BusinessFinance

How to open a Business account in USA?

Need an account in the US? Do you own a business in America? Are you looking for options? Caught hold of you and settle with the quench for your answers.

If you are a businessman, frequently travelling to the US. Someone who wants to set up a business over here in this country. Opening a bank account is probably the top most important thing in your checklists. Due to restricted regulations, it is a bit daunting task. Numerous money laundering cases and requirements have become a complicated task. Don’t fret yourself. Opening a bank account is still simple and possible with proper planning, documentation. Above all, it is that little patience which is the most desirable thing.

Business economies figures in the USA

Despite having all the challenges, U.S economy is still on the list of the technologically-advanced sector. This country drives 80% of economic output globally. In spite of the massive turmoil of the global economic crisis, it is showing a growth of 2.9% and will be projected at 1.7% in 2020.

The United States of America is an attractive place to initiate your business. There are about 28.8 million Small Business Enterprises(SMEs) in the US.

Steps in opening a bank account

If you are a person who wants to act on this and start your business on your own, then look into many things. One thing for sure to start early on this is opening a bank account.
Before leaping further,  it is essential to understand where we are in the process. Know the key points below and see where you are standing

  • Are you still researching the details and best bank
  • Applied to some of the banks and waiting for approvals
  • Declined because of insufficient formalities and looking for more options

Requirements for opening a business account

Documentation

Confirmation of identity is utmost important to open a business account. While going to bank carry

  • Driver’s licence
  • Passport
  • Government issued ID proof

Verify your identity with your industry’s registered information.

Business licences

Whether you are a Limited company or the sole trader, bank officials definitely view your present business licences.

Business licences

Whether you are a Limited company or the sole trader, bank officials definitely view your present business licences.

Documents of legal incorporation

According to some banks, to open a business account, it is mandatory to bring state-filled AOA (Article of incorporation). This is required to open a business bank account. If there are many directors and advisory committees, banks require acceptance documents of the account opener, and the right to access transactions and funds.

Name registration under DBA

Are you a DBA?
Doing the business under the fictitious name?
Then the law compels you to register your business name with the state. Photocopy this and submit for your records. This is needed to jet start your business transactions with a bank.

Employment or Tax identification no.

The key tool for managing the tax and payment of salaries to employees is tax-identification-number. This series is also termed as an “employment identification number”.  Ensure that you give this to the banker during banking appointment.
Do you own a sole proprietorship? Then use your SSN for tax purpose.
The above are the documents, generally, bankers see when opening an account. Though the requirements may vary from banks and states. However, it is a better idea to contact your bank. Determine what they need and carry along with you while moving ahead.

FAQ’s on opening a business account

After knowing the documents required other questions which triggers your mind is
Can I open a business account with an overseas corporate entity?
As a non-resident is it possible to open a business account?
Is it, okay, to open a bank account from abroad?
Is there a way to open the bank account online?
To unfold the answers for all these questions, dwell further into the article

Can I open a business account with an overseas corporate entity?

To open a business account in the USA, you must have a registered business. A banker will ask to present this proofs when you open the account.

Is it, okay, to open a bank account from abroad?

There is no restrictions or legal issues for opening a bank account in America as a non-resident. Only that your business must be registered and have an EIN as discussed earlier.

Is there a way to open the bank account online?

They are few banks and specialists agencies who help you open an account from abroad. They are start-up companies which made arrangements with entrepreneurs from overseas. Additionally, there are some agencies who will charge. As these agencies function on a stated ruled stated basis. That’s why research is needed. Search for reputable agencies and go ahead.

Is there a way to open the bank account online?

Opening an online account is tough. As most of the banks prefer to meet in-person. You are required to submit the documents in the specific branch personally. Though some banks may help you, they are not that noteworthy banks. In fact, initiate the process online and meet the banker by taking an appointment for showing the documents later.

Additional benefits

When you opt to choose a business account, you will be rewarded with a number of best perks and offers. Which includes

  • Mobile and online banking
  • Reward points or programs
  • Up to 500 or 1000 free transactions per month. Of course, it depends on the account you are holding.

Many banks even opt to keep it free so you can stop worrying about the fees and start focusing on revenue.

Conclusion

It is really simple and possible to open a business account. In fact, register your business name and create EIN to get a business account. You neither travel to the USA. You can do it by staying in a foreign country. Even some consultancies help you in this regard.

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