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Once you form your new LLC or corporation, you’ll need to open a bank account in order to do business.
Typically, when opening a bank account in the United States, the bank requires:
Although banks are regulated by the federal government, they are also regulated by state banking laws.
Different banks require different documentation, so be sure to contact the bank of your choice to ascertain its requirements for new business bank accounts. Documents that banks may ask for include:
Foreign Qualification is important because the bank account is the point to which revenue is channeled, and thus it is considered part of a company’s operations. Since every state has its own requirements for Foreign Qualification, we are happy to take care of this detail for you. Our specialists can assist you with the entire Foreign Qualification process.
Many banks require a Certificate of Good Standing when a company applies for a loan, a line of credit or wants to open a merchant account. A company may also be asked to present a Certificate of Good Standing before signing a large contract.
You can order a Certificate of Good Standing online for your company.
No. Delaware company owners often open a bank account wherever it is most convenient for them, generally the state in which they are doing business. It is common for Delaware companies to operate all over the world, and banks typically understand this reality.
This is where your Certificate of Authority becomes significant; it lets the bank know that even though the company was formed in Delaware, it is legally registered to operate in your home state as well.
If you have any other questions about business bank accounts, our experts will be happy to assist you. While we do not actually open bank accounts for our clients, we can assist in obtaining the documents the bank will request from your company.
Feel free to call us at 800-345-2677, email us or Skype us at delawareinc.
THE AUTHOR OF THIS BLOG ARTICLE IS NOT A LAWYER AND HARVARD BUSINESS SERVICES, INC. IS NOT A LAW FIRM. THE ARTICLE ABOVE IS NOT INTENDED AS LEGAL ADVICE AND SHOULD NOT BE TAKEN AS LEGAL ADVICE. THIS SHORT ARTICLE IS STRICTLY TO MENTION SOME ASPECTS OF DELAWARE’S CORPORATION LAWS AND/OR LAWS RELATING TO OTHER FORMS OF ENTITIES WHICH YOU MAY NOT BE FAMILIAR WITH. WE RECOMMEND THAT YOU CONSULT WITH A LAWYER BEFORE FORMULATING A STRATEGY WHICH WILL BE SUITABLE FOR YOUR SPECIFIC CASE.
There are 22 comments left for Business Bank Accounts for Delaware CompaniesArzou Man said: Sunday, June 11, 2017
Hi, I am non-resident alien and I want two simple things: 1 have a bank account in the US 2 not pay any state taxes or at least not pay anything more I can pay in Delaware. I understand that I have to apply for TIN and do some paperwork in order to pay federal income tax + state income tax instead of flat 30% withholding tax. Now the question. Where I can get a Delaware address with which I can apply for EIN as well as for the bank account? I know that the general requirement is that address should be the physical one but I also know that most people put some friends or other addresses. So I assume there should be an organization that can help me with the address issue... ThanksHBS Staff replied: Tuesday, June 13, 2017
If a company subscribes to our Mail Forwarding service, it authorizes you to use our address for your mailing address only, so you can put our address on lines 4a & 4b on the SS-4 application. You would still be required to provide the principal business location. We don’t guarantee the bank will accept our address to open a bank account; that is something you will have to check with your potential bank. As far as tax implications, you should review everything with an accountant.
If we can be of further assistance and/or you'd like to subscribe to our Mail Forwading service, please call 1-800-345-2677.Adeel Khusro said: Wednesday, June 7, 2017
How can i open a bank account if my company is registered in delaware as LLC and i reside in India?HBS Staff replied: Thursday, June 8, 2017
Each U.S. bank has different requirements for opening a business bank account. Unfortunately for our international clients, one of the most common and inflexible requirements for opening a business bank account in the United States is showing up in person to do so.
While some international business owners are able to travel to the U.S. to open an account, this can cause problems for others. Many people ask a friend or family member who lives in the U.S. to open the bank account on their company’s behalf.
Other business owners appoint a manager (LLC) or director (corporation) who already lives in the U.S. as an authorized person to open and manage the business bank account. Some business owners have had success by finding a branch of an American bank that is located near them, and asking that branch to facilitate opening an account.
Once you've decided on a bank, it's generally a good idea to call ahead to see what is required to open the account, since requirements differ from bank to bank.Phil said: Sunday, March 26, 2017
Do you offer as a service to incorporate a company and also prepare all documentation to create a bank account for it?HBS Staff replied: Monday, March 27, 2017
We can certainly assist with incorporating your company with the state of Delaware. It would be best for you to contact the bank you are interested in using in order to determine their requirements for opening a bank account. If you have any questions, you may contact our Sales Team at email@example.com or 800-345-2677, Ext. 6900.
Andres said: Friday, December 30, 2016
I'm a non-resident alien. All of our services software development will be performed online to US companies and we want to open a LLC in Delaware. Do we still need the Foreign Qualification If we open an account in Florida?HBS Staff replied: Tuesday, January 3, 2017
Each bank can be different in what is needed in order to open a business account with that particular bank; some banks may require Foreign Qualification to open a business bank account. Typically, business owners qualify their LLC in the state where they are hiring employees, physically operating or opening a store front.Marco said: Tuesday, December 27, 2016
I have a Delware LLC. Taxwise, if I open a bank account in Florida, is it then considered as if I would do business in Florida and means that I need to pay income taxes in Florida?HBS Staff replied: Thursday, December 29, 2016
When forming a company here in Delaware, you are known as a domestic entity to the state of Delaware and a foreign entity to all other states. The next step in the process of operating in another state's jurisdiction and opening a bank account there is to file for Foreign Qualification. The process of Foreign Qualification allows you to operate as a foreign entity in the state of Florida, and it will help you to comply with any local and state compliance fees. For more information on Foreign Qualification, visit https://www.delawareinc.com/ourservices/foreign-qualification/