Hello

I just started an LLC in Delaware. My business is internet-based and I would like to receive credit card payments in my checking account.

Note: I'm not a US citizen and I live overseas.

Whats the best way to open a US Business Checking Account online?

Whats the best way to open a US Merchant Account online?

Thanks for your tips!

J

You cannot do that, even if you go to US bank branch by yourself (online - you must be kidding me). You will need to have SSN and local ID to open any bank account today.

Most (ALL?) US banks will run background check on you and your company (thru Chex Systems) before they can open account for you, so - don't waste your time here.

Try to open bank account in your country (and incorporate here as well).

I don't know why some many peoples from non-USA trying to establish Delaware or Nevada LLC if they cannot open bank account and/or merchant account in USA ?

I guess Incorporation Agents give them a lot of "promises".

You cannot do that, even if you go to US bank branch by yourself (online - you must be kidding me). You will need to have SSN and local ID to open any bank account today.

Most (ALL?) US banks will run background check on you and your company (thru Chex Systems) before they can open account for you, so - don't waste your time here.

Try to open bank account in your country (and incorporate here as well).

I don't know why some many peoples from non-USA trying to establish Delaware or Nevada LLC if they cannot open bank account and/or merchant account in USA ?

I guess Incorporation Agents give them a lot of "promises".

Actually he can open a bank account but with allot of money.

It will cost you a couple of thousands probably. There are no laws that prohibit foreigns to have a US bank account but said that, no one bank will open you an account without having an history with you, even when they cant, they will not.

There is only 2 ways to do this.

Fly to the US, go the bank with all your documents, passports, etc.

Do it trough a local branch like Citibank or HSCB, you will need to have a good history locally first, before you ask them to open a second account on the US. They will not even look at you if you don't have at least 50,000$ to deposit. So first option is better.

If you don't have a US Visa, or you cannot enter the US, that means fly there, then FORGET IT. They will not open you an account. Thats why they want you to fly in.

As for the business you opened its worth nothing to the bank. It should had history fist, paid taxes and some movement, the bank will open it on your name, if its for your business, they will ask the same requirements you need for a personal account, plus business history, documents, etc. Last time I checked it was like 30 papers you had to fill.

So the options are 2. Have allot of money, do it trough a local bank or fly to the US and go to a bank, there is no guarantee what so ever. You will still need to show some documents on the bank.

If all this is to open a merchant, then you can just forget it completely and save some money. A merchant account can only be linked to a US citizen with a social security number. So it doesn't matter if you have a bank account, paid taxes, etc. They will not open a merchant for your business. You require to hire someone in the US, pay him a salary, and he can then open a merchant account for your business. Thats why third parties merchant exist or open a local merchant on your country

How about opening a startup coorparate account?

Has anyone else from overseas had much luck opening a U.S. banking account by flying into the US and trying that way?

-mike

Wow you guys definitively draw a grim picture :)

I have a Delaware LLC, I have an EIN (SSN), and I have a Delaware mailing address.

A company like Easy Corp will open a Business Checking Account as well as a Merchant Account for me if I sent them all the paperwork. But they will charge me around $1500 to open both accounts, and then they want to charge me $150 per month (forever) to maintain them! My company is a start-up and I'd rather spend that money on web design. That's why I'm trying to find cheaper alternatives. Any ideas?

I hear Wells Fargo can open a Business Checking Account for you online if you're non-US citizen as long as your business has an established address in the US. is that true? Does anyone have an experience with them? I emailed their customer service and waiting for a reply. Will let you know.

@PYDOT: "A merchant account can only be linked to a US citizen with a social security number". I would double check on that!! I dont think its true bro.

@All: The whole purpose is to open a US Merchant Account for my online business. And I'm just trying to avoid having to fly to the US just to open a Business Checking Account and a Merchant Account.

thanks for the tips!
J

Wow you guys definitively draw a grim picture :)

I have a Delaware LLC, I have an EIN (SSN), and I have a Delaware mailing address.

A company like Easy Corp will open a Business Checking Account as well as a Merchant Account for me if I sent them all the paperwork. But they will charge me around $1500 to open both accounts, and then they want to charge me $150 per month (forever) to maintain them! My company is a start-up and I'd rather spend that money on web design. That's why I'm trying to find cheaper alternatives. Any ideas?

I hear Wells Fargo can open a Business Checking Account for you online if you're non-US citizen as long as your business has an established address in the US. is that true? Does anyone have an experience with them? I emailed their customer service and waiting for a reply. Will let you know.

@PYDOT: "A merchant account can only be linked to a US citizen with a social security number". I would double check on that!! I dont think its true bro.

@All: The whole purpose is to open a US Merchant Account for my online business. And I'm just trying to avoid having to fly to the US just to open a Business Checking Account and a Merchant Account.

thanks for the tips!
J


Let me blow your dream away. Sorry.

The 150$ fee, you pay is a nominee fee. That means, someone else opens the account on his name, normally a lawyer. Thats why you pay the fee each month. The account is never on your name, and be sure to TRUST that person, since you are putting the money on the hands of someone else. Second, you know what happens the minute the bank finds out its a nominee service? They close the account.

No, Wells Fargo, will not open you a bank account. They will tell you sure, not a problem, when can you come in?

All thoses services that open a bank account are scams. Look up on Google and you will find it. They will take your money, 1500$ and then they make you sign an agreement, where you say that you will provide all documents, and if you cant its your fault and they will not refund you. That means, when they cannot open your bank account, they will ask you documents you cant provide. And im sure you cant, otherwise you would had a US checking account already. Then they will take your money and blame you for not providing the documents.

Im not saying this is the case. But there is not way you can open a bank account trough the internet. If you can, its a nominee account and they will close it very fast and you will lose your money. Not to mention allot of people when they have some money on it, your provider will tell you the bank closed the account and they are looking for an alternative. They take your money and say the bank took it, even when its not truth.

FORGET IT. There is absolutely no way, you can legally open a US bank account without doing it the ways I told you. About the merchant account, im not 100% but 500% sure.

Anyone that opens you a US checking account or US merchant account just trough the Internet, its not legal or they are doing it via third parties. You will lose 3 or 5 times more money then just taking a fly and walking into the bank.

Why do you need a us bank account for a design business?

If its to have lower fees per transaction, a merchant account is not worth unless you process more then 2.000$ to 5.000$ a month. They cost normally 30$ to 60$ a month.

Also, are you aware you are going to have to pay taxes for the money that is reported by the merchant account and wired to your bank, which again is going to report it to the IRS.

Why would you want to pay taxes in the US if your business is not here or are not having any benefits for it?

Unless you live in the Antarctic, you will be able to open a merchant account in your country for an online business. Internet is not just the US.

Has anyone else from overseas had much luck opening a U.S. banking account by flying into the US and trying that way?

-mike

Sure, I know tons of people.

Just like you can also fly to Europe for example and open a bank account there. A bank doesnt care if you dont live there, they only care who you are, and if you will make them money.

I know allot of people that have money in the US, and by the way losed allot of money in some trusts that went down last year. Allot are actually taken their money out and moving it to Europe. Europe pays less interest, but its safer after things blow up in the US.

My suggestion to everybody is, never have money at all on the bank. People that earn money, move their money around and invest it. Nobody ever became rich from having it on the bank. The bank will pay you less then what the currency actually loses in deprecation each year.

Actually he can open a bank account but with allot of money.

Not true.

There are no laws that prohibit foreigns to have a US bank account but said that, no one bank will open you an account without having an history with you, even when they cant, they will not.

Again, not true; there's a requirement to "Know your customer", i.e. to prevent money laundering, etc.


There is only 2 ways to do this.

Fly to the US, go the bank with all your documents, passports, etc.


No, you should definitely *not* do that.


Do it trough a local branch like Citibank or HSCB, you will need to have a good history locally first, before you ask them to open a second account on the US. They will not even look at you if you don't have at least 50,000$ to deposit. So first option is better.


That is an option; the 50K deposit requirement is just simply untrue. Note that bank XYZ in country ABC isn't necessarily closely related to bank XYZ in country DEF. E.g. TD canada and US are separate.


They will not open you an account. Thats why they want you to fly in.


Again, not true.


As for the business you opened its worth nothing to the bank. It should had history fist, paid taxes and some movement, the bank will open it on your name, if its for your business, they will ask the same requirements you need for a personal account, plus business history, documents, etc. Last time I checked it was like 30 papers you had to fill.


Partially true; I'll put it all together below, but it's not that much paperwork.


If all this is to open a merchant, then you can just forget it completely and save some money. A merchant account can only be linked to a US citizen with a social security number.


Not true; the merchant account is linked to a US company via its EIN.




I've recently had to do all of this (jan 2009). Do *not* contact me for details, but I'll give you an idea of what needs to be done.


1) incorporate and obtain an EIN from IRS
2) have a mailing address in the US, NOT a postal box
3) file your taxes; the older the corp, the easier the remainder becomes (2 years is a good age)
4) find a bank, most will *not* handle you, but smaller banks generally work out best
5) contact the manager and obtain a business checking account, they will ask for:
- the incorporation documents
- your EIN
- your US mailing address
- statement
- some sort of company bill that goes to your US address
- *notarized* copies of your passport and another piece of ID
- copy of a bill that goes to home of the person applying (utility bill)
- you will need to sign the usual contracts (account opening, signature card)

All of this can be done via email and/or FAX.

6) once you have a checking account, then contact one of the larger merchant account providers out there, they will ask for:
- the incorporation documents
- your EIN
- your US mailing address
- statement
- some sort of company bill that goes to your US address
- *notarized* copies of your passport and another piece of ID
- copy of a bill that goes to home of the person applying (utility bill)
- you will need to sign a contract

All of this can be done via email and/or FAX.


Total cost to get a bank account + US merchant account?

(The incorporation cost + the mailing address + notarization + setup fee for merchant account) << $1000

As you can see, they just need to "Know their customer".

Note: this might not work for some countries, but should be ok for North America and Europe.

By the way, be aware with what you see on the Internet. There are allot of frauds and scams. Some are so brilliant made up, that they are even legal. If someone can provide you with something nobody else can, then something is not right. Unless its a company that is growing 10000% per year, and becomes a monster because of it, like Google and other services that could deliver what nobody else could.

Remember PaySat.com? I was also scammed by them. 200$ bucks I had on the account. I never used them but had them as a backup merchant in case primary failed. One day they where gone. Thousands of people where ripped off. I remember tons of people here at WHT used them and even recommended them. It was a fraud well made up, with all things very legal, 3 or 4 years they where online and then they vanished when things started to go bad, and people where already accusing them of not paying. In my case, I received a dime back.

Not true.



Again, not true; there's a requirement to "Know your customer", i.e. to prevent money laundering, etc.



No, you should definitely *not* do that.



That is an option; the 50K deposit requirement is just simply untrue. Note that bank XYZ in country ABC isn't necessarily closely related to bank XYZ in country DEF. E.g. TD canada and US are separate.




Again, not true.



Partially true; I'll put it all together below, but it's not that much paperwork.



Not true; the merchant account is linked to a US company via its EIN.




I've recently had to do all of this (jan 2009). Do *not* contact me for details, but I'll give you an idea of what needs to be done.


1) incorporate and obtain an EIN from IRS
2) have a mailing address in the US, NOT a postal box
3) file your taxes; the older the corp, the easier the remainder becomes (2 years is a good age)
4) find a bank, most will *not* handle you, but smaller banks generally work out best
5) contact the manager and obtain a business checking account, they will ask for:
- the incorporation documents
- your EIN
- your US mailing address
- statement
- some sort of company bill that goes to your US address
- *notarized* copies of your passport and another piece of ID
- copy of a bill that goes to home of the person applying (utility bill)
- you will need to sign the usual contracts (account opening, signature card)

All of this can be done via email and/or FAX.

6) once you have a checking account, then contact one of the larger merchant account providers out there, they will ask for:
- the incorporation documents
- your EIN
- your US mailing address
- statement
- some sort of company bill that goes to your US address
- *notarized* copies of your passport and another piece of ID
- copy of a bill that goes to home of the person applying (utility bill)
- you will need to sign a contract

All of this can be done via email and/or FAX.


Total cost to get a bank account + US merchant account?

(The incorporation cost + the mailing address + notarization + setup fee for merchant account) << $1000

As you can see, they just need to "Know their customer".

Note: this might not work for some countries, but should be ok for North America and Europe.

Please don't post fake things. First of all you are Canadian. They basically can make almost the same background check they can on a US citizen. Its actually harder to enter Canada then the US.

As a Canadian opening a bank account in the US, is a piece of cake. Its almost the same as being a US Citizen.

Read what I said on my firsts posts. There is absolutely no law that says a bank account open a foreign a bank account. Its exactly what you said the "Know their customer" and it became harder after 9/11

The government all that requires from a bank is to proof the ID of the person. There are allot of ways you can do this, even going to the US embassy and having your papers signed by a notary.

But guess what? Just like the US government says that that a TIN is the alternative to the SSN for foreigns and it should be used exactly the same way, on real life nobody actually uses it.

Getting a TIN is almost as hard as a SSN. Still, go to any website, company where a SSN must be filled, and they will NOT accept a TIN number. Even when law says they have to.

Its exactly the same thing with banks. The "Know their customer" depends exclusive on the rules they make. It doesn't matter what papers you send them, they will not go for such much trouble. They will tell you to come in.

Thats why you can open it with HSBC or Citibank in your local country. Because they proof your ID and documents locally, then they are going to send a signed bank letter to the US branch you want, with a copy of all your papers. The bank trusts their internal staff not they will just say NO for alternatives.

If he is from Europe, Canada, or Australia, it will be easier for him, as he can fly to the US without visa already. If he is from somewhere else, he can forget it.

About your point 6 you forgot to mention one big issue.

The merchant will open the merchant on the US company, but they still will require a responsible person in the US with a SSN number. I dont know a single merchant account that will not require details from a US Citizen. Company details alone are worthless, they must still be linked to someone.

Please don't post fake things. First of all you are Canadian.


I am not Canadian. Either way, I went through this process this year and it worked just fine. Besides, why would I go through the trouble of "faking things". This post is to inform people that it is possible, but you have to play by their rules (which you should have to do anyways!)


Its almost the same as being a US Citizen.


Canada is not part of the US; Canadians have to have a passport to cross the border.


Its exactly the same thing with banks. The "Know their customer" depends exclusive on the rules they make. It doesn't matter what papers you send them, they will not go for such much trouble. They will tell you to come in.


Well, I've done it earlier this year; I've never even set foot in their bank. No problem whatsoever, just had to do the paperwork (and if added up is like what, 10 forms?)


Thats why you can open it with HSBC or Citibank in your local country. Because they proof your ID and documents locally, then they are going to send a signed bank letter to the US branch you want, with a copy of all your papers. The bank trusts their internal staff not they will just say NO for alternatives.


Actually, I looked into that intially and that does *not* work for Canadian banks (at least the once I checked).


If he is from Europe, Canada, or Australia, it will be easier for him, as he can fly to the US without visa already. If he is from somewhere else, he can forget it.

Well, I did say it would work for North America/Europe. But the flying there is not a good idea, just call the bank and work with them. They do not need you to show up in person; worst yet, they won't be able to process it on the spot anyways.

Thanks TrustedURL... You said you did all of that back in January 2009, so I trust that you are sure you can do all of that via email or fax.

Please elaborate on some parts so I can put my efforts in the right direction:

>>1) incorporate and obtain an EIN from IRS
Incorporating is easy. Can I obtain EIN without an ITIN? Can I obtain an ITIN without filing a tax return?
>>2) have a mailing address in the US, NOT a postal box
Can you recommend a service that will provide Mail Address and Forwarding?
>>3) file your taxes; the older the corp, the easier the remainder becomes (2 years is a good age)
I have just incorporated my LLC. We have not transacted any business yet. Why do i need to file taxes now? How do I do it? I'm completely oblivious to the US tax system.
>>4) find a bank, most will *not* handle you, but smaller banks generally work out best
Again, can you recommend a bank or two. Or the one that you dealt with?


cheers

Thanks TrustedURL... You said you did all of that back in January 2009, so I trust that you are sure you can do all of that via email or fax.


First of, that it worked for me, doesn't mean it is guaranteed to work for you. But at least you can try.


Incorporating is easy. Can I obtain EIN without an ITIN? Can I obtain an ITIN without filing a tax return?


You do not need an ITIN, in fact, you're not in the US right? So you cannot get an ITIN.

"To file a return, be claimed as a dependent, or receive payments from an American, a non-US individual will usually need an Individual Taxpayer Identification Number (“ITIN”). "

For the EIN I went through our accountant as he's "Certifying US acceptance agent".

"To file a return or receive payments, most entities will need a US Employer Identification Number (“EIN”)."


Can you recommend a service that will provide Mail Address and Forwarding?


Try:
earthclassmail.com
usamail1.com
etc.


I have just incorporated my LLC. We have not transacted any business yet. Why do i need to file taxes now? How do I do it? I'm completely oblivious to the US tax system.


If I recall correctly, you need to file an initial tax to obtain your EIN. It can even be a 0 dollar statement.

Find a "Certifying US acceptance" agent in your country; they'll be able to help + confirm.


Again, can you recommend a bank or two. Or the one that you dealt with?


Try these:

chase
tdbank

Note that you need to be upfront about your situation. Also note that most phone support staff will not know how to handle it, you need to get to the branch level. Also, you cannot take care of this until you've got the EIN and taxes filed.

I am not Canadian. Either way, I went through this process this year and it worked just fine. Besides, why would I go through the trouble of "faking things". This post is to inform people that it is possible, but you have to play by their rules (which you should have to do anyways!)



Canada is not part of the US; Canadians have to have a passport to cross the border.


Well, I've done it earlier this year; I've never even set foot in their bank. No problem whatsoever, just had to do the paperwork (and if added up is like what, 10 forms?)




Actually, I looked into that intially and that does *not* work for Canadian banks (at least the once I checked).



Well, I did say it would work for North America/Europe. But the flying there is not a good idea, just call the bank and work with them. They do not need you to show up in person; worst yet, they won't be able to process it on the spot anyways.

Really. I though Canada was part of Mexico. :rolleyes:

It doesn't matter what you are. If you live in the US, you open a bank account just like a US citizen, if you live in Canada, you basically have the Canadian citizenship, so let me guess. You do live in Canada....

First of, that it worked for me, doesn't mean it is guaranteed to work for you. But at least you can try.



You do not need an ITIN, in fact, you're not in the US right? So you cannot get an ITIN.

"To file a return, be claimed as a dependent, or receive payments from an American, a non-US individual will usually need an Individual Taxpayer Identification Number (“ITIN”). "

For the EIN I went through our accountant as he's "Certifying US acceptance agent".

"To file a return or receive payments, most entities will need a US Employer Identification Number (“EIN”)."



Try:
earthclassmail.com
usamail1.com
etc.



If I recall correctly, you need to file an initial tax to obtain your EIN. It can even be a 0 dollar statement.

Find a "Certifying US acceptance" agent in your country; they'll be able to help + confirm.




Try these:

chase
tdbank

Note that you need to be upfront about your situation. Also note that most phone support staff will not know how to handle it, you need to get to the branch level. Also, you cannot take care of this until you've got the EIN and taxes filed.


Again this is not true.

It is correct that he CANNOT get an EIN without an ITIN

But he doesn't need to fly to the US to get an ITIN. He needs to send this passport to a New York address to the IRS which I don't remember. NO !!! Not copy. Real passport. They say they send it back to you in 3 months. But really, you must be crazy to send your real passport anyway.

Anyway, this is all a waste of time, he doesn't even say from where he is. If he sends his passport from a country that has not direct agreement with the US its a waste of time as they are going to require him to have a Visa to travel first.

This info is 5 or more years old. I could be wrong, but maybe now you DO have to fly to the US to get an ITIN.

It doesn't matter which way he goes. It all comes back to the same thing. Money. And said that, its allot cheaper to fly to the US and do it all yourself.

About taxes, he is right. You will need to wait at least 2 years, nobody will open a merchant or bank account for a new business that has 0 record of incomes or movement.

Really. I though Canada was part of Mexico. :rolleyes:


well, apparently you think Canada and the US are the same from a banking point of view... however, if you actually look into it, the banking systems are *vastly* different.

It doesn't matter what you are. If you live in the US, you open a bank account just like a US citizen, if you live in Canada, you basically have the Canadian citizenship, so let me guess. You do live in Canada....

Step back, have a coffee and re-read that again. The OP asked "can I open up a business bank account in the US as a non US citizen not living in the US"... the answer is yes.

Again this is not true.

It is correct that he CANNOT get an EIN without an ITIN


I've had an EIN for three years, filed taxes every year. Yet I have no ITIN. Got audited as well and it was all fine. Note I don't get paid from my US corp.

But he doesn't need to fly to the US to get an ITIN. He needs to send this passport to a New York address to the IRS which I don't remember. NO !!! Not copy. Real passport. They say they send it back to you in 3 months. But really, you must be crazy to send your real passport anyway.

Not true, you can use a local "IRS receiving agent". A notarized copy is sufficient.


Anyway, this is all a waste of time, he doesn't even say from where he is. If he sends his passport from a country that has not direct agreement with the US its a waste of time as they are going to require him to have a Visa to travel first.


He doesn't need to travel anywhere; but yes, his country does matter. But as I said, for North America and Europe, the steps I took are sufficient.


This info is 5 or more years old. I could be wrong, but maybe now you DO have to fly to the US to get an ITIN.


No, contact an "IRS receiving agent" in your country. They are authorized to handle and certify these things.

It doesn't matter which way he goes. It all comes back to the same thing. Money. And said that, its allot cheaper to fly to the US and do it all yourself.


They won't be able to process it while you're in the US, it takes more time than a 1/2 week stay. It's also not necessary.


About taxes, he is right. You will need to wait at least 2 years, nobody will open a merchant or bank account for a new business that has 0 record of incomes or movement.

Unless you're willing to tie it your personal taxes/income.



You might say I am lying, but really, I've done these steps *this* year; that doesn't mean it will work for just anyone, but what I presented is factually correct. Besides, I get nothing for this, so why would I bother?

well, apparently you think Canada and the US are the same from a banking point of view... however, if you actually look into it, the banking systems are *vastly* different.



Step back, have a coffee and re-read that again. The OP asked "can I open up a business bank account in the US as a non US citizen not living in the US"... the answer is yes.

Well, from a bank point of view, yes. All they care, is to proof who you are. Its allot easier if you already live in Canada. You would be surprise to know how much the US knows about Canada citizens.

You are absolutely correct about that. The OP asked that, and the answer is yes.

But I also assume he doesnt live in Canada like you do, and he doesn't have any plans to travel to the US. Its also a waste of time to discuss this, as we don't even know from what country he is. Things can be allot more complicated depending on this factors. If it was so easy for you, its because you have some points at your favor.

;) I don't drink coffee. Its poison. I prefer tea, its has the same effect, and even stronger...

Well, from a bank point of view, yes. All they care, is to proof who you are. Its allot easier if you already live in Canada. You would be surprise to know how much the US knows about Canada citizens.


Hehe, perhaps they know about everyone.

If it was so easy for you, its because you have some points at your favor.


I agree, it depends on the exact situation, but my main points should be applicable to anyone in North America and Europe.


;) I don't drink coffee. Its poison. I prefer tea, its has the same effect, and even stronger...

Tea it is :D And re. the poision, it sounds like you tried my coffee! lol

Alright guys, enough sidetracking, here's the deal:

I just got off the phone with the IRS. I do not need to have an ITIN to apply for an EIN. And I can get my EIN in 10 minutes over the phone.

went on usamail1.com. They can provide a US mailing address and forward my mail to me for $10/month.

next step: find a desperate bank that will open a business account for me over the phone!

Question: The larger merchant account providers that you mentioned, trustedurl, are they picky about which bank I have my account with? can you please recommend a few Internet Merchant Account providers that you've had personal positive experiences with?

Cheers
J

Question: The larger merchant account providers that you mentioned, trustedurl, are they picky about which bank I have my account with? can


Doesn't matter; you do want to get the bank account first.


you please recommend a few Internet Merchant Account providers that you've had personal positive experiences with?


I dealt with chase, but note, the corp was aged NOT brand new. IF possible, just use paypal for the first while.

It may be in Jayonline's best interest to contact someone who is well versed in the US Laws, perhaps an attorney in conjunction with a CPA. Just a thought. This way he is paying someone to do the legwork, who knows the procedures because they have done this before. Even if it is costly, it would be worth the money to know know that it is being done correctly.