The Offshore Founder’s Guide to Getting a US Bank Account

For international founders selling into the US, a domestic bank account becomes essential once American clients expect ACH payments or procurement teams assess vendor risk. A US account signals compliance under Bank Secrecy Act and Customer Identification Program standards, removes cross-border payment friction, and increases deal velocity. Fintech platforms now offer the most accessible path for non-residents, while traditional banks remain the reputational gold standard. A US account does not create US tax liability by itself, but it does trigger reporting duties, especially for foreign-owned LLCs filing IRS Form 5472 for reportable transactions.

• US buyers prefer domestic ACH payments because they’re cheaper, faster, and easier to reconcile than international wires.
• A US account acts as a trust signal, showing the business has passed federally required identity checks under the Bank Secrecy Act.
• Fintech providers offer remote onboarding through FDIC-insured partner banks; traditional banks require stricter verification.
• A US account doesn’t create tax liability alone, but foreign-owned entities often must file Form 5472 to report owner transactions.
• The right time to open an account is when US clients request ACH, payment friction slows deals, or revenue becomes US-dominant.

For many foreign founders, selling into the United States eventually reaches a turning point. A prospective client asks a seemingly simple question: “Can we pay you through a US bank account?”

It sounds like a convenience request, but it reflects something much deeper. For US buyers, a domestic bank account signals stability, compliance, and a tangible degree of operational presence. It can influence everything from payment speed to internal risk scoring during procurement reviews. The absence of one, by contrast, often becomes a silent deal breaker.

Yet for non-resident entrepreneurs, obtaining a US account is not as straightforward as registering an LLC. US banks operate under strict KYC, AML, and Bank Secrecy Act requirements, and most require in-person identity verification or a US-based officer. Still, a US bank account is absolutely achievable, especially with the growth of regulated fintech providers that offer US-denominated business accounts to international founders. Understanding the available pathways, and the compliance implications of each, is essential for any founder preparing to scale in the US market.

Why having a US bank account matters

For US companies, paying into a domestic bank account is faster, cheaper, and far easier to manage. ACH transfers run on local payment rails, costing a fraction of international wires and avoiding the SWIFT fees, currency-conversion spreads, and multi-day delays that often slow cross-border transactions. For finance teams, this reduces friction and eliminates the reconciliation issues that come with foreign payments.

For founders, the impact is equally important. Payment failures decline, cash flow becomes more predictable, and invoices integrate cleanly with US accounting platforms and payment processors. Many discover that prospects who were hesitant before move forward once they see familiar US banking details on an invoice.

Ultimately, the issue is trust. A US bank account shows that the company has completed identity verification and participates directly in the American financial system, a major credibility signal in an environment where buyers prioritise clear jurisdiction, compliance, and reliable payment infrastructure.

The traditional bank route – strict but still possible

Opening a business account at a traditional US bank remains the most difficult path for non-resident founders, but it is still achievable and continues to be the gold standard for certain enterprise and compliance-heavy buyers. US banks operate under the Bank Secrecy Act, which outlines strict anti-money-laundering obligations, and the enhanced customer-verification rules introduced under the USA PATRIOT Act. These frameworks require banks to perform deep identity checks, verify beneficial ownership, and understand the nature of each customer’s business before approving an account.

Most major US banks typically require at least one of the following:

• An in-person visit to a US branch for identity verification

• A company officer with US residency or valid immigration status

• A physical US address, not a virtual mailbox or forwarding service

• Documentation proving genuine US operational presence, such as local contracts, leases or US-based invoices

For early-stage international teams, these requirements can be restrictive. However, the advantage is reputational strength. Some large enterprise clients actively prefer, or in certain procurement processes, require, vendors to use accounts held directly with traditional US banks rather than fintech intermediaries.

The fintech path – the most common option for foreign founders

Over the last decade, US-based fintech platforms have become the most accessible way for non-resident founders to obtain a US business account. These platforms are not banks; instead, they provide accounts through regulated, FDIC-insured partner banks while offering a fully digital onboarding process that does not require an in-person visit.

Most fintech providers require:

• A US company (LLC or corporation)

• An EIN issued by the Internal Revenue Service (IRS)

• Identity verification for all beneficial owners

• Basic company formation documents such as Articles of Organization or Incorporation

Once approved, founders receive US dollar business accounts with the ability to send ACH payments, receive domestic wires, issue virtual or physical debit cards, and integrate with major payment processors.

For American clients, these accounts function the same as traditional business banking. Payments settle through standard US banking rails, and most buyers cannot distinguish between a fintech-backed account and an account held at a traditional bank.

The trade-off is that fintech providers must follow the compliance policies of their partner banks. This means certain industries may be restricted, and some founders may be asked to provide updated documentation periodically. For most international entrepreneurs, these requirements are minor compared to the speed, accessibility, and remote onboarding that fintech platforms offer.

What a US bank account does – and does not – mean for tax

A US bank account by itself does not automatically create US income tax liability. Under US rules, foreign-owned companies are generally taxed on US-sourced income or income that is effectively connected with a US trade or business (ECI), not simply because they hold a US account. Merely maintaining a bank account does not, on its own, make a company engaged in a US trade or business or create ECI.

Where the bank account does matter is compliance. Many foreign-owned US entities, especially single-member LLCs treated as disregarded entities, must file informational reports when they have “reportable transactions” with their foreign owner or related parties. This often includes filing Form 5472 with a pro forma Form 1120. Form 5472 is an information return used to disclose these transactions; it is a reporting and record-keeping obligation, not an income tax return by itself.

The real implication of using a US bank account is the standard it sets for records and transparency. Once money starts flowing through a US account, founders need clear books showing where revenue is earned, how it is sourced, and how transactions with related parties are classified. US banks can ask for supporting documentation under their compliance programs, and the IRS expects adequate records from foreign-owned entities, even in years when there is no taxable US income but reportable transactions and filing duties still exist.

How US banking affects buyer perception and deal velocity

A US bank account shapes far more than payment logistics, it directly influences how American buyers evaluate risk, compliance, and operational readiness. During vendor onboarding, many US companies run formal due-diligence checks. Banking information is part of this review because it reflects whether a business interacts with the US financial system and has passed identity verification requirements under federal compliance rules, including the Bank Secrecy Act and Customer Identification Program (CIP) standards enforced by US financial institutions. A domestic account therefore reduces perceived risk and increases trust in the vendor’s legitimacy.

A US account also improves payment efficiency. Most American businesses rely on ACH payments, which operate on local banking rails and power subscriptions, retainers, and recurring service billing. Vendors who cannot accept ACH are often flagged by accounts-payable teams as higher-overhead or slower to process because international wires introduce delays, higher fees, and reconciliation complexity. As a result, onboarding can stretch longer, and in some cases, buyers choose vendors with US banking details simply because they fit smoothly into existing financial workflows.

In short, a US bank account functions as a trust marker and a practical accelerator of deal velocity, reducing friction at the exact stage where many foreign founders lose momentum.

When should a foreign founder get a US bank account?

Timing matters. Some founders open a US bank account before they have meaningful traction, while others delay until deals begin slipping away. The ideal moment sits between these extremes.

A foreign founder should typically secure a US account once US buyers begin expecting domestic payments, particularly when clients request ACH transfers, contracts reference US law, or your invoices specify US-based billing terms. When most of your revenue is coming from American customers, a US account shifts from being optional to becoming a practical necessity.

It also becomes essential when payment friction starts slowing growth. If your business experiences delayed international transfers, inconsistent fees, foreign exchange losses, or reconciliation challenges that frustrate US accounting teams, a domestic account removes these barriers and restores deal velocity.

If you are still testing the US market, waiting may be the smarter choice. A US account brings administrative responsibilities, including compliance and record-keeping. It delivers the greatest value once your pipeline and revenue stream are clearly US-focused, not during early experimentation.

In short: get a US bank account when it directly supports sales, removes friction for American clients, and aligns with real market traction, not before.

The bottom line

For foreign founders, a US bank account is far more than a payment tool, it is a trust asset. American buyers perceive vendors with a domestic account as lower-risk, easier to onboard, and better aligned with US financial standards. This reduces friction, accelerates payment cycles, and strengthens overall credibility during procurement reviews.

Traditional banks remain the most rigorous route, requiring stricter verification and, in many cases, in-person checks. But regulated fintech partners have changed the landscape, allowing non-resident founders to access US banking functions without travel, residency, or a physical US office. When paired with the right entity structure and proper compliance, a US bank account becomes a strategic foundation for scaling into the world’s largest and most competitive market.

In short: the moment you begin serving US clients at scale, a domestic account isn’t optional, it becomes a growth engine.