With the growing power of the internet, the world has become a global village, and you can work from anywhere in the world! So, if you start working with international clients, you need to set up a payment mode that allows you and your client to exchange services easily. And, if the majority of your clients are from the U.S., you will have to set up a USD bank account to facilitate transactions.
Setting Up A USD Bank Account
To set up a USD bank account, you will have to abide by several terms and conditions that require money, time, and presence. We are here to make this a hassle-free process for you!
Karolina/Pexels | It’s a hassle to open a USD bank account with so many terms and conditions.
What Do You Need?
To avoid money theft and money laundering activities, the US has recently passed laws to regulate banks that open accounts for non-residents or small businesses operating outside the country. Each state has different banking regulations and different banks have internal policies for non-resident account holders.
Moreover, each state has unique banking regulations that could affect the conditions for establishing accounts for international enterprises. The best way is to inquire about the bank itself about their terms and conditions. Generally, most banks require physical presence. Physical presence allows the bank to efficiently verify the identity and counter-check the document and information required for an account. So if you are planning to visit a bank to open an account, then you will need the following documents:
- A photo ID
- Home address
- Documents of organization
- Letter confirming Employer Identification Number
- Bank statements of the home country.
RODNAE productions/Pexels | Some important information may be needed before opening a USD bank account
To open a business account, you must hold a business registration certificate from one of the 50 U.S. states. It would be a plus for the business to get registered as a corporation, whereby it will be operating as a limited company, sole proprietor, or other.
Getting a U.S.-approved certificate for your business may be difficult for a foreigner, so you may need to hire an attorney from the U.S. to help you. Having a physical business address is also crucial. Even though you may not be physically located there, the bank needs it for legal correspondence.
Karolina/Pexels | You can use the office of your registered attorney as the physical address for your business.
Most banks request a business's Employer Identification Number(EIN) before opening an account. EIN contains information that helps them ensure that you are tax compliant. You can get your EIN from the Internal Revenue Service, but if you are a non-resident, you may need to fill out the W-8BEN form for your EIN.
W-8BEN is a crucial form that is designed to find out the source of income for non-U.S. residents who have a source of income in the U.S. A U.S.-based agent can help you fill out this form and guide you through other important steps of having a USD bank account.
