Deciding on what payment methods to use can become difficult for either a C corporation, an LLC or a sole proprietorship. While some entrepreneurs decide that a Payoneer debit card is more suitable for their business, others feel more financially secured with a US bank account.
Payoneer – More suitable for e-commerce freelancers
Payoneer is a popular financial method among freelancers that activate in the e-commerce business. Sole proprietors sign up for a Payoneer account in order to make and receive payments from Payoneer partners such as Amazon which recognize it as a legitimate paying method.
If payment from a third party, unaffiliated to the Payoneer network, is necessary, independent entrepreneurs have access to additional tools in order to invoice with other currency payments. However, with a US bank account no additional tools and extra charges for these tools are required to make and receive business payments.
Protection of personal assets
Taking into account that Payoneer is used mostly by sole proprietorships, these types of businesses are not legally distinguished from their owners. Therefore, personal assets are linked to the business assets and in case of a lawsuit the owner may lose everything he or she possesses.
However, with a US bank account, any foreign residents which start a business abroad, not only benefits from not linking their personal assets with their business ones, but also their offshore wealth is secured and physical distance and legal complexity discourage the attempting to seize such accounts.
An US Bank Account ensures credibility to a new business
As a non US resident which is starting a business in the USA, you gain more credibility by owning a US bank account. A corporate bank account set in the US means that no matter where you’re working from, your business activates according to the US law. Therefore, vendors, suppliers and other companies are more likely to make business with start-ups which run under the US state law.
With an US bank account for non-residents, offshore entrepreneurs benefit from shielding their financial identity and avoid being exposed to criminal and corrupt authorities, whilst it is not the case with a Payoneer debit account. A Payoneer account is linked to the owner’s personal assets and is more exposed to credit card thefts.
Both payment methods ensure conversions of foreign currencies, but certain fees and taxes are required for Payoneer users. Moreover, a cheque written in an US dollar account is more promptly and widely accepted in any of the 50 American states, including the District of Columbia.
Nevertheless, a Payoneer debit card can be used only to make MasterCard payments, while with a US bank account transactions can be made easily all over the world without any limitations.
Opening a corporate US bank account has more advantages than a Payoneer debit account. With an US bank account, start-ups gain more credibility on the market, are legitimate and must act under the state law, benefit from a better protection on personal assets along with fewer charge fees.
For further information on the advantageous aspects of opening a US bank account contact Inc. Plan for a free 30 minute consultation.