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Old 01-04-2020, 10:12 PM   #1
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Business Bank Account for Full time RVers

Hello,

Is it possible to open a business bank account for an LLC when your business does not have a physical address? Strictly online business.

I read there's a federal regulation requiring banks to have a physical address for business accounts. It appears it's legal to have an LLC out of your RV though the government may be preventing you from having a business bank account. I'm starting to feel what the marijuana businesses are going through. (I'm not growing or selling marijuana)
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Old 01-04-2020, 10:55 PM   #2
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I highly recommend you contact a lawyer for your issue; not a RV forum. Every situation is different. Good luck.
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Old 01-04-2020, 11:19 PM   #3
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The requirements you are referring to are part of banking and financial regulations commonly called the "Know your Customer" laws. The penalties for violating those laws can be up to the greater of one Million dollars or double the transaction amount. I seriously doubt any full time RV'er without a permanent address will have a business that will earn a financial institution enough money to risk those potential penalties. Establishing an address at a relative's home would be a simple solution. If the business is really profitable, it might even pay to rent an office suite, thus establishing an address for the business. Good luck.
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Old 01-04-2020, 11:38 PM   #4
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You can open a personal account with a forwarding address though not a business account. I believe at one time Apple rented a one room office space in Ireland to avoid taxes. I wouldn't be making the kind of money Apple does plus I would be paying federal taxes. I'm guessing the government has their reason. I'm not seeing it.
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Old 01-05-2020, 08:20 AM   #5
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As noted, Banks are required under “Know your Customer”, to use and occasionally verify (via utility bill, articles of Org, tax certificates, Officer site visit etc) a physical address for all business/commercial accounts at opening and randomly after that. In addition to the financial and other penalties noted that the institution can face, a Bank Officer “looking the other way” can be held personally responsible under willful blindness rules and also be looking at financial penalties and jail time.

Another wrinkle to consider, under the new Beneficial Owner requirements, that came into effect mid 2018, the Bank is going to have to collect and verify information on all owners of a corporation that own 20% or more of the corporation. (There are some situations that change that percentage, assume 20% for most times) Information required is name, residential address (physical), date of birth and SSN. (Different list for non US Citizens). If the corporation is owned by another corporation, trust etc, you need to follow the path back to the ultimate owners.

The idea of beneficial owner is to start lifting the veil on corporations to follow the flow of money back to the individuals behind it. There are exceptions for entities without individual owners such as non profits, and for publicly traded companies with many well documented owners etc.
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Old 01-05-2020, 09:37 PM   #6
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Kind of ruins it for RVers having a sole proprietorship creating an LLC to avoid people suing because the sun rises and sets at the wrong time. I'm on my soapbox about it. I'm just trying to protect my retirement from people looking for a free lunch.

I was hoping someone would have ideas. I don't have any family in my domicile state.
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Old 01-16-2020, 07:38 AM   #7
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id look at chime. they may do it
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Old 01-16-2020, 08:35 PM   #8
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Thank you!

Since my post I looked up and read what the others have said. For a business account they need a physical address. I contacted SBA to seek their advice and after checking they said that was correct. I had one bank branch tell me if I got their state license to do business they would open an account. That was BS. He was going to cost me $150 and still not open the account for me. I assumed he didn't know the regulation and was just guessing at a solution. I'm still working on a solution so I'm open for constructive suggestions.
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Old 01-16-2020, 08:48 PM   #9
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An LLC will need a registered agent in the State in which it is registered. That agent will have an address that the business can use. That's what we do; our LLC has a business checking account and owns our MH. The agent's address is the one on file.
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Old 01-17-2020, 06:33 AM   #10
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Quote:
Originally Posted by RVGlen View Post
Kind of ruins it for RVers having a sole proprietorship creating an LLC to avoid people suing because the sun rises and sets at the wrong time. I'm on my soapbox about it. I'm just trying to protect my retirement from people looking for a free lunch.

I was hoping someone would have ideas. I don't have any family in my domicile state.
Liability insurance with a big umbrella. Doesn’t cost much. If you’re thinking you won’t be personally sued in an accident where you’re the operator if the LLC holds title your assumptions may not bear out.
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Old 01-17-2020, 11:24 AM   #11
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Due to my registered agent being the mail forwarding service, the bank would not let me use that address. I guess I could have selected another agent that wasn't located at my mail forwarding service.

I'm working with another organization that requires an LLC. I think I may have it worked out.

Thank you for your assistance.
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Old 01-17-2020, 12:01 PM   #12
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I don't know about a LLC maybe that's different, but I've had my own business now for 33yrs., with the same business bank account with Chase Bank the entire time and up to currently. We went FT on the road 3 years ago. All I did was change our address on our bank acc't when we first started. Even though I'm retired, I still work some online while on the road and still receive a few 1099's. We are Escapees, it is our domicile/residency/permanent address for EVERYTHING including our bank acc't and annual tax returns. No issues at all. This year will be our 4th year filing a tax return this way.
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Old 01-17-2020, 02:18 PM   #13
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I've had an LLC operating as an S corporation for many years I am not full time. My business uses a PO Box but my bank and IRS require a physical address. As the resident agent I just use my home address. All bills, bank statements, receivables, etc... go to the PO Box but official communication goes to my physical address.

I would check with the bank and IRS to see if a mail forwarding service like Escapees offers is acceptable.

One poster above says it is but I would check with the appropriate agencies or my lawyer.
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Old 01-17-2020, 10:56 PM   #14
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I use Americas Mailbox for mail forwarding. I am a member of Escapees though it appeared their South Dakota mail forwarding service would cost more. I don't know. I wouldn't think banks would treat Escapee mail forwarding any different than another.

I assumed the one person who's had a business account for three decades was probably grandfathered in. I think I have it worked out. My account should open early next week. This only took about three weeks. I'm trying to do what I can without hiring an attorney. I'm learning a lot though it's not making me any money.

By the way, virtual offices are not an acceptable address to open business bank accounts. Really upset about their advertisement.
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