US Banking for Canadian LLC Owners (2026)

If you are a Canadian founder with a US LLC, you have one advantage nobody else gets: TD Bank operates on both sides of the border. You can drive to a US branch, walk in with your passport and EIN letter, and walk out with an FDIC-insured business account. No other nationality has that option.

But the picture has changed since 2023. RBC sold its US retail banking to Citizens Bank. That killed the second direct Canada-US banking bridge. Meanwhile, fintech platforms like Mercury and Wise now accept Canadian LLC owners remotely, and the CAD-USD conversion question, which you face on nearly every transaction, introduces costs that compound fast if you pick the wrong method.

This guide covers the full picture: traditional banks, fintech platforms, currency conversion mechanics, and the FINTRAC/FinCEN reporting obligations that connect Canadian and US financial systems.

Traditional Banks: The Canadian Advantage

TD Bank

TD Bank is the most direct path to a US bank account for any non-resident founder. Period. Over 1,100 US branches, concentrated along the Eastern Seaboard from Maine to Florida.

What matters for Canadian LLC owners:

• Already a TD Canada Trust customer? You can open a US TD Bank account through the Cross-Border Banking program, linking both accounts under one relationship.
• In-person account opening at any US branch. Passport, LLC formation docs, EIN letter. I have opened accounts at US bank branches this way and the process is straightforward when you bring the right paperwork.
• FDIC insured. This is a real US bank, not a fintech riding on a partner bank's charter. Deposits insured by the FDIC up to $250,000.
• Cross-border transfers between TD Canada Trust and TD Bank US are simpler through the linked relationship, though transfer fees and FX markups still apply.

The downsides are real:

• If you are west of the Mississippi, good luck finding a branch.
• Monthly maintenance fees, per-transaction fees, wire fees. Traditional banking is not cheap.
• The FX markup on CAD-USD conversion through TD's internal transfer is opaque. Community reports put it at 1.5-2.5% above mid-market, which adds up.
• Online banking feels five years behind Mercury or Wise. Fewer integrations, no real API access.

The trade-off is clear: TD gives you something no fintech can. A full-service, FDIC-insured US bank account with an institutional connection to your Canadian bank. If stability matters more than features, this is the path.

RBC: Gone From the US

Royal Bank of Canada used to run US retail banking through RBC Bank. In 2023, they sold the whole operation to Citizens Financial Group.

That was the end of the second Canada-US banking bridge. If you are an RBC customer hoping to use that relationship for US banking, it no longer works. Citizens Bank bought the client base and branches, but they have no cross-border program like TD's. You would apply as any other non-resident.

RBC still operates internationally through Capital Markets and wealth management, but those are not small-business banking products.

Bottom line: TD is now the only traditional bank with a direct Canada-US banking bridge for LLC owners.

Fintech Platforms: Mercury, Wise Business, Relay

The fintech options are the same platforms available to all non-resident LLC owners. But Canadian founders get better approval odds and face a specific pain point that founders from other countries do not: the constant CAD-USD conversion.

Mercury

Mercury is where most US startup founders bank, and for good reason. Banking services through Choice Financial Group and Column N.A., Members FDIC. Deposits insured up to $5M through partner bank sweep networks.

For Canadian founders specifically:

• Canada is not on Mercury's prohibited list. You need a US-registered LLC and an EIN.
• Canadian applicants get approved at higher rates than founders from higher-risk jurisdictions. Canada's shared FATF membership, bilateral tax treaty, and common banking infrastructure with the US means lower compliance risk from Mercury's perspective.
• No SSN required. Canadian passport and LLC docs are enough.
• USD-only. Mercury does not hold CAD or convert currencies. You handle the USD side here, and use something else (Wise, typically) for conversion.

Fees: $0/month. No minimum balance. Domestic wires $5. International wires $5-$44. Foreign currency wires carry a 1% fee.

Wise Business

Wise Business is where Canadian founders get the biggest win compared to other nationalities. It is an Electronic Money Institution with multi-currency accounts in 50+ currencies, and critically, it includes CAD account details.

Why this matters for you:

• You get a CAD account (institution number + transit number + account number) that receives Canadian domestic transfers. USD revenue flows into the Wise USD side, CAD expenses get paid from the CAD side, and conversion between them happens at mid-market rate.
• 0.46% conversion fee on CAD-USD. Compare that to the 1.5-3% markup Canadian banks charge. On $10,000 CAD per month, that is $100-$250 saved every single month.
• Canadian passport accepted. No US visit needed.
• Not FDIC-insured. Funds are safeguarded in ring-fenced accounts at partner banks, but not covered by US deposit insurance or CDIC.

The catch: Wise gives you US account details (ACH routing number + account number) for receiving domestic transfers, but it is not a full US bank account. No lending, no check deposits, and some payment processors will not accept it.

Relay

Relay is a US-focused digital banking platform through Thread Bank, Member FDIC. Deposits insured up to $3M.

• US entity required with an EIN.
• $0 monthly fee on the Starter plan.
• Profit-first banking with separate sub-accounts for operations, taxes, reserves, and owner's pay.
• USD-only. Same limitation as Mercury.
• Non-resident acceptance is generally positive based on community reports, though less commonly used by Canadian founders than Mercury or Wise.

For Canadians, Relay works as a backup US account for redundancy. But it adds nothing Canada-specific. No CAD, no cross-border transfers to Canadian banks, no Canadian banking relationships.

CAD-USD Conversion: The Hidden Cost That Compounds

This is the section most Canadian founders skip, and it is the one that costs them the most money over time.

You are moving money across the border constantly. USD revenue in, CAD expenses out for housing, health insurance, living costs. Every conversion has a cost, and the difference between the cheapest and most expensive method is 10x or more.

Conversion Methods Compared

Norbert's Gambit: Near-Zero Cost for Large Transfers

Norbert's Gambit is a trick specific to the Canadian brokerage system. You buy a security that trades on both the TSX (in CAD) and a US exchange (in USD), journal the shares between the Canadian and US sides of your brokerage account, and sell in the other currency.

In practice:

1. Buy an interlisted ETF like DLR / DLR.U on the TSX, or a stock like Royal Bank that trades on both NYSE and TSX, in CAD
2. Ask the brokerage to journal the shares from the Canadian to the US side
3. Sell in USD
4. Withdraw

The cost is brokerage commissions only. $5-$10 per trade at most Canadian brokerages, $0 at commission-free platforms. No FX markup. Converting $50,000 costs maybe $10-$20 instead of the $750-$1,500 you would pay through a bank wire.

The downside: settlement takes 2-3 business days, prices can move slightly in the interim, and you need a brokerage with cross-border capability (Questrade, Interactive Brokers, or TD Direct Investing). Not worth the hassle for amounts under $5,000.

The split is simple: for large conversions (quarterly tax payments, profit distributions, lump-sum client payments), use Norbert's Gambit or Interactive Brokers FX. For regular smaller conversions under $5,000, Wise at 0.46% is hard to beat.

FINTRAC Reporting: The $10,000 CAD Threshold

FINTRAC is Canada's financial intelligence unit. If you are moving money between your US LLC and Canada, you need to know how this works.

The $10,000 CAD rule:

• Canadian financial institutions report international electronic fund transfers of $10,000 CAD or more to FINTRAC automatically. This is the Large International Electronic Fund Transfer Report.
• Your bank files the report, not you. It happens automatically.
• Both directions count. A $15,000 USD wire from Mercury to TD Canada Trust triggers it. A $12,000 CAD transfer to fund your US LLC also triggers it.

Do not try to split transfers to stay under the threshold.

This is called "structuring" and it is a criminal offense under the Proceeds of Crime Act. Sending two $8,000 transfers on consecutive days instead of one $16,000 transfer, specifically to avoid the reporting threshold, creates criminal liability. Not a fine. Criminal liability.

What actually happens when a report is filed:

FINTRAC receives the data. Your transfer is not blocked or delayed. FINTRAC can share data with the CRA, law enforcement, and international partners including FinCEN.

The practical reality: consistent monthly transfers with clear business purpose create a clean trail. Irregular, unexplained transfers create flags. Move money in predictable patterns and this is a non-issue.

FATCA and CRS: Both Tax Authorities Already Know

Canada and the US share bank account data automatically through two overlapping systems. You cannot opt out.

FATCA (US-Side Reporting)

The Foreign Account Tax Compliance Act requires US financial institutions to report accounts held by non-US persons to the IRS. Under the Canada-US FATCA agreement:

• Mercury, Wise, Relay, TD Bank US all report your account information to the IRS.
• The IRS shares this data with the CRA.
• The CRA sees account balances, interest income, and gross proceeds.

You do not file anything for this to happen. It triggers automatically because the account exists.

CRS (Canada-Side Reporting)

The Common Reporting Standard is the OECD's multilateral version of FATCA. Canadian financial institutions report account information for non-resident holders, and the CRA exchanges data with over 100 countries.

What this means in practice: the CRA sees both sides. Your US account data arrives through FATCA. Your Canadian account data is available through CRS. If income earned through a US LLC does not appear on your Canadian T1 return, the discrepancy is visible to the CRA without anyone requesting an audit.

Cross-Border Payment Strategy

The recurring question for Canadian LLC owners: where to hold money, when to convert, and how to route payments without bleeding money on FX markups.

A Practical Structure

How money flows:

1. USD revenue lands in Mercury (Stripe payouts, client ACH, wires)
2. When you need CAD, transfer USD from Mercury to Wise, convert at mid-market (~0.46%), send CAD to your Canadian bank
3. For large conversions over $5,000, use Norbert's Gambit through a brokerage instead of Wise
4. CRA tax installments (paid in CAD) get funded through the same conversion path
5. US tax obligations, if any under treaty treatment, are paid directly from Mercury in USD

Why this setup works:

• USD stays in USD until you actually need Canadian dollars. No premature conversion at bad rates.
• Wise kills the 1.5-3% bank markup on every conversion.
• Mercury gives you the US banking presence that payment processors and clients expect.
• Your Canadian bank handles CRA payments and maintains your Canadian financial footprint.
• Built-in banking redundancy: if Mercury goes under compliance review, Wise can receive USD through its US account details as a stopgap.

FAQ

Can a Canadian citizen open a US bank account without visiting the US?

Yes. Mercury, Wise Business, and Relay all accept remote applications from Canadian LLC owners. TD Bank offers cross-border opening for existing TD Canada Trust customers, though business accounts may still require an in-person branch visit. Traditional banks like Chase, Bank of America, and Wells Fargo generally require you to show up in person.

Is TD Bank the same entity in Canada and the US?

No. TD Bank, N.A. (US) and TD Canada Trust (Canada) are separate legal entities under the same parent, Toronto-Dominion Bank. Different regulators (OCC/FDIC vs. OSFI/CDIC), separate deposit insurance, independent operations. A compliance freeze at one does not automatically hit the other, which is itself a useful form of redundancy.

What happened to RBC US banking?

RBC sold its US retail and commercial banking to Citizens Financial Group in March 2023. Former RBC Bank US clients were migrated to Citizens. Citizens has no Canada-specific cross-border program, so if you were using RBC for this, you need a new setup.

How much does Wise save on CAD-USD conversion compared to a bank?

Wise charges about 0.46% at mid-market rate. Canadian banks typically mark up 1.5-3% plus a $25-$45 wire fee. On $10,000, the difference is $100-$250. On $120,000 annually (a reasonable figure for a founder paying Canadian living expenses from US revenue), that is $1,200-$3,000 saved per year. For individual conversions over $5,000, Norbert's Gambit brings costs to near-zero.

Do I need to report my US bank account to the CRA?

If your foreign property exceeds $100,000 CAD at any point during the year, you need to file Form T1135 with your tax return. US bank account balances count toward this threshold. Income earned through a US LLC is also reportable on your Canadian T1. And remember: FATCA means the CRA already receives your US account data automatically, so any gap between what they see and what you file is visible.

Key Takeaways

• TD Bank is the only traditional bank with a direct Canada-US bridge. Geographic proximity makes in-person opening at any US bank feasible too.
• RBC sold its US operations to Citizens in 2023. That second bridge is gone.
• Mercury and Relay accept Canadian LLC owners remotely. Canadian applicants get better approval odds due to regulatory alignment.
• Wise Business provides the cheapest CAD-USD conversion at ~0.46% mid-market rate, saving $1,200-$3,000/year compared to bank FX markups
• Norbert's Gambit brings large conversion costs ($5,000+) to near-zero, but takes 2-3 settlement days
• FINTRAC reports international transfers of $10,000 CAD or more automatically. Splitting transfers to stay under the threshold is a criminal offense.
• FATCA and CRS mean the CRA already sees your US account data. Any gap between US income and Canadian filings is visible without an audit.
• Three-account structure (Mercury + Wise + Canadian bank) gives you cost efficiency and banking redundancy

Related Reading

• Mercury vs Wise vs Relay: Real Fees for Non-US Founders
• Wise vs Payoneer vs Mercury: Multi-Currency Compared
• Banking Redundancy for Cross-Border Founders
• How to Get an EIN Without an SSN
• Can You Use Wise Business as a US Bank Account?

References

• TD Bank US: Personal & Business Banking — TD Bank's US operations and cross-border banking program
• TD Cross-Border Banking — Cross-border account linking for TD Canada Trust and TD Bank US customers
• Citizens Bank: About Us — Citizens Financial Group, acquirer of RBC Bank US operations
• FINTRAC: Large International Electronic Fund Transfer Reports — Reporting requirements for transfers of $10,000 CAD or more
• Proceeds of Crime (Money Laundering) and Terrorist Financing Act — Canadian anti-money laundering legislation including structuring provisions
• Canada-US Tax Treaty — Bilateral tax treaty and FATCA intergovernmental agreement
• CRA: Form T1135 Foreign Income Verification Statement — Foreign property reporting requirements for Canadian residents
• FATCA Intergovernmental Agreements — US Treasury list of FATCA partner countries including Canada
• CRS: Enhanced Financial Account Information Reporting — CRA guidance on Common Reporting Standard implementation
• Wise Business Account — Multi-currency account features and supported currencies
• Wise Business Pricing — Transfer fees and currency conversion costs
• How Wise Keeps Your Money Safe — Wise fund safeguarding model
• Mercury — US business banking platform for startups
• Relay Financial: Business Banking — Relay business banking features and FDIC coverage via Thread Bank
• FDIC: Deposit Insurance — Federal Deposit Insurance Corporation coverage rules
• CDIC: Canada Deposit Insurance — Canada Deposit Insurance Corporation coverage for Canadian bank accounts
• IRS: Employer Identification Number (EIN) — How to obtain an EIN for non-resident business entities