U.S. Banking Options in 2020

Understanding your best U.S. banking options is key before you form a U.S. entity. You want to avoid what so many do, which is to find a low priced option only to form the LLC and realize either during the process or after opening a U.S. bank account (even without travel) is not possible.

At NCP, our experience since 1997, with thousands of companies formed and working with dozens of banks, brokerage accounts, online banking platforms…we have the experience to help you fit all the pieces of the puzzle in the correct sequence to help you accomplish this task. As we can’t control the banks and their policy changes, we can control how best to form your U.S. company to lead to your best option to establish the bank account. This may involve how the LLC is formed and managed, to a lease agreement without an expensive lease, to match documents and state records to make the experience streamline.

Most important is our relationships with our bankers and the fact that we do things right and attract successful entrepreneurs that the banks prefer to work with overtime. Let us share with you our current U.S. banking options and recommendations going into 2020.

 If you or someone you know needs support with that going into 2020, we can help set up your US entity correctly and have all the resources from sales tax to tax returns and more. 

The best part is two of our U.S. packages, our Complete Formatio and Complete Formation Plus, includes TWO U.S. Banking Options. We recommend you set up both (especially the second one, if you plan on coming to Las Vegas in 2020 for an event).

Here is our link to our U.S. LLC formation packages, with details, what’s included, and pricing. 

Why two U.S. bank accounts? The first one is part of a beta test program (see more below). It is one thing to open a US bank account; it is another thing to keep it open. Even though the US bank account WITHOUT travel has been working, we never know, a year from now, if the bank will change criteria and close out accounts. We recommend a backup plan. 

Your U.S. Banking Options Backup Plan

The backup plan requires travel and, if you are planning to come to a training event in Las Vegas, we have only ONE branch we work with that will set up your US bank account. The non-travel account is free, with no monthly fees, so we recommend you have both set up. 

It is common to start with the non-travel beta test account first and get the other one later (with a major bank, and we disclose the bank names after you sign up and sign a non-disclosure agreement). 

Our U.S. Bank Account Beta Service WITHOUT Travel: 

We have been searching for the last two years for a new US banking option that was traveling to Las Vegas (or anywhere in the US, for that matter) is NOT required…

And we finally have a new opportunity!

Before we get to the details, you must know this ONLY works on a US entity, not a foreign entity.

As you know, we do a lot of work in the e-commerce space, and there are “banking” accounts, such as Payoneer and others.

The challenge is those are great to move money from one currency to another, but they are not fully functioning bank accounts. They do not allow for an ACH pull, which is required to automate the payment of sales taxes.

U.S. Banking Options with NCP
NCP’s U.S. Banking Checklist

We have a new relationship with a new tech company with a banking platform that has found a U.S. bank looking for more clients, both in and outside the US, and is not requiring that you go to the bank in person.

Before you move forward with this U.S. banking option with our U.S. entity packages, here is our concern with this new software and process.

  • Are they only going after foreign clients? If they do, the bank will see a spike in account openings by clients who don’t have an SSN, which does not look good for the quarterly bank review.

    The answer: Our new relationship does not charge a fee for setting up the account, although we have a fee for the process and introduction. They make their money strictly based upon taking a percentage of the fee on every debit card transaction. This is NOT an extra fee that you will be charged, but a fee that the bank would receive. 

    In other words, our new relationship, which is a software company, is looking to generate thousands of no-fee accounts but will make their money on the backend. Most of their plan was to go after the US market, not the international market until they learned it was a big pain point, after which the bank decided to approve the process without an ITIN or SSN.
  • Are there any requirements above and beyond the norm that would make it impossible to open an account? The answer is no. But here is what has caused issues in the past. For example, some banks in the U.S., even when you come in person, want a personal utility bill from a US residential address, not a PO box. Other banks want to do an official site inspection and see your employees working, but not this bank and situation.

What is required to open this NEW U.S. Bank Account without Travel:

  • It is required to have a US entity with an EIN.
  • You must have a letter from the IRS with your EIN. Our U.S. entity packages include our virtual address service so that the IRS mail will come to our office, and we will scan your IRS letter to your secure folder and your other documents to establish your U.S. bank account.

Required documents below per entity type:

LLC Documents

  • EIN Verification Letter
  • Articles of Organization
  • Operating Agreement
  • Government-issued photo ID (Passport in color)
  • US address (our virtual address, which is included in our U.S packages qualifies)
  • Ownership structure

Corporation

  • EIN Verification Letter
  • Articles of Incorporation/Certificate of Formation/Certificate of Incorporation
  • Company By-Laws
  • Government-issued photo ID (Passport in color)
  • US address (our virtual address, which is included in our U.S packages qualifies)
  • Ownership structure

Where an owner of the U.S. entity is a company and the company in question has > 21% ownership of the U.S. entity, we would need the personal information and passport of the beneficial owners (>= 25% ownership) of that company.

In our U.S. entity formation and U.S. banking process, after you select our Complete Formation Plus or Complete Formation Package, you will gain access to both of our U.S. bank account options with and without travel. Questions? Reach out to our team on our contact page.

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