Understanding Your Options: Traditional Banks vs. Fintech Banks

Between traditional banks and online fintech of a US business bank account to open and link your account up to traditional banks, like Bank of America, Chase, or Wells Fargo you would have to physically go into a branch in the US for KYC. This is a compulsory step for KYC and adherence to US banking regulations.

Meanwhile, online fintech banks like Mercury, Wise:/Payoneer/Relay Financial provide a more available solution. They help you complete the entire KYC process online saving travel time. This is probably the best choice for non-resident entrepreneurs who are unable to travel to the US. Nevertheless, once you get to the US and start your business activities in their whereabouts it can be done with pretty much any major bank.

KYC (Know Your Customer) Compliance Matters

KYC (Know Your Customer) is a legal and regulatory requirement for banks to verify the identity of their customers. This ensures that fraud, money laundering, and all other related criminal activities are deterred. One needs to do KYC in person with a traditional bank like the physical visit of an Indian citizen at a U.S. branch for KYC completion, ...

However, these days the process is streamlined and even online fintech banks offer full KYC done quickly at their end. They will require electronic copies of your ID, business papers certificate, and evidence of address. With online-only banking, you never need to visit a branch in person again (other than the end of course if they require some sort of verification) Which can make these an appealing choice for digital nomads.

Opening a Business Account at the Major Banks in the United States

For those who want to sign up with a top US bank account, you need to do this.

1. Go to the USA: Most traditional banks require that you be in-state physically to open a business bank account Which is important for fulfilling the KYC process offline.

2. Ready Your Documents: Carry all the necessary documents such as your business formation papers, EIN (Employer Identification Number), passport, and proof of address.

3. Make an Appointment:Call the bank for a scheduled appointment. Perhaps you may have to deliver some relevant documents in advance for the bank employees so that they can see them and not misjudge your work.

After you are in the US and have completed a KYC, there will be options for opening an account at contractions or associations of large banks.

How to open a business account with online fintech banks

As it turns out, opening a business account is much easier and faster online with fintech banks. Here’s how you can do it:

1. At Fintech Bank Selection: Decide your fintech bank — Mercury if you prefer an easy-to-use interface, Wise for several currencies’ transactions, or Relay Financial when comprehensive financial management is needed.

2. KYC Online: Your pan card, bank details, get where required etc KYC is done online so you do not have to physically come to the US.

To apply, you just need to complete the application on bank's site as well provide your documents and submit it. This makes approval much faster than from most traditional banks.

And after approval you are able to manage your account online, enabling you keep an eye on the finances of your business from anywhere across the globe.

First, before you can even open a US business bank account, you would need to set up an entity in the United States (preferably LLC or Corporation). This is the initial stage of registering and must be done by all banks including traditional as well as fintech. There are state regulations, so you must choose the state where your business is going to run.

When opening a business bank account in the USA you should have the Employer Identification Number (EIN) from IRS. Unfortunately, as a non-resident and without either an SSN or ITIN number you cannot apply for EIN online. You can not apply online but have to send an application by fax or mail.

I have a Business Formation package which saves you hundreds of dollars, gives me your EIN number within 2 weeks and all the info that is on an IRS Letter; just like if I let Koshika LLC do it for you.

You can opt for a traditional bank or an online fintech bank, you need the following documents:

1. Incorporation Papers: Evidence that you are a valid US enterprise.

2. EIN (Employer Identification Number):the number that you received from the IRS. Valid passport Possible additional ID pending on the bank

Agreements are not always necessary, but it never hurts to have a copy of your business operating agreement.

Prepare these documents, so that the account opening process can happen seamlessly.

You will select the bank that is right for your business:

1. Conventional Bank:Best for those who like a traditional bank with branches enjoy as well as vast schedule of other products.

2. Fintech Banks:Great for Business Owners Looking In order to avoid ENTERPRISE RESOURCE PLANNING Fees with online managing access from the US

We can help you review your available options, and select the bank that fits best with what you are trying to do in your business.

How Koshika LLC Can Help You

The process of opening US business bank account as a non-resident can be complex but — not to worry, because Koshika LLC is here for you! Whether it be a traditional bank, or an online fintech bank in the US, Koshika LLC can help you from setting up your business entity based out of United States all way to obtaining EIN and meeting KYC requirements. They have all the knowledge required to do so, while you can peacefully concentrate on expanding your business without worrying about administration.

Typical Hurdles with Solutions

Potential Challenges you will encounter would be:

1. KYC Compliance:Traditional banks need in-person KYC whereas if you go for Fintech Bank with the guidance of Koshika LLC, your entire process of transactions can be online.

2. Opportunity for EIN application:Getting an EIN can be tricky to apply as a non-US resident but Koshika LLC makes this step easier with your Fax/Mail.

3. Documentation Preparation:Most importantly is having all your proper documentation. Koshika LLC will also review your paperwork so you can avoid any wait times.

We can help you review your available options, and select the bank that fits best with what you are trying to do in your business.

Reconnecting to or Setting up Your US-Based Business Bank Account

Once you open an account, be sure to maintain it and follow US Laws. In order to keep your account in good standing, you need to be using it with regular transactions and maintaining solid paperwork (as relevant) as well as staying current on what US tax obligations are. Traditional banks and their fintech equivalents alike give you tools to manage your account efficiently.