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Which bank is friendly for small online business?

Discussion in 'Business & Tax Advice' started by ganapathi, Nov 7, 2014.

  1. ganapathi

    ganapathi Newbie

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    hi

    I want to open one account in USA. I just want to ask seniors who opened account in USA being a non US citizen. I do have EIN for my LLC and necessary documents.

    Should I open checking account or personal account or business account? Can i open a personal account with ITIN and link it with paypal so I can receive US paypal payments very easily.

    Regards
    Kishore
     
  2. Zwielicht

    Zwielicht Moderator Staff Member Moderator Jr. VIP

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    I'm actually a US resident (ignore my "location"). If you have a registered business (which you said you have an LLC), you should open up a business account to separate your business expenses and your personal assets (this makes filing taxes easier). If you do not have many business expenses like myself (which is usually more common in sole proprietorships), you can get away with using your personal bank account (or using a business Paypal that is linked to your personal bank account).
     
  3. ganapathi

    ganapathi Newbie

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    I am yet to go for LLC. The main reason is to avoid taxes if my company idea clicks. If its LLC, I will end up paying only 300$ franchise tax and thats it as I am non-us citizen and the other reason is getting bank account easily.

    The other option is going for DBA + EIN and opening bank account in the name of DBA. I am not sure of how the tax structure will be for this combination. still working out.

    my expenses will be small but I will get good income like 10,000USD/month. Will paypal be a problem in such high money transactions?

    Which bank have you choosed and why?

    Nice meeting you Zwielicht.
     
  4. Zwielicht

    Zwielicht Moderator Staff Member Moderator Jr. VIP

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    I use Chase since that was my first bank, although for a business account, I would recommend looking into a smaller bank with online capabilities. The reason for this is because larger banks apparnetly do not take online businesses seriously, so they are much less likely to issue you a loan in the event that you would need one. There are some other downsides to using popular banks with small online businesses, but that's just one.

    If you absolutely have to use a popular bank, then here's an article which goes over that: http://www.pcworld.com/article/2442...our_tech_savvy_business_8_banks_compared.html
     
  5. ganapathi

    ganapathi Newbie

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    Thanks for the link. though old but the factors he took to compare the banks were awesome. I got a deep look into bank.

    But i got extremely confused. TD looks promising to me and even Wells Fargo. TD said it would need ITIN and DBA to open an account while Wells fargo said it needs LLC docs+EIN+ITIN and US Address and phone No.

    what is the amount you are saying when your business expenses are not much in sole propreitorship? 10,000/month?
    could you tell me few small banks with online capabilities? whats your opinion on TD and wells fargo?

    many thanks Zwielicht
     
  6. Zwielicht

    Zwielicht Moderator Staff Member Moderator Jr. VIP

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    I don't have much of an opinion about Wells Fargo or TD since I've never worked with them. The only thing I could tell you is that Wells Fargo is the more popular bank, but you probably already knew that.

    When I mention low business expenses, I mean under $3,000 a year. Although, these low expenses are not plausible for every business since some people may spend extra money on computers, outsourcing, business bank accounts, or on faster Internet plans to get their work done faster. When your business doesn't have many expenses (or if you spend money on the same exact thing each year), it's much easier to keep track of your expenses. However, if your business is incorporated, you are required by law to separate your finances with a business bank account. I'm not entirely sure if the laws are the same for a foreigner opening a bank account in the United States, though.
     
    Last edited: Nov 9, 2014
  7. ganapathi

    ganapathi Newbie

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    wow...you made me realize the most important fact that one should be keep track of expenses ie the money used to maintain and run our business ie money going out of our account and money coming into our account. so while filing taxes we can pay tax right on the amount left in our account instead of going through all calculations.

    one thing : what is the tax free limit on the money earned ?
    How much money max can be drawn with debit card in US?

    I am doing all these stunts only to get paypal account so my customers need not pay that extra ~5% when they need to pay to my Indian paypal account.If I can get all money into paypal account and at once I can send it to my bank account which my friend in US can use it.
     
  8. BassTrackerBoats

    BassTrackerBoats Super Moderator Staff Member Moderator Jr. VIP

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    I would not consider Wells as I have talked to them about some of our online businesses and they did not seem to really understand much of my business model that would include banking.

    That could have been the local branch but we went there in person and left thinking they were not an alternative for us.

    If you can find a small private bank you may be in a much better position... I don't borrow money so that aspect of banking is not considered when we look at a bank but rather understanding that my revenue is mostly non USA based, that my business partners are not USA residents or citizens and that my work force is outside of the USA as well.
     
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  9. Zwielicht

    Zwielicht Moderator Staff Member Moderator Jr. VIP

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    I'm not sure about the "Tax-free" limit you are talking about. The only thing I could think of is the tax-free limit on monetary gifts (you can read about it here).

    How much you can withdraw depends on the bank and how much you have in your account. Debit cards do not "loan" you money like credit cards, so you can only access the money that you currently have. As for if there is a limit, so banks my cap it off at $400 a day, although this depends on the bank you are working with.

    If you want a US Paypal account and don't mind going the black hat route, you can always use a VPN to register the account in addition to buying a VCC (virtual credit card) to use with the account. Supposedly, you can use a prepaid card with Paypal, although I'm not entirely sure since I have not personally tested this method.
     
  10. ganapathi

    ganapathi Newbie

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    i think you could end my search. what is that small bank which opened account for non-usa based citizen?
    i am desperate for this answer. I hope you are talking about business checking account. what kind of online facitlities are you looking at becoz most of the banks give online banking facility now.

    many thanks in advance. it would be very helpful if I can get to know the bank name.
     
  11. BassTrackerBoats

    BassTrackerBoats Super Moderator Staff Member Moderator Jr. VIP

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    I'm in the USA and am a citizen so my banks may not apply to your situation. My main things with my banks are that they understand that I receive money via wire transfer from foreign countries as I have money coming from Ireland, England, Egypt as well as some other countries considered third world in addition to me sending bank wires to various countries.

    Some banks I have dealt with in the past are not thrilled with that kind of activity.

    We don't do much online with them either as we walk in or call them on the phone and get things handled. I have a "private banker" assigned to my accounts so they know how we do things and accommodate us. We can check balances and such online though if need be.

    I don't think they do business with you unless you are a walk in and shake their hand kind of guy.

     
  12. ganapathi

    ganapathi Newbie

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    what is the other way to get more money that 400$ becuase I will not be there in US. I have to enquire bank on this for business account.

    Yaa I will keep this in mind for future use. I am sure I shouldn't go as I am new to your laws.

    thanks for taking time to drop lines.
     
  13. ganapathi

    ganapathi Newbie

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    yaa you might be true almost. but i will try as I have time to start. i am really interested in the payment gateway you are using in which you are accepting wire transfer from Ireland, etc being an online business. I came acrooss this paymentwall. but I am not sure becuase payout time is 15 days. thanks a lot.