How to open a *BUSINESS* account with a US corp?

Business Money
1

Bank of Silicon Valley seems to be THE most understanding business bank accounts since tons of tech startups reside abroad or remotely, but you need to have a huge investor to open an account with these guys.

Capital One 360 auto declined us without a reason, even though I’ve had an account with them for about 6 years probably because my IP address is in Taiwan. They didn’t even ask any questions – just a bot reject.

HSBC isn’t very international – I actually have an account in both USA and Taiwan, yet they won’t let me open a business bank account unless I’m physically 20m within a USA bank branch. Only international by physical branch presence, not mindset. They’re really pissed I was doing some business transactions earlier. Not to mention they’re the most recently hated bank for expats, lately.

TransferWise doesn’t support Taiwan - autoblocked at application saying they don’t support my IP address country.

Local banks won’t let me open a business account because it’s not worth it because my US citizenship requires all sorts of regulations for them to follow. No one wants American accounts abroad. I probably could if I had 1/2 million USD to make it worth it, but alas.

Charles Shwab is supposed to be great for expats, but they don’t support business accounts.

PayPal once locked my account for 6 months before releasing the funding. I don’t trust them. I’ve read horror stories worse than that.

Bank of Internet seems like they will likely accept me, but I’m still pending.

What to do without lying and without having to use a proxy? What do YOU guys do? Any alternatives? It’s getting really tough to pay our international contractors and to do business transactions – HSBC threatened to remove our accounts if we continue, ugh.

2

If you have a trip scheduled to the US, I think talking to someone in person often helps with banks.
Have you thought about operating your business in a different jurisdiction? Taiwan, HK, Singapore? It is all online income anyway, right?

3

I’d be perfectly happy to open an account overseas or here in Taiwan or even Singapore, but I heard you can’t open a business account in Taiwan representing a US LLC. …Or can you?

The thing is, I just got back from LA and tried to open an HSBC business account thinking they’re international. I ended up wasting my time :confused: now I’m back in Taiwan. I’d love to open a business bank account in Taiwan if I can… But how? It’d have to be linked to my US LLC, Is that even possible?

US banks treat me like a terrorist so I’d be HAPPY to bank abroad if it’s possible.

4

The big U.S. banks and even the big international banks (HSBC in particular is a pithole nowadays) are more and more hamstrung by U.S. banking regulations (FBAR, etc.) that they no longer really want to deal with foreign individuals or small-small firms that reside outside the U.S. or run a business outside the U.S.

Ever thought about looking into community banks or credit unions? They may be smaller, but could be more likely to take on you as a client. Or even regional banks?
I’ve never dealt with them, but always thought about changing over to them and get away from the bigger U.S. banks.

Anyone out there have accounts at comm’y banks or credit unions and have transferred funds overseas (and back) easily?

I’d almost add in to consider the smaller HK banks in Hong Kong, which allow you to have an account, but have residency elsewhere. You’d have to open the account on-site in HK, I presume.

5

What I mean is: Does it need to be a US LLC?

You said you earn money releasing games on Steam. If it is just you and some freelancers (no business partner), can Valve pay you to your own individual bank account?

If you need to be incorporated: What about operating a Taiwanese corporation? I am sure the local banks would be happy to open a bank account for your business and Valve should be able to pay out to international accounts.

HK and Singapore are the usual suspects for foreigners operating online businesses in Asia, but the operating costs (accounting, auditing) can be substantial.

6

They can, but that’s what I’m doing now with HSBC and HSBC doesn’t like it – they sent a threatening letter telling me to stop doing commercial transactions (like paying employees with wire, receiving batch money from Steam). Although it’s 100% legal to do this, HSBC specifically forbids this.

Other banks (Capital One 360) don’t support multiple currencies (USD+TWD) and don’t support wires for personal accounts. Even domestic transfer limits to $1k or so. Sometimes I have to pay up to $4500/mo to a single dev, so that’s no-go. Especially since I need international wires - usually only businesses accounts allow that.

I recently read about “Offshore Banking Units” (OBU) that are specifically for foreign corporations (LLC, etc). Apparently 70+ banks support this in Taiwan, but I have trouble finding English articles about this.

Also, we’re currently renting and the landlord is… not nice. I heard that to open a remote branch via a home office, you need to “upgrade” your residence to open a business, so we’d need the Landlord’s permission, and it would raise her taxes since it’s under her name.

This is just what I HEARD. I’m not 100% sure. I’m still in research-mode.

Any advice you can offer would be awesome :smiley:

7

Holy moly. No international wires for personal accounts? So weird.
I just saw that Bank of Internet requires faxing a form to do a wire! 1980s style.

I believe this is more geared towards Taiwanese businesses expanding overseas, getting loans in the foreign market with assets in Taiwan as collateral.

That’s correct. There is a great thread in the business section of the forum regarding opening a rep office. You don’t need a rep office but a lot of information there applies to your situation as well.

Ok, here comes my advice:
Don’t try to open an overseas account for your US LLC. Banks are weary of any new restrictions the US government will put on them. Instead look at three options:

(1) If you might go back to the US soon: Open a bank account in the US for your US LLC with a bank that does not limit your ability to move money while using online banking.
(2) If you plan on staying in Taiwan long term: Get this book http://www.startabusinessintaiwan.tw (it is not 100% up to date but gives a good overview), incorporate a local limited company and get a local bank account (try multiple banks). There are local service providers which can act as your business address and hold your mail. Downsides: The local tax man and while you can do international wires, many banks will make you come to the branch to authorize them (at least the first time you send money to that recipient).
(3) If you plan on staying in Asia (but maybe not Taiwan) and have substantial revenue (let’s say at least 60K USD a year): Incorporate in HK or Singapore and enjoy unlimited international banking. You only need to travel there once to open the bank account in person. Downsides: Maintenance costs are higher (accounting fees, auditing fees) and it might take a while to find a bank that opens the account for you these days. Used to be super easy a couple of years ago, but more difficult now. And of course reporting this income properly to the US gov.

Edit: What if Valve just sends the money to your local Taiwanese bank account? Downsides: The local tax man and international wires (see above).
Edit2: Open a personal bank account in HK or Singapore (don’t incorporate) and get the money there. No limits on banking.

8

They’ve closed this option to new account holders unless you have a lot of money or you have a business bringing in a lot of money.

9

EXCELLENT advise! DBS bank in Singapore seems to be the way to go for us. Our game has become pretty popular.

I’ve already filled out the application - just need to plan the trip. They also seem to have THE best reviews I’ve ever seen (usually banks are 2-stars on the internet, but this one is incredible). Apparently the best digital banking you can get, too. Multiple currencies … even has crypto exchange that I can’t even opt out of (they give it to you if you want it).

Yeaaa, that 30% withholding tax… I have a lot of expenses and have a CPA to help with that, so 30% is overkill - especially with the new tax laws for 2018.

You know … maybe I should open a personal account, too, while there. Heck. My current personal banks has SO MANY limitations! But – I have this LLC and I want to use it. Some things I just need business transactions for that need the name of the company, too. Plus, I have those big international wires… personal banks will surely give me hell.

Should I open a personal account ALSO with DBS? Or find a 3rd party? I’m always a bit nervous to keep everything in one bank. But, then again, if DBS is as good as people say it is for expats…

10

Yes, this is the recommended setup. Transfer distributions from your company account to your personal account and only transfer to Taiwan what you need for living expenses. You might also want to check if DBS Taiwan offers something where you can cheaply transfer some Singapore funds to a local bank account. Or you just use the ATMs.

The bank might be more accommodative if you have both accounts at the same bank. Since you are a US citizen, don’t be discouraged if your preferred bank does not want to play ball. Try multiple banks and try to work with their requirements.

11

After calling three times and emailing twice, they all said it was fine. The website also said it’s fine. I applied online and set my appointment.

However, when I fly in and reached my appointment, after my first sentence about opening a business account she said,

“Ohh sorry, because Trump makes it difficult for us to handle American accounts, we don’t do that anymore”.

WHAT?

So I mentioned that the emails specifically said it was fine, and the phone calls, and the website. She said,

O sorry, the outside departments are often out of sync with us. Sorry about that!

I asked what I could do, and she said I could call customer service and ask to make an appointment with a “premium” account today (min 50k USD).

I said I could do that. So I called and they said I need 24 hrs notice, but I flew back the next day. So I almost canceled my flight until the said,

Well, that’s only for an appointment. You can go to the branch, ask someone to wait for a premium personal banker, but it may take a while.

YES! I went back to the branch, asked the front person, she gave me a ticket. I waited. Finally, my ticket is up AND… the same banker earlier waved me in. Really?

She looks at me funny. I explained it’s the same deal: Phone said I could come back here and wait for a personal banker. She goes,

O, we don’t do that anymore. You must have an appointment. I guess they’re out of sync for this topic too.

But she could see, then, I was distressed, highly prepared with my inch thick of docs, and knew I flew in just for this. She asked me if I have x, y and z. Yep, had it. All of it. So she said she’s not supposed to do this, but she’ll call the personal banker and ask them to come down now for me.

Brilliant! She came down, asked for doc 1? Bam it’s here. BRB going to make copies? Bam I have 2 copies already prepared for you. She goes,

Wow, you’re so prepared!

We get through quite fast. She said it looked promising.

I flew back home.

First, she asked for my LLC letter from the Secretary of State, but it WAS from there with clear letterhead and a fancy seal, signature and title of the Sec of State. Strange…

Then she asked for a US form W8, which is for Non US citizens. What the… I asked if she meant w9? She said yes. But it wasn’t required in the list of docs and it’s only issued if I made more than like 400 bucks worth of interest on the account (usually requested after hitting that peak). Double strange… But if she’s asking for this, it probably means it’s done processing. FedExd it over.

She got the doc, then told me

It has been increasingly difficult to open corporate accounts with the recent tightening of regulations

Our review team has also noticed that there is no business operation in Singapore.

We sincerely apologies for any inconvenient caused

What the bloody hell? I know it’s tough with FATCA stuff, but this information was already handed to them. The first question asked if I do business in Singapore on the application itself. Then they asked me in person. This was known from the start.

The entire process was the most Unprofessional crap I’ve ever dealt with. Email is not in sync with rules and processes. Phone is not in sync with rules and processes. The website is not in sync with rules and processes. The branch is not in sync with rules and processes.

Gahh…

12

Sorry, don’t want to go into “told you so” mode, but will have to quote myself :wink:

If they ask you about a lack of local operations (at the bank, after local incorporation), just tell them you want to offer OEM game making services for local startups, or something along those lines.