from Hacker News

Ask HN: Best bank for US based startups?

by bkovacev on 2/20/22, 7:40 PM with 3 comments

• by wsh on 2/20/22, 10:08 PM

  Banks in the U.S., as in many countries, are under tremendous pressure to suppress money laundering and tax evasion. In addition to published regulations such as Know Your Customer and beneficial ownership, they also face quiet criticism from bank examiners. I don’t mean to imply you’re doing anything shady, of course, nor to endorse this state of affairs, but you need to understand the regulatory climate.

  At most U.S. banks, a business, regardless of legal form or domicile, that’s owned and managed from offshore, with no employees, offices, or meaningful operations here, would be considered a very high-risk customer, and the bank would have to monitor its transactions closely, at a cost. Indeed, even well-established U.S. businesses get additional scrutiny if they send or receive international wires. Unlike such local customers, however, your LLC probably wouldn’t qualify for business loans, equipment financing, or other credit products, so the relationship is unlikely to be profitable for the bank. This makes rejecting the application for an account an easy decision.

  I hope others can give you some suggestions, but you may wish to reconsider whether your business should be incorporated in the U.S. at all. My views may not be typical, but personally and professionally, I’d rather deal with an Eastern European firm that’s open about where and who it is—with a website identifying its managers, business premises, and tax or commercial registration—than with a U.S. entity that uses a mail drop or gives no address.

• by toomuchtodo on 2/21/22, 2:57 PM

  Try Winden.co