stripe or PayPal. When a customer makes a payment, the merchant account authorizes and processes the transaction, ensuring the funds are available.
Once approved, the money is transferred to the merchant account and then deposited into the business’s linked US bank account, typically within 1-2 business days. Payment processors usually charge a fee, which is a small percentage of each transaction, to cover processing costs.
Features:
- Allows you to accept payments through credit and debit cards.
- May include point-of-sale (POS) systems and online payment gateways.
- Often comes with transaction fees and monthly service fees.
Best For: Retailers, service providers, and e-commerce businesses that handle credit card payments.
Why Non Resident Requires a US Bank Account?
Even if you are a Non-Resident, you can do business in the US. You can form your LLC in the US, which gives you legal business status to conduct business both in the states, and outside the US. However, forming an LLC alone is not enough. Unless you have a physical presence in the states, you will need a US bank account to manage the receipts and payments associated with your business.
If you are a freelancer or someone already engaged in global business with US or international clients and projects, handling client receipts and business payments might involve forex exchange compliance issues. Therefore, having a US LLC with a US bank account is considered the best practice that Non-Resident business owner follow.
Before diving into the how, let’s quickly look at the why. Here’s why non-residents may require a US bank account:
- To handle US based projects, clients, or work.
- For easier receipt of payments in foreign currencies.
- To support global business expansion efforts.
- To avoid foreign exchange issues in their home country.
- Access to US payment platforms.
- Access to US credit and financing.
Opening a US bank account as a non-resident can seem like a tricky process, but it doesn’t have to be overwhelming. Whether you’re an international entrepreneur or simply need a US bank account for convenience, having one can significantly benefit both your business and personal finances. Here’s a straightforward guide to help you get started.
Banking Options:
The US offers a wide range of banking options, from major national institutions to smaller local banks. To find the right bank for your business, it’s crucial to evaluate factors such as fees, interest rates, and the features each bank offers. If you already bank with an international institution that has a US presence, moving your account could be relatively straightforward. However, take your time to compare different banks and seek advice from other business owners to make an informed choice.
Traditional banks:
Unless you have a physical presence in the states, traditional banks may not be an option for you. They often require you to visit a branch in person or have a Social Security Number (SSN) to open an US bank account. Therefore, it’s important to check these details if you plan to open a bank account during a trip to the US.
In many cases, clients prefer not to travel to the US just to open a bank account. Some may not have the necessary visas, and travel costs can be high.
So, what’s the alternative?
Digital banks:
These digital banks options are a savior for Non-Residents. While the names of the banks may vary, both traditional and online banks provide comparable services, including business checking accounts, savings accounts, and payment processing. Opting for an online bank could be more convenient, as it eliminates the need for an in-person visit.
What’s Next:
Once you decide which Bank to open your account with, you need to proceed with the following steps:
Gather Your Documents:
To open a US bank account as a non-resident, you’ll need the following documents:
- Valid Passport:
Your ID must be up to date.
- Proof of Residency:
You cannot use the address of your LLC or your registered agent if you are not residing in the US. You need to provide your home country address where you currently reside. This could be a utility bill or a recent bank statement in the name of the LLC owner.
- Articles of Organization:
If your US bank account is for a business, have this document ready as proof of your LLC’s registration.
- Proof of US Address (if applicable):
Some banks may require a US mailing address. You can use your registered agent’s address or a virtual office associated with your LLC.
Apply Online:
Once you’ve chosen your bank and gathered all the necessary documents, you can apply and complete the entire process online without visiting a US branch. You’ll need to fill out the account opening forms and provide details about your LLC, such as its name, mailing address, EIN, business nature, etc. Additionally, you will need to submit your Photo, ID Proof and address proof documents online.
Complete the Application Process:
Once you’ve submitted your documents, the bank will review your application. The process can take anywhere from a few days to a couple of weeks, depending on the bank’s workload and your application’s complexity. If everything is in order, your account will be opened, and you’ll receive your account details, debit card, and online banking access.
Keep up with Bank Regulations:
After setting up your US bank account, it’s important to stay compliant with banking regulations. Keep in mind that US banks may require you to maintain a minimum balance or may charge monthly fees. If you’re running a business, you might need to submit regular reports to the IRS, especially if your account holds substantial sums of money.
How Bizfyle can help you?
Opening a US bank account as a non-resident may take some planning, but it’s entirely possible with the right preparation. By choosing the right bank, gathering the necessary documents, and staying compliant, you’ll be well on your way to managing your US finances smoothly.
Mercury Bank:
Mercury is a business banking and money management platform. It allows you to manage your business’s cash flow and clearly understand what you’re earning, spending, and saving. Mercury is completely designed for startups and has no physical branches.
We assist you in opening account with Mercury Bank which comes with following features:
- No minimum balance required.
- No fee to open the bank account.
- No monthly account fees.
- Free domestic and international wire transfers.
- No overdraft fees.
- Free check deposits and payments.
- Multiple checking accounts (Max 13) and 5 saving accounts.
- Offers currency exchange for international wires.
- User friendly interface.
Additionally, we provide support with Stripe integration, allowing you to seamlessly link your bank account with Stripe. Stripe is a powerful payment processing tool that helps businesses accept payments online with ease.
With Bizfyle, you will get everything in one go: a fully compliant, ready-to-grow business setup. This would be an ideal package if you seriously decide to streamline the process. This streamlined process lets you focus on what’s most important—building your success—while we handle the paperwork.
Checkout Bizfyle’s Comprehensive Business Services Package
- LLC Formation
- EIN (Employer Identification Number)
- Registered Agent Services
- US Bank Account Setup
- Stripe Integration
- Annual State Filings
