3 Dos And Don’ts Of Opening A US Business Bank Account From Overseas

It can be challenging to open an overseas bank account in the United States, especially if it’s your first time. To facilitate the process, it’s crucial to gather the right information and take the correct approach. 

A US business bank account is important for foreign entrepreneurs with businesses in the country. Although it’s easy to open the likes of a Mercury bank account for foreigners these days wherever you are in the world, thanks to modern technology, it’s still a must to educate yourself on the best practices to ensure hassle-free processing. 

 

With that said, here are the dos and don’ts of opening a US business bank account from overseas: 

Dos

Consider doing the following to open a US business bank account from overseas successfully: 

1. Conduct Research

It’s essential to comprehensively research the requirements and procedures for opening a US business bank account overseas. This helps make the process easy because you’ll have all the necessary documentation and understand the procedure. 

When researching, consider the different types of bank accounts available and the banking institutions, required documents, and associated fees to maintain an account. This can help you choose a favourable account that suits your needs. You can also choose a banking institution based on its reputation, financial stability, and customer service. 

2. Choose A Suitable Bank

While many banks in the market offer services to foreigners, not all of them would be favourable to you. Consider all the information you’ve gathered on how banking works, such as reputation and customer service, to determine if it’s best for you. 

Some factors you can also consider when choosing a bank for your US business account are services like online banking, wire transfers, and credit account. You should be able to operate your account from overseas and make business transactions seamlessly.  

Additionally, factors such as bank fees, interest rates, and minimum balance can help you decide if you can maintain the account. Consider a banking institution with low fees and favourable interest rates for your business.  

Further, a bank with experience working with international clients might be better. This is because it has established procedures for opening overseas accounts and understands the regulatory requirements associated with overseas accounts. 

3. Prepare Documents

As mentioned, opening an overseas business account can be complex, and the list of required documents is extensive. Some documents you may be required to produce include business legal information like proof of registration. For example, you may be required to provide a certificate of incorporation of the business and Articles of Incorporation. You might also have to present business licenses and tax identification numbers if your business requires licensing and permits. In some cases, you may be asked for documentation on the business’s financial history.  

In addition, personal data is crucial when opening an overseas bank account, even though it’s for the business. You can be asked to produce personal identification documents like a national identification card, passport, or driver’s license. If there are multiple account signatories, you’ll have to produce personal documentation of each person. 

Don’ts

Here are some things you shouldn’t do when opening a US business bank account from overseas: 

1. Ignore Compliance Requirements

Through research, you’ll realize that banking in the US is subjected to several federal and state regulations. These laws prevent money laundering and financial crimes like fraud and terrorism financing. Therefore, it’s crucial to comply with all these regulations when opening a US business bank account overseas. 

You may also be required to provide extra documentation and undergo a background check to ascertain compliance. Ignoring these compliance requirements may pose serious consequences like fines, legal suits, and account closure. 

2. Provide Incomplete Or Inaccurate Information

Ensure you’ve provided complete and accurate information when opening a US business bank account from overseas. Information about the business, including registration, tax identification pins, ownership, and activities, is crucial and should be accurate and complete.  

Any omissions or discrepancies can cause delay or rejection when opening an account. You may also find yourself with legal problems because of giving inaccurate information, especially on business activities. To ascertain accuracy and completion, consider reviewing all the forms and documents before submitting them to the banking institution. 

3. Use A Non-US Intermediary

A non-US intermediary may cause complications, delays, and issues when opening a US business bank account. This is because they may not have a comprehensive understanding of US banking rules and regulations. However, working with a US-based intermediary can make the process smooth and efficient. Moreover, a US-based intermediary would ascertain compliance with the necessary laws. 

Conclusion

A US business bank account is necessary if you’re overseas but with business operations in the US. As an entrepreneur, it’s crucial to diversify your investments. Setting up a business in the US could be lucrative, so you’ll need a bank account. While opening this account can be complex, the dos and don’ts above can provide guidance on the basics.