Opening a U.S. Business Bank Account | SnapMailbox (2024)

How SnapMailbox Can Help You Open a U.S. Business Bank Account

Did you know that banks nationwide are sweeping their databases of business addresses? Federal banking regulations require businesses to have a physical address to have a business bank account. Unfortunately, mailbox addresses, P.O. Boxes, and registered agent addresses don’t count.

Your bank might close or suspend your account after 30 days if they find that you don’t have a proper physical address on file. Luckily for you, we can cover your proof of address options so you can open or maintain your business bank account without issue.

What Does an “Acceptable Physical Address” Mean for Your Business Bank Account?

For the purposes of federal banking regulations, a physical address is defined as an address belonging to a physical building, whether that’s a home, office, or office suite in a corporate building. You might be able to use a residential address or not, depending on your bank.

Your bank will check the following to confirm that the physical address you provide is acceptable under federal banking regulations:

• They will cross-reference your address against the USPS database to check if it’s a mailbox address. Some banks might also check if it’s a registered agent address. Both of these would be unacceptable.
• They’ll request a proof of address, such as a lease agreement or utility bill to show the address physically exists and you own it. A city or county business license can sometimes be considered as proof of your address, but we recommend obtaining a list of acceptable documents beforehand.

What Doesn’t Qualify as a Physical Address?

There are specific types of addresses that are flat out not considered physical addresses. These include:

• P.O. boxes, meaning stand-alone lockable mailboxes located in a post office
• Mailbox rental shop addresses, such as those for UPS Stores
• Virtual mailbox services or similar addresses marked as Commercial Mail Receiving Agent (CMRA) in the postal address database

Additionally, the definition of a physical address differs from that of other common forms of addresses, specifically commercial street addresses, mailing addresses, and registered agent addresses.

Commercial Street Address Vs. a Physical Address

A commercial street address commonly refers to an address belonging to a commercial building. The word “commercial” differentiates it from a residential address. It doesn’t automatically mean it can function as a physical address per regulations. That will depend on whether the commercial address is categorized as a CMRA address.

Mailing Address Vs. a Physical Address

Mailing addresses can be any type of address because they’re mainly used by banks or other entities as a place to send correspondence. This means you have fewer hoops to jump through when establishing a mailing address, as physical addresses must adhere to federal regulations.

Registered Agent Address Vs. a Physical Address

If you’ve formed an LLC, Corporation, or any other state-registered business entity, you’ve likely had to procure a registered agent. A registered agent receives and forwards legal documents on behalf of your business. They can be an individual or a business but are considered separate entities for purposes of federal regulations on business physical addresses.

What Are My Options for a Physical Address for a Business Bank Account?

You can get a physical address for a business bank account in two main ways:

1. Use a Residential Address

   If your home is in the U.S., and your bank accepts residential addresses for the purpose, this is a viable option.

2. Obtain a Real Commercial Office

   The least flexible and likely most high-cost option, but a commercial office does offer greater security than a residential address.

   Neither option is ideal. You lose privacy and security by going with a residential address, but commercial space can be a costly, long-term commitment you might not be ready to make.

   Luckily for you, we can help.

Introducing SnapMailbox’s Business Address Solution

We’re delighted to share one of our key solutions for clients — business addresses.

With our help, you’ll be able to manage your postal mail online while having a credible, secure physical address for your business. We have a variety of optimal locations available nationwide, all located in business-heavy areas to increase confidence in your business.

You’ll be able to choose the address that works best for you and start using it for your needs immediately. Of course, you can also use this address to receive mail, which we can scan or forward to you at your request.

As a physical business address, it will satisfy an essential requirement for opening a U.S. bank account. Take a closer look to see how our business address solution works!