If you are a non U.S. resident and are looking to open an offshore U.S. bank account for your Delaware corporation, Florida corporation or Nevada LLC, you need to be aware of the pitfalls of using a nominee banking service. It might seem that this is the only option available to you that can hold you over until you get the United States to open an account in person.
Before you choose to use this option you really need to think carefully. Using a nominee banking service puts you and your company at a great many risks. Let me explain what it is and why you are taking a risk.
Nominee services for your offshore bank account means you are essentially letting someone else control your bank account usually through a Power of Attorney. Although you will most likely show up as the beneficial owner of the account, if the person who is putting their social security number on the account begins to have any problems (and if they are opening up a large number of accounts under one social security number then it can happen) your account could be closed. If your account is closed and you are lucky, then perhaps you will get your funds back. However, if the government decides to seize the funds then you are out of luck until the government gets around to refunding the funds to you the owner. In the meantime, your account is closed and you can’t use it for your business.
So before opening up your U.S. bank account with a nominee bank account, consider instead working with someone who can get your account opened in your name only. We can definitely help you with getting your bank account opened up in your name.
