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US business bank account

#22
KraftyAndy said:
There are a number of banks that will open accounts remotely if you have an ITIN. If you're receiving payments from US companies and are not subject to withholding tax, you can get a letter from them and use this to apply for an ITIN from the IRS.
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Can you provide examples please? I have an Oregon LLC with an EIN and need to open an account for it without a personal visit. Not necessarily in the US, by the way.
 
#32
We usually open bank accounts in banks of Florida
Everything you need is to have somebody, who will act as a manger of your company
in my case it is our US accountant

For sure, you need to operate with your eyes wide open, because the manager always would have acces to your account
 
#34
Samuel Newman said:
Everything you need is to have somebody, who will act as a manger of your company
in my case it is our US accountant
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This is fine to setup a bank account, but it creates a potential tax liability as the manager is likely to be seen as a dependent agent by the IRS.

extremedox101 said:
Wells Fargo and such banks are very known in usa but i agree there is no proof that they open account for non citizens
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Phone them if you don't believe it's possible. All the major banks will open accounts for non-residents. Most of them require you to be there in person at the account opening.
 
#37
Samuel Newman said:
you have tax burden anyway if the company incorporated in US
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If it's a passthrough company that was founded in a zero tax state and is wholly owned by a single non-resident alien then it is not liable for any taxes or reporting in the US. Passthrough companies are Disregarded Entities according to the IRS, and don't need to report anything (in case of an American resident owner, the report is part of his/her personal report, in case of a NRA there is no report).
 
#38
Samuel Newman said:
you have tax burden anyway if the company incorporated in US
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Not necessarily - it depends on if you elect to be taxed as a company or a disregarded entity.

If you choose to be a disregarded entity (i.e. the entity does not exist for taxation purposes), you are only subject to US tax (at federal level) if you are "engaged in a trade or business in the United States". In order for you to be engaged in a trade or business in the US, you need a dependent agent who does something substantial to further your business.

Sales tax is a different kettle of fish, as is state corporation tax.

extremedox101 said:
this would be the minimum requirement ! but it's really rough job to open remotely .
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Of course it is. To comply with the Patriot Act, banks need to verify who you are. Without a tax ID or SSN, this is next to impossible.

Nyep said:
If it's a passthrough company that was founded in a zero tax state and is wholly owned by a single non-resident alien then it is not liable for any taxes or reporting in the US. Passthrough companies are Disregarded Entities according to the IRS, and don't need to report anything (in case of an American resident owner, the report is part of his/her personal report, in case of a NRA there is no report).
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Disregarded entities owned by non-resident aliens are now required to file a 5472 and 1120 form to the IRS. You do have reporting requirements and failure to file this form (any non-resident owner of a disregarded entity should have done so already for the FY 2017), will result in an automatic $10,000 penalty - Instructions for Form 5472 (12/2017) | Internal Revenue Service

The question of federal tax on the individual/corporation depends entirely whether you are "engaged in a trade or business in the United States". It's one thing the CFAs get wrong so often when advising non-resident aliens.
 
#39
Nyep said:
If it's a passthrough company that was founded in a zero tax state and is wholly owned by a single non-resident alien then it is not liable for any taxes or reporting in the US. Passthrough companies are Disregarded Entities according to the IRS, and don't need to report anything (in case of an American resident owner, the report is part of his/her personal report, in case of a NRA there is no report).
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it is not as simple as UK LLP, for example
you need to be careful with such structure
IRS is the most agressive tax authority on the world, you might have strong position to prove, that you have no US source income within your US entity
it depends on a lot of factors
 
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