In today’s world, launching a business in the United States has become more accessible than ever—even if you don’t live in the United States. With the ease of forming a U.S. LLC online and the surge of fintech (online) banks like Mercury, Relay, and Wise, you can build a fully operational U.S. business from anywhere in the world. But there’s a critical stipulation that many non-U.S. entrepreneurs overlook: the type of bank you choose to work with can make or break your business.

What Is a Fintech Bank?

A fintech bank is not a traditional bank. It’s a technology-driven financial platform that provides banking services through the internet. Companies like Mercury, Relay, and Wise are well-known examples. These platforms offer services such as business checking accounts, payment processing, and expense management.

However, here’s the key distinction: fintech platforms are not actual banks. They partner with real U.S. banks behind the scenes—and usually with smaller regional banks. They act as middlemen between you and your funds.

Why Fintech Banks Seem Appealing

For non-U.S. residents who form U.S. LLCs, fintech banks offer:

Remote access: You can open an account from anywhere in the world.

Fast onboarding: Less documentation and quicker approval compared to traditional banks.

Modern tools: Easy-to-use dashboards, connected apps and simple screens.

But while these features seem attractive at first, they often come with hidden risks.

The Hidden Risks of Fintech for Your U.S. LLC

1. Instability in Banking Partnerships

Fintech’s rely on partnerships with smaller U.S. banks to operate legally. When those partnerships change (which happens more often than you think) it can create serious disruption for business owners.

• Your existing fintech account may be suspended or closed if their banking partner changes.
• You’ll be forced to undergo new KYC (Know Your Customer) and identity verification processes.
• Your new bank partner might have different compliance standards, requiring different documents or even disqualifying you entirely!

Imagine having your business revenue frozen or losing access to your funds just because your fintech provider changed partners. For non-U.S. residents who depend on smooth financial operations to run their LLCs remotely, this is a massive operational risk.

2. Limited Customer Support and Accountability

With a fintech bank, there’s no physical branch you can visit. When issues arise—and they will—you’re often left dealing with generic email responses or chatbots.

• There’s no personal relationship with a banker.
• Escalating issues can take weeks or months.
• Fintechs are not held to the same customer service standards as larger traditional banks.

This lack of accountability can be disastrous if you’re facing an urgent tax filing, merchant account approval, or client payment issue.

3. Risk of Account Freezes or Closures

Because fintech banks cater to international clients, they are under heavy scrutiny from regulators. They may freeze accounts at the slightest sign of non-compliance or risk—even without prior notice. 

Sometimes, these money apps also switch banks and may suddenly shut down your account.

But here’s the problem:

You can’t just transfer your money to another bank digitally.

Instead, the fintech will have a physical check mailed to you. 

Now you need:

•  A real physical address in the U.S.
•  A real bank account to deposit that check

If you don’t have those, you’ll be unable to access the funds that you’ve built up in your fintech bank account—and it may cause your whole business to slow to a crawl or hault.

For non-U.S. residents, this means:

• Unexpected interruptions to your cash flow
• Delays in paying suppliers or employees
• Long re-verification processes with uncertain outcomes
• Having to open a physical bank to deposit the check in

4.) Inability to Deposit Physical Checks

Some business owners from other countries get paid with checks sent by mail. Sometimes, they try to deposit those checks using a money app on their phone (called a fintech app). But many times, it doesn’t work.

And most of these apps won’t let you deposit a real paper check at all.

This means the business can’t get their money, and they waste a lot of time and energy trying to figure out how to fix it. 

Why Physical Banks Are a Better Choice for Non-U.S. Business Owners

Unlike fintech banks, traditional physical banks like Chase, Bank of America, and Wells Fargo offer:

Stable relationships that don’t rely on third-party partnerships

Established compliance protocols and long-term reliability

In-person support and accountability from a real banker

Stronger global reputations, which matter when you apply for credit or work with international partners

Opening an account with a physical U.S. bank may take more effort upfront—but it gives you long-term stability and credibility, which is essential when scaling your business.

The Biggest Obstacle? Physical Presence Requirements

The major downside for non-U.S. residents is that most U.S. physical banks require you to visit a branch in person to open a business bank account. This makes it difficult or even impossible for foreign entrepreneurs to access the benefits of traditional banking.

That’s where working with a U.S.-based expert becomes critical.

How TonyDurante.us Solves This Problem

At tonydurante.us we specialize in helping non-U.S. residents form and operate successful U.S. LLCs with reliable, long-term banking solutions.

What sets us apart?

•  Access to Physical U.S. Banks

Tony Durante has direct relationships with trusted physical banks in the United States. This gives our clients:

• The ability to open accounts without relying on unstable fintech platforms
• Access to real U.S. banks and bankers who understand your business
• Privacy: U.S. banks can’t share your information—not even with the U.S. government.

• Business LLC Strategist on Your Team

Tony is not just a consultant—he is a business LLC strategist and expert who understands:

• U.S. business regulations for foreign owners
• Tax compliance and structuring
• The real-world issues international entrepreneurs face

This strategic guidance ensures that your U.S. LLC is built for longevity and success from day one.

Final Thoughts: Don’t Let Fintech Jeopardize Your Business

While fintech platforms may seem convenient, they come with serious drawbacks for non-U.S. business owners. The risk of unstable banking relationships, account freezes, and inconsistent compliance requirements can derail your entire operation.

Your U.S. LLC deserves a solid foundation. That starts with choosing the right banking partner and working with someone who understands both the legal and financial aspects of running a U.S. business from abroad.

If you want to build a sustainable, scalable U.S. LLC, avoid fintechs and online banking. Instead choose a partner who can guide you toward long-term success.

Get started today with Tony Durante at tonydurante.us and gain access to physical U.S. banking relationships, expert LLC strategies, and peace of mind.