Source: https://rivet.global/blog/us-subsidiary-of-foreign-company-banking
Published: 2026-10-06 · Updated: 2026-10-06 · By Alexia M.

# Banking for a US subsidiary of a foreign company

How a foreign parent's US subsidiary opens accounts and stays compliant: documents, ownership through the parent, Form 5472 and intercompany payments.

## Key takeaways

- Banks open accounts for US subsidiaries with the entity's documents plus the foreign parent's registry extract and ownership chart.
- Beneficial owners are traced through the parent to individuals holding 25% or more.
- A 25% foreign-owned US corporation, or a foreign-owned single-member LLC, generally files Form 5472 with the IRS.
- Intercompany payments should follow written agreements and arm's-length pricing.

Foreign companies expanding to the US usually set up a subsidiary, often a Delaware corporation. The bank account is next, and the bank's questions go through the parent.

## Documents

| From | Documents |
|---|---|
| US subsidiary | Formation documents, EIN, bylaws or operating agreement |
| Foreign parent | Registry extract, ownership chart, board resolution |
| Ultimate owners | IDs for individuals with 25% or more, and a controller |

Translations may be needed for documents not in English.

## IRS filings

- 25% foreign-owned US corporations: Form 5472 with Form 1120.
- Foreign-owned single-member LLCs: Form 5472 with a pro forma 1120.

## Intercompany money

| Flow | Record |
|---|---|
| Capital from parent | Share issue or loan agreement |
| Management fees | Service agreement, invoices |
| Royalties | Licence agreement |
| Cost recharges | Invoices with breakdowns |

Prices should be arm's length. Payments should be in the subsidiary's own name.

## Currency

The parent may fund in euros, pounds or yen. A subsidiary that can receive in the parent's currency converts when it chooses.

## Paying into the United States: the local rail

| What | Detail |
|---|---|
| Local rail | ACH for batch payments; RTP and FedNow for instant transfers |
| Run by | Nacha for ACH; The Clearing House for RTP; the Federal Reserve for FedNow |
| Settlement | Same-day ACH within the business day, standard ACH the next; RTP and FedNow in seconds, 24/7, where both banks take part |

Source: [Nacha: Same Day ACH](https://www.nacha.org/rules/same-day-ach-moving-payments-faster). Checked when this guide was last updated; the scheme's own page has the current figures.

## Where Rivet fits

Rivet opens accounts for US subsidiaries of companies in supported countries, with USD details on Starter and EUR and GBP details on Growth, so funding from a European or UK parent can arrive in its own currency. Rivet is not a bank; regulated partner institutions hold the funds. See [Form 5472 guide](/blog/form-5472-guide).

## Questions

### Can a foreign company open a US bank account?

A US subsidiary can. A foreign company with no US entity has fewer options.

### What does the bank need from the parent?

The parent's registry extract, ownership structure, IDs for ultimate beneficial owners, and a board resolution authorising signatories.

### What is Form 5472?

An information return filed by 25% foreign-owned US corporations and foreign-owned disregarded entities, reporting transactions with related parties.

### How should money move between parent and subsidiary?

Under written intercompany agreements, with invoices, at arm's-length prices, recorded on both sides.