Companies are incorporated to do business, and in order to do so, a basic tool required for it is to have a bank account.

 At Juris Magister we understand that helping clients incorporating companies leads us to include a section in our web page about opening bank accounts, since this constitutes the very nature of the majority of companies in order to do business.

 Most of our international clients willing to incorporate U.S. companies and to open a Bank Account in the Unites States they may not be aware of two very important issues:

1) Regulatory banking compliance:

 After September 11, 2001 mandatory new banking compliance rules made extremely difficult to foreign people to open bank accounts in the United States.

 First, companies with bearer shares are not allowed any longer after January 1st., 2007 to hold bank accounts in the United Sates.

 Second, the final beneficiary owner of any company has to be identified, recorded and fully “investigated” in relation to his business activities and sources of income.

 Third, any foreign person is required to have a Tax Identification Number in order to hold investments in the United States and expected to file tax return for profits received from local investments. The foreign person may be reported to his country of origin if United States has a Treaty on Exchange of Information and Cooperation.

 2) Tax matters:

Several U.S. States have promoted the incorporation of Limited Liability Companies. These companies are not required to pay taxes in the United States if the companies there are not conducting business activities in the United Sates and its shareholders are not Permanent Resident of the United Sates.

There is generally no requirement to file financial statements with the State of formation unless the company owns assets within that State or has conducted business within that State.

 However, the fact that a company may hold a bank account in the United States, this may be considered of “doing business activities in the United States” and consequently be subject to report and to file a Tax Return in the Untied States.

 Bank Accounts Alternatives:

 Considering the issued developed above, it is important to considerer alternatives for opening bank accounts.

 Spain has a long tradition of being a popular country attracting foreign investors. Spanish Banks have a well established international reputation and the country complies with all international and European Union regulations and standards.

 Andorra and Switzerland even though are considered offshore jurisdictions, they both comply with international requirements related to money laundering activities and other international criminal activities. However, their internal legislation may not consider a crime tax evasion committed in foreign countries. Nevertheless, both countries have executed Treaties with the United States related to withholding on revenues from international sources, however, the beneficial owner of any account or company cannot be reported or notified to any foreign governmental agency under penalty of imprisonment.

 Other Offshore Jurisdictions: we can not recommend any jurisdiction not complying with international requirements related to international money laundering and other criminal activities. Accounts in such jurisdictions may be subject to be forfeited by international governmental agencies.