An E-2 visa is an excellent investor visa option for an individual or company that wants to start a business in the U.S. The E-2 visa is available to nationals of certain Treaty countries (around 80 are on the list) and requires that the E-2 investor invest a small amount of money in a business in the U.S. The business must also ultimately create U.S. jobs.
A full list of the E-2 visa requirements can be accessed by clicking here.
One of the E-2 visa requirements is that the E-2 investor must set up a U.S. bank account and transfer funds to the U.S. As many of our clients are not in the U.S., the question often arises of how one can set up a U.S. bank account. This blog post summarizes the steps required to set up a U.S. bank account for an E-2 visa. The best account to set up is a business bank account but a personal account is also sufficient for E-2 visa purposes.
How to Set-up a Business Bank Account in the U.S. and How to Obtain an EIN Number
A business bank account is an account that is the name of the business entity that has been registered with a State Department. Most banks require the original certificate of incorporation and a tax ID number (EIN). If the E-2 applicant has a Social Security Number, the EIN can be obtained online by accessing this link.
Click here for more information on the different ways to apply for an EIN.
If the E-2 applicant does not have a Social Security Number, the EIN for the business can be obtained by faxing a form to the IRS. If you select this option, in Section 7(b) of the form you should mark “Non Resident Alien.” An EIN will usually be faxed back to the applicant within 5 days. Click here for more information on how to apply for an EIN by fax as a non-resident. The E-2 applicant or their representative should then take the EIN number and the certificate of incorporation to a bank to set up the business bank account. Most banks will also require that someone be physically present to open the account unless you have some previous relationship with the bank. This can be the applicant or a person that the applicant designates as a representative.
If you are not in the U.S., you should still be able to set up a business bank account as long as you have a representative that is authorized to set up the account on behalf of the business. A bank may want to see an operating agreement or some other business entity document that shows this.
While we have outlined the general guidelines above, you should contact the bank you decide to work with and find out exactly what they require to set up an account. Also, you should avoid using third party services that promise to set up an account. We had a client that used a service in India who spent over $1,000 and did not have an account opened.
How to Set-up a Personal Bank Account in the U.S.
While this is not the preferred option, a personal bank account can also be set up for an E-2 visa. A personal bank account is easy to set up as long as you can find the right bank. It may also be faster as you would not have to wait for the EIN or the business entity set up documents. Many banks will open up a personal bank account with a passport while others will require the applicant to have a Social Security or a Taxpayer Identification number. You should check with the bank you wish to deal with to find out their exact requirements. Most banks will require the person setting up the personal account to be present to sign the required paperwork.
Ian E. Scott is a Harvard Law School Graduate, lawyer and author of Law School Lowdown: Secrets of Success from the Application Process to Landing Your First Job. You can access the blog for this book by clicking here. Mr. Scott worked as a corporate litigator in the law firm Cleary Gottlieb and currently runs his own law firm Scott Legal, P.C. specializing in Immigration Law & New Business set-up.
For more practical or legal advice contact Scott Legal, P.C. We offer services in a number of business areas including, Immigration, New Business set up, Contract review and development and entrepreneurial support. Call 212-223-2964 or email info@legalservicesincorporated.com for a consultation.
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what is the right way to transfer the money into the business’s account:
Should I transfer from Israel directly to the company’s account? or go through my private account in US?
Should I state reason of transfer as “investment”? because stating that will make me pay 25% taxes to Israel, and that’s doesn’t make sense.
Thank you for contacting us. We appreciate your business and look forward to helping you. Please find attached a link that you can use to set up a 30 minute ($150) or 1 hour ($250) consultation. The system allows you to select a lawyer and a day and time that is convenient to you. If you end up hiring the firm and your bill is greater than $2,500, we will apply this consultation fee to your final bill. Please reach out if you have any questions.
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Kind regards,
You wrote “A business bank account is an account that is the name of the business entity that has been registered with a State Department.”
How can you do that first if you dont have a visa or anything? Can I come to US, go to state department and register my business? Is it easy to do and doesnt require any US documents?
Hello and thank you very much for contacting us. We know that the decision to start a business in the U.S. is one that brings many questions to the forefront and we are here to help. This firm was founded on an E-2 visa so we understand much of what you are concerned with. Our goal is to assist you so that you can realize the dream of growing a business in the U.S.. I have attached a link to our E-2 visa brochure below that describes our services and fees and you can see from the brochure that we can also help you with your business plan and your business entity set-up.
E-2 Visa Brochure
https://legalservicesincorporated.com/wp-content/uploads/2015/06/E-2BrochureScottLegalServices20151.pdf
We would like the opportunity to help you and welcome the chance to set up a one hour consultation with one of our lawyers who regularly processes E-2 visas. This lawyer will be able to answer all of your questions and can give you valuable information so that you can make informed decisions. Our consultations can be arranged based on your convenience and can be done over the telephone, via Skype, or in person.
Our consultation fee of $250 will be refunded to you if you end up hiring us and I have attached the link to set up a consultation below.
https://secure.lawpay.com/pages/scottlegalservices/operating
We hope you decide to give us the opportunity to assist you and please let us know if you would like to set up a consultation.
Kind regards,