When Does a Canadian Business need a US Bank Account?

As more Canadian businesses sell into the United States, the question of when to set up a U.S. bank account comes up sooner than most founders expect. You don’t need to be operating a physical office in the States to run into USD challenges. In fact, many Canadian companies need a U.S. account long before they ever think about incorporating in the U.S. or expanding operations there.

The timing matters. Opening a U.S. account too early creates unnecessary admin. Opening it too late can slow growth, drain margins, and create avoidable financial friction. Here are the moments when a U.S. account starts to matter.
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1. You Earn Revenue in USD and Want to Keep It in USD

If you’re consistently getting paid in USD, it’s usually time to consider a U.S. bank account or a multi-currency business account that behaves like one.

This applies to:

• Shopify stores selling mostly to U.S. customers
• Amazon FBA sellers receiving USD payouts
• SaaS companies billing U.S. customers
• Agencies and freelancers serving U.S. clients

Holding USD instead of auto-converting every transaction protects your margins, gives you control over conversion timing, and helps you operate more strategically. If USD revenue becomes meaningful, the need becomes obvious.
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2. You Pay U.S. Suppliers or Contractors

Many U.S. vendors prefer ACH payments because they’re domestic, fast, and inexpensive. For Canadian businesses, paying via wire or card can lead to:

• unnecessary FX fees
• slow settlement
• higher processing costs
• reconciliation headaches

If you’re paying U.S. suppliers, influencers, or contractors regularly, having direct access to ACH saves cost and time. A U.S. account becomes even more relevant when payment volume grows or when vendors start asking for ACH instead of international wire.
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3. You Spend in USD for Advertising or SaaS Tools

If your business uses Meta, Google, TikTok, or other U.S. platforms, you’re likely spending in USD. Canadian cards often convert CAD to USD at rates that add 3 to 4 percent in quiet, invisible fees.

If a large part of your growth is tied to advertising or U.S.-priced tools, a USD account paired with a USD card becomes a simple way to:

• cut FX losses
• stabilize cost forecasting
• keep CAC predictable

When your marketing budget grows, the benefits quickly outweigh the setup effort.
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4. You’re Starting to Build a U.S. Presence

Some companies operate in the U.S. without ever incorporating. Others reach a stage where building a deeper presence makes sense. Common triggers include:

• hiring your first U.S. employee
• signing with a U.S. distributor or partner
• opening a U.S. warehouse or 3PL relationship
• expanding into retail or wholesale
• needing payroll or local disbursements

At this point, a traditional U.S. bank account or a global banking platform becomes a foundational part of your financial infrastructure.
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5. You Want to Reduce FX Exposure and Protect Margins

Many founders underestimate how much FX risk affects the business until it becomes a problem.

Examples:

• USD revenue converted instantly into CAD, even when USD expenses are coming up
• FX spikes reducing margins on cross-border sales
• Paying suppliers in USD right after receiving customer revenue in USD, but losing money to forced CAD conversions in between

A U.S. account or an multi-currency account lets you decide how and when to convert. If FX swings are affecting your margins, it’s time.
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6. You’re Outgrowing Canadian Banking Tools

Canadian banks are excellent for domestic business, but they’re not built for cross-border operations. You may need a U.S. account if:

• international wires are slow
• your bank forces FX on every USD payment
• your U.S. payouts take too long to arrive
• you can’t access ACH rails
• you can’t hold USD without paying a premium
• your card lacks multi-currency flexibility

Once these frictions start affecting operations or cash flow, founders typically look for a more global setup.
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7. You Are Scaling Faster Than Your Finance Stack Can Support

This applies to companies hitting new levels of repeatability.

Signs include:

• monthly USD revenue growing beyond casual levels
• significant recurring USD costs
• increased cross-border volume
• U.S. marketplace or wholesale deals
• marketplace payouts that require U.S. rails

At this stage, having the right financial infrastructure becomes strategic, not just operational.
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When These Signs Show Up, Loop Is the Easiest Path Forward

When USD becomes part of how you operate, you need something built for more than occasional cross-border transfers. Loop gives Canadian businesses a true USD business account, not a workaround.

With Loop, you can get paid in USD, hold USD, and pay U.S. vendors through local ACH rails, all without forming a U.S. company or visiting a branch. Payments move faster, suppliers are paid the way they expect, and you avoid the FX loss and delays that come with traditional banks.

Loop brings USD banking, global cards and multi-currency management into one platform so you can operate like a U.S. business while staying fully Canadian.

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