What Founders Do When They Can’t Open a U.S. Bank Account Yet

Why having a U.S. bank account matters

Most U.S. clients, marketplaces, and payment processors prefer to pay in U.S. dollars, and they want to send those funds to U.S. banks without extra friction. A U.S. business bank account helps you receive payments with fewer conversion steps, delays, and back-and-forth on invoicing. 

It also unlocks tooling that many founders expect to “just work.” Products like Stripe often rely on U.S. bank rails to receive and manage funds. Without that, you can still operate, but you’ll spend more time stitching together workarounds and explaining payment flows to customers and partners. 

And yes, perception matters. For better or worse, U.S. partners often treat U.S. banking details as a signal that you’re set up to operate cleanly in-market, especially when dealing with U.S.-based platforms or B2B procurement workflows.

What you need before any banking option is even on the table

Before you start bank applications, it helps to separate “hard requirements” from “things that make approval easier.”

Required

• Your U.S. company formation documents and EIN: These options are for business banking, not personal accounts. In practice, you’ll need the LLC or C-Corp set up first.

• Government-issued ID for each founder/majority owner: You usually need two forms of ID, an international passport and another acceptable U.S. government-issued ID, if applicable.

Recommended

• A U.S. business address (often virtual): Many providers accept this, but some have tightened policies and now want a real operating address rather than only a registered agent address. 

The obstacles founders keep running into

Traditional banks typically require three main items: SSN, U.S. address, and in-person verification. For many international founders, that means you need to walk into a branch to use a legacy bank.

On top of that, market requirements have tightened. Banks and fintech platforms have become more conservative about international-owned LLC accounts, particularly regarding address validation, business-model clarity, and country-based restrictions.

The practical result: some applications get declined immediately, and some accounts get reviewed later, sometimes with limited explanation. And depending on where founders reside or operate, certain countries may be restricted entirely due to compliance requirements.

Alternative option: Fintech platforms that accept international founders (remote setup)

If you need something you can set up without getting on a plane, fintech platforms are usually the first stop. They’re not all the same, and approval standards change, but these are common routes founders try.

Mercury

Mercury supports companies formed in the United States or a U.S. territory, and it accepts many international founders (with exceptions for founders in countries prohibited by its banking partners). 

In practice, you should expect to provide a U.S. EIN, a standard prerequisite across U.S. business banking. 

A notable operational detail: Mercury advertises no fees on USD wire transfers, and it provides FDIC insurance up to $5 million through partner banks using sweep networks.

A common friction point: Recent reports suggest approvals can be harder than they used to be, and address standards have tightened, specifically around not using a registered agent address for banking purposes. 

Relay

Relay is another frequently used option for international business owners, and it can be especially appealing to single-member LLCs. It’s used not only for “one checking account,” but also for operational structure: sub-accounts, team permissions, and accounting integrations are a big part of the appeal. 

Relay is a fintech company, not a bank. It partners with banks that hold the funds, which is how FDIC insurance is provided in that structure.

Like Mercury, Relay may not allow use of a registered agent address for banking purposes.

Brex

Brex offers online onboarding and is known for quick access to cards and account tooling. It also offers global support.

Brex is available for global startups with U.S. incorporation, a U.S. EIN, a U.S. billing address, and U.S. operations. 

Brex also offers FDIC coverage up to $6M through partner banks. 

Lili

Lili is another option founders use when they need a remote setup and don’t have an SSN.

As always, check current availability and eligibility before assuming it will work for your specific ownership and residency situation.

Traditional banks (usually require a U.S. visit)

If you need a classic U.S. business checking account at a legacy bank, plan on an in-person visit. Many traditional banks do not support remote opening for international owners.

Founders who do this successfully often choose branches in major cities where staff are more accustomed to foreign-owned business accounts.

If you’re already planning a U.S. trip

A practical pattern is to set up a fintech account first (so you can start operating), then use the trip to open a traditional account in person. Many entrepreneurs keep both long-term — one traditional bank, one fintech — so they’re not stranded if a provider changes requirements or needs extra review.

The redundancy strategy (recommended)

If you can swing it, redundancy is the calmest way to run. Many international founders try to maintain two accounts (or two ways to receive USD) so that one review, delay, or closure doesn’t stop payroll, refunds, vendor payments, or ad spend.

Two reasons this comes up so often:

• Even after approval, there’s no guarantee an account stays open forever. Policies and risk tolerance change.

• Banks often don’t share detailed reasoning when they freeze or close accounts, which makes it hard to “fix” after the fact.

What commonly triggers account freezes

Account reviews typically aren’t random. They’re often triggered when activity doesn’t match what you said you do.

If you described the business as coaching but the account looks like an eCommerce operation — high volume, lots of small ticket transactions, unfamiliar counterparties — that mismatch can create questions.

Some banks and platforms also list unsupported industries up front (often including gambling and adult entertainment).

For example, Mercury notes certain categories that cannot open accounts, including trusts and some higher-risk industries.

Key differences at a glance

What founders typically do next (a practical sequence)

1. Make sure your EIN documentation is in hand: Many applications ask for the IRS confirmation letter (Form CP575 or 147c), not just the number.

2. Check country restrictions early: Before you spend time gathering documents, confirm whether your residency or operating geography is supported.

3. Start with a remote-friendly fintech option: Mercury, Relay, or Lili are often the fastest path for straightforward company profiles.

4. If needed, plan the in-person bank opening: When remote options don’t fit your situation, a traditional bank account opened during a U.S. visit may be the cleanest solution.

5. Keep your story consistent: Business address, activity description, and ownership details should match across formation docs, applications, and actual transaction behavior.

If you can’t open a U.S. bank account right away, you’re not stuck. You’re just operating in phases. Most international founders start with a remote fintech to get paid in USD, then add a traditional bank account later (often during a U.S. trip), and maintain redundancy as the business scales.

If you’re in this situation now, pick one primary path and one backup path, confirm eligibility directly with each provider, and apply with consistent documentation so you can start moving money without turning banking into a months-long project.

For more information on how to get started with payroll, download our founder’s guide.

Legal disclaimer: The information provided is for informational purposes only and should not be considered legal advice.