San Diego bank that opens accounts for Foreign LLC's?

Question

Hi there,

I couldn't fit the full description in the title. I'm looking for San Diego banks that open accounts for Foreign LLC's without asking you to register said LLC in California as a Foreign LLC. I don't want to do that as it incurs more filings and fees.

Thanks!

Caroline Gerardo · Answer

The root of your problem: The Patriot Act. ALL banks, credit unions and charters are required to get your clear, current identification, proof the entity you want to open is registered in the state where they operate, and can tell you to go elsewhere. They are required to do SARS reports if you move amounts of cash or have unusual activity. The state and the federal government want to see and tax any business enterprise.

Caroline Gerardo · Answer

He doesn't own the foreign LLC, his IRA does, and that is managed by another entity.  I know of zero banks or credit union in San Diego. He wants a local bank to transact in person. An online "bank" might accept his ID but it won't match the IRA name. Difficult to cash a check or get cash, only can ACH or Zelle funds when he finds one.  I know of two online banks that will do it but I would NOT recommend them, like recommending FTX today.

This type of LLC cannot get a conventional mortgage loan as the IRA entity is not a real person, maybe hard money will with a personal guarantee but that threatens the non taxable structure chosen for using IRA.

Frank Greg · Answer

First, I don't do personal loans and don't need an NMLS license which by the way has nothing to do with the discussion. Lets put it this way, not only can most banks establish an account for an out of state entity, they legally can establish an account for an individual or business located in and from a different country. Read the directives!

Know your customer is not a badge or authorization to play detective or law enforecement. Many banks go crazy with this. The IRS does not issue the same EIN or Tax identification number to unrelated persons/entities nor is the same SSN issued to different persons.

The fact simply is, most banks either don't quite comprehend what their duty is when it comes to customer identification or just decide to go crazy with it. I don't wish to promote any bank on here but know many (including in California) where you can establish a foreign LLC account (and do so completely remotely if you choose to) . This is only a problem if the customer is just naive.

Where in the documentation your posted, does it say a bank can only open an account for a domestic incorporated entity?

Caroline Gerardo · Answer

@Frank Greg  please post your NMLS license as there is NO Frank Greg with a license registered. If you know the name of a bank who will give @Reuven Kishon an account in his foreign LLC located in San Diego please post the name of the branch and contact person. here are some of he rules https://bsaaml.ffiec.gov/docs/...

An ITIN is not a social security number. The US Treasury, banks, and other agencies cooperate even though they like to keep that quiet. Banks decide what level of risk they are willing to make. Doe the LLC paperwork you have has your name as sole owner of the LLC? How can a bank employee be an attorney or perform risk analysis, they will pass on the risk a it costs the bank

Frank Greg · Answer

You should not have a problem with this. There are way too many regional and national banks in California. Worst case is a regional or national bank in California will require the business to operate in one of the states they do business in. If its a bank that only does business in California with limited footprint and resources, they may require you also operate in or be registered in California.

Frank Greg · Answer

You have been misinformed here. No government agency have instructed any bank that the "Customer Identification Program" means the business must be incorporated in any specific state. That is false.  You are not identified by where you are incorporated.Know your customer means just that -- to know who the customer is. The government issues to persons or entities a SSN, Tax Identification or EIN # which along with a drivers license or state issued identification, ANY bank or government agency can credibly identify who the customer is. However, like with anything else, some banks will often stretch, convolute, confuse and or distort what a customer identification program means or entails for all sorts of strange reasons that has nothing to do with identifying the customer. There is specific documentation from the treasury that describes in detail  what a bank must do at a minimum to identity a customer. Any bank can confirm the registration of an entity wherever incorporated in the US.

Reuven Kishon · Answer

OK then based on what you are saying I most likely won't have any luck.

Reuven Kishon · Answer

Yea I need it to be in San Diego because I want to open up a safety deposit box as well. I'll try a regional or national bank and see what they say.

Frank Greg · Answer

Actually, there are quite a few credit unions around the country that do not have in-state LLC registration requirement either for membership or to establish a deposit account so unless you have a particular need to be in San Diego.... For non credit unions (regular banks), most typically can establish a deposit account for both domestic and foreign LLCs unless there is something in the banks charter that requires it to restrict its services to locals. Most regional and national banks already operate in multiple states and have no issues with foreign LLCs but most of the non-regional or local banks (in terms of scope of footprint) often do 'discriminate' in lending to customers outside a certain area where it operates but usually might have not problem taking on the customer's deposit business.

San Diego bank that opens accounts for Foreign LLC's?

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