In a rapidly evolving global economy, securing a reliable and stable currency account can be a key strategy for wealth preservation.

For many international high-net-worth individuals, opening a Safe Haven USD account has become an increasingly popular solution. Such accounts provide access to the stability of the U.S. dollar, while also offering other financial advantages.

In this post, we’ll walk through the process of opening a Safe Haven USD account, focusing on establishing a U.S. Limited Liability Company (LLC), using a recommended service provider like doola, and how an LLC can help you open a business account at High Circle Bank.

What Is an LLC?

A Limited Liability Company (LLC) is a hybrid business structure in the United States that combines the benefits of both a corporation and a partnership.

Unlike a corporation, an LLC offers flexibility in management and taxation, while protecting the personal assets of its members, similar to a corporation. This makes it a popular structure for both domestic and international entrepreneurs looking to establish a U.S.-based entity.

An LLC is particularly appealing to international high-net-worth individuals because it allows them to access the U.S. financial system without requiring U.S. residency or citizenship.

Some key features of an LLC include:

• Limited liability: The owners, known as “members,” are not personally liable for the company’s debts or liabilities. This protects personal assets in case the business incurs debts or faces legal action.

• Flexible taxation: LLCs can choose to be taxed as a sole proprietorship, partnership, or corporation, offering greater control over tax obligations.

• Operational flexibility: There is no requirement for an LLC to have a board of directors or hold annual meetings, simplifying operations compared to corporations.

For international entrepreneurs and investors, an LLC serves as an ideal vehicle to open a U.S. bank account, including a Safe Haven USD account, as it creates a formal U.S. presence without the complexity of a full-fledged corporation.

Using a Recommended Service Provider Like doola to Open an LLC

Establishing an LLC as an international individual might seem like a daunting process, but service providers like doola simplify the procedure. doola specializes in helping non-U.S. residents create and manage LLCs.

Here’s how using doola can make opening your LLC seamless:

Step-By-Step Guidance

doola guides you through the paperwork and legal requirements for establishing an LLC in any U.S. state. They help ensure that all necessary documents, such as the Articles of Organization, are properly filed.

Registered Agent Service

U.S. law requires every LLC to have a registered agent — someone or a service that receives legal documents on behalf of the company. doola provides top-notch registered agent services, ensuring your LLC complies with U.S. regulations.

EIN Application

An Employer Identification Number (EIN) is required for U.S. business entities to open bank accounts, file taxes, and conduct various financial activities. doola assists with acquiring your EIN from the IRS. Please note that it usually takes 3-6 weeks for foreign LLC owners to get their EIN. 

Ongoing Support

In addition to helping with the initial LLC formation, doola offers ongoing support for total compliance, annual filings, and other administrative tasks. This is especially useful for international business owners unfamiliar with U.S. legal requirements.

By using doola or a similar service, international individuals can streamline the process of forming an LLC, saving time and avoiding potential legal pitfalls. Once your LLC is formed, you can proceed to open a U.S. bank account.

How to Use an LLC to Open a High Circle Bank Business Account

Once you’ve successfully established your LLC, the next step is to open a U.S. business account. High Circle Bank (HCB) is a financial institution that caters to international entrepreneurs, offering Safe Haven USD accounts.

These accounts are designed to provide stability, protection, and access to U.S. banking services.

Here’s how to use your LLC to open an account with High Circle Bank:

Gather Necessary Documents

To open a business account, visit High Circle Bank and have the following documents ready:

• Your LLC’s Articles of Organization

• The EIN assigned by the IRS

• A copy of the Operating Agreement

• A government-issued ID for all LLC members

If you purchase the doola Starter plan, it includes the first documents on this list and once your formation is complete and EIN is issued, you can access digital copies of these documents from your user dashboard. 

Submit Your Application

You can often submit your application online, making the process accessible from anywhere in the world. High Circle Bank offers remote onboarding for non-U.S. residents, so you don’t need to be physically present in the U.S.

Undergo Compliance Checks

As part of the account-opening process, High Circle Bank will conduct due diligence, including anti-money laundering (AML) checks and know-your-customer (KYC) processes. These are standard procedures to ensure that the account is used for legitimate business purposes.

Account Approval and Access

Once the bank completes its verification process, your business account will be approved. This account provides access to the U.S. financial system, making it easier to hold and manage funds in USD, conduct wire transfers, and engage in international transactions.

High Circle Bank’s business accounts are especially useful for international entrepreneurs who need a Safe Haven USD account. This account type provides access to the strength and stability of the U.S. dollar, while benefiting from modern banking features like online management, high liquidity, and robust customer support.

Business Descriptions

US Banks determine compliance with LLCs in a number of ways, one of which is by looking at the business description filed with the Secretary of State where you are incorporating.

Your business description must match the purpose of forming an LLC. If you are doing so to open a Safe Haven USD account then use one of the following business description:

“Investment Holding and Management”

This description generally covers the purpose of holding assets (such as cash, real estate, or securities) and managing those investments.

“Global Investment Holdings”

This highlights the international aspect of the business, emphasizing the global nature of the investments held.

“Financial Asset Management and Preservation”

Focuses on managing and preserving financial assets, appropriate for a company set up to safeguard wealth.

The Legality of Opening a U.S. Bank Account from Overseas

Many international investors and entrepreneurs wonder about the legality of opening a U.S. bank account from overseas. The good news is that it is entirely legal for non-U.S. residents to open U.S. bank accounts, provided they follow the proper procedures and comply with legal requirements.

The key steps involve forming a U.S. entity, such as an LLC, and ensuring compliance with the U.S. financial system’s regulatory framework. As long as you have the necessary documentation—like an EIN and LLC formation papers—you can legally open and operate a U.S. bank account.

U.S. financial institutions are required to follow stringent KYC and AML regulations, so be prepared to provide detailed information during the application process.

International individuals should also be aware of any tax reporting obligations they may have in their home country. While holding a U.S. bank account is legal, it’s essential to disclose this information on any required foreign asset reporting forms in your country of residence.

Tax Benefits of a U.S. LLC for International High-Net-Worth Individuals

One of the main reasons international high-net-worth individuals choose to form U.S. LLCs is the favorable tax treatment. There are two considerations to make to determine if your LLC will face tax withholdings:

An LLC with no transactions (Passive Holding)

The LLC will be a pass-through entity (default for single-member LLCs), and if there are no transactions (no income or expenses), there is no US tax liability.

However, the LLC still needs to complete all compliances such as BOI filings, state filings, IRS tax filings etc. Bookkeeping would not be required since there are no transactions and the TC plan can be a good fit here.

An LLC with transactions (An Active Business)

If transactions occur (e.g., investments, sales, etc.), the LLC’s income could be subject to withholding taxes in the US.

With the LLC having foreign owners, the general withholding tax rate is 30% which can apply on certain types of income like dividends, interest, or royalties. Depending on whether the US has a tax treaty with a foreign investor’s home country, a lower withholding tax rate maybe prescribed.

Compliance and Filing requirements will include state filings, federal income tax returns, BOI filings and even bookkeeping. If you purchase the total compliance plan from doola, you can get support from a doola CPA to plan your tax liabilities and also help with other required federal and state filings like BOI and Annual reports. 

Here are some key tax benefits of a US LLC:

• Pass-through taxation: By default, LLCs are treated as pass-through entities, meaning the company’s income is passed directly to its owners. This avoids the double taxation issue common with corporations, where both the company and the shareholders are taxed.

• No U.S. tax on foreign-earned income: Non-U.S. residents who form LLCs but do not conduct business in the U.S. are generally not subject to U.S. federal income tax on earnings generated outside of the U.S. However, any income earned from U.S. activities will be subject to tax.

• Flexible tax classification: LLCs can elect to be taxed as a corporation, partnership, or sole proprietorship. International business owners can choose the structure that best fits their tax situation.

• Estate planning: U.S. LLCs can be useful for estate planning purposes, especially for international families with U.S.-based assets. A properly structured LLC can provide a smoother transfer of wealth across generations.

The Benefits of a Safe Haven USD Account

A Safe Haven USD account provides several advantages for international individuals looking for stability and security in their financial portfolios:

• Currency stability: The U.S. dollar is one of the world’s most stable currencies, making it an attractive option for holding large reserves, especially in times of economic uncertainty.

• Global acceptance: The U.S. dollar is widely accepted in international trade, making it easier for business owners and investors to conduct transactions worldwide.

• Inflation hedge: For individuals in countries experiencing inflation or currency devaluation, holding funds in U.S. dollars can protect wealth from erosion.

• Liquidity: A Safe Haven USD account typically offers high liquidity, allowing account holders to quickly access or transfer funds when needed.

• Access to U.S. financial products: With a Safe Haven USD account, you gain access to a wide range of U.S. financial products, including investment options, credit facilities, and international payment systems.

In conclusion, opening a Safe Haven USD account can be a powerful financial tool for international high-net-worth individuals.

By forming a U.S. LLC through a trusted service like doola and opening a business account at High Circle Bank, you can gain access to the security and stability of the U.S. financial system. This process not only offers potential tax advantages but also provides peace of mind in an increasingly unpredictable global economy.

Start & Manage Your LLC With doola

Setting up an LLC can be overwhelming and time-consuming. Luckily, doola can help! 

Our LLC formation services simplify this into a few easy steps you can complete online from anywhere.

Whether you need just formation or additional requirements like Registered Agent or Operating Agreement preparation, we’ve got you covered!

Our team of experts will handle all the necessary paperwork, so you won’t have to worry about filling out complicated forms or making mistakes that could delay the process.

So, you don’t have to wait weeks or even months to get your LLC up and running.

Don’t let the legal complexities of forming an LLC hold you back from pursuing your dream — schedule a free consultation with a doola expert, while you focus on building a successful business.