It seems many people here are under the impression that it is not possible for a non-resident alien (foreigner) to open a US bank account. Being involved in start-ups/small businesses for as long as I have, I found this a little hard to believe. So I decided to do a little research to write up this how-to for anyone interested in jumping through the hoops required.
First, yes the Patriot Act has made things a little difficult. The biggest hurdle is a high burden of verification of identity. However there are US banks that operate internationally. Most of my research seemed to indicate HSBC was the best route to go. One site I found that has guides for various banks, and how to get US address services (like EarthClassMail, etc) is Goopen, but I don't know if these apply to business accounts or personal accounts. I can't post links due to new account status, so just google it.
Not all of the following steps might be necessary, but due to the banks having the right to refuse service for any reason it would be best to follow them all. I tried to rely on guides/information posted in the past year, since there were some changes a few years ago related to LLCs and the IRS.
a. My research showed the absolute simplest way is to have enough money to open a brokerage account. They operate under different regulations, and my Merrill Edge Cash Management Account functions identically to a bank account, except I can trade various stocks/bonds/securities!
b. The second easiest way is to take a trip to the US and open an account in person. Make sure you have your passport, and complete step 2 below before hand just in case.
1. Ensure you have all the documentation you will need to begin the process. Have a passport that isn't expired, a local bank account that you have history with that can provide a reference letter, proof of residency of your actual physical address in the form of a utility bill or if renting a signed contract that can certify your address. Ideally already own a business in your country as well, as this can help alleviate some tax liability depending on circumstances.
2. Apply for an Individual Taxpayer Identification Number from the IRS if you don't have one already. For non-US citizens this is the equivalent of an SSN for tax purposes.
3. Acquire a US based phone number and mail forwarding service such as EarthClassMail, to be used for the US business you will be registering. I personally prefer Travelling Mailbox, but there's several others as well. Just ensure they are willing to offer address verification services to the bank, and require you to fill out USPS Form 1583 so they can legally accept mail on your behalf.
4. Register a Delaware LLC and obtain a Registered Agent for the business. To avoid being classified as a disregarded entity by the IRS for being a single member LLC, have someone from your family or a friend also be listed as a member of the LLC.
5. Apply for an EIN for your LLC.
6. Contact the US bank of your choice that has branches in your country (Bank of America, HSBC, etc). Depending on their policies, you may either need to go to the local branch for identity verification, or provide reference letters from your bank along with proof of residency, identity, etc. This process is the most time consuming part according to my research. It's also the most critical that you follow all their instructions carefully as well as be honest and forthcoming. Any ounce of suspicion might lead them to invoking their right to refuse service. On that note however, try to appear as a legitimate business providing services (such as consulting) or physical products. Don't end up getting denied due to being labeled a potential fraud risk by saying you need the account to verify your Paypal to sell your digital goods.
7. If luck is not on your side and you have been denied by the banks you've applied to, here's where your Delaware LLC can assist you. Temporarily appoint someone who is currently in the US as a Director for the LLC for the purposes of representing your business to open an account at a US branch.
8. Once you have your shiny new US bank account, ensure you keep cash coming into the account and try to keep a decent minimum balance to prevent account closure. Also be sure to consult a CPA/tax adviser to ensure you properly file and pay any taxes. This is where having a business in your country can assist as taxes paid by your business to your country's government can reduce tax liability to the US government. Don't ruin your bank account or future vacations to America by failing to fulfill all your tax obligations.
Disclaimer: Standard IANAL (I am not a lawyer) applies; however I've worked in many businesses that were in the process of doing several of the above steps. I've also been fortunate enough to have worked closely with a lawyer specializing in incorporation/merger law on his document generation service, hence my strong recommendation for a Delaware LLC. Delaware is very popular for business registrations due to various reasons beneficial to businesses, and due to that their courts are very experienced in dealing with corporate law.
If anything I've stated above is wrong and you can refer me to the correct information, I will update this post accordingly. Good luck on your future endeavors!
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