Why Fake Addresses Are a Risky Shortcut

It has come to our attention that some so-called agencies providing services to cross-border businesses are providing fraudulent proof of physical addresses such as utility bills so their clients can open US bank accounts remotely after helping them form and register their business entity in the US.

Legal and Regulatory Risks

Falsifying business documents can lead to legal repercussions such as fines, account closures, and potential criminal charges for tax evasion or fraud. You might also get in trouble related to money laundering without knowing what other businesses were conducted at that address.

Business Credibility & Banking Challenges

Financial institutions conduct strict due diligence. Common mailboxes and registered agent offices are usually flagged within days. If fake documentation is detected, banks are very likely to close your account immediately, and your business could lose access to future banking services and credibility with financial partners.

State Tax Implications

Overseas businesses often overlook the implications of having an address in different states. Many states, like California and New York, consider merely having a business location in the state as a nexus, even if you do not provide service to that state. When you fail to file the required state tax returns, you are accruing interest and penalties that can add up over the years.

From Our Experience

At our firm, we strictly adhere to legal and ethical standards. We do not provide or support fraudulent documents. We have contacted multiple banks, national and regional, and got almost the same answer from all of them: 1. Nonresident owners must physically visit the bank to verify their identity (no remote opening), AND 2. Your business must have a physical address in the US, such as an office. Mailboxes and registered agents/virtual offices do not count. There could be some non-bank institutions that can function similarly to a bank when it comes to wire and ACH transfers, which can be opened remotely, but they also lack the same level of regulation and protection, such as FDIC-insured deposits that banks have.

Conclusion

Fraudulent address may seem like a shortcut and save cross-border business owners a round-trip flight ticket to the United States, but the risks far outweigh the benefits. By choosing compliance and transparency, you are directing your business to long-term success in the global market.