Offshore USD account in the US: A complete guide for entrepreneurs

When should you open an offshore account in the US

When running a business, you’ll likely aim to expand globally, and for many, the ultimate market destination is the United States. A key reason is its vast market size. According to Statista, total consumer spending in the US reached USD $19 trillion in 2023 and is projected to grow to USD $20.75 trillion by 2025. With the right business strategy, this market potential can translate into stronger revenue opportunities.

This is where an offshore US account can help. As a Singapore-based entrepreneur, having a US offshore account allows you to receive client payments directly in USD without converting them to SGD. You can also use the funds to pay US suppliers more efficiently from a local account, helping ensure your supply chain runs smoothly.

In addition, US banks offer sophisticated financial services, such as investment products and trade finance, that not only support day-to-day operations but also contribute to your long-term growth in the market.

Beyond streamlining international operations, many businesses also view a US offshore account as part of their asset diversification strategy. Since the US dollar is one of the world’s leading reserve currencies—and among the most stable—holding a USD-denominated offshore account can help protect your assets against market and economic volatility.

What are the benefits of opening an offshore account in the US?

There are many benefits to opening an offshore bank account in the US, and here are some of them:

• Access to the US market: A US offshore bank account makes it easier to expand your business operations in the US. You can receive payments from US clients directly in USD and pay local suppliers seamlessly, avoiding delays and extra conversion costs.
• Enhanced business credibility: Having a US business account can strengthen your company’s image with clients, partners, and investors. Since the US is one of the world’s leading business and financial centres, holding a local account signals your commitment to operating in global markets.
• Stable and well-regulated banking system: The US banking sector is highly regulated and generally considered safe. This stability offers greater peace of mind, particularly when managing significant amounts of money.
• Multi-currency options: Some US banks and offshore platforms allow businesses to hold funds in multiple currencies. This flexibility is useful when paying vendors in their local currency or managing exchange rate risks.
• Improved financial management: Most US banks provide detailed reporting and online banking tools to help you track incoming and outgoing payments. This transparency makes it easier to manage cash flow and plan your budget effectively.
• Access to additional services: Depending on the bank and type of account, you may gain access to extra services such as merchant processing, foreign exchange solutions, or even investment advice. These offerings can support both day-to-day operations and longer-term growth.

Key services of offshore bank accounts in the US

Offshore bank accounts in the US offer a wide range of services designed to support international business needs. These services can help small and medium-sized enterprises (SMEs) manage global operations more efficiently.

• Multi-currency accounts: Businesses can hold funds in USD and other currencies, reducing exposure to foreign exchange risks.
• Efficient payment networks: US offshore accounts often provide reliable international wire transfers, ensuring faster cross-border payments. In addition, many accounts grant access to the Automated Clearing House (ACH) network, a cost-effective and widely used local payment system in the US.
• Value-added banking services: Depending on the provider, you may also access merchant accounts, credit facilities, and advanced online banking tools to streamline operations.
• Access to US financial markets: Some US banks and offshore platforms provide opportunities to diversify assets through exposure to US-based financial products such as stocks, bonds, and other investment instruments that may not be available in your home country.

Offshore account opening requirements

To open an offshore USD account, you need to demonstrate that your business is legitimate and that your funds are legal.

However, it’s important to note that requirements vary across banks, and opening an offshore business account in the US is generally stricter than opening an offshore personal account. In addition, most US banks don't clearly distinguish between “offshore” and “domestic” business accounts due to the highly regulated environment. As a result, the requirements for both are largely the same.

For example, even if you're a non-US resident, some traditional banks still require you to establish a US entity (LLC or C-Corp), provide an Employer Identification Number (EIN), and have a US business address, as they only offer a “true” domestic business account. Therefore, you should check the requirements with your bank.

That said, here are the most common documents requested:

Having these ready will make the process faster and easier.

How to open an offshore bank account in the US

Offshore bank account opening requirements in the US aren’t complicated, but it does require careful attention to each step. Most banks follow a similar process: you'll need to provide the correct documents, answer verification questions, and submit your application.

In many cases, some banks even let you complete the process remotely, without visiting in person, making it especially convenient if you're based overseas.

Step 1: Choose a bank

Select a bank that offers offshore accounts and suits your business needs. Don’t forget to check their requirements as well, as this will make it easier for you to prepare the necessary documents.

Step 2: Connect with the bank

Visit the bank’s website or get in touch with their support team for details.

Step 3: Complete the application form

Fill in the account opening form, either online or offline, as per the bank’s process.

Step 4: Provide identification

Upload or submit valid identity documents such as a passport or national ID.

Step 5: Confirm your address

Submit proof of residence, such as a utility bill or rental agreement.

Step 6: Show financial background

Provide documents related to your source of income or business activities.

Step 7: State your purpose

Explain why you need the account and how you plan to use it.

Step 8: Make the initial deposit

Transfer the minimum deposit required by the bank to activate your account.

The minimum deposit amount varies across banks and generally falls between USD $100 and USD $1,000, although some larger banks may require more. Additionally, to avoid monthly fees, you may need to maintain a minimum daily or average balance, usually ranging from USD $500 to USD $2,500.

Step 9: Wait for verification

The bank will review your documents and application details. Each bank may have a different timeline to approve an application, but they usually take 1–4 weeks to process applications.

Step 10: Start banking

Once approved, access your account online, begin using offshore banking services and manage your account remotely.

Understanding fees and charges of US offshore accounts

If you're considering opening a USD-denominated account in the US, you must always check the incurred fees. Most offshore banks charge fees that are different from those of traditional institutions.

The common charges include:

• A monthly fee for account maintenance.
• Charges for international transfers and cross-border payments.
• Extra costs are linked to exchange rates when moving between multiple currencies.
• Requirements to keep a minimum deposit or pay penalties if you go below it.

While these fees add up, they are often worth it for small businesses because the account gives better access to international finance, multi-currency accounts and global banking services that normal accounts cannot provide.

How to choose the right offshore USD Account

Choosing the best offshore account for your business means comparing more than just fees. Here are some tips to help you make the right decision:

• Check whether the bank offers accounts in the currencies your business uses most often.
• Look at the online and mobile banking options and make sure they’re easy to use and secure.
• Review the minimum deposit and balance requirements and choose a bank account that matches your budget.
• Considering the support offered. Some banks provide dedicated business relationship managers or multilingual help desks.
• Ask about extra services like investment advice, bulk payments and integrated accounting tools if your business is growing fast.
• Make sure the bank is well-regulated and trusted for business banking.

Taking the time to find the right banking partner can save your business money, reduce headaches and set you up for international success.

Alternative to traditional offshore accounts: Fintech platforms

Opening an offshore bank account in the US can be a lengthy and expensive process. Traditional banks often impose strict requirements that make it difficult for international businesses to get started.

Fortunately, if you want to have a US local account without going through the strict requirements of US banks, you can turn to fintech platforms as an ideal solution. Fintech platforms offer the following benefits:

• Flexible account opening process: Fintech platforms let you open a US local business account online with remote onboarding, saving both time and cost.
• Less rigid requirements: These platforms also have more flexible requirements, which means less paperwork. For example, you can open an online business account without establishing a US entity or providing a US business address.
• Cost-effective process: Fintech platforms typically don’t require a large initial deposit and often charge much lower account opening fees, making them a more affordable option.
• Transparency of fees: Traditional banks often have hidden or complex fee structures. In contrast, fintechs usually offer simpler and more transparent pricing, which makes it easier to plan your budget.

However, while fintechs can be an ideal alternative, it’s important to note that most of these platforms aren’t licensed banking institutions in the US. This means they may not provide the more complex services that traditional banks usually offer. Instead, fintechs typically partner with US banks to provide an online business account, giving you a local account number to hold, send, and receive money in USD.

Therefore, before choosing a fintech account, you should assess your financial needs. If you mainly want to streamline day-to-day payments within the US, fintech platforms can be an excellent solution.

Go global effortlessly with Aspire's Multi-currency account

Aspire offers your business a modern multi-currency account designed to make global growth simple. With Aspire's Business Account, you can manage international transfers, receive payments in all major currencies and make cross-border payments easily from one central location.

Aspire supports online banking, mobile banking and issues unlimited virtual cards for your different teams. It helps you manage financial commitments like supplier invoices, payroll abroad or investments in foreign accounts.

By following tax laws and staying compliant with reporting obligations, you can use Aspire to gain both convenience and financial stability in international finance.