Opening a US business bank account for a foreign-owned LLC

LLC, C corporation or branch: choosing the structure

A US business bank account requires an EIN, formation documents and the identification of every beneficial owner, including when the members live abroad. It is opened for a company registered in a US state, often an LLC, which foreign entrepreneurs favour for its flexibility, whereas a foreign company registered as a foreign entity in a state opens the account in the parent's name.

Foreign entrepreneurs mostly form LLCs, which are flexible and tax-transparent by default when they have a single member. A C corporation suits fundraising, while a foreign company registered as a foreign entity in a state opens an account in the parent's name.

EIN: the employer number every bank requires

Every company must obtain an Employer Identification Number from the IRS before opening an account. A foreign member with no SSN or ITIN can apply with form SS-4 by fax or post, with longer delays than online.

Formation documents the bank will ask for

The bank asks for the Articles of Organization or Certificate of Incorporation filed with the state, the operating agreement or bylaws, the EIN confirmation letter and sometimes a recent certificate of good standing. Passports of all signatories complete the file.

Beneficial owners at 25 percent and a control person

The federal customer due diligence rule requires banks to identify each person owning 25 percent or more and one person with control. For foreign members, the bank checks passports and the source of contributed funds.

Why non-resident LLCs are often turned down

An LLC formed through a provider, with no office, clients or staff in the United States, is seen as high risk by large banks. A registered agent address is not enough: the bank wants to understand the real business and often to meet the member.

ACH, wires and card acquiring for a business

A US business account lets you pay suppliers and staff by ACH, receive international wires and sign up for card acquiring. US online marketplaces generally require a US bank account in the company's name.

Form 5472 and tax filings for a foreign-owned LLC

A single-member LLC with a foreign owner must file form 5472 each year with a pro forma form 1120 to report transactions with its owner. Missing it can trigger a 25,000-dollar penalty, which banks may check during reviews.

State sales tax and dollar bookkeeping

The United States has no federal VAT, but most states levy a sales tax with differing economic nexus thresholds. Keeping separate dollar accounts on the business account eases these filings and bank reviews.

FinCEN, BOI reporting and registered foreign companies

Since an interim rule of March 2025, companies formed in the United States are exempt from beneficial ownership reporting to FinCEN, the duty now targeting foreign companies registered in a state. Banks still identify beneficial owners.

Meeting a business banking adviser

At Bank of America, a business account for a company owned by non-residents is usually opened in a branch, with signatories present, the EIN and formation documents. A short summary of activity and monthly flows speeds up the adviser's review.

US business bank account: steps to open for an LLC

To open a US business bank account, start by forming the company in the chosen state, then obtain the EIN from the IRS. These two steps come before any request to the bank, which cannot open anything without them. The choice of state, Delaware or Wyoming for example, affects annual fees and formalities, but it never guarantees that a given institution will accept the file.

Next, gather all the documents: certificate of formation, operating agreement, EIN confirmation letter, members' passports and proof of address. Add a short note describing the activity, the target customers, the suppliers and the expected monthly amounts. This note does not replace the official documents, but it helps the adviser understand the economics of the company before the meeting. File them in a single digital folder.

Finally, book an appointment with the bank, in a branch if it requires one. Review times vary by institution and by the complexity of the structure: in practice, allow from a few days to several weeks, with no commitment to a result. If the bank asks follow-up questions, answer in writing and keep a copy. A refusal does not prevent you from presenting the file to another institution after correcting the points raised. A US business bank account is therefore prepared like a real project.

Traditional or online bank: which business account in the United States?

Traditional branch banks such as Bank of America reassure through their physical presence and full range of services, but they often require signatories to attend and a visible link with the United States. For a company owned by non-residents, this requirement can become an obstacle if the members live abroad and plan no trip in the coming months. Plan for the possibility of a visit.

Online institutions, for their part, sometimes open the file remotely and offer simple tools for transfers and invoicing. In return, customer service may be less personal and credit products more limited. Compare the written conditions: monthly fees, any minimum balances, the cost of international wires, transfer limits and the ability to manage several cards for your team. Ask for a fee schedule in writing.

Whatever the type of bank, ask precise questions before committing: what extra documents does it request from foreign members, how does it handle a change of address or director, and what happens if the account is closed? Note the answers, because they affect the continuity of your payments, especially if you collect from American customers by ACH or by card.

Common mistakes with a bank account for an LLC

First mistake: mixing personal and company finances. Paying private expenses from the LLC account, or paying in funds without justification, weakens the legal protection of the structure and worries the bank. Document every contribution and every withdrawal by the owner with a clear entry, a loan agreement or a formally approved distribution, so that the history of the account stays understandable.

Second mistake: presenting a vague activity. An LLC whose purpose boils down to a registered agent address and a showcase website is examined with suspicion. Explain who your customers are, how they pay, where the funds come from and why a US bank is needed. Invoices, contracts or screenshots of sales platforms illustrate the real activity better than a long speech.

Third mistake: forgetting the company's tax obligations. Form 5472, state filings and sales tax are not details; missing them can lead to penalties and questions from the bank during a review. Entrust the follow-up to an accountant familiar with foreign-owned LLCs, and check with them the rules of your state and of your country of residence. A US business account depends on trust.

Running the company account after opening

After opening, switch on the control tools: dual approval of payments, alerts on movements and separate access for each user. These settings limit fraud risk and make the separation of powers easier. Also check transfer limits and the processing times for wires and ACH, so that you can plan payments to suppliers and staff without unpleasant surprises. Such settings also protect cash.

Keep monthly bookkeeping in dollars and reconcile each bank statement with the entries. Keep contracts, invoices and expense receipts for the period required by your accountant. When the bank asks for information, answering quickly with consistent documents reduces the risk of restrictions or closure, especially when the members live outside the United States. Good records protect the company. Good records also protect the company if questions arise.

On the reporting side, the company remains subject to its American obligations, while members must declare their income in their country of residence under local rules, with the information exchanges provided by FATCA and, for some countries, by bilateral agreements. Check these points with a tax adviser and ask the bank about its own requirements for periodic updates of the file.