Setting up a non-resident business account

Jerry Williams41 said:Since my accounting department seems completely clueless, I’m checking here to see if any bankers are lurking who might actually have an answer. So, here it is:

It honestly feels like I’ve hit a brick wall trying to get clear information. I’ve been calling the IRS—well, the equivalent tax authorities—and they charge me almost $2.25 just to sit on hold while the line stays busy, my accountant is stumped, and some lady at the bank hasn't gotten back to me after seven days despite promising she’d check every single time I call... plus, other banks don't seem to know the first thing about accounting regulations.

Look, I am more than willing to pay for actual, useful information from anyone who can help me out.

Here is the situation. I’ve signed a representation agreement in the States for a German company. Most of our sales happen online. Payments come in via credit card, PayPal, or bank transfer. Since direct wire transfers to Germany are prohibitively expensive, the goal is to open a US-based account where customers can pay directly in dollars, and then once a month, I’ll just forward the total to the manufacturer and pay myself my commission. The goods would be shipped by mail straight from Germany, and the customer would receive an invoice in dollars sent directly from the manufacturer/seller.

The Germans don't really care what kind of US account we use; they are fine with me collecting payments on their behalf ("in trust") using my own account (I have an LLC, so any business account should work) and marking those incoming funds as "transfers." That logic holds up for them, but I have no idea how it works under American regulations. The closest solution I’ve stumbled upon is a non-resident account, which is the one that lady at the bank is taking an eternity to investigate. So, the question is, does using a non-resident account satisfy the requirements for the payment structure I described above?

Does anyone have any advice? Feel free to DM me. Like I said, I'm not looking for hand-outs; I am happy to pay for a real solution.

Jerry Williams41 said:Since my accounting department seems completely clueless, I’m checking here to see if any bankers are lurking who might actually have an answer. So, here it is:

It honestly feels like I’ve hit a brick wall trying to get clear information. I’ve been calling the IRS—well, the equivalent tax authorities—and they charge me almost $2.25 just to sit on hold while the line stays busy, my accountant is stumped, and some lady at the bank hasn't gotten back to me after seven days despite promising she’d check every single time I call... plus, other banks don't seem to know the first thing about accounting regulations.

Look, I am more than willing to pay for actual, useful information from anyone who can help me out.

Here is the situation. I’ve signed a representation agreement in the States for a German company. Most of our sales happen online. Payments come in via credit card, PayPal, or bank transfer. Since direct wire transfers to Germany are prohibitively expensive, the goal is to open a US-based account where customers can pay directly in dollars, and then once a month, I’ll just forward the total to the manufacturer and pay myself my commission. The goods would be shipped by mail straight from Germany, and the customer would receive an invoice in dollars sent directly from the manufacturer/seller.

The Germans don't really care what kind of US account we use; they are fine with me collecting payments on their behalf ("in trust") using my own account (I have an LLC, so any business account should work) and marking those incoming funds as "transfers." That logic holds up for them, but I have no idea how it works under American regulations. The closest solution I’ve stumbled upon is a non-resident account, which is the one that lady at the bank is taking an eternity to investigate. So, the question is, does using a non-resident account satisfy the requirements for the payment structure I described above?

Does anyone have any advice? Feel free to DM me. Like I said, I'm not looking for hand-outs; I am happy to pay for a real solution.

George Barrett35 said:These would essentially be the processing fees for handling transfers or deposits, which basically means they're charged to the account holder.

Actually, any deposits made into non-resident accounts are handled via wire transfer protocols and are treated almost identically to international transfers, so depending on which bank you're using, the fees are pretty much the same.

Jerry Williams41 said:So, I was talking to that lady over at Chase, and she told me straight up that the fees are on the payer. $3.25Then again, you're still going to need an American tax ID if you're looking to set up a foreign entity.

I have a feeling we’ll be joining the EU long before we actually get that account opened.