Being turned down for a business bank account happens more frequently than you might think. Mainly because business owners approach the wrong banks, submit incomplete applications, and disregard the bank’s account opening requirements.
In this article, we’ll share everything you need to know about how to avoid rejection when applying for a bank account for your business in the US. This article will be helpful for owners of both foreign companies and owners of LLCs like those comparing Wyoming LLC pros and cons or are already registered in Wyoming or Nevada.
Feel free to use the table of contents to jump ahead to the section relevant to you.
Table of Contents
- Why Would I Get Turned Down for a Business Bank Account?
- How Do I Not Get Rejected From Opening a Business Account?
- What Should I Do After Being Turned Down?
- Frequently Asked Business Banking Questions
- Ready to Open Accounts With Banks in the USA?
Why Would I Get Turned Down for a Business Bank Account?
Foreign companies and foreign-owned LLCs get turned down for business bank accounts for many reasons. Here are a few of the reasons why you may be rejected a business bank account.
Before diving in any further, if this is your first time visiting GlobalBanks, don’t forget to download your FREE US Banking Starter Guide. It’s designed to help non-residents with opening bank accounts at top financial institutions in the US.
Reasons Why You Can’t Open a Business Checking Account:
- Your business is deemed too high risk for the bank
- The bank does not support the country your company is registered in
- The bank does not accept your industry of operation
- The bank requires proof of ties to the USA that you don’t have
- You submitted an incomplete application form
- Something about your application, web presence, company, or supporting documents is inconsistent or risky
- The company documents you provided can not be easily verified
- And more…
Note: If during the account opening process, your business fails to pass the bank’s due diligence process, you could be at risk of being blacklisted. The common reasons leading to this could include any of the points mentioned above or the fact the financial institution suspects false information has been presented.
Unfortunately, in most cases, you might not actually become aware of why your application has been denied. This is because banks aren’t obligated to give you a reason.
With this in mind, there are some ways to prevent being rejected for opening a business account. This is especially true for LLCs seeking account opening, such as a New Mexico anonymous LLC bank account.
How Do I Not Get Rejected From Opening a Business Account?
To prevent being denied a business account, you need to know the bank’s requirements, fee structures, and account opening quirks. To determine these, you need to try and answer the right questions before you apply. This might include asking bankers directly or finding the answers for yourself.
Questions to Answer Before Applying to Prevent Denial
- Does the financial institution cater to your client type? (e.g. clients with your business type, industry, citizenship, residency, annual turnover, etc.)
- Can you provide the required documents? (e.g. required forms of ID, EIN verification letter, proof of US address [if required], etc.)
- Can you meet the account opening deposit requirements?
- Does the financial institution require an in-person visit to a branch?
- Are there any country restrictions on outgoing and incoming transactions? (eg. will the bank accept the countries you do business in)
Answering these questions for yourself helps prepare you for the account opening and choose the right financial institution for you and your banking needs.
Is It Easy to Open a Bank Account For a Foreign Company?
Whether or not it is easy for foreign companies (or foreign-owned US companies) to open business bank accounts in the US will depend on where you choose to apply for an account. That said, if you have the right information, are aware of the account opening sensitivities, and know which branch, banker, and bank to approach, account opening can be quite easy to navigate.
Unfortunately, the biggest challenge foreign business owners face is knowing which bank(s) will realistically accept them. This is because most US banks don’t publish their acceptance requirements publicly on their websites.
Meaning, if you don’t have a contact on the inside you will find it difficult to know what actually is required to open a bank account for your business, including a Wyoming LLC bank account.
So, how easy or difficult it is to open a business bank account for a foreign business depends on how well you know your desired bank’s account opening process. This is why it’s critical to know who the financial institution caters to and the specific requirements that need to be met before the application process.
What Should I Do After Being Turned Down?
If your application is rejected, here are two options to consider before moving forward.
Ask the Bank Why Your Application Was Denied
In almost all cases, the financial institution will not give you an explanation on why your application was denied. They are legally not allowed to give you this information. That said, if you were rejected due to a missing document or an invalid address, the bank still might reconsider your application. This will highly depend on the financial institution and banker you are dealing with.
Apply at Another Bank
It is unlikely the same financial institution will allow you to re-apply after they reject you. This is why we suggest choosing a different financial institution to apply with.
That said, make sure you choose banks with banking requirements you can meet, that accept your business profile, and that have the banking capabilities you and your business require. That way, you lower your chances of being denied a business bank account.
Frequently Asked Business Banking Questions
Below are three of the most common questions we receive from people exploring why you might be turned down for a business bank account. If you have further questions you would like answered, don’t hesitate to get in touch.
Why Do I Keep Getting Denied for a Business Account?
There could be several reasons why you keep getting denied a business bank account. From choosing the wrong bank, submitting documents the bank didn’t ask for, forgetting to include critical documents (e.g. operating agreement, business financial statements), failing to provide sufficient proof of identification, or realizing the financial institution requires proof of a US address.
Can You Be Turned Down for a Business Bank Account?
Yes, businesses can be turned down for a business bank account. Especially, if you go into the application process unprepared.
Is It Difficult to Open a Bank Account For a Business?
How easy or difficult it is for you to open a business account will depend on the branch, bank, and banker you approach. That said, it also depends on the type of business you have. It’s important to find banks that cater to similar business types and business industries and that offer the banking products and services you need.
Ready to Open Accounts With Banks in the USA?
If so, you can get access to GlobalBanks USA (our dedicated US banking service) in just a few clicks.
GlobalBanks USA is a 100% personal account opening solution. It provides direct access to our team of US banking experts.
When you join, you receive…
+ Expert suggestions on where to open US bank accounts.
+ Step-by-step support to navigate opening US bank accounts.
+ Direct introductions to helpful and responsive bankers.
+ Plus, detailed guides to maximizing the value you get from your new US bank account.
And “yes!” GlobalBanks USA helps foreigners and non-resident individuals open bank accounts.
In fact, GlobalBanks USA even helps non-resident US LLCs and foreign & offshore entities.
To learn more about GlobalBanks USA, visit the product page to see how our team can help you successfully open US bank accounts!
