Non-US residents can open an LLC bank account in the US. Although, applying for an LLC bank account as a non-US resident can be a bit tricky. However, it is still possible to do so by following a few simple steps.
The basics of small business accounting include opening a bank account in the first place. For non-US residents looking to open an LLC, opening a US bank account can be a challenge. This is because many banks require a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) before they will let you open a bank account in the US.
In this article, we'll explain the steps and procedures that are required to be followed by non-US residents when applying for a bank account for an LLC.
Travel to the US to Open an LLC Bank Account
While you don't need to travel to the United States to form an LLC (this can be done online), if you want to open a bank account with a traditional bank, you'll need to do this in person. Traditional banks don't let people open bank accounts over the phone or online because of the security risk.
We recommend calling a few banks ahead of time, asking what paperwork they require, asking to email your paperwork for a preliminary approval, and then make your travel arrangements to the US. You don't want to waste money on a trip only to find out you didn't bring all the right documents, or a certain bank doesn't open accounts for non-US residents.
You don't need a special visa in order to do this. You can just travel the US as a tourist and take care of this on your trip. However, you may find it a lot easier to open a bank account online. There is an option we'll discuss below. There’s another potential option too. If you already have a personal bank account with a US bank, it may be possible to open a new LLC account remotely as an existing customer. But again, you should call to check on this ahead of time.
Alternate Option - Opening US LLC Bank Account Online
In the majority of the cases, you’ll need to actually visit the US bank in person to open your LLC account. However, there are some US banks that will let foreigners open an LLC account online. For example, Mercury offers bank accounts just for startups, and lets you open an account online without having to visit in person.
Here are the steps you need to follow in order to open a bank account for your LLC:
1. First, after your LLC is approved, you will need to obtain an Employer Identification Number (EIN) from the IRS. This can be done by filing Form SS-4 with the IRS. You'll need to do this by mail or fax.
2. Find a bank that is willing to open an account for your LLC business. You will need to provide the bank with your LLC documents, your LLC's EIN, and some form of personal identification, like your passport.
3. Once you have found a bank that is willing to open an account for your LLC, you will need to fill out the necessary paperwork. This may include an application form and other documents such as your LLC's Articles of Organization (called an Articles of Association in other countries) and your LLC's Operating Agreement.
4. After completing the necessary paperwork, you will be required to fund your account. This can be done by transferring money from your personal bank account or by making a deposit at the bank.
5. Finally, you will need to maintain your account in good standing by following the bank’s requirements. This may include making regular deposits and keeping a minimum balance.
Note: Make sure to check with the bank beforehand to make sure they are able to work with LLCs and non-US residents.
How to Get US Phone Number
This is not always required, but may be a good idea, as it makes Americans more comfortable doing business with you. You can get a US phone number by either purchasing a SIM card in the United States or by using a VoIP service such as Google Voice. You can use this phone number in case the bank needs to call you back or in case the number is needed on any paperwork. Make sure to keep your phone number active, and paid for, so you don't miss any important phone calls.
Documents Required to Open a US LLC Bank Account
When applying for a bank account for an LLC as a non-US resident, you will likely need the following documents:
- Passport from your home country
- LLC approval documents (ex: approved Articles of Organization)
- LLC Operating Agreement (shows who owns the LLC)
- EIN Confirmation Letter (CP 575 or 147C)
How to Select the Right State for LLC
If you are a non-US resident and you would like to apply for a bank account for an LLC, you will need to first choose the right state in which to establish your LLC. This is because each state has its own laws and regulations regarding LLCs.
For instance, if you are looking to form an LLC in California, you are required to follow the local rules and regulations necessary to set up an LLC there.
Ensure that you choose a state that is business-friendly and that has a low tax burden. Some good states for non-US residents to consider include Delaware and Wyoming.
OFAC Restricted Countries
If you are a non-US resident, and you are from either of the below mentioned countries, you will not be able to open an LLC bank account in the US:
- Belarus
- Burma
- Burundi
- Central African Republic
- Cuba
- Democratic Republic of Congo
- Iran
- Iraq
- Lebanon
- Liberia
- North Korea
- Somalia
- Syria
- Sudan
- Ukraine/ Russia
- Venezuela
- Yemen
- Zimbabwe
The list of OFAC restricted countries is subject to change, so it is important to check the most up-to-date list before applying for a bank account.
Conclusion
It's important to remember that non-US residents may have some additional steps to take when compared to US residents when applying for a bank account for your LLC. However, by following the steps outlined in this article, you can ensure that the process is as smooth and straightforward as possible.
Author Bio
Matt Horwitz is the founder of LLC University, a website that teaches people how to form LLCs. Matt is the leading authority in LLC education and is featured in CNBC, Yahoo Finance, Entrepreneur Magazine, and the US Chamber of Commerce. Matt holds a Bachelor's Degree in business from Drexel University with a concentration in business law. LLC University®, established in 2010, was the first company to create free LLC courses in all 50 states.
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