Let me be brutally honest with you—something most formation services won’t say until after they’ve taken your money: Opening a US bank account as a non-resident LLC owner has become a nightmare. If you’re reading this hoping for a magic solution, I don’t have one. What I do have is the unvarnished truth about what’s happening and your realistic options.
I’m Jake Lawson, and I’ve helped over 1,200 entrepreneurs navigate LLC formation. In the past two years alone, I’ve watched the banking landscape for non-residents shift from “challenging but doable” to “nearly impossible without physical presence.” Today, I’m giving you the real situation—no sugar-coating, no false promises.
The Banking Landscape Has Changed (And Not in Your Favor)
Here’s what happened: Between 2023 and 2025, virtually every US bank—traditional, online, neobanks, fintech platforms—slammed the door on non-resident LLC accounts. The golden era of Mercury accepting everyone with a pulse and an EIN? Gone. Relay’s open-door policy? History. Even Wise, the last reliable option, has restrictions that make it barely usable for many businesses.
Why? Enhanced KYC (Know Your Customer) regulations, stricter AML (Anti-Money Laundering) enforcement, and banks getting spooked by compliance risks. One major fintech got hit with massive fines for lax oversight, and suddenly everyone tightened up like Fort Knox.
I’ve personally seen rejection rates for non-residents jump from 20% to over 80% in just 18 months. And those who do get approved? Many get their accounts frozen or closed within weeks for “compliance reviews” that never seem to end in the customer’s favor.
Your Current Options (Spoiler: They’re All Problematic)
Wise: The Least Bad Option
Wise isn’t technically a bank—they’re an Electronic Money Institution (EMI). Your money isn’t FDIC insured, which should make you nervous. But here’s the thing: they’re currently the easiest to get approved with.
The Good:
- Highest approval rate for non-residents (around 40-50%)
- Can receive USD payments
- Decent exchange rates for transferring money home
The Bad:
- No FDIC insurance (if Wise fails, your money’s gone)
- Recently suspended local USD account details (you get SWIFT, not ACH)
- They’re asking for proof of trading address with LLC name on utility bills
- Can’t integrate with many US payment processors anymore
Jake’s Take: Use Wise to collect money, then immediately transfer it out. Don’t park funds there long-term. Think of it as a payment collection tool, not a bank account.
Relay: The Fintech That Got Strict
Relay used to be option #2. Now? They want proof of US operations that most non-residents can’t provide.
What They’re Demanding:
- Physical US business address (not virtual, not registered agent)
- US phone number with verified location
- Proof of US operations (contracts, employees, utility bills)
- Some are even asking for 3+ US employees or proof of US customers
Success Rate: Under 20% for true non-residents without US presence.
Mercury: The Former Golden Child
Mercury was the darling of international entrepreneurs. Silicon Valley backing, slick interface, reasonable requirements. Then 2024 happened.
Current Reality:
- Rejecting 70%+ of non-resident applications
- No longer accepting registered agent addresses
- Demanding proof of US address even after approval
- Mass account closures with funds frozen for weeks
- Zero transparency about rejection reasons
I’ve had clients with six-figure monthly revenue get rejected with no explanation. Others got approved, deposited money, then had accounts frozen within 30 days.
Traditional Banks: The In-Person Gamble
Want to try Wells Fargo, Chase, or Bank of America? Pack your bags—you’re flying to the US.
The Requirements:
- Physical presence at the branch
- Real US street address (not virtual)
- Utility bills or lease agreements
- Sometimes multiple forms of ID
- Branch manager who understands non-resident accounts (rare)
Success Rate: 30-40% if you show up in person with everything perfect. Zero if applying remotely.
The Harsh Reality of Address Requirements
Every bank now has access to sophisticated address verification databases. These databases flag:
- Virtual office addresses
- Mailbox rental locations (UPS Store, etc.)
- Registered agent addresses
- Commercial Mail Receiving Agencies (CMRAs)
- Coworking spaces
- Any address associated with formation services
That “real street address” from your formation service? Flagged. The virtual office with a “suite number”? Flagged. Your registered agent’s address? Definitely flagged.
Banks want proof you actually operate from that address—utility bills, lease agreements, insurance documents. And here’s the kicker: even if you somehow get an account open with a creative address solution, they can (and will) close it later when they discover the truth during routine compliance reviews.
The Documents You’ll Need (If You Even Get That Far)
Assuming you find a bank willing to consider your application, here’s your paperwork marathon:
Basic Requirements:
- Articles/Certificate of Organization
- EIN confirmation letter (CP 575 or 147C)
- Passport (sometimes two forms of ID)
- Operating Agreement
The New Torture Tests:
- Proof of US business address (lease + utility bill)
- Proof of US operations (contracts, invoices, employee records)
- Proof of US customers or revenue
- Business plan showing US market focus
- Sometimes: US business licenses or permits
The Catch-22: They want proof of US operations to open an account, but you need an account to have US operations. Welcome to bureaucratic hell.
Country-Specific Nightmares
If you’re from certain countries, don’t even bother. US sanctions and banking policies mean automatic rejection for residents of:
The Absolute No-Go List:
- Iran, North Korea, Syria, Cuba
- Russia (especially post-2022)
- Belarus, Myanmar, Venezuela
- Several African nations under sanctions
The “Good Luck With That” List:
- Pakistan (90%+ rejection rate)
- Nigeria (similar issues)
- Most Middle Eastern countries
- Several Southeast Asian nations
Even if you’re from a “friendly” country, each bank has internal risk assessments that can torpedo your application for reasons they’ll never disclose.
The Expensive Workarounds (That Barely Work)
The Physical Presence Play
Fly to the US, rent an actual apartment or office, get utility bills, establish genuine presence. Cost: $5,000-10,000 minimum, plus ongoing rent. Success rate: 60-70%.
Problem: Now you might have created tax nexus and turned your pass-through LLC into a US taxpayer. Congratulations, you played yourself.
The US Partner Strategy
Add a US citizen or resident as a member of your LLC. They open the account, you hope they don’t run off with your money.
Problem: Beyond the obvious trust issues, you’ve now complicated your ownership structure, tax situation, and potentially created partnership tax filing requirements.
The Formation Service Banking
Services like Doola or Firstbase claim they’ll help with banking. What they actually do: submit your application to the same banks that are rejecting everyone, then shrug when you get denied.
Cost: $500-2,000 in addition to formation fees. Success rate: Marginally better than DIY, still under 30%.
What Actually Works (Sometimes)
After watching hundreds of attempts, here’s what occasionally succeeds:
The Wise + Backup Strategy:
- Open Wise for payment collection
- Immediately transfer funds to your home country bank
- Keep minimal balance in Wise
- Have backup payment methods ready
- Accept that this is temporary and fragile
The Physical Presence Investment:
- Budget $10,000+ for establishing real US presence
- Fly to the US for 2-3 weeks
- Rent actual office space (not virtual)
- Open accounts at multiple banks while there
- Maintain that presence ongoing
The Strategic Pivot:
- Consider forming in your home country instead
- Use US payment processors that work with foreign entities
- Skip the LLC entirely for now
- Wait for regulations to potentially ease (don’t hold your breath)
The Conversations Banks Don’t Want You to Know About
I’ve spoken with branch managers off the record. Here’s what they’re really thinking:
“We’re terrified of compliance violations. One bad actor, one missed red flag, and we’re looking at millions in fines. Non-resident accounts are all risk, minimal reward. Unless you’re bringing serious money—think $500K+ in deposits—we don’t want the headache.”
Another manager told me: “The guidance from corporate changes monthly. What we approved last week, we’re rejecting today. Even we don’t know what’s acceptable anymore.”
My Controversial Advice
Here’s what I tell clients that other advisors won’t:
If you don’t have $10,000+ to establish real US presence, reconsider the US LLC entirely.
The days of forming a Wyoming LLC for $200 and opening a Mercury account in five minutes are over. Without banking, your LLC is just an expensive piece of paper. You’ll have ongoing state fees, tax filing requirements, and zero ability to actually operate.
Consider alternatives:
- UK LTD companies (easier banking for many countries)
- Estonian e-Residency program
- Your home country entity with US payment processing
- Waiting until you can establish genuine US presence
The Future (It Doesn’t Look Great)
Based on conversations with banking compliance officers and fintech insiders, here’s what’s coming:
Short Term (2025):
- Even stricter verification requirements
- More sudden account closures
- Fewer fintech options as companies exit the space
- Traditional banks completely closing doors to non-residents
Medium Term (2025-2027):
- Possible regulatory framework specifically for non-resident businesses
- Potential specialized banking services (at premium prices)
- More countries added to restricted lists
- Enhanced AI-driven compliance creating more false positives
The Slim Hope:
- New fintech players might emerge targeting this market
- Cryptocurrency integration might provide alternatives
- International banking agreements could ease restrictions
- But don’t bet your business on hopes
Your Action Plan (If You’re Determined to Proceed)
If you absolutely must have a US LLC with banking, here’s your best shot:
Step 1: Reality Check
- Budget $10,000 minimum for setup and presence
- Accept 60-70% chance of failure
- Have Plan B ready
Step 2: Establish Presence First
- Fly to the US
- Rent real office space
- Get utility accounts
- Establish local phone service
Step 3: Multi-Bank Approach
- Apply to Wise immediately (highest approval rate)
- Visit 3-5 banks in person
- Apply to any fintech still accepting applications
- Don’t put all eggs in one basket
Step 4: Maintain and Monitor
- Keep meticulous records
- Maintain that US presence
- Watch for account restriction warnings
- Be ready to move money quickly
The Bottom Line No One Wants to Hear
The US LLC + non-resident banking combination that worked beautifully from 2015-2023 is effectively dead. The formation services selling you the dream of easy US market access through an LLC are selling yesterday’s solution to today’s problem.
If you’re a non-resident without substantial resources to establish a genuine US presence, a US LLC might not be your answer anymore. The banking system has decided non-resident businesses are more trouble than they’re worth, and no amount of creative addressing or form-filling will change that.
I’ve built my reputation on straight talk, not false hope. The current reality is harsh: without banking, your LLC is worthless. And getting banking as a non-resident has become nearly impossible without significant investment and physical presence.
Make your decisions based on today’s reality, not yesterday’s possibilities or tomorrow’s hopes.
Jake Lawson has helped over 1,200 businesses navigate US entity formation, including 400+ international entrepreneurs. He’s watched the banking landscape evolve from accessible to impossible and isn’t afraid to tell you the truth others won’t. When he’s not breaking bad news to hopeful entrepreneurs or arguing with banks about their policies, he’s probably researching which countries still have functional banking systems for international businesses. Need honest guidance about your US business plans? Visit llciyo.com for advice that might save you from expensive mistakes.
Still Want to Try? Here’s Your Reality Checklist
Before you spend a dollar on LLC formation, answer these questions honestly:
- Can you afford $10,000+ for physical US presence?
- Can you fly to the US for 2-3 weeks?
- Do you have a backup plan if banking fails?
- Can your business survive with just Wise (uninsured)?
- Are you prepared for sudden account closures?
If you answered “no” to any of these, reconsider your strategy. The US market might be attractive, but without banking, you can’t access it anyway. Sometimes the smartest move is admitting when a door has closed and finding another way in.