How to Open a Bank Account in the U.S. as a Non-US Resident

This article is about opening a bank account in the U.S. for your “U.S. company” as a non-U.S. foreign person or founder, even without going to the U.S. In most instances, you will not need an SSN or ITIN.

If you are interested in opening a “personal” bank account in the U.S., the content may not be as useful.

• Do I Need an SSN or ITIN to Open a Bank Account for my U.S. company?
• Do I need a U.S. Address and Phone Number?
• Do I need to operate primarily in the U.S.?
• Do I have to go to the U.S. to open a bank account? 
• How can I open a U.S. bank account online?
  

• Intro
• What are the requirements to Open a U.S. Bank Account
• Understanding KYC
• Required information and documents
• The process to open a bank account
• Apply online or in-person
• Complete the required verification steps
• Make an initial deposit
• Maintain and update the documentation as required
• Common Challenges and How to Address Them as Non-U.S., Foreign Person
• SSN or ITIN to open a bank account, are they needed?
• Visiting a Branch In Person
• Declaring a U.S. Address
• Providing a U.S. Phone Number
• Selecting an Authorized Person
• Operating in the U.S.
• Easily Open a U.S. Bank Account in Minutes, Online, Without Going to the U.S.
• Non-U.S. and startup friendly banks to open accounts online (without visiting the U.S.)

Intro

If you’re a non-U.S. person or a non-U.S. resident (also referred to as a non-resident alien - NRA) and have or plan to have a company in the U.S., your U.S. company will need a bank account in the U.S. 

Opening a U.S. bank account is a must toward facilitating transactions and fostering growth in American and also global markets.

You might be wondering, “Can a non-US, foreign person open a bank account in the U.S. for his U.S. company?”  Despite common misconceptions, "yes", foreigners can open a bank account in the United States for their U.S. company.

Navigating the U.S. banking system may seem overwhelming, particularly as a foreign individual or non-resident (NRA), but it is possible and more straightforward than you may think. Our comprehensive guide covers everything you need to know, from specific steps to successfully opening a U.S. bank account for foreigners and how to overcome potential challenges. The process is not as daunting as it may seem once you understand a few essential points.

What are the requirements to Open a U.S. Bank Account

To help you prepare, here are prerequisites for non-U.S. residents seeking to open a U.S. bank account for their U.S. company.

• Understanding KYC (Know Your Customer) Requirements

Know Your Customer (KYC) process is a standard and mandatory procedure for all banks. Its objective is to verify the identity of customers and the people who open bank accounts to identify suspicious activity and prevent financial crimes like money laundering and fraud. 

Banks (and all financial institutions) must obtain four pieces of identifying information about a client, including their

• name, 
• date of birth, 
• address, and 
• identification number (which may be their local country ID number).

Enhanced Due Diligence (EDD) is used for customers that are at a higher risk of infiltration, terrorism financing, or money laundering and additional information collection is often necessary. 

For U.S. people, the identity verification process is usually easier with a residential address and SSN. It typically includes a valid passport, state ID card or driver's license, and Social Security Number (SSN). Additional documentation, such as a visa or work permit, may be required for foreign business owners who are residents of the U.S. and have an SSN. 

For non-U.S. people without a U.S. residency, SSN, work/residency permit, a valid passport is the most applicable type of ID. In the absence of a valid passport, banks usually require at least 2 government issued ID documents such as local ID card, drivers license, birth certificate, etc. 

In addition to confirming identity, the address must also be confirmed. This can be done with proof of government issued ID that has the address on it or with an accompanying document confirming the address of the client such as a bank/card statement or utility bill.

• Caution: Certain banks may refrain from opening accounts for founders living in specific countries. Hence, before applying, it is crucial to ascertain whether they accept founders from your country of residence.

By understanding their customers' identities, financial institutions can assess the risks associated with their accounts and transactions and ensure compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations.  

KYC procedure is to be completed by the banks while opening accounts and also periodically updating the same. They collect relevant information and documentation from customers to verify their identity and assess the risks associated with different customers based on factors like their profession, source of income, country of origin, and transaction patterns. High-risk customers may require more in-depth scrutiny.  Banks may refuse to open an account or halt a business relationship if the client fails to meet minimum KYC requirements.

KYC is not a one-time process, banks continuously monitor their customers' accounts and transactions to detect any suspicious activities or changes in behavior. You can keep a close eye on your account's activity. 

• Ensure You Have All the Required Information and Documents

To streamline the account opening process and avoid any unnecessary delays, make sure to gather the following information and documents for your U.S. company before initiating the account opening process. Requirements may vary depending on the state or financial institution but are generally listed below.

1. EIN of Your U.S. Company: When you set-up your U.S. company, the IRS issues you an EIN (Employer Identification Number) on a form called CP 575 for the purpose of identification and nearly all financial institutions will require this number from you. If you don’t have this letter from the IRS, you need to request an EIN confirmation letter from them.
   
2. Incorporation Documents of Your U.S. Company: Most financial institutions require company incorporation documents such as Certificate of Incorporation (for Corporations) or Formation Document (for LLC’s).
   
3. A Valid Government-issued Photo ID of the Authorized Person (probably you): This is the KYC process applied to you as the account opener and we have explained the details above.
   
4. Your U.S. Company Address: It is recommended, and some banks mandate it, to have a U.S. address for your U.S. company. 
   
   
   • Hint: We have explained this subject in detail in the below Common Challenges and How to Address Them subject.
     
     
5. U.S. Phone Number: This allows for effective communication with the bank and added security measures such as 2FA with mobile phones for SMS (text messages to send a security or verification code) or Authenticator Apps. This is usually the phone number of the account opener or a company phone number may also be used. Some banks may mandate a U.S. mobile number, while others don’t. 
   
   
   • Hint: We have explained this subject in detail in the below Common Challenges and How to Address Them subject.
   
   
6. Summary of Your U.S. Company’s Operations: You will be asked what your U.S. company does, its website URL (you may want to have an English language website), who does it work with, what does it sell and buy, who are the most common customers and vendors, which countries it will transact with, etc… Be ready to answer these questions and most importantly, be ready to defend that your U.S. company will mainly operate in the U.S. with U.S. customers & vendors, or the worst case scenario that it is expanding into the U.S. market and that is why you incorporated your U.S. company 

• Caution: If you don’t have or don’t plan to have operations in the U.S., then many banks may reject your application and even if they accept initially, if they don’t see enough U.S. operations in the near future, they may close your account saying that you are not a U.S. business.

The process to open a bank account

• Apply Online or In-Person to Open an Account: Once you have the necessary information and documentation and you are confident to pass the KYC process, you can either go to a branch of your chosen bank or apply online. 

For in-person applications, you'll need to be in the U.S. and in the branch, fill out an application form that includes your name, address, and phone number, and provide your documents for verification. If you choose to apply in person, it's advisable to call ahead and make an appointment.

• Hint: Many banks do require an appointment to visit a certain branch. A few technology banks do not have physical branches and only accept online applications. You should check your bank’s website or talk to your contact person in advance to understand their application process.

• Hint: We have listed the banks that accept online applications without visiting the U.S. at the bottom of this article.
  
  
• Complete All Extra Required Verification Steps: With the application, you have presented documents for verification purposes. Once verified by the bank staff member, they will provide you with further instructions on how to activate and use your new account. Depending on the bank's policies, your bank may request the name of an authorized person within the U.S. who can act on your behalf in case of emergencies or other situations.
• Make Your Initial Deposit: Be prepared to make an initial deposit after the account is open and active. The amount may vary depending on the bank and the type of account you choose. 
• Maintain All Your Documents for Future Reference As Needed: Finally, it’s important that you keep all documentation related to opening a new account in a safe place for future reference if needed. This includes any forms filled out as well as copies of any documents provided for verification purposes. As explained in the above KYC process, banks may want to verify certain information at later stages. 

Common Challenges and How to Address Them as Non-U.S., Foreign Person

Opening an account can come with challenges for Non-U.S., foreign entrepreneurs and founders looking to establish a presence in the United States. However, knowing where you may encounter obstacles and with the following solutions, you can successfully complete the process.  

• SSN or ITIN to Open a Bank Account

One of your primary concerns may be the requirement for a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). The good news is that you don't need either of these to open a bank account for your U.S. company. As a non-U.S. resident, you can still open and maintain an account for your business using alternative forms of identification as explained in the KYC process above.

• Caution: Please keep in mind that even though there are many online banking options to open a bank account without SSN or ITIN, some big U.S. banks (e.g., Chase, HSBC, Citibank) may require customers to provide their SSN or ITIN. Many founders from outside the U.S. are opting for start-up and non-U.S. friendly online banking alternatives. We have listed them below in this article. 

• Visiting a Branch In-Person

Be aware that some banks may require you to visit a branch in person to make the initial deposit, especially if you are opening an account from overseas. If you can’t be physically present in the U.S., consider startup and non-U.S. friendly online banks. Platforms like Mercury Bank enable foreign entrepreneurs to open a U.S. bank account from anywhere worldwide, eliminating the need for a physical presence.

• Declaring a U.S. Address

Mandatory for security and verification purposes, many banks, not all, require a U.S. address such as a physical residence or a leased office in the U.S. for a U.S. company. Mercury Bank has started accepting non-U.S. addresses as business addresses, but please read the hints below before proceeding.

Without a physical office present in the U.S. at the time of the application, you may consider leasing a shared office from service providers like Regus or WeWork. They would be happy to lease a space, or even a seat in their shared area, for your office address as well as utility bills.

Hints:

In summary, with some banks like Mercury, you may use your local country (non-U.S.) address as the business address at your own risk of application acceptance. Declaring a U.S. business address if you don't have a presence in the U.S. would be providing incorrect information and please decide at your own risk.

• Providing a U.S. Phone Number

A U.S. phone number is another typical requirement when opening a U.S. bank account. Business phone numbers are used for communication purposes and as additional security measures for account verification such as 2FA (sending SMS messages for verification codes) that may require a U.S. mobile number.

Some start-ups and non-U.S. friendly online banks do not mandate a U.S. mobile number and some other banks are OK with a U.S. landline phone number as they also have voice verification by calling the registered number (versus sending an SMS) for 2FA.

For non-U.S. residents, obtaining a virtual U.S. phone number is the most practical solution. Various online services, such as Skype, Cloudtalk, offer virtual phone numbers with U.S. area codes that can be easily managed and accessed through mobile devices or computers.

• Selecting an Authorized Person

The authorized person is the person who will open the bank account and will be defined as the main admin of the bank account for the U.S. company. If this person is not you as the founder / owner of the U.S. company, then you may want to designate the right person who will have the right to control and access the account. Carefully select a trustworthy and accessible person with the necessary credentials. Your authorized person must understand the financial responsibilities of managing a business account. 

• Transactions Should be Primarily with the U.S.

While opening a U.S. bank account as a non-U.S. resident allows you to conduct international business, it's generally expected that the primary activities and transactions will be within the U.S., involving U.S. customers and vendors. Engaging in excessive international transactions might raise red flags during compliance reviews, potentially risking your account - especially if the transactions are with high-risk countries.

Regulatory compliance bounds U.S. banks to prevent illegal activities such as money laundering and fraud. Transactions involving high-risk international countries may raise compliance flags and put the account at risk during a compliance review.

To mitigate compliance risks, prioritize U.S.-based transactions with U.S. customers and vendors. Consider using secure payment methods and working with reputable international partners to reduce the likelihood of encountering financial complications.

Easily Open a Bank Account in Minutes with Mercury Bank

Online banking with Mercury is a practical choice for foreign entrepreneurs seeking to open a U.S. bank account due to its convenience and accessibility from anywhere in the world. With no required minimum balance or recurring monthly fees, you can gain access to the following services:

• Checking and savings accounts
• Physical and virtual debit cards
• Domestic and international wires
• Currency exchange
• Integrations with the tools your startup uses

You can also experience a range of additional features, including API access, custom team management, venture debt, and more. Mercury also helps founders scale their startups with Mercury Raise programs that connect founders to tech's top investors.

You can set up your account from anywhere worldwide in a matter of days – no SSN or US residential address needed. It is a straightforward process.

• Mercury Bank

• Brex

• Relay

• Wise

• Payoneer

At Tukel Inc. Accounting, we specialize in assisting U.S.-based businesses with non-U.S. founders to optimize their operations by leveraging the capabilities of Banks. If you're eager to begin this journey, we are here to support you with our company opening, accounting, tax and advisory services. You can schedule a free discovery call with our team now!

In addition, Tukel, Inc. Accounting can help your business meet all U.S. accounting and tax regulations. Our thorough services help you easily navigate financial processes for a successful business. Schedule a free discovery call with our team to discuss your needs and requirements. 

As a partner of Xero, we are proud to offer a comprehensive suite of financial management tools that empower small business owners like you to take control of your finances and grow your business with confidence. With Xero, you have access to payroll, expense claims, budgets, and financial reporting, all designed to provide real-time financial insights. By making informed decisions quickly and easily, Xero helps you take control of your business's future and achieve your growth objectives.

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