how to create a us Money Service Business Company

How to Create a U.S. Money Service Business Company

A money service business operates an exchange service that transmits or converts money for customers. It could be a business that sells check cashing services, money order services, foreign currency exchange services, etc. It could also be a business operating a foreign exchange or cryptocurrency exchange.

Are you looking to create a money service business company in the United States? If so, you must take the following actions to develop your company lawfully.

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Create the Company Entity

The first step is to create the company entity of your money service business. Some examples of company entities include Limited Liability Company (LLC), S Corporation, Limited Partnership, etc. We recommend registering your money service business as an LLC because it eliminates your personal liability for the company’s actions.

Register the Company with the Internal Revenue Service

The next thing you should do is register your money service business with the Internal Revenue Service (IRS). Your company will receive an Employer Identification Number (EIN) after the IRS receives and files your registration. Every for-profit U.S. business must have an EIN to employ people and file commercial tax returns.

Register the Company with the Financial Crimes Enforcement Network

The owner or controlling entity of a new U.S. money service business must register with the U.S. Department of the Treasury. To do so, you must fill out and file FinCEN Form 107 within 180 days after forming your business.

FinCEN stands for “Financial Crimes Enforcement Network.” It is a special bureau of the Department of the Treasury responsible for gathering and reviewing the financial transactions of companies and individuals. The bureau aims to prevent financial-related crimes like money laundering and terrorist financing.

Registering your business with FinCEN is critical. Otherwise, you could face civil and criminal penalties for failure to register or not comply with the registration requirements.

Establish an Anti-Money Laundering Compliance Program

U.S. Money Service Business CompanyThe U.S. Federal Government requires money service businesses to establish an anti-money laundering compliance program for their operation. Since a money service business is considered a financial institution, it must abide by strict federal regulations to prevent money laundering activities. The U.S. Treasury Office will review your company’s compliance program to verify that it satisfies all national legal requirements and regulations. We recommend hiring an attorney to help you create your compliance program so you do not run into problems during registration.

Contact us to Create a U.S. Money Service Business Company

If you want to create a U.S. Money Service Business Company, please contact us today to learn more. We are here to help with everything related to U.S. Money Service Business Company creation.

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