4.1 Bank Account Opening
55. Do you open bank accounts for my LLC?
We apply for a bank account with a digital bank called Mercury. However, we do not guarantee that your LLC’s bank account will be approved, as the decision is made by the bank’s Compliance department. Their decision is based not only on the business model declared by the LLC but also on whether the member(s) have any impediments that the bank considers a reason to decline the account.
56. What types of businesses does Mercury support?
Mercury supports digital entrepreneurs and requires a series of qualifications, including that the LLC has an active website and social media accounts promoting its products or services. Additionally, the LLC must have plans to maintain some connection with the U.S., such as having clients, suppliers, investors, etc., in the U.S., and being able to demonstrate this when requested.
57. Should I wait to get the EIN before applying for a bank account?
Yes, the EIN is needed for any transaction in the U.S.
58. What can I use the bank account for?
The account can be linked to payment gateways like Stripe to receive payments from your LLC’s clients. The account with Mercury offers a physical and virtual debit card and allows free international and domestic transfers.
59. What benefits does Mercury offer?
- A $450.00 bonus if you deposit $10,000.00 within the first 30 days (information updated to August 2024)
- No maintenance fees (information updated to August 2024)
- Offers physical or virtual debit cards or both
- Receipt of domestic or international transfers in U.S. Dollars
- Sending international transfers in U.S. Dollars and other legal currencies worldwide, with a commission fee for currency exchange For more information about Mercury, visit www.mercury.com
60. Can I run a cryptocurrency business with Mercury?
No, it is not a business they support at this time.
61. What alternatives do you offer if my application for an account with Mercury is rejected?
You can try opening an account with Wise, but since we do not have a relationship with them, you must do so on your own. If you register with Skool, you can watch a video on how to open an account with Wise.
62. Can I go to the USA to open an account at a physical bank with the LLC formation documents you provide?
Yes, the LLC incorporation documents we provide allow you to apply for a bank account at a physical bank in the USA. It’s recommended to first check with the bank for all their requirements, as these can vary from bank to bank.
63. What can I upload to the Mercury platform if I need to provide proof of my LLC's connection to the U.S.?
- An invoice issued by your LLC to a customer residing in the U.S.
- A contract or account with a service provider in the U.S. (e.g., if you sell products through Amazon FBA, your Amazon account. If your website was contracted with a U.S. provider, that documentation, etc.)
4.2 Bank Cards and Transactions
64. How do I receive my physical debit card?
Mercury sends it for free to the address chosen by the customer. If no shipping address is provided, Mercury sends it to the resident agent’s office, who charges for forwarding it to the customer’s final address.
65. Do I need to activate my physical debit card before using it?
Yes, Mercury provides instructions for activation along with the card.
66. Where do I enter the address for Mercury to send the physical card to my country?
Log in to your account, go to Cards, Create Card, request the physical card, fill out the details, and click Create Card to enter the address in the field “Send me a physical debit card” with your personal address.
67. Why do I not receive the full amount when transferring funds from my U.S. bank to my bank in my country?
The intermediary bank and the receiving bank generally charge for this service.
68. Can I link my Mercury account to Zelle?
No.
69. How can I withdraw money from my Mercury account?
- At ATMs with the physical debit card issued by Mercury.
- By sending a bank transfer to your account in your country.
70. How can I view transfer instructions on Mercury?
- Log in to your account.
- Under the account name, open the menu.
- Select “Documents and Data.”
- Choose “Wire Details.”
- There you can download the complete instructions.
4.3 Other Financial Services
71. Can you help me open an account for my LLC on Amazon?
We do not offer that service.
72. Can you help me understand how Amazon works?
We do not offer that service.
73. Can you help me open an account for my LLC on Stripe?
If you register with Skool, we provide access to a video guide on how to do this and common mistakes to avoid. However, we cannot open a Stripe account for you.
74. If I am opening an account for my LLC on Amazon, should I fill out W8 or W9 if my LLC is a Single Member?
The W8 form is for international individuals and subjects you to a withholding tax of approximately 30%. The W9 form is for U.S. persons and does not create withholding; it is reported on your tax return. However, as an international person, the withholding would be $0 due to lack of tax nexus.
Since your LLC is a single member, the system initially classifies you as an individual and would assign the W8 form. What we’ve seen is that Amazon sellers often register under W9 and then specify on their tax return that they are not tax residents, thus avoiding withholding, and complete it with the LLC and EIN information.
As an international entity, there is a tax benefit at the income level. Since we are not Amazon sellers and are not directly involved in account setups, we cannot recommend one form over the other, as it depends greatly on the setup you wish to achieve. What we can do is explain the consequences of each and what we’ve seen clients do.
75. Can I build a credit history in the U.S. with my LLC's bank account at Mercury?
No. To build a credit history in the U.S., you first need an LLC and an ITIN. Once you have both, we can refer you to a trusted contact for assistance with establishing a credit history in the U.S.