How to open USA bank account for offshore company

[Piri Erts]

There is nothing odd or strange for an offshore company to have a USA bank account. The problem is that for small corporation, most banks in USA don't have a specific area to cover a "small business" that is offshore. Thus, walk into a branch and they will turn you away because they don't open accounts for offshore/non-USA business or just never heard of anyone trying. Of course, if one has large deposit then you will be serviced by Private Banking area or different part of bank that has experience in opening account for offshore business.

Thus, this post is based on my recent experience on opening up an account for my 100% owned/1 Director/no nominee BVI structure as non-USA person. My two accounts require me to maintain in total $20k to avoid almost all fees (otherwise figure about $75/month in monthly fees for both).. Both offer free wires domestic (one free international) otherwise about $25 for outgoing international. Incoming wires are all free. Wires are limited to 3 and 5 per month but still cheap at about $25 per wire after that. Of course, free debit card and big bank offers token device for online wire access...also free!

So here are the steps:

1) Have all corporate documents available: M&A, Certificate of Incorporation, Register of Members, Register of Directors and anything else you might have.
2) Have proof of address for the Director (that was me) of the company: utility bill, driver license, etc
3) Have your non-USA passport
4) Have an ITIN number issued by IRS (taxpayer id for individual)
5) Have EIN number for your offshore company (issued by IRS and can state that purpose of EIN is to open bank account)
6) With all the above available, pick a state to register your offshore company in. This will require you to obtain a USA based registered agent in the state that you register in (maybe $50/year plus any mail forward fees). It will also probably require the Director/Officer to be listed in public filing. Must research different states to see requirements and what will be public information. I chose a mid-west state in USA that has no annual filing requirements after paying one-time fee. I also listed my business activity in state as only to open a bank account. Online application and I had my state certificate/license for my company in 24 hours.
7) Once you have your certificate from the state you registered in, you now have all the documents you will need to open the bank account. I walked in to a few suburban branches of different banks, explained my situation (NON-USA PERSON and a NON-USA RESIDENT) and told them that my offshore company was registered in XYZ state and I had certificate to prove it. For the bank, this is the MAGIC document which makes them look at account much more like a USA account. I doubt that I would have had success without state registration of my offshore company.
8) With ITIN and EIN, opening account should not be an issue. Note that this was for a corporation with 1 owner and 1 Director (both me). Adding nominees will greatly, in my opinion, reduce your chance of getting account opened.
9) Opened TWO accounts: one in state where I registered my BVI company and one at top 4 bank in USA...New York branch.

Don't let those pushing their PAID services to convince you that it is not possible to open USA account. The only issue is that for small company that is offshore, most USA banks won't bother. But when you register your offshore company in a USA state, now your offshore company is treated like a domestic USA company by many USA banks. Thus, you get a USA small business account for your small offshore company.

I would also add that I have my doubts that it would be possible to open up account with nominee Director/Shareholder. This will add complexity and raise more questions by bank. Also, I think if your account will receive many wires from non-G7 countries you will also probably have issues including account closure. That said, nothing different than having account a major bank in Europe/Asia.

Lastly, USA bank account provides the best service at the lowest cost. Also allows for easy access to USA corporate brokerage account, which will NOT allow deposits from third parties and ONLY accept deposits from account in same name as account holder. This gives you access to lowest commissions, best service and deepest/most liquid capital markets in the world. I don't think concerns of "being on the radar" in USA are valid as you will be "on the radar" at any major bank in any G7 country. Trying to be "off radar" will lose you money...just read about some of the banks discussed on this forum that failed and took customer money with them!

So make some calls and book your trip...you can get a USA account with a little effort.

 

[Nyep]

Great info, thanks. I'd be very interested to know exactly which banks you used, and whether there were any banks where you tried and got rejected.

 

[KraftyAndy]

4) Have an ITIN number issued by IRS (taxpayer id for individual)

How did you get an ITIN if you have no US tax liability?

 

[Piri Erts]

How did you get an ITIN if you have no US tax liability?

Obtaining an ITIN has nothing to do with having a tax liability. It is needed to identify a person who may or may not have a tax liability. Of course a bank/broker wants an ITIN to report any income to IRS and connect individual to a specific ID number. A bank account that pays no interest has no tax liability and does not require any tax filing with IRS. Technically, a bank would not need one for non interest account but we need a bank account and they require it. Also, one may have a tax liability in future so perfectly reasonable for a bank to request one.

See form W-7 and instructions. Check box h (other) and list exception 1a or 1b (i think a corporation with members would qualify for 1a and a USA bank/broker can provide letter for 1b).

 

[KraftyAndy]

Obtaining an ITIN has nothing to do with having a tax liability. It is needed to identify a person who may or may not have a tax liability.

The IRS does not issue ITINs to every Tom, Dick and Harry. There are two main reasons the IRS issues an ITIN :

A non-resident US alien is required to file a tax return (ITIN required on the 1040NR)
A non-resident US alien is claiming tax treaty benefits

In addition, it's not like you ring the IRS and they provide you with an ITIN. You need to use an acceptance agent to certify your ID or send your ID/proof of foreign citizenship to the IRS.

See form W-7 and instructions. Check box h (other) and list exception 1a or 1b (i think a corporation with members would qualify for 1a and a USA bank/broker can provide letter for 1b).

1(a) Individuals who are partners of a U.S. or foreign partnership that invests in the United States and that owns assets that generate income subject to IRS information reporting and federal tax withholding requirements; or

How is this going to apply in your situation? 1) You are not a partnership 2) You have not invested in the US

1(b) Individuals who have opened an interest-bearing bank deposit account that generates income that’s effectively connected with their U.S. trade or business and is subject to IRS information reporting and/or federal tax withholding; or

You stated on the other thread that you don't have a US trade or business, but you're now telling the IRS you are ETBUS? That opens one massive can of worms.

 

[Martin Everson]

@KraftyAndy Glad you posted this I would not however waste your breath on Piri Erts. He is mentally not all there, truth does not matter to him and he has been promoting US bank accounts with BVI company setup at every opportunity. All the while he accuses others of trying to sell products or services who disagree with him...lol. Read the below full threads for your entertainment.

1. June 10th thread
USA Bank account for BVI company

1. Post Yesterday
Transferwise

 

[KraftyAndy]

There are too many question marks about what he has written above.

As a general guide, US banks will not open an account for a business incorporated outside of the US. There are some exceptions, however these are primarily where you own a business that has an existing banking relationship with the international division of the bank.

 

[Piri Erts]

There are too many question marks about what he has written above.

As a general guide, US banks will not open an account for a business incorporated outside of the US. There are some exceptions, however these are primarily where you own a business that has an existing banking relationship with the international division of the bank.

This is patently FALSE. They open them all day long...especially if you have millions to deposit/invest. What do you think private banks do? What I outlined is how to get US account via "small business banking" in USA that is open to the average Joe, or in this case small offshore company with not a lot to deposit.

You posted 1B..that is how I got ITIN. My company invests in US assets/securities and you bet they are subject to reporting and withholding and IRS gets all information and taxes paid...automatically deducted by paying agent. Just the way I like it!

I will let forum member decide for themselves about the schill who likes to use childish insults when referencing me. Certainly reflects to the level of advice you may receive from him. But I guess when I provide useful and free information which cuts into his vig, it just might tweak him.

Finally, unlike others here who are motivated by profit from gullible readers, I am not in business to offer paid advice to anyone, just someone who wants give back to community. If you don't like, then move along but don't think that anyone can't see a poster's conflict of interests.

 

[Piri Erts]

I would also add that you make it seem that USA banks don't want the business of non-USA companies. This is completely false for high value company and partially true for small value company. My post addresses the latter for which I presume the majority of readers of this forum would also be interested in. Otherwise, we all could just call any major private bank in USA, Europe or Asia and be up an running in no time. So posting that USA banks "will not open an account for a businesses incorporated outside of the US" is completely false. Do you think that American banks are leaving these "crumbs" for Swiss banks? For small offshore company we all know it is difficult, but I posted how I went about doing it in the USA.

As I've said before, there is no secrecy or magic in any major G7 bank. So if we assume that then I choose USA banks as best choice. Others may disagree and bank where they see fit...lots of banks out there. Pretty clear why we see hostility to my posts: those with a conflict of interest just don't like when someone gives away for free what they are trying to sell. Again, I urge to read about those who lost money using shady banks in offshore jurisdictions. If you can get an account at a major G7 bank then you should. I just happen to prefer USA.

 

[KraftyAndy]

You posted 1B..that is how I got ITIN. My company invests in US assets/securities and you bet they are subject to reporting and withholding and IRS gets all information and taxes paid...automatically deducted by paying agent. Just the way I like it!

In one month, you've gone from asking how to open a US bank account for your newly formed BVI business to opening a deposit account and getting an ITIN with all the correct documentation? How is that even remotely possible?

To safe us all a lot of time - post the name of the 'big' bank that opened an account for you and tell us what's written on the first line, top right of your ITIN letter.

 

[negon]

As always so much s**t with US bank account opening. It's not going to work if you are not a very very wealthy person that can go into his own bank and ask them to help you or you are an US citizen.

If you are the small man on the street with say 100K in your pockets forget it, no one, no one and again no one is able to do the job for you, they will fool you, they will find workarounds but you will never end up with a real US bank account in your name where only you have control of the account!

 

[Piri Erts]

As always so much s**t with US bank account opening. It's not going to work if you are not a very very wealthy person that can go into his own bank and ask them to help you or you are an US citizen.

If you are the small man on the street with say 100K in your pockets forget it, no one, no one and again no one is able to do the job for you, they will fool you, they will find workarounds but you will never end up with a real US bank account in your name where only you have control of the account!

Coming from the...literally...faceless poster advertising "Ready-Made Seychelles and Belize companies with darks! 100% Anonymity and privacy!" Really, I could not put up a better fake post of my own that perfectly exemplifies my point about conflicted posters. Indeed, now the forum moderator allows you to advertise 100% illegal service is beyond me.

 

[negon]

Coming from the...literally...faceless poster advertising "Ready-Made Seychelles and Belize companies with darks! 100% Anonymity and privacy!" Really, I could not put up a better fake post of my own that perfectly exemplifies my point about conflicted posters. Indeed, now the forum moderator allows you to advertise 100% illegal service is beyond me.

this is not a question about what is legal nor a thread about it!! Stick to the topic. The problem is that you can't get a US bank account unless you fake something or you are a US citizen and some posters here claim to be able to provide US accounts.

All other opinions you mentioned are your own and should be moderated since the general rule on OTC is that if you don't like what you see stay away and don't come back!

 

[Piri Erts]

In one month, you've gone from asking how to open a US bank account for your newly formed BVI business to opening a deposit account and getting an ITIN with all the correct documentation? How is that even remotely possible?

To safe us all a lot of time - post the name ohf the 'big' bank that opened an account for you and tell us what's written on the first line, top right of your ITIN letter.

What makes you think I didn't already have an ITIN??? Given that most illegal aliens in USA have one I'd say it is not that difficult. Also, I listed the documents needed in first post...read them again and let everyone know what you think someone may not have AFTER their company is formed.

Big four banks have been listed. Get on google, get addresses and go visit. I really don't care if you believe what I wrote or not but if it helps 1 person avoid the clowns selling bad advice then it was worth my time in posting. Like I've said, I'm selling nothing so I guess I must like tweaking people like you, the schill and the faceless dude in Belize!

You can also contact the moderator who can delete this thread based on the many "expert" opinions voiced thus far.

 

[Piri Erts]

"The problem is that you can't get a US bank account unless you fake something or you are a US citizen and some posters here claim to be able to provide US accounts"

Speaking about opinions!! You mr "auric" are conflicted, and that is a FACT.

 

[negon]

Speaking about opinions!! You mr "auric" are conflicted, and that is a FACT.

let me know what the cost is for a US bank account, my own, and I will order it right a way! if you f**k me over I'm right and posting it here if you provide the US bank account witht nonsense and in my name I will also post it here!

I say you can't at all you blowing hot air here.. so proof me wrong my friend.

 

[Piri Erts]

this is not a question about what is legal nor a thread about it!! Stick to the topic. The problem is that you can't get a US bank account unless you fake something or you are a US citizen and some posters here claim to be able to provide US accounts.

All other opinions you mentioned are your own and should be moderated since the general rule on OTC is that if you don't like what you see stay away and don't come back!

let me know what the cost is for a US bank account, my own, and I will order it right a way! if you f**k me over I'm right and posting it here if you provide the US bank account witht nonsense and in my name I will also post it here!

I say you can't at all you blowing hot air here.. so proof me wrong my friend.

Cost? I told you I'm not in the business to sell anything and don't want anyone's money and will not hold any hands. I listed the steps in first post. Go to USA with all the documents and I hope it works for you. Maybe then you can offer to sell something LEGAL!

 

[Martin Everson]

I don't think Piri Erts claimed U.S account opening procedure is of any use to anyone who wants to save on taxes, or who wants an account without their company becoming fully U.S tax liable. Maybe for people who want a U.S corporate account and want to pay full U.S high taxes they may find it useful...lol. However that would be a bizarre choice alongside opening a BVI company just to make it fully tax resident by registering it in U.S state for carrying out business activity in a U.S state...lol. In the other thread (see below link) you said you are "Using company for asset protection, tax planning and to receive payments from limited clients who are also offshore and have bank accounts in USA ."

USA Bank account for BVI company

Well congratulations this is possibly the worst asset protection and tax planning setup I have seen in my life...lol. You could not have done a worse job.

Why do you not mention the bank you opened an account with that would be very useful...why not???? lol

 

[KraftyAndy]

Well congratulations this is possibly the worst asset protection and tax planning setup I have seen in my life...lol. You could not have done a worse job.

I completely agree with this.

There are three things that stand out for me here:

1) There is no treaty protection - so you are at the mercy of the IRS if they believe the company is engaged in a trade or business in the US.

2) By registering this company in a US state, you potentially now have to register the company as an investment management vehicle with the SEC - 15 U.S. Code § 80a–8 - Registration of investment companies

3) I am almost certain that the company will need to file a 1120-F each year.

 

[Piri Erts]

You two are hilarious! You seem to confuse having a bank account in USA with having a business in the USA. I do not..no problem. I personally know dozens of HNW individuals who have exact same structure provided by best private banks in world. No issues. Copy the best is what I did. But keep trying to scare the gullible...