As a business owner, you must know all the benefits of having a business account in the U.S. Usually, business owners prefer using a personal account for their finances, and it takes a hassle to handle multiple accounts.
Despite mixing personal and business finances, having a US Business account is best for a hassle-free financial experience. Opening a business account can simplify your money tasks. Keeping accounts of your personal and business funds separate can help you track growth. Let’s read about how to open a US Business account for foreign companies.
Opening a U.S. Business Account for Foreign Companies
A sole account for business is important because it has a lot of advantages, such as forming your partnership. Unlike your personal account, businesses have partners. Therefore, businesses should have a legal identity, i.e. a business account name.
Also, you can have easy bookkeeping of all the important transactions made in favour of your bank account, which means your business account will be organized. This helps you to keep track of your business progress. On the other hand, you get access to business loans easily.
By having a business account, you become legitimate to the IRS (Internal Revenue Service) and save your business from unnecessary deductions. Similarly, minimising your personal liability (and many owners choose to set up a Limited Liability Company (LLC) or corporation), separating personal and business assets, etc. must follow certain rules to keep this liability; otherwise, it could be liable for business debts.
How can foreign companies open a business account in the US?
Foreign companies can open a business account in the US, however, with certain obligations such as:
Eligibility requirements to open a business account in the U.S.
- Any business incorporated/registered in the U.S.- The company can either register as a new company in the U.S. or notify the state about the commencing business in the US as a foreign qualification.
- Employee Identification Number (EIN)- If your business is a sole proprietorship, you do not need an EIN. However, you will need an EIN and its confirmation letter for other business types.
Thus, these are the eligibility requirements to open a business account in the US, which are usually accessible when you start your business.
Required documents for U.S. business account opening
Once you decide to open a business account, you must collect some required documents to open your U.S. business account as a foreign company.
- Company Formation Documents– These are: Articles of Association of business partners, Articles of Incorporation if your business is S or C corporation, Articles of Organization if your business is LLC, Foreign qualification registration, etc.
- EIN letter issued by the IRS– To prove you are legitimate
- Identification Documents– These are: Proof of Identity (U.S. or Foreign Passport/U.S. Government Issued ID – State Issued DL/ Identification Card/ Permanent Resident Card/U.S. Visa) of each individual shareholder holding 25% or more shares of your company or beneficial owner (a.k.a. UBO). Your contact information includes phone number, email I.D., website, or P.O. box.
At last, if you are ready with all your documents and apply to any bank or banking services, your process will remain smooth.
How Cheqly help in opening a U.S. business account for foreign companies?
Cheqly provides digital banking services to startups and is the most convenient way to open your US Business account as a foreign company. It offers and facilitates the opening of a U.S. Business account online and remotely. There is no monthly or annual account fee, no minimum balance requirement, and easy & fast money transfers locally and internationally. Along with the business account, you are offered a Visa debit card – physical and virtual cards are also available.
How to open a business account with Cheqly?
Let’s see how to open a U.S. business account for foreign companies with all the necessary information.
Who can apply for a business account with Cheqly?
Anyone who is a business owner with a Company incorporated in the US can apply for a Cheqly account, be it a Foreign Owners or UBO (Ultimate Beneficial Owner). You will however need documents such as EIN, Company Formation Documents, and I.D. proofs to apply.
What are the steps to open a U.S. business account with Cheqly?
- You will have to fill out the registration form (which takes about 12 minutes)
- The compliance team will review the application.
- If the application is complete and approved, the account will be opened in 24 hrs (Business Day).
The application is filled 100% online, so you do not need to have any in-person meetings. You can open your account from anywhere, provided your company is incorporated in the U.S. Therefore, opening a business account with Cheqly is simple and easy.
What does Cheqly cost to open a business account?
Cheqly does not charge any joining fees for a checking account. Hence, there are no account opening fees, minimum fees, or account minimums.
Sign up for Cheqly today and simplify your US business account opening process.
Having a business bank account is an important aspect of introducing yourself as a business. Initially, it might not look like a good option, but in the long run, having a business account will be fruitful. As with time, when your business grows, it becomes important to keep proper legal and financial transactions in records.
Opening a business account will help you improve the credibility and collaboration of your business. Sign up for Cheqly today and simplify your U.S. business account opening process.