At a certain point, if having a presence in the United States is a priority for your business, opening a bank account in the United States will be required to conduct daily business operations. Here are three reasons you will need to open a bank account in the United States:
In the United States, many tax bodies and state departments require checks as an approved method of payment. For example, payment for the Texas Franchise Tax can be easily done via check. Other groups prefer physical checks over electronic payments, including landlords, insurance agents/companies, and tradespeople.
Most online banking systems in the US have online bill pay functionality so you can send a check without physically having to write one. One of HPC’s favorite solutions for cutting checks is Bill.com, as it syncs with Xero to eliminate duplicate data entry and allows customers to pay their bills on their mobile phone.
International businesses may be surprised to learn how often customers want to pay via check. It’s often said that baseball is America’s favorite pastime. However, it might actually be writing checks. Even with the emergence of online banking and electronic transfers, the United States remains the world’s biggest user of checks. As a result, you won’t be able to deposit the checks you receive into virtual accounts.
Once you have a bank account, you can use something like Earth Class Mail. This will allow you to select a physical address vs a PO box or trying to use your Registered Agent to handle your important mail. Earth Class Mail and certain banks will allow you to do remote deposits for checks you may receive.
If and when you ever want to hire employees in the US you will need to have a US bank account. This account will be used with your payroll software to issue employee checks, withhold and remit payroll taxes, and to pay your payroll provider.
For more information on US payroll and benefits, please see our blog post on Obtaining Benefits for Your US Employees.
Ready to expand to the US market? Instead of conducting business through a foreign company or account, consider a more formal expansion.
Our Guide to Expanding to the US should be a helpful resource, or you can get in touch to discuss directly by clicking the link below.