What is FATCA and Why Does It Affect Your US LLC?
FATCA was created by the US to combat tax evasion by its citizens using foreign accounts. It forces Foreign Financial Institutions (FFIs) — which is just about every bank outside the USA — to report the assets and identities of any "US Persons" to the IRS.
Here's the critical part for you: a company or partnership founded in the USA, like your LLC, is considered a "US Person" under these rules.
For a foreign bank, dealing with a US Person means a mountain of compliance paperwork and the severe risk of penalties. If a bank fails to comply, they face a crippling 30% withholding tax on all their US dollar transactions. Faced with this threat, most banks take the easy route: they simply refuse to open accounts for US LLCs, regardless of who owns them.
The "US Person" Trap: Why Banks See Your LLC as a Liability
When you approach a foreign bank, they have a checklist to identify potential US Persons. This list includes obvious things like US citizenship, but it also includes:
A partnership or company founded in the USA.
A US address or telephone number.
Standing orders to a US bank.
Because your LLC is registered in the US, it automatically flags you for enhanced scrutiny. This additional due diligence costs the bank time and money, making your application far less attractive than one from a non-US company.
The Myth of Easy US Banking for Non-Residents
"Fine," you might think, "I'll just open a business account in the US." Unfortunately, this path is often even more difficult. Most US banks require:
Personal Presence: You'll almost certainly need to fly to the US to open the account in person.
Tax Identification Number (TIN): You will need to apply for an Employer Identification Number (EIN) for your LLC, which involves extra paperwork.
Social Security Number (SSN): Many banks will still ask for a personal SSN from the owner, which you won't have as a non-US citizen.
Even if you overcome these hurdles, US banks are notoriously outdated. Many lack features standard elsewhere, like multi-currency accounts, cheap international transfers, and modern security like 3D Secure for online payments.
The Solution: How to Open a Foreign Business Account for Your US LLC
While walking into a random foreign bank will likely lead to rejection, there is a clear path to success. The key is to leverage specialized agencies that have established relationships with specific, business-friendly banks.
These agencies perform the initial Know Your Customer (KYC) checks, essentially vouching for you. The bank trusts the agency's due diligence and is therefore willing to accept an application they would otherwise reject. Here are some of the best options available in 2025:
Option 1: Georgia (TBC Bank)
For many digital nomads, Georgia is a top-tier choice. It is not yet part of the major automatic information exchange agreements (CRS), offering greater privacy. An account with a reputable institution like TBC Bank provides:
Modern online banking and multiple card options.
Very low bureaucracy and no minimum deposit.
A straightforward process when managed through the right intermediary.
Option 2: Singapore (OCBC)
If your business generates significant revenue, Singapore offers a premium, stable, and highly-regarded banking solution. An account with a bank like OCBC is a mark of prestige. However, the requirements are higher:
A minimum deposit, often around $30,000 USD.
You must be present in Singapore to finalize the account opening.
A Note on Using Personal Accounts (The Risky Workaround)
Some entrepreneurs resort to using a personal bank account for their LLC's business transactions. While this might seem like an easy fix, it's a short-term solution fraught with risk. It blurs the line between you and your company, potentially voiding the liability protection your LLC provides. Furthermore, banks can shut down personal accounts that are clearly being used for business purposes. This should only be considered a temporary measure for very low transaction volumes while you secure a proper business account.
