Mercury requires US Operations

[drolive0]

I have had for a few years an account with Mercury for my foreign-owned US LLC. Mercury is now asking for a physical address. They accept foreign addresses, so fine.

BUT, they also require US Operations! They ask:

Do you currently have U.S. operations?
1. Yes
2. No, but I plan in the next 6 months
3. No, I don't plan to

If you select the last option, they say:

We now require all companies to have some form of US operations.
If you proceed, your account access will be temporarily restricted
and you’ll have 60 days to establish US operations
before the account is closed for good.

Have you had such message too? I operate from abroad, have no US client at the moment (might or might not have in the future), do not need any supplier (what does it mean anyway?). I am sure I am not the only one in such position. Thoughts? Solutions?

 

[sebastian]

Got the same today, I don't know if we can pick 1. and if they ask for proof!

 

[drolive0]

If you select 1. or 2., they ask for a category:

• Employees
• Investors
• Customers
• Suppliers
• Locations

They do not seem to ask for a proof yet.

I can also add that they ask:

How is your account being funded?
- Investors
- Revenue
- Self

There, they require a proof (e.g., for revenues: invoices).

 

[Forester]

It has already been discussed here at forum several times. Mercury (and some other but not all similar US financial institutions, too; frankly, I do not recall at this moment – search here) simply does not want to serve subjects without US operations furthermore.
Hence, either begin with US operations or (more probably) start searching for another banking. If you do not have US operations and do not plan to, then closure of your account is just a matter of time.

 

[mraleph]

It has already been discussed here at forum several times. Mercury (and some other but not all similar US financial institutions, too; frankly, I do not recall at this moment – search here) simply does not want to serve subjects without US operations furthermore.
Hence, either begin with US operations or (more probably) start searching for another banking. If you do not have US operations and do not plan to, then closure of your account is just a matter of time.

Does access to US financial institutions requires only or predominantly US related economic substance? What happens when US company is sourcing income overseas only?

 

[Forester]

Does access to US financial institutions requires only or predominantly US related economic substance?

No, it does not, generally.

What happens when US company is sourcing income overseas only?

What should happen? Nothing extraordinary. Under some circumstances, it can be even free of federal taxes (To avoid misunderstanding: Where the company income is sourced is not the key factor for being or not being ETBUS and consequently liable for federal taxes.)

 

[Cloudbanck]

What happens when US company is sourcing income overseas only?

Well, the US company may lose access to Mercury and other (but not all) US EMIs.

Fortunately there are quite a few of non-US EMIs that are fine with onboarding a US LLC regardless of the income being sourced from the US or not. Examples: Airwallex, Verifo, Zen, Narvi(?), Satchel(?), Ebury, Zyla (US but chinese owned)

 

[JohnLocke]

You may have a look at the below threads for alternatives. All that is to say to OP - there is nothing you can do about it, either you get to point 1 or you have to find an alternative.

Alternatives to Mercury for Non-Resident LLC?

I'm on the hunt for an EMI or bank alternative to Mercury for my non-resident LLC in the USA. After doing some research, my options seem to include Relayfi, Payoneer, TryNovel (which I'm not particularly fond of), or maybe even Wise. Does anyone have any other recommendations to add to the...

www.offshorecorptalk.com

Mercury alternatives or Remote business address solutions?

I noticed that Mercury bank no longer accepts PO boxes, mail centers, or Registered Agent Addresses for LLC in Delaware. Are there any viable alternatives to these options? Is there something I can purchase remotely that wouldn't fall into these categories?

www.offshorecorptalk.com

Mercury Rejected me.. Alternative?

Hello, I feel very disappointed, I follow all skim but anyway bad news.. Rejected.. What alternatives there are? Wise is good but there is not card and I cant connect to kraken for having BTC.

www.offshorecorptalk.com

 

[lavel]

It's a big thumbs down for Mercury! People will have to move to another bank if possible as an foreigner at least.

 

[Why]

Does any subscription to a US based supplier count as US operation? Thinking of Netflix, OpenAI, etc

 

[tyrexoid]

Well, the US company may lose access to Mercury and other (but not all) US EMIs.

Fortunately there are quite a few of non-US EMIs that are fine with onboarding a US LLC regardless of the income being sourced from the US or not. Examples: Airwallex, Verifo, Zen, Narvi(?), Satchel(?), Ebury, Zyla (US but chinese owned)

never heard of these, are their accounts free to maintain? I'd subscribe for 'just in case'. Always good to have flexibility to move money around, it's getting tough even with small sums these days . Btw did you guys noticed how coordinated all countries and institutions are, in whatever they do (how they switch mode of operation and suddenly demand this or that, like with covid rules and flights / borders) makes me spend more time in the darker corners of youtube listening about world domination conspiracies before bed time . The worldwide 'execution' of various coordinated steps is just so flawless (CBDCs, FTX and all other large scale bankruptcies which open the door for 'our **reliable** CBDCs are the solution to all your crypto needs! what an amazing digital future ' ), now Putin doesn't even want to go to war with NATO in plain text says "folks we spend 3.5% GDP on defense industry, you spend 20%, why do you insist that I need to go to war with NATO? gimme a break mfkers" But peacemakers democracy-bringers insist with "no no no, you WANT to go to war with us because we SAID SO" freakin circus. The LGBTQH+ protesters who support Hamas who wants to throw them from the roof and hang on a crane, are a top notch trolling, of how easy it is to manipulate the brainless 10-seconds-brain-attention-span generation. It's hilarious, but sad, at the same time.

 

[Cloudbanck]

never heard of these, are their accounts free to maintain? I'd subscribe for 'just in case'.

Yeah, most of them are free, not sure about the chinese ones. I tried to deliberately exclude those that charge high fees to maintain the account because they focus on companies that cant onboard anywhere else.

And I got more: Bancoli (US), VertoFX (UK), Currencies Direct (UK), FV Bank (Puerto Rico), Yoursafe (NL), Ecommbanx (CY), Paysera (UK), Pingpong (China)

 

[tyrexoid]

Yeah, most of them are free, not sure about the chinese ones. I tried to deliberately exclude those that charge high fees to maintain the account because they focus on companies that cant onboard anywhere else.

And I got more: Bancoli (US), VertoFX (UK), Currencies Direct (UK), FV Bank (Puerto Rico), Yoursafe (NL), Ecommbanx (CY), Paysera (UK), Pingpong (China)

cool looks like you researched quite a bit. I wonder how reliable they are though, some could be short living entities who'll block hundred thousands accounts for "investigation until future notice" and disappear with the $$$ . but good stuff thanks for sharing.

 

[Cloudbanck]

Yeah well, some of these have been around for 20 years and/or have many hundreds of employees in dozens of offices around the world. But you have to look up the one you want to use of course.

Id be somewhat careful with the chinese ones even if they are big and have US offices and everything. Been listening to Carson Block about how business works in China.

And we saw what happened with EuroPacific Capital on Puerto Rico - the regulators just shutting it down and depositors' money being stuck for who knows how many years, while the lawyers siphon off more and more money to themselves.

 

[cani]

Hello, I am having the same problem.
Account in Mercury, residing outside US,and at this moment not working with US clients or vendors.
Any idea how to force this, any simple way to keep my account there? (have been working perfectly all this years)

Thanks in advance.

 

[Forester]

Hello, I am having the same problem.
Account in Mercury, residing outside US,and at this moment not working with US clients or vendors.
Any idea how to force this, any simple way to keep my account there? (have been working perfectly all this years)

Thanks in advance.

See here Mercury requires US Operations (sorry but I cannnot convey to you more positive news) and the further posts in this thread.
For another alternative banking for US LLCs I recommend you searching this forum, there are more fruitful discussions re: this here in the last weeks.
Welcome at our forums!

 

[Marzio]

I am having the same problem.

Try stating that you have a US supplier, for example a hosting company.

It could suffice (for now)

 

[Forester]

Does any subscription to a US based supplier count as US operation? Thinking of Netflix, OpenAI, etc

Honestly, I possess no current personal experience with this; and I am afraid that not many people possess. My personal speculation would be that Netflix probably not, OpenAI maybe; and that more successful you can be having a contract with some local US company than with some global one..

What @Marzio writes below about a hosting company seems plausible to me.

Try stating that you have a US supplier, for example a hosting company.

It could suffice (for now)

 

[cani]

Thanks all for you help. I deliver real services as a digital producer. Maybe just accepting cheap gigs or re hiring freelancers in US will avoid this issue?
Or something like my reciped from Open AI, Google, Apple, and GoDaddy would be enogh? they are services that I hire for real for my production work.

 

[Cloudbanck]

How about switching to a multi member LLC by e.g. having your spouse or family member or someone own 1% ?
Then the LLC will be a US person, and I think Mercury is much more lenient. There will be different forms to file but it's still disregarded, so no US tax.