Opening A US Bank Account

[camel]

Hi

Does anyone have problems opening a US bank account? I tried opening one with HSBC, needs to provide a reason, so I gave Property Purchase as the reason. However, it has been rejected.

HSBC staff told me that even if it is for 2nd home purchase, it cannot be use for rental income purpose.

Please advise how this can be done, and how you collect your rental income funds.

Thanks

[fatfishandchipman]

Hi

Does anyone have problems opening a US bank account? I tried opening one with HSBC, needs to provide a reason, so I gave Property Purchase as the reason. However, it has been rejected.

HSBC staff told me that even if it is for 2nd home purchase, it cannot be use for rental income purpose.

Please advise how this can be done, and how you collect your rental income funds.

Thanks

You need an address in the USA. Not a P.O. Box -- but an actual street address. You would actually have to walk into the branch and set up the account yourself.

You could use your rental property as your address. But I doubt you would want your statements going to your renters, though you have the option of getting your statements via the internet, but you would still have issues with mail. Your property tax bills (City and County) would definitely end up at the address. Also too, when unrented, your water, electric, and gas bills will also be delivered there. If you set up mail forwarding (free in theUSA) your renters would never receive your mail, but then they would never receive their own mail!

[outspoken]

Does that mean you receive other people's mail Fat? Do you open it?

[Dean@Massiveaction]

We can help you open one Outspoken, it is no problem, we do it for clients everyday. HSBC are no good anyway, they are getting out of retail lending, so you will never get a mortgage through them.

[outspoken]

We can help you open one Outspoken, it is no problem, we do it for clients everyday. HSBC are no good anyway, they are getting out of retail lending, so you will never get a mortgage through them.

Who acts as your Agent in the USA Dean?

[Dean@Massiveaction]

It depends on which state your LLC is in. Some states we use our property managers, others we use our lawyers, accountants or a professional agent.

[outspoken]

It depends on which state your LLC is in. Some states we use our property managers, others we use our lawyers, accountants or a professional agent.

Yours? Ours? which is it? accountant or Professional agent? who carries the can?

[Dean@Massiveaction]

Don't understand your question Outspoken. Who acts as YOUR agent will depend on which state YOUR LCC is in
We use different people in different states

As I said if you need a hand opening an account I am happy to help. Just email me anytime,

[fatfishandchipman]

An LLC is completely unnecessary fora small-time venture like real estate. You don’t need an LLC to open a bank account. In any case, a New Zealand or Australian LLC will not be recognized in the USA.

[fatfishandchipman]

Does that mean you receive other people's mail Fat? Do you open it?

No and no.

[Dean@Massiveaction]

Never buy in your own name in the USA. Always use an LLC. Double taxation issues otherwise if you are a kiwi.

[fatfishandchipman]

Never buy in your own name in the USA. Always use an LLC. Double taxation issues otherwise if you are a kiwi.

Dean,

Whoever told you that is completely wrong. An LLC, like an individual, is always responsible for its taxes. The caveat is that you only need to pay your taxes once – you just need to decide in which country. Or pay them in both – if you choose. You only pay tax on gain and therefore, in the current property market (in both USA and NZ), you won’t paying much tax on either. However, the big difference in the USA is that you need to file a tax return regardless – even if you have zero income. Failure to do this may result in enforcement action by the IRS. If you setup a bank account in the USA and it yields interest – then up to a certain amount, you will need to report that yield to the IRS as well, even if the income is too low to be taxed.

I suggest that if you don’t understand the basics of international tax law then keep your money safe at home. The USA is fairly straight forward when itcomes to property investment. However,if you don’t understand your legal obligations to City, County, State, and Federal government bodies -- you may find your real estate asset seized and resold. Also, you will still be responsible for the mortgage even if you no longer own the property.

It is best to get proper legal advice before doing any business in any country. But, you need to seek the legal advice in the country you plan to business in. In other words: in NZ, get a NZ solicitor. In the USA, get a USA attorney who specializes in property.

Like I said before, a foreign LLC is not recognized in the USA.

A USA LLC (a very low level of incorporation depending on the State in which incorporated in) does not exempt you from taxes or any other of your legal obligations when doing business in the USA. Stop suggesting that it does.

[Dean@Massiveaction]

Just for clarity, don't buy property in the USA without an LLC.

[fatfishandchipman]

Just for clarity, don't buy property in the USA without an LLC.

… and that doesn’t have anything todo with camel’s original question.

Regardless of whether you have an LLC or simply choose to use your own name, either will require an address inthe USA to get a bank account.

[fatfishandchipman]

Dean,

Do you actually have any money invested in the USA? Or are you justtrying to drum up some sucker-business for Matt Gilligan?