Business Bank Accounts for Delaware Companies

By Devin Scott Tuesday, May 28, 2019

Business bank accounts for delaware companiesOnce you form your new LLC or corporation, you’ll need to open a bank account in order to do business.

What do I need to open a business bank account?

Typically, when opening a bank account in the United States, the bank requires:

  • the company's approved Certificate of Incorporation/Formation
  • the company's Federal Tax ID Number (also known as the EIN) 
  • an individual from the company to appear at the bank in person

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:

  • Certificate of Authority: The Certificate of Authority, also known as a Foreign Qualification, is obtained through registering your business as a foreign entity in the state in which the company is operating and/or banking. Most banks require a valid Certificate of Authority (achieved through Foreign Qualification) in order to open an account for those companies that have been formed outside of that respective state.

    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. 

  • A Certificate of Good Standing: A Certificate of Good Standing, also known as a Certificate of Existence, is a certificate provided by the Delaware Secretary of State’s office stating your company is current with all Delaware Franchise Taxes, filings and Registered Agent Fees.

    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.

If I form a Delaware company, do I have to open a bank account in Delaware?

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. 

Disclaimer

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.

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There are 22 comments left for Business Bank Accounts for Delaware Companies

Bartek said: Monday, December 31, 2018

Hi, wich Bank will be best and fastest most experienced regards LLC in Delaware opening account: Bank of America Regions Bank Wells Fargo Bank Valley Bank BB&T Chase Bank SunTrust Trustco Bank Axiom Bank BB Americas Orlando

HBS Staff replied: Monday, December 31, 2018

Hi Bartek - Unfortunately, we're unable to point you to a specific bank that can accommodate you. If you are in the U.S., we recommend considering and contacting some local banks. If you are outside the U.S. it can be more complicated.

Most US banks require an in-person visit in order to open a business account. We have some additional information here, about halfway down the page: https://www.delawareinc.com/before-forming-your-company/Delaware-company-formations-for-non-residents/

Ak said: Thursday, October 4, 2018

I want to open LLC in Delaware using HongKong bank account. I am not a resident of these countries. Is it possible?

HBS Staff replied: Friday, October 5, 2018

You do not have to be a US resident or have any bank account in order to start a Delaware LLC. Please contact us if you would like to proceed with forming your company. We are not able to comment on whether you can open a Hong Kong bank account without being a resident there.

MARK said: Thursday, July 12, 2018

HI, as you said, the delaware Inc can open the bank account in other states, if i want to open the account in California, it that means we need to pay both of the state tax in the both states ? regards,Mark

HBS Staff replied: Friday, July 13, 2018

Questions about taxes are outside the realm of our knowledge and experience. We suggest you consult an attorney or an accountant.

Kiyoshi Hasegawa said: Wednesday, January 31, 2018

I setup my firm at Delaware, & want to start new business. I think I already have all the documents you mentioned above. Pls. advice me to open bank account without going there in person. Thank you

HBS Staff replied: Monday, February 5, 2018

You can find that information in this blog:

https://www.delawareinc.com/before-forming-your-company/Delaware-company-formations-for-non-residents/

Pooja Gupta said: Monday, November 20, 2017

We need to open bank account in US. Need to understand the process. Please contact me.

HBS Staff replied: Monday, November 20, 2017

You may find this page on our site helpful:

https://www.delawareinc.com/before-forming-your-company/Delaware-company-formations-for-non-residents/

Opening a bank account from afar can be tricky; feel free to call us for further information, although we cannot open the account for you. 1-800-345-2677.

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