How to open a business bank account in the United States remotely
- International business
- Money transfer
With roughly 400 billion Euros worth of exports and 232 billion Euros imports in 2021, the US is one of Europe’s strongest trading partners. As a result, European enterprises are looking for a business bank account USA to reduce their foreign currency exchange and transaction fees. We will introduce you to different possibilities on how to open a US dollars account to circumvent expensive SWIFT fees and profit from the much cheaper ACH (Automated Clearing House) payment system.
Benefits of opening a US bank account
Why are businesses so eager to open a business bank account USA and to execute and receive payments in USD? The reason lies, among others, in the highly expensive transaction fees offered by SWIFT, a practical, but expensive network, which makes it possible to send foreign currencies across the globe.
The network determines the itinerary route your money has to pass through before it reaches its destination. Only in a few cases, just the sending and receiving bank are involved. If there are no direct relationships between those banks, your money passes up to 3 different intermediary banks until it reaches its final destination, ramping up transaction costs for the sending and receiving parties or both.
This is why businesses are looking for ways to send money via the American ACH, which, similar to SEPA, offers much more favourable conditions. In the following sections, we will determine how you can set up a US business bank account or use alternative options to profit from ACH and other local networks.
Can non-resident aliens open a USA business bank account?
To begin with, it is possible to open a US dollars account for non-resident aliens and businesses, however, it is very complicated and requires additional paperwork. Most likely, banks will require a Social Security Number (SSN) or at least an Individual Tax Identification Number (ITIN), which you can file via Form W-7 of the Internal Revenue Service (IRS). Even though these options are feasible, they still require you to already live in the US, with a job or as a business owner.
Another and possibly easier way is to ask your own bank whether they have a subsidiary or partner overseas, which in turn helps you open your business bank account USA. This is the first step we would recommend before you start contacting all different banks.
What US banks offer business bank accounts for non-residents?
If you want to figure out whether you can remotely set up your US dollars account, it is advisable to look at large international banks located inside the US, as different banking providers offer solutions for a wide range of different target markets.
- Citibank’s international personal banking division, for instance, offers many services for businesses and individuals, which are located outside the US but wish to conduct business within the borders.
- JP Morgan Chase is the biggest bank institute in the US. There are several options for wealthy individuals to receive the necessary account management support.
- As a last option, Bank of America offers a US dollars account for non-residents, but a valid US address is required to apply.
Alternatives of opening a USA business bank account
If you don’t want all the paperwork and extra hurdles to set up a business bank account USA, there are 2 easier options to choose from: create a US dollars account at your local bank or at amnis.
Create a foreign currency account at your local bank
Many European companies that conduct business in the US open a US dollars account at their local bank. This saves a lot of unnecessary conversion fees, which otherwise would be charged when receiving or sending foreign currencies.
However, even though a US dollar account at your local bank might be a viable option, it doesn’t save the most expensive transaction costs which occur when using the SWIFT network. Therefore, even if you hold USD with a foreign currency account, you are likely to pay high fees when sending or receiving USD.
Further, a foreign currency account at your local bank is treated like an individual bank account, with its own IBAN and monthly charges, which additionally increases your paperwork and costs.
Create a US dollar account with amnis
When it comes to opening foreign currency accounts, you should definitely take a look at amnis. As an international payment platform, amnis gives users access to local payment networks to profit from the world’s cheapest transaction fees – at no additional costs.
amnis offers you one single international banking platform to manage and reduce your foreign transaction fees to a minimum.
Improve your international payments today
amnis offers flexible plans and pricing options starting from $0/month that scale as you do! If you want to find out more how to set up local US dollar accounts with amnis, create a free demo account online to save time, money and paperwork for all your international transactions.