How to Open a U.S. Business Bank Account as a Foreign Company
Opening a business bank account in the United States as a foreign company can be more complicated than expected. Yet, it’s often a critical step for doing business in the U.S. especially if you need to collect payments from American clients or plan to run payroll. Many U.S. businesses still pay by check, and having a domestic bank account can significantly simplify transactions and operations.
In this post, we’ll walk you through the process, key considerations, and potential alternatives so you can make informed decisions and avoid costly delays.
Why You May Need a U.S. Bank Account
If your company plans to:
- Receive payments directly from U.S. customers
- Pay U.S.-based employees or contractors
- Accept physical checks (still common in the U.S.)
- Establish a stronger local presence
...then opening a U.S. business bank account is highly recommended.
Things to Know Before Choosing a U.S. Bank
The U.S. banking system is not highly integrated with global banking networks. That means using the same international bank you rely on in your home country may offer no real advantages in the U.S.
Instead, consider the following:
- Choose a bank familiar with your industry.
- Check the branch network. Some global banks like Citibank may not operate branches in all states (e.g., no presence in Texas).
- Ensure you’ll have access to services locally. Especially if your operations will be based in specific U.S. regions.
Alternatives to Traditional U.S. Bank Accounts
If your primary goal is simply to receive payments from U.S. customers, a full-fledged U.S. bank account may not be your only option. Consider these alternatives:
1.Alternative Payment Methods (APMs)
These include digital payment platforms like PayPal, Stripe, or Wise. APMs are ideal for international transactions and typically easier to set up than bank accounts.
2.Payments-as-a-Service (PaaS) Platforms
Cloud-based PaaS models offer a single interface to manage multiple payment types—prepaid debit cards, global bank transfers, or local APMs—without needing a traditional bank.
3.Foreign Currency or USD Accounts in Your Home Country
Some local banks offer multi-currency or USD accounts that can reduce currency conversion fees and streamline U.S. transactions.
4.Digital-Only Banks
Online banks offer flexibility, lower fees, and high interest on deposits. Many are FDIC-insured and don’t require a physical branch visit. Always verify their legitimacy via the FDIC’s Bank Find database.
The Process: How to Open a U.S. Business Bank Account
Step1: Form a U.S. Business Entity
Incorporate at the state level, such as in Delaware, Wyoming, or your preferred jurisdiction.
Step2: Apply for an EIN (Employer Identification Number)
- Use IRS Form SS-4.
- If the applicant has a U.S. Social Security Number (SSN) or ITIN, you can get your EIN immediately.
- If not, it may take 2–3 weeks.
Step3: Apply to Open a Bank Account
- U.S. banks typically require in-person meetings, although some banks and fintech companies offer remote options.
- Expect the full process to take up to three weeks.
What Documents Will You Need?
Here’s a representative checklist:
- EIN confirmation letter (IRS Form SS-4)
- Formation documents (e.g., Articles of Incorporation, operating agreements, bylaws)
- Certificates (e.g., Good Standing, Incumbency)
- Beneficial ownership details (anyone with 25%+ ownership or control)
- Photo ID (two forms, at least one with a photo, for key officers and owners)
- Proof of address (often foreign bank statements or utility bills)
- U.S. business address (physical or virtual, such as a registered agent address)
Common Pitfalls to Avoid
Opening a U.S. business bank account as a foreign company can hit snags. Here are some traps to watch for:
- Incomplete or incorrect documents – These can delay processing for weeks.
- Unclear check-signing rules – Set internal controls ahead of time (e.g., one or two signatures required?).
- Using a DBA instead of your legal name – This can create issues with check processing and fraud prevention.
- Apostille requirements – Occasionally needed for foreign documentation; verify ahead of time.
- Minimum deposit requirements – These vary widely, so check your bank’s policy.
- Two-factor authentication issues – Many banks require a U.S. cell phone number for secure access. International numbers often don’t work, so plan accordingly.
Final Thoughts: Choose What Fits Your Business Best
Whether you’re launching a new venture or expanding operations in the U.S., the right banking partner is essential. Evaluate your business needs both short-term and long-term and choose a solution that will scale with you.
If a traditional U.S. business bank account is necessary, prepare all required documentation in advance and anticipate a few weeks of processing time. Alternatively, consider digital banking platforms or payment services that may offer faster and more flexible options, especially in your company’s early days.
We have multiple partners for all types of businesses so let us know your requirements and we can not only introduce you to the right partners but the specific teams in the bank that deal with your exact stage and type of company!!
Pro Tip: If your finance team is based outside the U.S., invest in a U.S. cell phone with international calling and SMS enabled it will make account setup and management much smoother.