united-states business
Can my S-corp legally own a foreign bank account?
<p>Can my S-corp legally own a foreign bank account to collect deposits from foreign clients?</p>

<p>Additionally, can I keep that money in the foreign bank account and pay taxes against these funds from my personal savings account in US  (because S-corp is a pass-through entity anyway)?</p>

<p>Note that the intention is to report the foreign bank account with the IRS, it's just easier to have a foreign bank account to collect international payments and protect against currency fluctuations.</p>

<p>It is not illegal for an S corporation to own a foreign bank account, although reporting requirements under U.S. law are strict and the penalties for failure to comply are very severe.</p>

<p>I don't see any obvious reason that it is illegal to pay taxes against these funds from your personal savings account in the U.S., but that could raise an issue of failure to regarding corporate formalities by <a href="https://en.wikipedia.org/wiki/Commingling" rel="nofollow noreferrer">co-mingling funds</a>, which could constitute grounds to <a href="https://en.wikipedia.org/wiki/Piercing_the_corporate_veil" rel="nofollow noreferrer">pierce the corporate veil</a>. It would be better to take your funds and put them in an S corporation account and then pay taxes (other than U.S. income taxes) in that way.</p>
