How to open a US Bank Account for Non-US-Resident
 

Reasons to open a US Bank Account:
 

1.       US Bank Account (with a US Company) will create a reputable business presence for your business. Whether you are a UK or Russian business or any other country, when you incorporate a US Business and open a US Bank Account, you become a US Company.

 

2.       Collection from US Customers – You can receive money from your US or International Clients to your US Bank Account. If they pay you in US Checks, you can deposit and be credited in 2 business days, if the pay you by wire transfer you may be credited in 24 hours.

 

3.       Use you US Bank Account to pay suppliers, vendors, employees, authorities and financial institutions. Pay by US checks or domestic wire transfers and reduce your bank fees.  

 

4.       Link your US Business Account to google adsense, paypal, clickone, amazon, commission junction and other third party websites.

 

5.       Make online purchases, online shopping and online payments to websites such as google adwords and other third parties.

 

6.       Link your account to affiliates and application hosting sites: apple, i-Tune, google applications.

 

7.       Separate and protect your US Financial Activity from your other business activity. Keep your US Income in a spate US Business Account and not in your country business bank account.

 

8.       If you want to have a US Merchant Account, you must have a US Business / Corporate Bank Account first.

Can a Non US Resident or a Foreign Individual open a personal bank account in the US?

Post 9/11, US Authorities changed the laws and regulations related to bank account and financial accounts. In attempt to prevent terrorists, criminals and other "black listed" individuals and organizations US banks and financial institutions do not allow non u.s. residents to open a personal bank account. You must have a social security number, us legal address and credit history to be able to open your own us personal bank account.

Non U.S. Resident and a US Corporate Bank Account

In order to open a US Business Bank Account you have to incorporate your U.S. Business First. You should form an LLC (Limited Liability Company) or Setup a US Corporation. Then you can apply with some US banks for a US Corporate Bank Account for a Non U.S. Resident owner.

As a Non US Resident you have two options to setup your US Business:

1. Corporation
2. Limited Liability Company (LLC)

Steps in incorporating your US Business:

1. Registering your Business in the State Level (State of Incorporation)
2. Engaging a US Resident Agent in the state of incorporation
3. Registering your US Business with the IRS (Federal Level)
4. Obtaining EIN (Tax ID Number)
5. Corporate Documents: Articles of Incorporation / Organization, Bylaws / LLC Operating Agreement, Shares Certificate / Member Certificate, EIN Confirmation Letter.

Upon Completion of the incorporation process, you apply for a bank account. For the bank account application you will need to provide the following documents:

The Company:

1. Certificate Of Incorporation
2. EIN Confirmation Letter
3. LLC Operating Agreement / Bylaws

The Shareholders / Members / Account Signers

1. A Copy of your valid passport
2. Proof of Address (an official letter showing your full legal name and your address)

Can a Non US Resident open a Business Account in any US Bank?

The answer is… NO! in fact, most US banks will refuse to open any account (individual or business) to a Non-US-Resident without social security number, US Legal address and proven credit history.

There is only a limited number of us banks which will open a US Business Account to a US LLC or a US Corporation owned by a NON US RESIDENT.

How Globes America does assist you with your US Incorporation?

We specialize in assisting non u.s. residents incorporation and bank account as well as tax and accounting consulting to us llc / corporation owned by non u.s. residents. Globes America will register your company at the state and federal level, provide resident agent service, and obtain EIN for your US LLC. The outcome of the incorporation process is a complete corporate package with the above mentioned documents.

How Globes America does assist you with opening a US Business Bank Account?

Once your incorporation is approved, we will introduce you to several banks that match your needs and assist you with the account set up process.

We will prepare an initial application and submit to the banks we work with. With a principal approval from the bank, we will now ask the bank to forward to you the complete new bank account application forms and help you fill them up.

We will work with you and the bank representative to prepare the required forms and documents and proves the account.

The Patriot Act and Know Your Customer (KYC) Policy

Post 9/11, the patriot act was introduced to us banks and financial institutions. The patriot act objective was to prevent "negative elements" from using the financial industry to their purposes. The banks implemented a new "Know Your Customer" Policy.  The KYC policy states that bank has to know the main beneficiary of any bank account (identity and "black list" screening before approving the account.

Globes America will assist you and your US LLC / Corporation to meet the conditions and requirements of the KYC Policy in order to be able to open a US Business Bank Account.

Can you open the account without been presence in the US?

The answer is…Yes! After we will receive for you’re an initial approval from the bank, you will receive all documents by email. You need to print, fill them up, sign, then mail to the bank by Fedex or other carrier. Upon completion of the account opening you will be able to manage the account online.

Delaware USA – Limited Liability Company as an Offshore Company Solution

Offshore company has few elements:
 

1.      Limited Liability – protecting the shareholders personal assets. The owners have a limit liability up to the amount they have invested as share capital. The limited liability company is a separate legal entity from its shareholders.

 

2.     Minimizing tax liability - using tax planning, tax benefits and tax exemptions provided by the offshore tax authorities. Most offshore territories offer unique tax benefit. If the company does not generate revenue within the offshore territory, the profits are tax exempt.

 

3.     Creating Business Presence – Incorporating your business as a limited liability company along with business address / office and corporate bank account create reputable business presence for business relationships.

 

4.     Shareholders Privacy – an offshore company will protect the privacy of its owners by not publishing ownership information as a public domain.

Delaware ranked number one as the ultimate offshore solution for international entrepreneurs:

As of 2007, Delaware State in the USA is ranked as the first choice of offshore territories in the world heading Switcherland and Luxemburg ranked second and third. In Delaware, there are more than 700,000 active companies, 50% of them are publicly trade. Every year, thousands of international businesses incorporate a Delaware Corporation or Delaware LLC with Non-US-Resident Shareholders.

Why Delaware has become the most popular offshore location for international entrepreneurs? Delaware provides almost all elements required from an offshore company and it is located in the finance center of the largest economic in the world and one of the most stable political environment. 

Delaware Limited Liability Company (LLC) – offshore company

A US / Delaware LLC is a limited liability company, separate entity from its shareholders / members / owners. Tax wise, an LLC is a "pass through entity", meaning the LLC is not liable for tax on its income / revenue / profit which is taxed on the owner's level.

LLC- Tax Liability

Every US Company is liable for income tax in two levels, State level and Federal (IRS) level. On the state level. Since the LLC is a pass-through-entity, the tax liability on the profits goes to the owners and they are liable on the state & federal level.

One of Delaware's most known advantage is "Delaware Tax Exempt" for any business which generates its income outside Delaware. Meaning, if a Delaware LLC is registered as a limited Liability Company in Delaware but doesn't conduct business in Delaware or generates its revenue outside Delaware, it is tax exempt on the state level.

The LLC will NOT pay income tax on its profit in Delaware State. By providing "State Tax Exemption" to business registered in the state but do not generate income in the state, Delaware created a "Tax Heaven" or an "Offshore Territory" for US Businesses.

On the Federal Level (the Internal Revenue Service) the LLC will shift it profit to the owners and shareholders will be tax liable for the profit.

How Delaware Meets the "Offshore" Elements?

1.       Protecting the shareholders personal assets. A Delaware Corporation or a Delaware LLC is a separate legal entity from its shareholders and both entities provide legal protection to the shareholders' personal assets similar to an offshore company.

2.       Minimizing tax liability – Delaware, like most "offshore territories" provides State Tax Exemption for Delaware LLC or Delaware Corporation which generate income outside the State. On the Federal Level, the profit goes to the owners and they are liable for the income tax. There is a unique tax situation for a Delaware LLC owned by a Non-US-Resident. Please consult with our Specialists for this unique situation. 

 

3.       Creating Business Presence – Incorporating your business as a Delaware limited liability company is actually creating a US Company with all the prestige that comes with a US Corporation or US LLC.

 

4.       Shareholders Privacy – Delaware does not require shareholders / members and officers / directors to provide any information. Shareholders can stay anonymous exactly like in every offshore company.

Delaware LLC owned by a Non-US-Resident or a Non-US-Citizen

In 2007, the total amount deposited by non-us-resident individuals and companies was 2.6 billion dollars. The majority of this amount was deposited into limited liability companies and corporation registered in Delaware State.

The huge amount invested by international entrepreneurs, business owners and multinational companies represent the business opportunities and tax advantages they find in Delaware as the best state of incorporation and the first choice of an offshore establishment for non-us-residents.

In conclusion, incorporating your Delaware LLC will give you unique advantages. Tax Exemption, Business Presence, Assets Protection and Shareholders Privacy are the Delaware LLC and Delaware Corporation Features which make Delaware to be ranked as most popular offshore location for non us residents. 

Tags: US LLC, Delaware LLC, Offshore LLC, Offshore Company, Delaware Offshore Company, USA Incorporation, Delaware Formation, Delaware Offshore Limited Liability Company, , Delaware tax shelter, Delaware non us resident offshore, Delaware company.