Complete guide on how to open a US business account, locally and from overseas

Overview of US business banking 

The US banking system is one of the largest and most diverse in the world, serving businesses of all sizes, from startups to global corporations.

It offers a full suite of services to help companies operate smoothly, including checking and savings accounts, payment processing, credit facilities, merchant services, and international transfers.

There are two main types of institutions you'll encounter:

• Traditional banks, such as JPMorgan Chase, Bank of America, and Wells Fargo, provide comprehensive services but often require stricter documentation and, in many cases, in-person account opening.
• Digital banks and fintech platforms such as Mercury, Aspire, Wise, and Relay cater especially to startups and international founders by offering remote account setup, lower transaction fees, and easy integration with online tools.

Benefits of opening a US business bank account  

For overseas entrepreneurs, having a US business bank account can unlock real operational and financial advantages. It allows you to:

• Receive payments in US dollars directly – Avoid costly and repeated currency conversions by collecting revenue straight into a USD account.
• Strengthen credibility with US clients and partners – A US account signals stability and makes it easier for American companies to trust and transact with you.
• Streamline tax reporting and compliance – Keeping your US revenue and expenses in one account simplifies IRS filings and cross-border documentation.
• Access US credit and financing options – The US is one of the world’s largest financial hubs. Businesses banking locally can apply for US loans or credit lines. Competition among lenders generally keeps USD financing costs more competitive than in many other markets (though approval depends on credit profile and loan type).
• Use US payment networks for faster, cheaper transfers – Leverage local systems like ACH and same-day ACH to cut transfer costs and reduce payment delays when paying US suppliers, vendors, or employees.

While the benefits are clear, opening an account as a non-resident comes with challenges, such as meeting Know Your Customer (KYC) requirements, providing a US address, or needing to travel for in-person verification at certain banks. This is where understanding the structure of US business banking and knowing your options becomes essential.

Who should open a business account in the US? 

If you're running a business in Singapore and looking westward, a US business bank account can be a strategic move. But is it something you actually need? Here are a few scenarios where it makes absolute sense:

• You're selling to US customers
  If you already have existing customers in the US and a significant chunk of your revenue comes from them, having a US account saves you from hefty foreign exchange losses and keeps money moving faster.
• You want a footprint in the US
  Are you considering registering a subsidiary, Limited Liability Company (LLC), or branch in the United States? A US account is practically non-negotiable. It keeps your operations clean, compliant, and separate from your Singapore books.
• You pay US-based vendors or partners
  Suppliers, freelancers, or even US employees will prefer (and sometimes insist on) being paid locally. A domestic account lets you pay them quickly without wire transfer hassles.
• You're raising funds in the US
  If you're courting American investors or venture capital, they will expect you to have a US account. It’s about ease of transactions and credibility.
• Your transaction volumes are growing
  If you’re collecting regular payments in USD or dealing with recurring settlements, you'll quickly find that relying on international transfers is slow, expensive, and frustrating. A local account keeps things frictionless.

Types of business accounts in the US

When opening a US business account, it helps to know what’s available. Each type serves a specific purpose and aligns with different business financial needs.

1. Business Checking Account

A business checking account is your operational cornerstone. This account handles every transaction that keeps your business ticking, including day-to-day transactions like customer receipts, vendor payments, and payroll.

Banks often include other financial tools, such as payment services, online banking, or readiness for lending applications, making this a foundational choice.

2. Business savings account

This is where you park money you do not need immediately but want to grow. It earns interest while keeping funds accessible, which is perfect for taxes, future projects, or rainy-day reserves.

3. Business money market account (MMA)

A hybrid between checking and savings. It offers higher interest than a regular savings account and still allows limited check writing or debit card access, which is great if you want interest but also need liquidity.

4. Merchant account

This specialised account sits between your business and payment processors, enabling you to receive card payments securely and efficiently. It holds funds briefly before transferring them to your checking account, usually within 1–2 business days. Essential for e-commerce or any business accepting electronic payments.

5. Foreign currency account

If your business regularly deals in non-USD transactions, you can hold funds in another currency, helping you manage exchange rate risks or avoid conversion fees. Depending on the bank, these accounts may still enjoy FDIC insurance limits in the US.

6. Multi-Currency Account

This goes beyond single-currency accounts, letting you hold and manage multiple currencies (including USD) within one account. It reduces the need for separate accounts in different countries and simplifies international cash flow.

7. Business certificates of deposit (CDs)

A savings tool with a fixed term and higher interest. You commit your funds for a set period and receive a better return in exchange, though early withdrawal often incurs penalties. Ideal for money you'll not need immediately. NCUA or FDIC insured, depending on the institution.

Which of these accounts can overseas businesses actually access

Overseas businesses without a US entity generally can't open business accounts directly with US banks. Instead, they can access fintech-provided accounts, such as:

• Business Checking Accounts (via fintech)
• Multi-Currency Accounts(via fintech)
• Merchant solutions (via payment processors, not accurate bank merchant accounts)

Other types, such as Savings, Money Market, foreign currency accounts, and Certificates of Deposit, are generally tied to having a US entity and an in-person relationship with a local bank.

Can non-residents open a US business account?

Yes, non-US residents can open a US business bank account, but only under the right conditions.

Here are the essentials to know:

1. A US business entity is required

Most banks and financial institutions will only let you open an account if you have a US-registered entity such as an LLC or corporation. You'll also need an Employer Identification Number (EIN) from the IRS. Without these, traditional banks typically won't proceed.

2. Residency isn't required, but documentation is

You don't need to be a US citizen or resident. However, banks will expect to see documentation such as a passport, proof of address, and often an ITIN (Individual Taxpayer Identification Number).

3. A US address is usually needed

Banks often require a physical or registered agent address in the US. This can be the office of your registered agent or a business address tied to your entity formation.

4. In-person visits may still be required

Many traditional US banks expect you to appear in person to open an account. This can be a significant hurdle for non-resident founders who don't plan to travel.

This is where digital solutions come in. Instead of dealing with long waits and in-person requirements, fintech platforms allow users to manage USD transactions and accounts remotely.

For Singaporean founders, platforms like Aspire offer global business accounts that can handle USD collections and payments, without the friction of opening a traditional US bank account. This can be especially valuable in the early stages, before you decide whether a US entity and bank relationship is necessary.

How to choose the right bank for your business

Picking a bank is more than opening an account. The right choice should match your business needs today and grow with you tomorrow. Here are the key factors to consider:

1. Know your needs

Decide what matters most, such as daily transactions, payroll, international transfers, or future access to credit. Clarity here will save you time later.

2. Check fees

Compare monthly charges, transfer fees, and minimum deposit requirements. Small costs add up quickly.

3. Digital tools

Look for strong online banking solutions and integrations with your accounting or payments software. This saves hours of manual work.

4. Accessibility and support

Do you prefer a branch with personal service or a fully digital setup with 24/7 support? Choose based on how you operate.

5. Growth services

Consider whether the bank offers credit lines, loans, or advisory support for when you are ready to scale.

6. Scalability

Think ahead. Will you need multi-currency accounts, higher limits, or more advanced features in the future?

7. Fintech options as alternatives

Digital-first platforms simplify global banking with multi-currency accounts, fast onboarding, and integrated tools useful for businesses working across borders.

Opening a US business account: Traditional path vs modern fintech

Singaporean businesses that want to expand into the United States face a key decision: How should they open their US business account?

There are three main paths, each with different requirements and levels of complexity.

Key differences

1. Entity requirement
   Traditional banks won't process your transaction unless you form a US LLC or corporation. Fintech solutions allow you to transact globally without immediately setting up a US entity.
2. In-person vs online
   The biggest barrier for non-residents is the requirement to show up at a US branch. Fintech platforms remove that hurdle with remote onboarding.
3. Documentation load
   Traditional banks demand a thick stack of entity papers, IRS filings, and proof of US address. Fintech platforms streamline this into standard digital KYC (passport, business details, proof of business activity).
4. Speed
   Traditional banking is slow, often taking weeks. Digital-first solutions are faster, allowing you to start receiving and sending USD payments almost immediately.
5. Minimum balance & fees
   Traditional banks often require a minimum opening deposit (sometimes more than USD $100+, often higher for premium accounts), plus a minimum average or daily balance to avoid monthly fees. Monthly fees for premium business checking can be USD $30-USD $40. Whereas, fintechs tend to have lower to no minimum balances, lower or zero monthly fees for basic accounts; fees mostly kick in for premium services or special transfers.

Tax implications of opening a US business account for foreign entities

When you open a US business account from outside the United States, you take on certain tax and compliance obligations. These are important notes to understand before you decide whether to open a traditional bank account or use a fintech platform.

1. US entity requirement and IRS filing

If you register a US entity such as an LLC or corporation, the IRS considers it a taxable presence. You'll need an EIN (Employer Identification Number) and must file annual tax returns for the entity, even if your primary operations remain outside the United States.

2. Withholding taxes on US income

If your business earns income from US customers, banks may withhold a portion for tax purposes. You'll often be asked to provide tax forms such as W-8BEN or W-8BEN-E. The default withholding can be as high as 30% without these forms.

3. Reporting requirements (FBAR and FATCA)

If your US entity holds financial accounts, you may be subject to specific reporting obligations under FBAR and FATCA rules:

• FBAR (Report of Foreign Bank and Financial Accounts): A US entity (corporation, partnership, or LLC) must file an FBAR if the aggregate value of its foreign financial accounts exceeds USD $10,000 at any time during the calendar year. This applies even if the accounts aren't generating income. If the threshold is not met, no FBAR filing is required. Penalties for non-compliance are significant.
• FATCA (Foreign Account Tax Compliance Act): Depending on the entity type and size, US entities may also have to file Form 8938 (Statement of Specified Foreign Financial Assets) along with their tax return if their foreign financial assets exceed certain thresholds. Unlike FBAR, FATCA thresholds vary depending on whether the filer is an individual or an entity, and whether they file jointly or separately.

However, it's important to note that not every US entity is automatically subject to FBAR or FATCA. The filing requirement depends on whether foreign accounts exist and whether the reporting thresholds are crossed.

4. Double taxation considerations

Unlike many countries, Singapore and the US don't have a full Double Taxation Agreement (DTA). Instead, they only have a limited treaty, signed in 1988, that covers income from international shipping and air transport.

• Under this treaty, if a Singapore company earns income from international shipping or aircraft operations, that income is exempt from US federal income tax.
• Similarly, if a US company earns such income in Singapore, it is exempt from Singapore income tax.
• The exemption also extends to related income such as leasing ships/aircraft, or gains from their sale, but only if certain ownership or stock-trading conditions are met.

For all other types of income (e.g. services, dividends, royalties, business profits), there's no comprehensive treaty relief between Singapore and the US. This means that US-sourced income may still be taxed in the US, while Singapore’s territorial tax system generally exempts foreign-sourced income unless it is remitted into Singapore.

Because the treaty is limited, most businesses can't rely on it to avoid double taxation. Instead, relief usually comes from foreign tax credits under US tax law or from Singapore’s practice of not taxing most foreign-sourced income unless received in Singapore.

How US traditional banks differ from fintech solutions

If you choose to manage USD transactions through a fintech platform, the picture changes:

• No immediate US entity requirement
  You can send and receive USD without setting up a US LLC or corporation. This avoids the need for an EIN or US corporate tax filings at the early stage.
• Simpler compliance
  Since you are not opening a US bank account tied to a US entity, obligations like FBAR and FATCA reporting usually do not apply. You only deal with local Singapore tax rules for your global business income.
• Withholding still applies
  If your income is considered US-sourced (for example, payments from US customers), you may still be asked to provide forms such as W-8BEN to avoid higher withholding.
• Flexibility first
  It allows you to test the market, manage USD transactions, and operate globally before deciding whether you need a permanent US banking setup.

For most overseas entrepreneurs, fintech platforms are the smarter first step. They let you receive USD payments, pay vendors quickly, and operate globally without the heavy lift of forming a US entity, navigating strict compliance, or tying up cash in minimum balances. This makes them ideal for freelancers, consultants, digital-first businesses, and early-stage startups testing the US market.

Traditional banks, on the other hand, become more relevant once you’ve decided to build a long-term US presence, such as opening offices, hiring staff, or accessing US credit facilities. In short: start lean with fintech to stay flexible, and consider moving to a traditional bank only when you’re scaling and need deeper integration with the US financial system.

That said, it’s important to note that most fintech providers aren't licensed US banks. They typically offer “functional” USD accounts (through partnerships with licensed banks), which are excellent for payments but may come with limited services compared to a full business bank account. In short: start lean with fintech to stay flexible, and move to a traditional bank once you need credit, broader services, and deeper integration in the US financial system.

Open and access a USD account anywhere with Aspire 

For many overseas business owners, the complexity of opening a traditional US business account, i.e. filings, in-person visits, and ongoing compliance, can feel heavy, especially if you're only testing the market. This is where a modern solution like Aspire offers a more practical starting point.

• Fully online account opening in just minutes: Aspire allows businesses to open a business account online quickly without requiring in-person visits or extensive paperwork, making onboarding much easier than traditional banks.
• Multi-currency capabilities: Aspire’s multi-currency business account supports holding and transacting in several currencies, including USD, SGD, EUR, and GBP for companies incorporated in Singapore.
• Local USD account details: We provide account details (such as USD account numbers and SWIFT codes) that allow businesses to receive and manage USD like local payments. You can invoice US clients and receive USD payments easily.
• Transparent, competitive FX and transfers: You can send and receive payments in 30+ currencies, offering mid-market FX rates and transparent, upfront fees. You can also make free local SGD, USD, GBP, and EUR transfers.
• Global payments: You can pay US or international suppliers directly from your USD balance, often avoiding extra conversion fees.

So, open your business account with Aspire today!