US Business Banking Terms: A Plain-English Glossary for International Founders
What the words on a US business account application and in payment settings mean for an owner abroad: KYC, beneficial owner (25 percent or control), EIN, ITIN, W-8BEN, W-9, ACH, wire, routing number, SWIFT, FDIC insurance and partner bank, grouped by when you meet them.
What do the banking words on a US business account application and in your payment settings actually mean? Most of them answer one of four questions: who owns and runs this company, how can money reach it, how does money leave it, and what has to stay up to date.
The vocabulary comes from the anti-money-laundering rules US banks follow, from IRS tax forms and from the networks that move the money. This glossary groups the terms by when you meet them. Each entry gives the meaning, why it matters to an owner outside the US and where to read more.
It only defines the words. For how to apply and which providers to consider, read how to open a US business bank account from Egypt. For formation and tax vocabulary, read US LLC terms explained.
Quick summary (as of November 2026)
- A bank must identify each individual who owns 25 percent or more of your LLC, directly or indirectly, plus one individual who controls it. It may set a lower ownership threshold under its own policies.
- That check is separate from the BOI report filed with FinCEN, the US Treasury's financial crimes bureau. An LLC formed in a US state files no BOI report, and the bank still asks.
- A fintech such as Mercury or Relay is not itself a bank. FDIC insurance protects deposits if an insured bank fails, not if the fintech does.
- If you are a foreign individual and the only owner of a default single-member LLC, a payer who asks for a tax form should get the appropriate Form W-8 from you, generally W-8BEN, not a Form W-9.
- An LLC and an EIN let you apply for an account. They do not guarantee approval, which is the bank's or provider's decision.
When you apply
These terms appear on the application itself, or in the disclosures of the provider you are applying to.
KYC (know your customer)
The common label for the identity and business checks a financial institution runs on a customer. For US banks, two rules sit behind it: the customer identification program rule, which sets the minimum a bank collects before opening an account, and the customer due diligence rule described next.
Why it matters: The checks cover you as well as the company, and a US number is not the only way to identify you. For a non-US person, that rule lets a bank accept a passport number and country of issuance, or a similar government-issued photo document. For a company, it asks for a principal place of business, local office or other physical location, so address questions come early. Payment providers run their own checks: Stripe says it verifies the legal name, entity type, EIN, an SSN or ITIN and the business address, and may ask for official documents. Registered agent vs virtual address explains which address answers which question.
Customer due diligence (CDD)
FinCEN's rule for covered financial institutions, banks among them. It requires them to identify and verify the customer, identify and verify the beneficial owners of companies opening accounts, understand the nature and purpose of the relationship to build a risk profile, and monitor it over time (FinCEN).
Why it matters: The third requirement is why an application asks what your company does and how it will use the account. Describe the real business in plain terms and keep the description consistent across your records. How to prepare your US LLC documents for a business bank account covers the file behind those answers.
Beneficial owner
Under the CDD rule, the individuals behind a company opening an account. There are two tests: each individual who directly or indirectly owns 25 percent or more of the equity, and "a single individual with significant responsibility to control, manage, or direct" the company (31 CFR 1010.230). An LLC created by a state filing is covered. FinCEN describes the result as zero to four people under the ownership test and one person under the control test (FinCEN CDD FAQs).
Why it matters: Indirect ownership counts, so holding your stake through another company does not take you out of the test. Each person named gives a name, address and date of birth, and a non-US person can give a passport number or a similar government-issued document number (FinCEN sample form). The 25 percent figure is the rule's minimum, not a limit on what a bank can ask: FinCEN says an institution may collect information on owners with a lower percentage under stricter internal policies (FinCEN CDD FAQs). This is also a different idea from the responsible party on your EIN application, which US LLC terms explained covers.
Control person
FinCEN's FAQs call the individual under the control test a control person. The rule's examples are a chief executive, chief financial or chief operating officer, managing member, general partner, president, vice president or treasurer, or anyone who regularly performs similar functions (31 CFR 1010.230).
Why it matters: One person is named even if nobody reaches 25 percent. The same person can be listed under both tests, so a sole owner who runs the LLC will often be both, and a non-US person can give a passport number for this role too (FinCEN sample form). Name the person who actually runs the company. What Mercury requires from an LLC owned from Egypt shows how one provider applies this, and its FAQ asks for ID from owners at 25 percent and from at least one person with operating control.
Source of funds
Where the money behind the company comes from. Relay's document list, for example, has a field for it and asks non-US owners about the income that started the business. It also asks for a US operating presence and a physical US address from each owner.
Why it matters: Answer accurately and keep something that supports the answer, such as contracts, invoices or bank statements, in case the provider asks to see it.
EIN (employer identification number)
A 9-digit federal tax number, issued by the IRS, that identifies the company rather than you (IRS Form SS-4 instructions).
Why it matters: Providers ask for it; Relay, for example, lists the IRS EIN confirmation letters among the documents you can upload (Relay). You can get one without a US personal number: the IRS tells a responsible party who has neither an SSN nor an ITIN, and is not eligible for one, to enter "foreign" or N/A on line 7b of Form SS-4. Read EIN for non-US residents for the process.
ITIN (individual taxpayer identification number)
A 9-digit IRS number for a person who needs a US taxpayer number but is not eligible for a Social Security number (SSN). The IRS issues it for federal tax purposes only, and it does not authorize work or change immigration status (IRS).
Why it matters: A field asking for "SSN or ITIN" can look like a dead end, so check for an alternative first. Shopify's US requirements let a non-US resident provide a photograph of a valid passport instead, except on individual and sole proprietorship accounts (Shopify). Stripe lists an SSN or ITIN among the details it verifies, so read opening a Stripe account from Egypt with a US LLC before you plan around it. The IRS issues an ITIN only for a federal tax purpose, such as filing a return, so ask a tax professional whether you qualify.
DBA (doing business as)
A name a company trades under that differs from its legal name, also called a trade name, fictitious name or assumed name (SBA). An illustrative example: a company registered as Example Holdings LLC that sells as Example Studio.
Why it matters: Forms treat the two names as separate fields. Form SS-4 and Form W-9 each have a separate line for a DBA, and Shopify asks for the legal business name as registered with the IRS while accepting a DBA as the name customers see on statements. The SBA says registering does not give the name legal protection by itself, and that you may need to register with a state, county or city.
Partner bank
The FDIC-insured bank behind a fintech's (financial technology company's) product. As of November 2026, Mercury describes itself as a fintech rather than an FDIC-insured bank, with banking services through Choice Financial Group and Column N.A., and Relay says the same about itself, with services through Thread Bank.
Why it matters: You apply through the fintech, but the deposit protection depends on the bank. The FDIC says "nonbank companies themselves are never FDIC-insured", advises you to identify the specific bank that will hold your funds, and points to its BankFind tool to confirm that bank is insured (FDIC). Mercury alternatives for non-US residents compares providers on eligibility.
FDIC insurance
US government protection for deposits if an insured bank fails, up to at least $250,000 per depositor, per ownership category, at each insured bank (FDIC). A person does not have to be a US citizen or resident to be covered, and LLC deposits are insured separately from the personal deposits of its members (FDIC brochure).
Why it matters: The protection is about the bank. The FDIC says it "does not protect against the insolvency or bankruptcy of a nonbank company". If a fintech places your money at a bank, you may qualify for pass-through coverage, meaning the insurance reaches you through the fintech's arrangement with that bank, but only if conditions are met, including records of who owns what (FDIC). Investment products are not covered, so read how a provider describes each balance.
When you receive money
These terms appear when a client asks how to pay you and in the payout and tax sections of a payment dashboard. What you hand over depends on who is paying:
| Who is paying | Route | Details to give |
|---|---|---|
| A client or platform in the US | ACH or domestic wire | Account holder name, routing number, account number and, for a wire, the bank's address |
| A client outside the US | International wire | Account holder name, account number, the bank's name, address and BIC, plus any routing number your dashboard lists |
Routing number and account number
A routing number, also called an ABA number or routing transit number, is a nine-digit code that identifies a US financial institution (US Treasury). The account number identifies the account at that institution (OCC).
Why it matters: These are the details a US payer needs. Copy them from your account dashboard, using the set it shows for the payment type your client is sending, and give the company's legal name as the account holder.
ACH (Automated Clearing House)
A US electronic payment network that reaches all US bank and credit union accounts (Nacha). In an ACH credit, the payer pushes money to you. Credits can settle the same day, the next banking day or within two banking days (Nacha), and payments do not settle on weekends or federal holidays (Nacha).
Why it matters: ACH suits a payer who also banks in the US. A client abroad with no US account will normally send an international wire instead. Payoneer or a US business bank account compares two ways of giving a client US details.
SWIFT and BIC
SWIFT is a messaging system that banks use to exchange information about financial transactions. A BIC, also called a SWIFT code, is the 8 or 11-character code for a bank (Mercury's wire guide).
Why it matters: A client abroad needs your bank's BIC to pay you by international wire. Their bank's form may also ask for an IBAN, an account format used in Europe and other regions. A US account may not have one: Chase says "We don't use an IBAN" and tells a sender abroad to use the account number and SWIFT code, and U.S. Bank says international wires use a SWIFT code instead of the routing number. Check what your own provider's dashboard shows. How to receive international business payments in Egypt compares this with other routes.
Payout
A transfer from a payment provider's balance to your bank account. Stripe, for example, sends funds from your available balance as payouts (Stripe).
Why it matters: The receiving account is a setting with conditions. Stripe says the bank account's currency must match your payout settings, and that the account must generally be in a country where that currency is official. Whether a provider accepts a particular account is its own decision. The US bank account guide covers how Stripe payouts fit a US business account.
Multicurrency account
An account that lets a business hold and convert several currencies, with local details for receiving some of them. As of November 2026, Wise describes this for its business account, including an ACH routing number for US clients and an IBAN for euros.
Why it matters: Local details let a client pay as a domestic transfer, which Wise says avoids intermediary bank fees. A multicurrency provider may not be a bank, though. Wise's US entity says it is not one, and that balances without its interest feature are not FDIC-insured. What you can open also depends on the provider's rules for where you live: Wise Business from Egypt sets this out for one provider and one country.
W-8BEN
An IRS form on which a foreign individual, someone who is neither a US citizen nor a US resident for tax purposes, certifies foreign status to whoever pays them or credits their account. You give it to the person asking, before the payment, and you do not send it to the IRS (IRS).
Why it matters: A default single-member LLC is a disregarded entity: for federal income tax it is ignored as separate from its owner, though it remains an LLC under state law (IRS). So if you are its foreign individual owner, you complete the form in your own name, and the instructions allow the LLC's name and account number on line 7 as a reference. Line 6a can also call for your home-country tax number. Not providing the form when asked may lead to 30 percent withholding or backup withholding.
Two cautions. "Beneficial owner" in this form's title means the person who owns the income for tax purposes, not the bank's 25 percent test. And the instructions direct income effectively connected with a US trade or business to Form W-8ECI instead, which is a question for a tax professional (IRS).
W-9
An IRS form on which a US person gives a payer their taxpayer number. A partnership, corporation, company or association created or organized in the US counts as a US person (IRS Form W-9).
Why it matters: A US-formed LLC can look like a W-9 case, but its federal tax classification and owner decide. Form W-9 says: "If the owner of the disregarded entity is a foreign person, the owner must complete an appropriate Form W-8 instead of a Form W-9. This is the case even if the foreign person has a U.S. TIN." Assuming no treaty claim by the LLC itself, the default cases look like this:
| LLC for federal tax | Who signs | Form |
|---|---|---|
| One foreign individual owner, disregarded | You, in your own name | W-8BEN, unless W-8ECI applies |
| One foreign company owner, disregarded | The foreign company | W-8BEN-E, unless W-8ECI applies |
| Two or more members (partnership by default), or elected corporate treatment | The LLC | W-9 |
These rows follow Form W-9, the W-8BEN-E instructions and the IRS LLC page. Confirm your own case with a tax professional before you sign, because each form is a certification.
When you send money
These terms appear when the company pays a contractor, a vendor or you.
Wire transfer
An electronic transfer from one bank to another, sent one payment at a time. Within the US, banks can use the Federal Reserve's Fedwire service, whose transfers are "immediate, final, and irrevocable once processed" (Federal Reserve). Mercury's guide says domestic wires can often arrive the same business day and international wires can take one to three business days.
Why it matters: It is one way a company account pays someone abroad, including a transfer to your own bank at home. Treat a wire as money you cannot count on getting back, and check every detail first. Money moving between you and a foreign-owned single-member LLC also has a tax side: the IRS instructions for Form 5472 list contributions to and distributions from the entity among the transactions such an LLC reports. See the Form 5472 guide.
Beneficiary
The party receiving a wire, in legal terms "the person to be paid by the beneficiary's bank" (UCC 4A-103).
Why it matters: The word looks like "beneficial owner" but has nothing to do with it. On a wire form, it asks who gets the money. Enter the recipient's name as it appears on their account.
Intermediary bank
A bank between the sender's and recipient's banks, used when those two have no direct relationship. It is also called a correspondent bank. Mercury's guide, updated in June 2026, says each one typically deducts a fee, that $15 to $50 is common, and that this can happen even when the sending bank advertises free wires.
Why it matters: The amount that arrives can be lower than the amount sent, in either direction. If a client's payment lands short of the invoice, this is one possible reason.
OUR, SHA and BEN
The fee codes on an international wire. With OUR, the sender pays all the fees. With SHA, the sender pays the sending bank's fees and the recipient's side bears the rest. With BEN, the recipient pays all of them. Not every provider offers all three; Mercury says it does not offer BEN.
Why it matters: The code decides who absorbs the deductions. Agree it with your contractor or client before the wire goes, especially when an invoice has to arrive in full.
ACH debit
The opposite direction from an ACH credit: the party collecting the money starts the payment and pulls it from your account, as a utility does for a bill. Debits settle the same day or the next banking day (Nacha).
Why it matters: A US vendor's billing page may ask for your routing and account numbers to set this up. Because the other side starts each payment, check your statements for the amounts and dates you agreed.
When you stay compliant
These terms appear after the account is open, or when someone checks on the company later.
Ongoing due diligence
The continuing part of the CDD rule: a bank monitors for suspicious transactions and, on a risk basis, maintains and updates customer information (FinCEN). Under a February 2026 order, a bank no longer has to re-identify beneficial owners at every new account. It still does so at the first account, when it learns facts that reasonably call the information into question, and as needed under its risk-based procedures (FinCEN order FIN-2026-R001).
Why it matters: A provider can come back with questions after approval, because this duty continues. A change such as a new member at 25 percent is the kind of fact that can prompt them, so keep your formation documents and ownership records current.
BOI report
A beneficial ownership information report filed with FinCEN. As of November 2026, FinCEN states that US companies are exempt and "no longer required to file BOI reports" (FinCEN).
Why it matters: The words overlap with the bank's check, but the duties do not. A US-formed LLC files no BOI report, whoever owns it, while its bank still identifies beneficial owners under the CDD rule. BOI reporting in 2026 covers who still reports and how to spot BOI scams.
W-8BEN renewal
A Form W-8BEN generally stays in effect from the date you sign it to the last day of the third succeeding calendar year, unless a change in circumstances makes it incorrect (IRS). A form signed in 2026 generally runs to 31 December 2029.
Why it matters: A payer can ask you for a new form when the old one lapses, and the 30 percent withholding risk returns if you do not provide it. Note the date when you sign, and replace the form if your details change.
Certificate of good standing
A state-issued document confirming the LLC's status on the state's records on the date of issue. Delaware, for example, issues a short-form certificate of status and a long-form certificate of good standing, and says its online status check does not produce an official certificate (Delaware Division of Corporations).
Why it matters: If a bank or provider asks for proof that the LLC is active, this is the document that answers it. Missed state filings can change the status, so keep them on your annual compliance calendar. US LLC documents explained covers what it shows.
Next steps
- If an application is in front of you: find each term above, then check that provider's rules in how to open a US business bank account from Egypt and gather the file with how to prepare your US LLC documents.
- If you are still comparing providers: read Mercury alternatives for non-US residents and Payoneer or a US business bank account.
- If a payer has asked for a tax form: take the W-8BEN and W-9 entries to a tax professional, and read the Form 5472 guide for the separate IRS filing.
- If you have not formed yet: start with can a non-US resident open a US LLC.
Foundlie's US formation service covers LLC formation in the state you choose, a registered agent for year 1, the EIN application and follow-up with the IRS, an Operating Agreement, your formation documents through a private portal, business bank guidance (Mercury, Relay) and Stripe and PayPal readiness. Approval from a bank or payment provider is not guaranteed, and US tax returns and bookkeeping are not included. The pricing page lists the current options, and you can contact us with questions.
This article provides general educational information and is not legal, tax or banking advice. Banking rules, IRS procedures and provider policies change; check the current source or consult a qualified professional for your situation.