There’s been an increasing trend where banks are checking to verify that your physical address complies with federal banking regulations in order to open and maintain a U.S. business bank account.
Mailbox addresses, PO Boxes, and registered agent addresses are not allowed. When banks are not able to have a proper physical address on file for your business, they will usually close or suspend your account after 30 days.
Banks will do the following to check if your physical address meets with federal banking regulations.
- Banks will check the address against the USPS address database to see if it's a mailbox address. Additionally, some banks will check your address to see if it's a registered agent address as that's also not acceptable.
- Banks will request a proof of address that may be a lease agreement or a utility bill to show that the address physically exists and is owned by you. Some will accept a city or county business license as proof of address. We recommend you call your bank to obtain a list of acceptable documents they will accept before opening a bank account with them.
What is an Acceptable Physical Address for Your Business Bank Account?
Use a Residential Address - If the bank accepts a residential address and you happen to have a home in the States, then this is a viable option.
Real Commercial Office - This will likely be the least flexible and high-cost option, but it will get the job done. Find the smallest office suite you can find out there to reduce the cost.
Neither options are ideal. A residential address means that you will be losing some of your security and privacy. A real commercial office has a higher cost as well as a longer-term commitment.
What is Another Option for a Business Bank Account?
We are excited to introduce our new TruLease service. With this new service, you will obtain a legal lease agreement for a true physical space.
It is a real lease contract and will satisfy one of the primary requirements when opening a U.S. bank account. Additionally, it will continue to keep your bank account in compliance year after year and eliminate the risk of having your account suspended.
Take a look and learn more about how our TruLease Plan works. We’re open to feedback about the plan, so let us know your thoughts.