The US economy is the world’s largest and most significant, accounting for 20% of global output. Despite the effects of the global pandemic, the United States remains larger economically than its nearest competitor, China, and has the highest GDP per capita of any significant country.
The United States is an appealing place to establish a business. There are about 33 million small enterprises in the United States, accounting for roughly one-third of total sales. If you want to get in on the action and start your own international firm, you’ll have a lot to consider. One thing to do right away is to open a US business bank account.
What types of corporate entities exist in the United States?
US law recognizes various forms of corporate entities.¹ You can have one of the following company types:
- Sole Proprietorship
- Limited Liability Company (LLC)
- Partnership
- Corporation – C corp
- Corporation – S corp
- Corporation – B corp
- Corporation – nonprofit
Can I open a commercial bank account in the United States through a foreign corporate entity?
To open a business bank account in America, you must first have a business registered in the United States. When you open an account, you will be required to provide proof of registration.
Business bank account USA – the process for opening a account
It is customary to ask new clients to visit the bank and produce their papers before the account is fully opened. You are likely to be requested for the following documents:
- Photo ID for the director who is opening the account.
- Proof of personal address of the named director
- Articles of incorporation/organization. You must establish that your business is properly registered, albeit the appropriate paperwork will differ depending on the sort of business entity you operate.
- EIN (Federal Employer Identification Number) confirmation letter. This is necessary for tax filing purposes.
- Proof of business address. Some banks may need you to provide a business address in the same geographic area and state as the bank branch. Others are more accommodating.
Many accounts may require a minimum deposit to open. Before you visit, check with your selected bank to ensure which documents are accepted.
Can I open a business bank account as a nonresident?
It is not illegal for a non-resident to open a business bank account in the United States. However, keep in mind that in order to open a business account, your firm must be registered in the United States and have an EIN.
How can I open a US business bank account from overseas?
Most banks ask that you come and produce identification. This area of the law is strictly regulated, so expect tough scrutiny.
Alternatively, there are agencies that may assist for a fee. Because these organizations normally function on a state-by-state basis, you must look for a trustworthy agency in the state where your business is registered.
Open US business bank account online
Opening an account online is tough because most banks need you to submit your documents in person at the branch. Some specialty online banks may be able to assist you, but they are not as well-established as the ‘Big Four’ listed below and may not provide the same choice of products.
Most banks allow you to start the account application procedure online and then schedule an appointment to show your documents later.
Discover kyptex Business multi-currency account
Kyptex Business multi-currency account may be a simpler and more convenient option for you. If you have a company registered in the UK, you can get started with kyptex, and once your account is open, you may get paid into your USD balance using your local US bank credentials, as well as 9 other currencies, to help you manage your worldwide business with ease.
Which bank should I choose?
There are numerous banks to select from in the United States, including both globally recognized companies and smaller local operations. If you already deal with an overseas bank that operates in America, they may be able to assist you in transferring your account to the United States more easily.
If you are starting from scratch, select one of the ‘Big Four’ American banks. Here are some details concerning business bank accounts for each of the following:
- JP Morgan Chase
- Bank of America
- Citibank
- Wells Fargo
JP Morgan Chase²
JPMorgan Chase is one of America’s largest banks. There are numerous packages tailored for corporate banking, with monthly rates ranging from $15 to $95. All monthly fees are waived if you maintain a minimum deposit amount in the account. The actual products on offer may differ depending on the location of your business, therefore you must input a zip code to obtain the final word on available products.
Bank of America³
Bank of America offers two ordinary business accounts with fees, which are eliminated if certain conditions are met. For example, if you make a minimum number of transactions or payments throughout a monthly cycle, you may be able to avoid the cost (which ranges between $16 and $29,95 depending on the account). There are 4,861 Bank of America branches in the United States.
Citibank⁴
Citibank offers a wide variety of business banking accounts, including checking accounts tailored to various business sizes. Fortunately, the bank’s website has a useful comparison table to assist you in deciding between them. There are also accounts specifically built for particular industries and purposes. Citibank has 983 branches in the United States, with more worldwide.
Wells Fargo⁵
Wells Fargo offers business checking accounts and accounts customized to the needs of small enterprises and non-profit organizations. As with many American banks, the products (including fees and charges) available differ by state, so input your zip code to receive the complete facts.
USA business banking fees and charges
Before you open a business bank account in the United States, carefully review the terms and restrictions. It’s especially important to read the section on banking fees and charges, as the cost structure may differ from what you’re used to.
Monthly account handling charges are frequent, as are fixed fees for banking transactions. Even minor costs might add up over time. Many business accounts include terms and conditions that state that costs are waived provided you satisfy specific requirements, such as maintaining a minimum monthly or daily balance. This can assist you avoid paying unwanted fees and expenses.
Most businesses must make international money transfers on occasion, such as to pay suppliers based overseas. Your bank will provide this service, but it may not be the greatest option available. If you intend to make an international money transfer, pay close attention to the fees involved.
Many banks do not provide their consumers with a good deal when it comes to international money transfers. They frequently impose a large initial ‘admin’ charge for executing the transaction, as well as expensive transaction fees. These could be fixed fees or a percentage of the amount transferred.
Even if the quoted fees appear to be modest, your bank will still take a percentage of the transaction. Instead of a transparent, upfront cost, you may discover that your bank’s profit is folded into a low exchange rate. If your bank uses a worse conversion rate than the genuine, mid-market rate, you lose money since the true cost of your transfer is more than it should be.
Manage your international finances with kyptex Business multi-currency account
When you do business internationally and need to handle your accounts in several currencies, kyptex Business can be a better and more convenient alternative to traditional banking. It’s simple to open a kyptex account for your LLC online, and you’ll receive account data in GBP, USD, EUR, and six other global currencies for a one-time cost.
If you need to make or receive overseas payments, kyptex will always utilize the mid-market exchange rate, which you can check on Google, with no additional fees added on top. Aside from that, you might receive a return on the money you have.