Business Bank Accounts for Delaware Companies

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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) and lastly, for 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. Other items that banks may ask for are:

  • 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. 

Please visit our Foreign Qualification informational page for more information.

  • 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 for your company online.

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. 

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There are 13 comments left for Business Bank Accounts for Delaware Companies

Sash said: Friday, June 30, 2017

If I register my corporation in Delaware, is it possible to open a bank account in California, even before our registration as foreign corporation in State of CA is processed ?

HBS Staff replied: Thursday, July 6, 2017

This would be at the discretion of the bank. A lot of times the Foreign Qualification is needed, but it would depend on the bank's policy.

 

Arzou 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... Thanks

HBS 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 sales@delawareinc.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.  

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