The United States of America is a nation with the most influential and largest economy in the world. It is the largest market in the world and a leading global trader. America is one of the most popular places to start a business and open up a business bank account.
If you are a freelancer or if you are planning on running a small or large business in the biggest market of the world, having a U.S. business bank account is not an option but a requirement. At this point, you are probably wondering ‘How to open a U.S. business bank account from overseas.’ In this article, we will only discuss this matter.
Let’s dive in!
How to Open a US Business Bank Account from Overseas
If you are looking to set up a U.S. business bank account from abroad, the process can be complex due to strict regulations, but it is not impossible. Let us guide you through it.
Firstly, you’ll need to choose a bank that offers international services and has experience working with non-U.S. residents. You need to research the bank’s requirements for opening a business account and ensure that you have all the necessary documents.
You’ll need to provide personal identification documents, business registration papers, and tax identification numbers. Some banks may require you to have a U.S. address, so consider using a mail forwarding service.
Once you have all the necessary documents, you can apply for the account online or by mail. After submitting your application, the bank will review it and may require additional information. If approved, you can fund your account and start using it.
1. Articles of Incorporation
- Articles of incorporation are the relevant filing with a government figure (usually the state) that signifies a corporation’s creation.
- In the U.S., articles of incorporation are filed with the Office of the Secretary of State where the business chooses to incorporate.
- Articles of incorporation should include the name of the company, the type of corporate structure, and the number and type of authorized shares.
- Bylaws work in agreement with the articles of incorporation to form the proper resolution of the business.
Requirements for Article of Incorporations:
- Corporation’s name.
- Name and address of the enlisted operator.
- Nature of the corporate structure, e.g., profit or non-profit corporation non-stock organization, proficient company, and so forth.
- The initial board of directors’ names and addresses.
- Types and numbers of shares that are authorized.
- Duration of the enterprise, on the off chance that it didn’t exist for all time.
- Name, mark, and address of the incorporator, who is the individual responsible for setting up a partnership.
2. EIN (Employer Identification Number) and Confirmation Letter
An Employer Identification Number (EIN) is a classification number that is unique to every entity of the business. It is assigned to a company so that the Internal Revenue Service (IRS) can quickly identify it. The EIN is recognized as a Federal Tax Identification Number. Its purpose is to recognize a corporation for tax, and it is commonly known as a tax identification number. After you have completed your EIN application, you will receive an EIN confirmation letter, declared by the Internal Revenue Service, and it is essential for tax reporting.
Ways to Get an EIN
Getting an Employer identification number is not very tough. Available application forms from the website of the Internal Revenue Service can be filled and submitted online. But, the location of the business needs to be in the USA. before it can be assigned an Employer Identification Number, a company needs to have a legitimate taxpayer identification number.
A business must have an Employer identification number. It is required to make payments to the employees and to make a list of business tax returns. Moreover, financial organizations such as banks, brokerage houses, unions of credit, and cannot open a business bank account without an Employer identification number. Self-employed people like subcontractors must have an Employer identification number, which is utilized by the prime contractor to inform the Internal Revenue Service about every business’s benefits returned to the subcontractor.
3. An Operation Agreement
Can I Open a Business Bank Account in the US Online?
There are some banks that offer online account openings for business accounts. You need to complete the online application process that allows you to submit your application and required documents. The specific requirements for opening a business bank account can vary by bank and by state. Some online-only banks that offer business accounts include Azlo, Novo, and BlueVine.
Which Bank Should I Choose?
There are various national and local banks across the U.S. and they have extensive branch networks and ATMs, as well as online and mobile banking services that can make managing your account easy and convenient.
It’s important to research fees, costs, interest rates, and other features of each bank to determine which one is the best fit for your business needs. It’s a good idea to compare several options and read reviews from other business owners before making a decision. If you’re opening a new account, it’s probably a good idea to choose from these Big Four banks:
- JP Morgan Chase
- Bank of America
- Citibank
- Wells Fargo
What Are the Benefits of Opening a US Business Bank Account?
- You’ll have easy access to banking services that are tailored to your business needs.
- Having a US business bank account can add credibility to your business, especially if you’re working with US clients or partners.
- It can help establish trust and legitimacy.
- US banks offer a wide range of financing options for businesses, including loans and lines of credit.
- By having a US business bank account, you may have an easier time qualifying for these types of financing.
- Keeping your business funds separate from your personal funds can help protect your personal assets in the event of a lawsuit or other legal issues.
- Opening a US business bank account can make it easier to keep track of your business finances and stay on top of your tax obligations.
Sums Up
American banks are universal, and this is the reason why these banks can provide convenience for running the business and carrying out bank-related transactions from any part of the country. And this may incorporate having a regional branch in your country of residence. You can consult with a business consultation agency like Business Globalizer to set up your business bank account in the U.S.
Overall, opening a U.S. business bank account can help your business establish credibility, access financing, and protect your assets, while also providing a gateway to the world’s largest economy.
