How to open your first corporate US account

US bank details needed? No problem...

The USA is an important market for a lot of companies and can be a very attractive place to expand into. It still retains its position as the largest economy and the simplicity of currency and language makes it an exciting proposition for many companies. That being said, the process of opening a bank account isn’t always simple. Here is our short guide on opening a business bank account in the United States.

Should I open a business bank account in the United States with my current company?

If all you need is a business checking account to send and receive USD, without having to translate into another currency, you could have a USD based account for your foreign entity, such as with a domestic UK bank if you have a UK company. This may incur significant transaction fees (sending and receiving), so worth considering the need behind the account.

To open a business bank account in the US, you must have a business that is registered to do business there. You’ll be asked to provide proof of this when you open your account.

You may want to open a US company, and bank accounts for recruitment of US-based staff, or to keep your US and non-US taxable income separate. This is particularly important since US corporate tax rates (federal and state), can be significantly higher than those in the UK or Ireland.

OK, if I need a US company, what kind would it be?

US law recognises several different types of corporate entities. You can have one of the following company types:

What’s the process for opening a business bank account in the United States?

Fewer banks require an in-person account opening process these days. Most likely you will be asked to submit some of the information listed below, so it's best to gather this in advance. You will need to upload documents and may need to send originals.

Banks may also ask for a minimum deposit amount to open an account.

How does rebank fit in?

🦆 Keep your banks in order

Adding a US bank will add complexity to your finance processes. Rebank gives you a bird’s eye view of your cash in one place by bringing your banks together

📝 Move money compliantly

Moving funds between two entities is not as simple as transferring funds between accounts. You have to write up intercompany agreements — we can automate that for you.

🚅 Fast payment flows for global companies

Sending payments on rebank is so simple your accountant could do it. You can also save on fees: 90% vs banks and 40% vs Wise.

How much will it cost me?

When you are choosing your bank to open an account with in the United States, read the terms and conditions carefully and ask, if you can, for a total charges list. We suggest reading the section on banking fees and charges, as the fee structure might be a lot higher than you expect.

It’s pretty common to find lots of banks charge monthly account handling fees and fixed fees for making payments. These may not look insignificant by themselves but can build up over time and the last thing you need when growing your business is to have to keep track of spiralling payment fees. Check what exchange rates you might be getting on international fees too; this is a common way banks make money. Banks do a great job of making the true cost of the transfer higher than it needs to be.

If you've already created a start up bank account or you're interested in startup banking, we recommend you check Rebank out.

You get one complete view of your checking accounts, savings accounts and business credit cards across dozens of financial institutions.

You can also make fee-free payments at the best exchange rates when you open a Rebank account, choosing from dozens of currencies.

Thanks for reading

Did you enjoy this article? For more articles like this follow us over on Twitter or LinkedIn ✌️

A banner introducing Rebank's services to help startups better control their finances.A banner introducing Rebank's services to help startups better control their finances.

More from the blog

© 2022 Rebank Technologies Limited (Company No. 09695886)