For many foreign founders, forming a U.S. company is just the first step. The next hurdle is often opening a U.S. business bank account. Without one, you can’t easily receive payments from U.S. customers, pay vendors, or establish credibility with investors.
Yet opening a U.S. bank account as a non-resident is notoriously challenging. Banks often ask for documents or identification that foreign owners don’t have, leaving many entrepreneurs confused and frustrated.
This guide walks through the main requirements, the differences between traditional banks and fintech alternatives, common roadblocks foreign founders face, and what practical solutions exist today.
Why a U.S. Bank Account Matters
A U.S. bank account gives your company legitimacy and makes it far easier to conduct business. Payment processors like Stripe and PayPal require a U.S. bank account for settlement. U.S. customers are more comfortable wiring to a domestic account rather than sending funds overseas.
Investors often see having a U.S. account as a sign that your company is serious about operating in the United States. Beyond perception, it also simplifies accounting, as you avoid mixing personal and business funds across multiple countries.
What Documents Are Required
Although requirements vary by institution, most banks and fintech platforms require similar documentation:
- EIN confirmation letter from the IRS – This is the company’s federal tax ID, required by all banks. Without an EIN, you cannot open an account.
- Company formation documents – Articles of Organization (LLCs) or Certificate of Incorporation (Corporations), showing that the entity is legally established.
- Operating agreement or bylaws – Some banks ask for internal company governance documents, especially for multi-member LLCs or corporations with multiple shareholders.
- Passport or government-issued ID – Every account holder or beneficial owner must verify their identity.
- Proof of U.S. address (sometimes) – Some traditional banks require a U.S. mailing address, although fintech platforms are usually more flexible.
Challenges for Non-Residents
For foreign founders, the biggest challenge is often the lack of a Social Security Number (SSN). Many traditional U.S. banks assume that every owner or officer of a company has an SSN. When they discover that the foreign owner does not, the application can stall or be denied.
Another barrier is physical presence. Large U.S. banks like Chase, Bank of America, or Wells Fargo often require you to appear in person to open an account. If you are not in the United States, this can make the process nearly impossible.
Even if you fly to the U.S., some branches are unfamiliar with handling foreign-owned companies and may reject the application.
Finally, many banks are cautious about compliance with anti-money laundering rules. Foreign-owned businesses are sometimes flagged for extra scrutiny, and without the right documentation, accounts may be delayed or declined.
Traditional Banks vs. Fintech Alternatives
The landscape for opening a business bank account has changed in recent years. Traditional banks remain an option, but fintech platforms have become the go-to solution for many foreign founders.
Traditional Banks
Traditional banks like Chase, Wells Fargo, or Bank of America offer the advantage of physical branches, check deposits, and direct access to a wide range of financial products. However, they often require:
- A personal visit to a U.S. branch.
- An SSN or ITIN for at least one officer.
- A U.S. residential address.
For most non-resident founders, these requirements are difficult to meet, making traditional banks impractical unless you already plan to be physically present in the U.S.
Fintech Platforms
Newer financial technology companies provide online-first banking solutions. Options include:
- Mercury – Widely used by startups, Mercury allows foreign-owned companies to apply fully online with no SSN requirement. They focus on technology businesses and provide modern tools for managing accounts.
- Brex – Originally known for corporate cards, Brex also offers business accounts that foreign-owned companies can sometimes access. However, they have tighter restrictions and tend to focus on funded startups.
- Wise Business – Formerly TransferWise, Wise provides multi-currency accounts that allow you to hold and send U.S. dollars with local routing details. While not a traditional U.S. bank, it works for many global founders who just need a U.S. account number.
These fintech options do not require a physical branch visit, making them significantly easier for non-resident founders. The trade-off is that they may not offer every service of a traditional bank, such as cash deposits or in-person support.
Real-World Examples
Consider a founder from India who forms a Delaware C Corporation. When trying to open an account with Chase, the application is denied because the founder does not have an SSN and cannot appear in person.
The same founder then applies with Mercury and is approved online, allowing the business to start operating.
Another example: a German founder forms a Wyoming single-member LLC to sell software. Because she does not plan to travel to the U.S., she cannot open an account with Wells Fargo.
Instead, she uses Wise Business to obtain U.S. account details, enabling her to receive payments from American customers without physically being present.
What About ITINs and EINs?
A key point to understand is that an EIN is mandatory for any U.S. business bank account. This is the number the bank uses to identify the company with the IRS. Bookmate helps clients understand how and when to apply for an EIN, but we do not file the application directly.
An ITIN, on the other hand, is not generally required to open a business bank account. Some banks may ask for it, but most fintech solutions do not. Unless you personally need to file U.S. taxes, you usually won’t need an ITIN just for banking.
Common Mistakes to Avoid
One common mistake is waiting too long to apply for a bank account. If you delay until you need to accept customer payments, the process can hold up your operations. Another mistake is assuming that any U.S. bank will work with foreign-owned companies.
Many major banks will not, and it is better to focus on fintech solutions designed with international founders in mind.
A final mistake is providing incomplete documentation. Without a valid EIN, formation documents, and a clear copy of your passport, your application is almost certain to be delayed.
How Bookmate Fits In
Bookmate does not directly open bank accounts for clients, nor do we provide banking services. What we do is help ensure your company has the correct federal filings and tax identification numbers in place, which are prerequisites for most bank applications.
For example, we make sure your EIN is secured and your federal reporting obligations are clear, so when you apply to Mercury, Brex, or Wise, you are not missing essential documentation.
Each founder’s situation is unique, and the best banking solution depends on your company structure, where you plan to operate, and whether you will eventually have a physical presence in the U.S.
Learn more at trybookmate.co or book a free consultation to discuss your setup.
Final Thoughts
Opening a U.S. business bank account as a foreign founder is not always simple, but it is possible. While traditional banks remain difficult for non-residents, fintech platforms like Mercury, Wise, and Brex have made the process much easier.
The key is having the right documentation—especially an EIN—and understanding which providers are realistic for your situation. By preparing properly and using the right partners, you can secure a U.S. account and position your business for success.
