Are you planning to expand your company’s operations and market base soon? If you’re looking for another country to reach greater heights, look no further than the United States. This North American country is a leading global trader and undisputed economic leader.

The US economy and financial relations trump others in size, scope, influence, and the like. Plus, America’s banking and market systems are applauded for their openness, reliability, and adherence to the rule of law. 

Hence, for many overseas traders, such as those from the United Kingdom, operating in the US is a great business move. To establish a business presence in America, setting up a US business bank account is necessary for foreign companies. 

If you’re a UK business owner looking to expand your operations in Uncle Sam’s neighbourhood, you must follow the proper legal processes – including opening a business bank account. 

As a non-resident, you might find the process puzzling. Nonetheless, this post will help you by detailing the different steps in opening a bank account for non-US residents. Continue reading to learn more. 

Why Should You Consider Opening A US Business Bank Account?

There are different perks that come with opening a US business bank account. They include the following:

• The US Dollar (USD) Is Used By The Default

The USD is regarded as the world’s leading financial currency – meaning a large majority of countries around the globe is confident in the American dollar, and companies big and small use the USD when doing cross-border transactions. 

If you’re a UK.-based company looking to expand operations in the US and soon to other places worldwide, having a US business banking account is beneficial in handling local and international dollar-based transactions. 

• Seamless Access To The Online Market

The internet has connected the world in many ways, including how people shop. In fact, online shopping is said to be worth nearly USD$ 6 trillion, and your business ought to take advantage of the almost limitless earning potential of doing online business. 

Many online shopping companies and payment providers use the USD as their primary currency. If you have a US. bank account, you’ll be able to seamlessly transact with these entities. This makes doing business much easier, and your customers will applaud how seamless your financial transactions are.

• Recognition Of Multiple Entities

The US recognizes various types of corporate entities, from sole proprietorships to S corporations. A US business bank account for non residents is available too, even for LLCs. All you need to do is submit the requirements being asked by the bank that you wish to open an account.

• High-Reputation Banking

Because of its sheer size and the whole global economic system’s dependence on it, the US financial and banking system enjoys a high reputation. And with a US business bank account, rest assured that your company’s clientele, along with your business partners and other stakeholders, are confident doing financial transactions with you. 

• Deposit Guarantee

If you open a business bank account in the US, the Federal Deposit Insurance Corporation (FDIC) will insure your deposits up to USD$250,000. This amount is more than any country in the world, including the European Union (EU) and Singapore.

The FDIC is an agency formed by Congress to raise public confidence in American banks. They also ensure that your deposits in the US will be protected in case of a bank failure.

What Do You Need To Create A US Business Bank Account?

Opening a bank account for non-US residents is a no-fuss process. Depending on your chosen bank, you need to prepare the following as a prelude to opening a business bank account in the US:

1. Incorporate a US company in one state and submit your Certificate of Formation (for LLCs) or Articles of Incorporation (for corporations).

    

2. Obtain a US address. Your US address could be your virtual mailing address, physical address, or registered agent address, depending on your bank of choice. Some may ask for proof of address, too, such as a lease agreement or utility bill.

    

3. Obtain an Employer Identification Number (EIN). This can be requested from the US Internal Revenue Service (IRS). Keep in mind that you don’t need a Social Security Number (SSN) to obtain an EIN for your US business.

    

4. Prepare an LLC operating agreement—for LLC companies. Plus, banks may require a banking resolution in addition to the agreement.
   
   
5. Provide proof of identification for owners, shareholders, and company officers. This could be a passport, a national ID, or a driver’s licence.
   
   
6. Obtain a US-based phone number. Some US banks may require you to apply for a local phone number too.

    

What Are The Fees To Pay When Opening A US Business Bank Account?

Just like with your UK-based banking account, opening and maintaining a US business bank account will entail different expenses. Some of the fees you need to keep in mind are:

• Account maintaining balance;
• ATM fees per transaction;
• Teller fees, and so on.

   

Get in touch with a representative of your preferred bank to inquire about their different bank fee rates. 

Final Thoughts

Setting up a business bank account in the US offers plenty of perks, such as guaranteed deposits, high-reputation banking jurisdiction, and others. If you’re a foreign national from the UK and want to move and expand operations in America, use the guide above to help you out. If you need in-depth guidance, don’t hesitate to reach out to a business lawyer specializing in foreign nationals looking to access the US financial system for help.