What is U.S. Nexus and Why Does Your Business Need It?

Remote Businesses
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If you are a foreign entrepreneur or non-U.S. business owner, establishing a U.S. Nexus is essential for operating legally and accessing U.S. financial services. U.S. Nexus refers to a business’s legitimate connection to the United States. It is required for activities such as opening a U.S. business bank account, registering for state licenses, paying taxes, and working with U.S.-based customers or investors.

A U.S. Nexus can be established through physical presence, U.S.-based operations, or stakeholders located in the United States.

How to Establish U.S. Nexus for Your Business

  1. Physical Presence in the U.S.

    • Maintain a U.S. office, branch, or subsidiary (can be leased or owned)
    • Use a U.S. mailing address or other verifiable physical location tied to your business

  2. U.S.-Based Owners, Officers, or Employees

    • Employ at least one officer, director, or employee based in the United States

  3. U.S. Payroll

    • Pay employees through U.S. payroll providers like Gusto or ADP

  4. U.S. Customers, Vendors, or Partners

    • Demonstrate business relationships with U.S.-based clients, suppliers, or service providers
    • Provide supporting invoices, contracts, or agreements

  5. U.S. Investors

    • Show documented funding from U.S.-based investors via wire transfer records or investment agreements

U.S. Physical Address Requirements

A valid U.S. physical address is often a core requirement for opening a U.S. business bank account, verifying your business, and complying with regulatory obligations. For example, Mercury Bank and other U.S. financial institutions require a physical address and do not accept P.O. boxes, virtual addresses, mail centers, or registered agent addresses.

Acceptable proof of a U.S. physical address includes:

  • Government-issued ID (driver’s license, state ID, resident card)
  • Signed lease agreement for office
  • Recent utility bill or mortgage statement (within 90 days)
  • Bank or credit card statement (within 90 days, excluding Mercury statements)
  • Proof of occupancy
  • Subscription invoices, tax documents, or pay stubs showing a U.S. address

These requirements ensure your business is verifiable and legally recognized in the United States.

Why U.S. Nexus is Important

  • Enables opening a U.S. business bank account from abroad
  • Ensures compliance with state and federal taxes
  • Provides credibility with U.S. clients, investors, and partners
  • Supports business growth in the U.S. market

Tips for Foreign Founders

  • Use address services like TruLease for a remote U.S. physical address to help support bank verification requirements
  • Maintain clear records of invoices, contracts, and correspondence with U.S. partners
  • Ensure at least one U.S.-based stakeholder if possible to strengthen your Nexus