How to open a US bank account for LLC as a non resident in 2024
If you live in the UK but want to do business in the US, you may be considering forming a company there. Incorporating a US LLC is possible, even as a non-resident - and once you’ve got your company set up, you'll need a US business account to manage your money and keep your business finances in order.
This guide walks through some key pointers on opening a US business account for your LLC as a non-resident, including a couple of US banks you may want to think about, and some non-bank alternative options such as Wise, which can offer USD business account services to UK residents.
- Receive payments with local account details in 8+ currencies
- Hold and exchange 40+ currencies
- Send money quickly to accounts in 160+ countries
Wise account
The Wise account can be opened online or in the Wise app, with no minimum balance requirement. Use Wise to receive, send and convert 40+ currencies. Your Wise account comes with local account details for 8+ currencies, which can be used to receive international payments.
Go to WiseIs it possible to open a US business bank account from the UK?
Yes. You can open a US business account with either a US bank or with a non-bank alternative provider which offers business services including USD features.
US banks do not always offer their business checking services to non-resident customers. Some do have accounts for non-residents but may require you to drop into a branch to open your account - which can be tricky if you live full time in the UK.
A few US banks do offer non-resident LLC accounts which you can open from home - or you could pick a non-bank alternatives like Wise and OFX which have multi-currency accounts covering GBP and USD, as well as many other currencies.
What is a non-resident bank account?
A non-resident bank account is an account offered to someone who is not a full time legal resident of a given country.
If you’re a non-resident owner of a US registered LLC, you might need a bank account to hold and manage USD, make international transactions, save and earn USD interest, or to get a debit card for easy business spending.
Can a non-US resident start a US LLC?
Yes. Non-US residents can start a US LLC in many states. The exact rules might vary - but some states, such as Delaware are well known as places which have business friendly policies, an advanced LLC formation process, and tools in place to support non-resident applicants with incorporating their business there.
The exact way you’ll incorporate your US LLC might vary depending on the state you decide to base your business in - however, you're likely to follow the following steps:
Find a registered agent who can act on your behalf
While rules may vary from place to place, you’re likely to find that you need a registered agent in the state you intend to register your LLC in. If you were a resident in the US, you could act as your own agent - but as a non-resident this is not usually an option. Your registered agent can support the process of forming your business and also advise on issues around tax and legal obligations. On an ongoing basis, the registered agent is where any legal correspondence would end up if sent by hard copy for example.
Choose and reserve your business name
In most cases you can reserve your business name to give you time to complete the rest of the formation process. Fees may apply. You’ll usually find that your LLC name must contain the words Limited Liability Company, L.L.C. or LLC. Your name must also be sufficiently different to all other registered business names to avoid confusion
Submit your certificate of incorporation and any required formation forms
The state you’re registering in will dictate the process here, but you are likely to find that documents can be completed online or in hard copy and mailed. Your certificate of incorporation will usually state your business name and details, as well as your registered agent as a point of contact. You’ll pay state fees at the point of registering your business, which can vary.
Complete beneficial ownership reporting to FinCEN if required
Because of The Corporate Transparency Act (CTA) You may be required to report beneficial ownership of your business to FinCEN - the Financial Crimes Enforcement Network. This involves telling FinCEN who owns a significant stake in your business, and is part of legislation to prevent illegal activities, money laundering and fraud.
Comply with local and federal laws on tax reporting and payment
Once your business is registered in the US you must start to comply with all local laws and tax obligations. If you’re unsure what federal or state taxes apply to you, now is the time to get professional support.
What is the best bank for non-US residents LLC?
Not all banks can offer banking services to non-US resident LLCs. For example, Bank of America’s standard LLC account requires applicants to be US residents. However, a couple of options which may be interesting include Chase - which offers accounts to non-residents with US businesses, or Mercury. Mercury is not a bank but offers services through US banking partners such as Evolve Bank and Trust.
Here’s a quick overview of some of the important features of these to US account options. Later, we'll also touch on another couple of non-bank options which might suit your needs as a non-resident LLC owner - Wise and OFX.
| Chase | Mercury | |
|---|---|---|
| Online applications available | In some cases, for single member LLCs only | Yes |
| Ongoing fees | 15 USD - 95 USD/month depending on plan | 0 USD -350 USD/month depending on plan |
| Wire transfer fees | 0 USD - 5 USD for online international transfers - currency conversion fees may apply 15 USD incoming wire fee | No Mercury fees - currency conversion costs 1% Third party costs may apply |
| Card fees | 3 USD - 5 USD out of network ATM fee 3% foreign transaction fee | No Mercury fees for spending and withdrawals, either in the US or abroad Third party costs - such as ATM operator fees - may apply |
| Important features | Monthly fees can be waived by meeting eligibility criteria Accounts feature some free transactions monthly Accept customer card payments Savings accounts also available - fees may be waived for checking account holders | Features include bill pay, invoicing and ways to take card payments Working capital available for customers Multi-user access, third party integrations and other handy features offered Savings accounts also available |
*Data correct at time of research - 20th September 2024
Non-bank alternative accounts for your LLC
If you live in the UK but have a US registered business you need ways to manage your money in USD, receive US dollar payments, and send money to others in the US conveniently. Banks aren't your only option. Some UK based non-bank alternative providers offer multi-currency accounts which you can use to hold and exchange USD as well as GBP and other currencies. Here are a couple to consider.
Wise Business
Wise might suit you if you need flexible ways to hold, send, spend and receive multiple currencies with mid-market rates and low, transparent fees. You’ll pay a one time fee of 60 GBP, with no ongoing fees or minimum balance requirements to worry about. Accounts offer ways to send money to 160+ countries, with mid-market exchange rates and low fees from 0.33%. You’ll also get debit and expense cards, and local and SWIFT account details to get paid in currencies including USD, GBP, EUR and more by clients, PSPs and marketplaces.
OFX Global Currency Account
OFX offers a global currency account for small businesses and online sellers based in the UK and in many countries around the world. Accounts support USD among 7 currencies for holding and exchange, and come with local account details to get paid in these currencies conveniently. Send money to contractors, suppliers and staff in many countries around the world, online, and often with no OFX fee to pay. There’s no debit card option for this account, but it’s very useful for online businesses working with marketplace sites.
Requirements to open a US bank account LLC as a non resident
What you need to open a US bank LLC account can vary. Whether you apply online or in person you’ll generally need:
Personal and contact details for the account owner: Name, address, date of birth and SSN of owner
Personal and contact details for all beneficial owners: Name, address, date of birth and nationality all beneficial owners who have more than a 25% stake in the business
Proof of ID and address: Such as a passport or driving license, for the account owner
Business information: Name and address of business
Federal Tax ID: Such as your Business Employer Identification Number (EIN) or the Social Security Number (SSN) of account owner
Business formation information: Including where and when it was incorporated
Business formation documents: You may also need other LLC documents such as Articles of Organization, Business License or Trade Name Certificat
Benefits of having a US bank account
Having a US business bank account, or an account from a non-bank provider which supports USD transactions, can make it far easier to access US markets, as you’ll be able to cheaply and conveniently take customer payments in USD. You may also benefit from lower transaction fees, and better currency exchange rates when you decide to withdraw the funds to your GBP account, or when you convert to other currencies to pay suppliers or staff.
If you have a US registered LLC you are likely to be obliged to have a separate business account to keep your company funds separate from your personal money - so having an option which makes managing everything in USD makes good sense.
Can I open a US LLC account online?
You can open a US LLC account online with a fully digital service like Wise or OFX, or with some US banks. Not all US banks can offer online account opening, particularly if you have more than one director. However, non-bank services which have been built to operate primarily through apps and online can offer a fully digital application, verification and onboarding.
To give an example, let’s look at how to open a business account online with Wise:
- Download the Wise app or open the desktop site and tap Sign up
- Register by entering your personal details and confirming you need a business account
- Follow the prompts to enter your business information and upload the required documents
- Once your account is verified you can order a card, and start to transact
What documents will I need?
Broadly speaking the documents you need to open a USD business account with a provider like Wise will be quite similar to if you choose a US bank. One difference may be that you won’t necessarily need a US SSN, and you can use your UK ID documents and proof of address. Plus, there’s no need to visit a bank to show your paperwork - just take a photo and upload it.
Here’s a look at the documents and information you’re likely to need when opening a US business account with a digital provider:
- Your name, nationality, birth date and address - the same information is needed for any beneficial owner who owns 25% or more of the business
- Your ID and proof of address
- Details of the business including trading name, and registered name where applicable
- Your business documentation, such as Articles of Organization and a Business License
LLC pros and cons
Finally, let's look at some of the pros and cons of opening a US LLC:
| LLC pros | LLC cons |
|---|---|
| ✅Offers good operational flexibility ✅May provide tax advantages ✅Your business liabilities are limited ✅Usually one of the easiest business entities to form ✅Options available for non-residents - states like Delaware have online formation tools and can be a good choice | ❌You may need to pay self-employment taxes ❌Fees are higher to register an LLC compared to some other business entities ❌LLC laws vary between US states, so you’ll need to understand your local situation ❌Can be more complicated to create for non-residents |
Conclusion
As a non-US resident you can still form an LLC which allows you to operate in the US more freely, and can be a great way to expand. If you have a US based LLC you’ll also need a way to manage your business finances in USD.
Some banks have business accounts for non-resident LLC owners - but not all.
Alternative providers like Wise and OFX can be a good pick as they offer USD account services which are available to residents and non-residents alike. Use the guide to decide how best to open your US LLC account, looking at both bank and non-bank alternative options.
FAQs:
Do I need to have an SSN or ITIN to open Business Bank Accounts?
You may need your SSN or ITIN to open an account with a US bank. Business owners may also be asked for their US EIN. Shop around to see which account works best for you - non-US residents can choose a US based account, or try a non-bank alternative with multi-currency options, like Wise Business or OFX.
Can I open an LLC if I don't live in the US?
Yes. You can open an LLC as a non-US resident, although your options and the process might vary a bit depending on the state you want to base your business in. Usually you can open an LLC with a registered agent who has a physical location in the state you’re incorporating in, and who will become your US point of contact for legal matters.
Which state is the best to form an LLC for non-US residents?
There’s no single best state to form an LLC as a non-resident. Some states such as Delaware have created very easy to use tools to form a business, which appeal to non-residents, and which are supported by many local registered agents and legal support services. Compare a few different options to find the right one for your needs and preferences.