Source of Funds Documentation
What US banks need to verify your investment capital
More is Better
Banks never reject for too much evidence
Prepare Before Wire
Gather docs before sending money
Tell the Story
Include a cover letter
Paper Trail
Show funds moving account to account
SOF vs SOW: What's the Difference?
Source of Funds (SOF)
- Where this specific money came from
- Required for most wire transfers
- Example: "Proceeds from apartment sale"
Source of Wealth (SOW)
- How you accumulated overall wealth
- Required for transfers over $500K
- Example: "20 years as tech entrepreneur"
Cover Letter Template
💼 Employment Income / Salary Savings
Easiest source to document with clear paper trail.
Required Documents
- Employment letter (name, title, salary, dates)
- Pay stubs (3-6 months)
- Tax returns (2-3 years)
- Bank statements (12-24 months)
- Employment contract
What Banks Verify
- Consistent salary deposits
- Legitimate employer
- Income matches accumulated savings
- Tax returns show declared income
🏢 Business Income / Self-Employment
Requires more documentation than employment income.
Required Documents
- Business registration documents
- Business tax returns (2-3 years)
- Financial statements (audited if available)
- Business bank statements (12-24 months)
- Personal tax returns
- Dividend/distribution docs
What Banks Verify
- Legitimate operating business
- Proper registration/licensing
- Financial statements show profitability
- Clear trail: business → personal accounts
🏠 Real Estate Sale Proceeds
Most common source for foreign investors.
Required Documents
- Property deed/title (prior ownership)
- Sale contract (signed)
- Closing statement
- Wire/check showing receipt
- Property appraisal
- Mortgage payoff statement
What Banks Verify
- You owned the property
- Arm's length sale
- Clear receipt of proceeds
- Reasonable sale price
💰 Business Sale Proceeds
Common for E-2 or EB-5 investors.
Required Documents
- Purchase and sale agreement
- Closing documents
- Proof of prior ownership
- Bank statements showing receipt
- Capital gains tax documents
What Banks Verify
- Documented sale with clear terms
- You owned the business
- Payment was received
- Proper tax treatment
📈 Securities / Brokerage Proceeds
Required Documents
- Brokerage statements (12-24 months)
- Trade confirmations
- Tax forms (1099-B or equivalent)
- Wire/ACH from brokerage
- Bank statements showing receipt
What Banks Verify
- Legitimate brokerage account
- History of investment activity
- Clear sale transactions
- Trail from brokerage to bank
₿ Cryptocurrency Proceeds
Convert through major regulated exchange, season funds 3-6 months before wire.
Required Documents
- Exchange statements (purchase history)
- Sale/conversion from regulated exchange
- Wire from exchange to bank
- Tax returns showing gains
- Exchange KYC confirmation
Red Flags (Avoid)
- Privacy coins (Monero, Zcash)
- Mixer/tumbler services
- Unregulated exchanges
- No tax reporting
📜 Inheritance
Required Documents
- Death certificate
- Will naming you as beneficiary
- Probate/estate documents
- Letter from estate executor
- Distribution records
- Relationship proof (birth certificate)
What Banks Verify
- Proof of death
- Your relationship to decedent
- Legal inheritance documentation
- Actual receipt of funds
🎁 Gift from Family
Required Documents
- Gift letter (signed, dated)
- Donor's bank statements
- Donor's source of wealth docs
- Relationship proof
- Gift tax return (if applicable)
Gift Letter Must Include
- Donor's name, address, relationship
- Dollar amount and date
- "No repayment expected" statement
- Source of the gifted funds
- Donor's signature
🏦 Loan Proceeds
Required Documents
- Signed loan agreement
- Loan approval letter
- Disbursement records
- Collateral docs (if secured)
- Lender's license/registration
What Banks Verify
- Loan from regulated lender
- Proper loan documentation
- Disbursement of proceeds
- Collateral if secured loan
Master Documentation Checklist
Identity Documents
- Valid passport (all pages)
- Government ID
- Proof of address
- US visa (if applicable)
Financial History
- Bank statements (12-24 mo)
- Tax returns (2-3 years)
- Brokerage statements
- Property ownership docs
Income Verification
- Employment letter
- Pay stubs (3-6 months)
- Business registration
- Financial statements
Transaction Docs
- Sale contracts
- Closing statements
- Wire confirmations
- Gift letters
Related attorney services
Sergei Tokmakov is a California attorney, State Bar of California No. 279869, licensed since 2011. He prepares and coordinates standard LLC and corporation formations in California, Delaware, and Wyoming. Entity formation is handled within the Founder Formation Package ($3,500, state filing fees separate), quoted after a short scope review; the Complete Founder Package (founder, equity, and IP documents) starts at $2,500. Government filing fees and third-party costs are additional. Exact scope and package tier are confirmed in writing before work begins.
- Complete Founder Package (founder, equity, and IP documents; entity formation is the separate $3,500 Founder Formation Package), government fees additional: from $2,500
- Written consultation on one defined legal question: $300
This page provides general information, not legal advice, and does not create an attorney-client relationship. Each engagement requires a conflict check and written confirmation of scope.