Novo vs Mercury for Non-Residents
Both Novo and Mercury market themselves as startup-friendly business bank accounts, but their eligibility rules for non-US founders are quite different in practice. Here is what actually matters if you do not live in the United States.
The short answer
If you are a non-resident founder with no US address and no Social Security Number, Mercury is generally the more workable option of the two. Novo can work for some non-residents, but its account opening flow was built primarily around US-based founders, and several of its requirements assume a US identity document or SSN that many European founders simply do not have. Neither bank is a chartered bank itself. Novo runs on Middlesex Federal Savings and Mercury partners with Choice Financial Group and Column, so in both cases you are opening an account through a partner bank with a fintech layer on top.
Eligibility: what each one actually asks for
This is the part that trips people up. Marketing pages say 'open in minutes,' but the underwriting behind the scenes cares about a few specific things: your entity type, your ID document, your US mailing address, and whether you have an SSN, an ITIN, or neither.
| Requirement | Novo | Mercury |
|---|---|---|
| US entity required | Yes, LLC or corporation | Yes, LLC or corporation |
| EIN required | Yes | Yes |
| SSN or ITIN | Often expected; non-residents without either can face friction or rejection | Not mandatory; passport and business documents can be enough |
| US physical address | Typically required for mail and verification | Registered agent or virtual address is generally workable |
| Remote onboarding for non-residents | Inconsistent, varies by case | Built specifically for this use case |
| Underlying bank | Middlesex Federal Savings | Choice Financial Group / Column |
None of this means Novo is a bad product. It has a loyal small business following in the US. It simply was not designed with foreign-owned, foreign-founder LLCs as the primary customer, and Mercury was.
Features side by side
Once you are past eligibility, the day-to-day feature sets are more comparable than people expect.
- Invoicing: Novo has built-in invoicing tools aimed at freelancers and small service businesses. Mercury has invoicing too, plus more robust support for multiple team members and sub-accounts, which suits founders scaling past a solo operation.
- Debit and credit cards: Both issue virtual and physical debit cards. Mercury also offers a charge card (Mercury IO) with spend controls, which is useful once you have some revenue history, though approval is not guaranteed and depends on your account activity.
- International transfers: Mercury generally has stronger support for receiving and sending international wires, which matters if your customers or contractors are outside the US. Novo's international wire support is more limited.
- API and integrations: Mercury leans into API access for developers and connects well with accounting tools. Novo integrates with common small business software but has a lighter developer focus.
- Fees: Both advertise no monthly account fees on their core accounts, though foreign transaction and wire fees differ and should be checked directly since pricing changes.
Why this matters beyond the bank account
A US business bank account only works if the rest of your compliance stack is in order. You need the LLC formed correctly, an EIN obtained (which for non-residents means filing Form SS-4 by fax or mail since there is no SSN to apply online), and a plan for the ongoing federal filing obligation. A foreign-owned single-member LLC with no US income still has to file Form 5472 alongside a pro-forma Form 1120 every year. This is an information return, not a tax calculation, but skipping it risks a penalty starting at 25,000 dollars. None of this is optional just because the LLC had no US sales.
This is where a lot of founders get stuck choosing a bank before they have sorted the entity and tax ID pieces, then wonder why the bank application stalls. Founders Credit exists for exactly this gap. We handle the LLC formation, ITIN application, EIN via SS-4, and get you set up with a US business bank account and card, done for you and fully remote, so you are not piecing together Reddit threads about which neobank might approve you.
Which one should you actually pick
If you have no SSN, no ITIN yet, and no US address, start your evaluation with Mercury. It was built for exactly this profile and remote onboarding is standard practice there, not an edge case. If you already have an ITIN, a US mailing address through a registered agent or mail forwarding service, and you specifically want Novo's invoicing tools, it becomes a fair option to test alongside Mercury. Many founders end up opening a Mercury account first for reliability and considering Novo later as a secondary account once the business has US operating history.
Glossary
LLC: Limited Liability Company, the standard US entity type for small businesses and non-resident founders due to its simple structure and pass-through taxation.
EIN: Employer Identification Number, issued by the IRS to identify a business for tax and banking purposes. Non-residents apply via Form SS-4 by fax or mail.
ITIN: Individual Taxpayer Identification Number, issued to individuals who need a US tax ID but are not eligible for a Social Security Number. It does not require a visa or US residency.
SSN: Social Security Number, issued to US citizens and certain authorized workers. Most non-resident founders do not have one and use an ITIN instead.
Form 5472: An annual IRS information return required for foreign-owned single-member LLCs, filed together with a pro-forma Form 1120, even when the business had no income.
Registered Agent: A person or company designated to receive legal and state correspondence on behalf of your LLC in its state of formation.
Frequently asked questions
Can a non-US resident open a Novo account without an SSN?
It depends on the individual case, but Novo's process was built with US-based founders in mind and many non-residents without an SSN or a US address run into friction or outright rejection. Mercury tends to be more consistent for this profile.
Does Mercury require an ITIN to open a business account?
No. Mercury generally accepts a passport and business formation documents without requiring an SSN or ITIN, which is one reason it is popular among non-US founders.
Is Wyoming the best state to form an LLC before opening a Mercury or Novo account?
Wyoming is a common low-cost default for non-resident founders due to its simple annual requirements and no state income tax, though your best state can depend on where you plan to do business.
Do I still need to file taxes if my foreign-owned LLC had no US income?
Yes. A foreign-owned single-member LLC must still file Form 5472 with a pro-forma Form 1120 annually. It is an information return, not a tax bill, but missing it can trigger a substantial penalty.
Can Founders Credit set up the LLC, EIN, ITIN, and bank account together?
Yes, that is the core of the service. Founders Credit handles LLC formation, the ITIN application, the EIN via Form SS-4, and gets your US business bank account and card set up, all done for you remotely.
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