The Traditional Banking Problem
If you've tried to open a business bank account with Chase, Bank of America, or Wells Fargo as a non-US resident, you already know the frustration. Traditional US banks have strict requirements:
- In-person verification required - You must physically visit a branch
- US physical presence - Need a US address, sometimes proof of residency
- SSN/ITIN often required - Many banks won't open accounts without one
- Minimum balance requirements - Often $1,500-$5,000 or more
For Indian founders running their business remotely, flying to the US just to open a bank account isn't practical. Fortunately, there's a better way.
The Solution: Fintech Banks
Modern fintech banks have revolutionized banking for international entrepreneurs. These digital-first banks understand that business is global, and they've built their services to accommodate founders from anywhere in the world.
The three best options for Indian founders are:
- Mercury Bank - Best overall choice
- Relay Bank - Excellent alternative
- Wise Business - Backup option with multi-currency features
Mercury Bank (Our Top Recommendation)
Mercury is the gold standard for international founders opening US business accounts. Here's why we recommend it:
Why Mercury Stands Out
- 100% remote application - No branch visit required
- No SSN/ITIN required - Just your passport and EIN
- No minimum balance - Keep $0 if you want
- No monthly fees - Completely free to maintain
- Free domestic wire transfers - ACH and wires included
- Virtual and physical debit cards - Instant virtual card access
- Integrations - Connects with QuickBooks, Stripe, and more
- Excellent customer support - Responsive and helpful team
Mercury Account Features
- FDIC-insured up to $250,000 (through partner banks)
- Send/receive ACH transfers
- Domestic and international wire transfers
- Check deposits via mobile app
- Team member access with role-based permissions
- API access for developers
Relay Bank (Excellent Alternative)
If Mercury doesn't approve your application, Relay is an excellent backup. Many founders who get declined by Mercury find success with Relay.
Relay's Advantages
- Higher approval rates - More lenient for new businesses
- No minimum balance or fees - Same as Mercury
- Multiple checking accounts - Create up to 20 accounts for free
- Profit First compatible - Great for expense management
- Joint account access - Add your accountant or team members
Required Documents
Before applying to any fintech bank, gather these documents:
Essential Documents
- EIN Confirmation Letter (CP 575) - The letter from IRS assigning your EIN
- Articles of Organization - Your LLC formation document from the state
- Passport - Clear photo of your passport's photo page
- Operating Agreement - Shows LLC ownership structure
- Proof of Business Address - Utility bill or lease agreement (this is important - see below)
Nice to Have
- Business website (even a simple landing page helps)
- LinkedIn profile
- Previous business history or client contracts
- Business plan or description document
The Address Hurdle (Important!)
This is where most applications fail. Banks often reject applications that use a Registered Agent address as the business address.
Why Banks Reject Registered Agent Addresses
- Thousands of businesses share the same address
- Banks see it as a red flag for potential fraud
- They want to verify you have a real business presence
- It suggests you might not have a legitimate US operation
Solutions for the Address Problem
Here are legitimate ways to get a US business address:
- Virtual Office Service
Services like Regus, WeWork, or iPostal1 provide a real street address (not a PO Box) that you can use as your business address. Cost: $15-50/month.
- Mail Forwarding Service
Some mail forwarding services provide a unique suite number that looks like a real office address. They'll scan or forward your mail.
- Co-working Space Membership
Even a basic membership at a US co-working space gives you a legitimate business address to use.
- US Partner or Friend's Address
If you have a trusted contact in the US willing to receive business mail, this can work (with their permission).
Step-by-Step Mercury Application Process
Follow these steps for the best chance of approval:
USBizGuru can handle this for you.
Our Complete package includes LLC formation, EIN filing, and compliance guidance.
See pricing- Visit mercury.com and click "Open Account"
- Select "LLC" as your business type
- Enter your LLC's legal name exactly as registered
- Provide your EIN - Enter your 9-digit EIN number
- Enter business address - Use a real address, NOT your Registered Agent
- Describe your business - Be clear and specific about what your business does
- Upload documents:
- Articles of Organization
- EIN Letter (CP 575)
- Passport photo
- Proof of address
- Verify your identity - Take a selfie for identity verification
- Submit and wait - Usually 1-3 business days for review
Tips for Approval
- Have a website - Even a simple one-page site increases approval chances
- Be specific in your business description - "SaaS software for inventory management" is better than "Tech company"
- Use a professional email - yourname@yourdomain.com, not Gmail
- Ensure documents are clear and readable - No blurry photos
Backup Plan: Wise Business
If both Mercury and Relay decline your application, Wise Business (formerly TransferWise) is an excellent fallback.
Wise Business Features
- US account details - Get a US routing and account number
- Multi-currency support - Hold 50+ currencies in one account
- Excellent exchange rates - Best rates for INR to USD conversion
- Debit card available - Spend directly from your balance
- Lower approval barrier - More accepting of new businesses
Limitations of Wise
- Not a traditional bank (no FDIC insurance on the same level)
- Some US services may not accept Wise account numbers
- Cannot deposit cash or checks
Common Rejection Reasons (And How to Avoid Them)
Learn from others' mistakes:
1. Using Registered Agent as Business Address
Solution: Get a virtual office or separate business address.
2. Vague Business Description
Solution: Be specific. "B2B SaaS platform for restaurant inventory management" beats "Software company."
3. No Online Presence
Solution: Create a simple website, even just a landing page explaining your business.
4. Mismatched Information
Solution: Ensure your name, address, and business details match across all documents.
5. High-Risk Business Category
Solution: Crypto, gambling, and adult content face extra scrutiny. Be upfront about your business model.
6. New LLC with No History
Solution: Apply to Relay first (more lenient) or wait until you have some business activity to show.
What to Do After Getting Your Account
Once approved, take these steps:
- Set up 2FA - Enable two-factor authentication immediately
- Order a debit card - Useful for business expenses and verification
- Connect to Stripe/PayPal - Start accepting payments
- Set up accounting integration - Connect QuickBooks or your preferred tool
- Fund the account - Transfer some money to activate all features
Let USBizGuru Help
Opening a US bank account is one of the trickiest parts of setting up your US business. We've helped hundreds of Indian founders successfully open Mercury and Relay accounts.
Our Complete Package includes:
- LLC formation in Wyoming
- Registered Agent service
- EIN filing
- Step-by-step banking guidance
- Document preparation assistance
- Troubleshooting if you get rejected
Start your LLC journey today and we'll help you every step of the way, including banking setup.
