Substack Writers in Vietnam Face Specific Hurdles
Substack writers based in Vietnam encounter distinct challenges when seeking a U.S. bank account. Unlike U.S. residents or those with established U.S. business entities, Vietnamese writers often face immediate roadblocks due to their non-resident status and the lack of a U.S. tax treaty with Vietnam. Stripe, the primary payout processor for many Substack newsletters, requires U.S. tax identification for reporting purposes, which typically necessitates a U.S. bank account. Without this, writers may face higher withholding taxes or payout delays. The typical U.S. national banks are not set up to onboard non-residents remotely, creating a significant gap for this growing segment of content creators.
When is a U.S. Bank Account Required?
A U.S. bank account becomes necessary for Substack writers from Vietnam primarily due to Stripe's payment processing and U.S. tax reporting obligations. When you earn income through Substack and receive payouts via Stripe, U.S. tax law requires that these earnings be reported. For non-U.S. persons, this often involves providing a U.S. Taxpayer Identification Number (TIN). While an ITIN can be obtained without a U.S. bank account, many financial institutions, including Stripe, prefer or require a U.S. bank account linked to your TIN for seamless transactions and tax documentation. This is especially true if you operate as a U.S. business entity, such as a U.S. LLC, which itself requires an EIN for tax filings like Form 5472.
Essential Documents for Application
Opening a U.S. bank account as a non-resident requires specific documentation. For business accounts, you will generally need an Employer Identification Number (EIN) confirmation letter, which is issued by the IRS upon approval of Form SS-4. You'll also likely need formation documents for your U.S. business entity, such as Articles of Organization if you form a U.S. LLC. Personal identification is critical; this includes a clear copy of your passport. Proof of residential address, both in Vietnam and potentially for your U.S. entity if applicable, is also standard. Some banks may request a utility bill as additional proof of address. The exact documents can vary, so confirming the bank's specific requirements is vital.
The Application Process and Timeline
The process for opening a U.S. bank account remotely typically begins with an application to a bank or fintech provider. This involves submitting all the required documentation, including your EIN and personal identification. The bank will then conduct Know Your Customer (KYC) and Anti-Money Laundering (AML) checks. If approved, the account is established. From the submission of a complete application to having an active account and receiving your debit card, the typical timeline is between 5–10 business days. This streamlined process is a key benefit of using specialized services that cater to non-residents, as traditional banks often have much longer or impossible remote onboarding procedures.
Common Pitfalls for Vietnamese Substack Writers
Substack writers from Vietnam often encounter specific pitfalls when trying to open a U.S. bank account. A major one is applying to large U.S. national banks that explicitly decline non-resident applicants or have stringent in-person requirements. Another common mistake is neglecting the need for an EIN before applying for a business bank account; many fintech solutions require this foundational U.S. tax ID. Missing or incomplete documentation is also frequent, leading to application delays or rejections. For writers operating as a U.S. LLC, failing to understand requirements like filing Form 5472 can complicate the banking setup. Ensuring your name and address details are consistent across all submitted documents is also critical.
How a Certified Acceptance Agent (CAA) Streamlines the Process
Using a Certified Acceptance Agent (CAA) significantly simplifies the ITIN application process, which is often a prerequisite for obtaining a U.S. bank account as a non-resident. A CAA, like those at itin.net, is authorized by the IRS to assist taxpayers in obtaining an ITIN. They can review your original documentation and transmit your Form W-7/application to the IRS on your behalf. This bypasses the need to mail original, sensitive documents directly to the IRS, reducing risk and speeding up the process. For U.S. bank account opening, especially when an EIN is also required, working with a service that understands the entire compliance chain, from ITIN/EIN to bank setup, offers a more integrated and efficient path. This integrated approach is what itin.net provides.
Next Steps for U.S. Bank Account Access
After securing your U.S. bank account, the next practical step is to link it to your Stripe account for seamless Substack payouts. Ensure your U.S. tax identification number (ITIN or EIN) is correctly updated with Stripe for accurate tax reporting. If you haven't already obtained an EIN or ITIN, completing these applications is a priority. For writers establishing a U.S. business presence, forming a U.S. LLC is a common and beneficial step, which also requires an EIN. Review the itin.net Basic Banking Setup or the Full Banking Bundle to understand service options and pricing. If you have specific questions about your situation, contacting itin.net for guidance is recommended.
Practical tips
- Use your full legal name exactly as it appears on your passport for all applications.
- Ensure your Vietnamese residential address is clearly provided, along with any U.S. address if applicable for your business.
- Apply for an EIN before attempting to open a business bank account, as most providers require it.
- If forming a U.S. LLC, ensure you have an Operating Agreement in place before applying for banking services.
- Keep digital and physical copies of all submitted documents for your records.
Frequently asked questions
Can I open a U.S. bank account from Vietnam without an ITIN or EIN?
While some personal accounts might be possible without a TIN, business accounts and those needed for platforms like Stripe generally require a U.S. Taxpayer Identification Number (like an ITIN or EIN). You can apply for an ITIN using Form W-7, and an EIN using Form SS-4, even while residing in Vietnam.
How long does it take to get an EIN for my Substack business?
If you have an ITIN, you can typically apply for an EIN online or via fax. The process is usually very fast, often within minutes to a few business days after IRS processing. Without an ITIN, the process might take longer, especially if applying via mail.
Will I need to visit the U.S. to open a bank account?
No, you do not need to visit the U.S. to open a bank account. Services like itin.net specialize in assisting non-residents, including those in Vietnam, to open U.S. bank accounts remotely, often leveraging fintech solutions like Mercury, Relay, or Brex.
What is the difference between an ITIN and an EIN?
An ITIN (Individual Taxpayer Identification Number) is for individuals who need a U.S. tax ID but do not qualify for an SSN. An EIN (Employer Identification Number) is for businesses and is used to identify a business entity to the IRS. Substack writers often need an EIN if operating as a U.S. business, or an ITIN for personal tax reporting.
Can I use my Vietnamese bank account for Substack payouts?
Stripe, which handles Substack payouts, generally requires a U.S. bank account for non-U.S. individuals and businesses to ensure proper tax reporting and compliance. Using a Vietnamese bank account directly is usually not feasible for Substack payouts via Stripe.
What are the tax implications for Substack writers in Vietnam earning USD?
Vietnam does not have a U.S. tax treaty, meaning U.S.-sourced income may be subject to a default 30% U.S. withholding tax. Obtaining a U.S. Taxpayer Identification Number (ITIN or EIN) and potentially forming a U.S. entity can help mitigate this by allowing for proper tax filings like Form W-8BEN and potentially reducing withholding rates. Consulting with a tax professional familiar with U.S.-Vietnam tax matters is advised.
