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When clients form a new Delaware company, several frequently ask about their company bank account and working with payment gateway providers such as PayPal. Sometimes clients wish to open a PayPal Business Account for their company or link their PayPal account to an existing bank account. For many clients, an online payments system is vital to their company’s overall success. The platform offers a secure way to make and receive payments and is available in more than 200 countries. It also offers an App that allows clients to link their bank account with their PayPal account through a secure platform, and to send secure invoices to clients.
However to get that company PayPal account, the first step is to form your new company, and decide which entity type you would like to incorporate. Delaware continues to earn the reputation of being the ‘most business-friendly state in which to incorporate.’ The legal and liability protection of Delaware’s established corporate laws are incomparable to what is provided by any other state in the U.S. For this reason, Delaware is known as the ‘Incorporation Capital of the World.’ By forming your company in Delaware, you join tech savvy companies such as Amazon, Google, and Twitter. And while PayPal is headquartered physically in San Jose, California, they too are a Delaware company.
We can support clients to set up bank accounts or create a PayPal account in several ways. At Harvard Business Services, Inc. (HBS), we are happy to help you obtain and provide important information that may be required to open an account such as the approved Delaware formation documents and EIN (Federal Tax ID Number). We are also provide helpful templates for commonly required documents such as an Operating Agreement or Bylaws template and other organizational resolutions.
Setting up the PayPal Business Account begins with setting up your login information through the PayPal website. You will be able to create a login ID and setup a Password to access your account. PayPal will generally require basic information for the opening of the account such as:
PayPal also will ask specific identity questions to verify your identity. For the specific identity questions, PayPal will generally ask for the following:
For this step in the process, and specifically, if you do not have a U.S. SSN, PayPal may require you to provide proof of your business’ existence (such as the approved formation documents or EIN), proof of identity (sometimes, clients sign up with a passport number, ITIN, or photo of a national ID) and proof of address. PayPal may ask you to confirm your U.S. tax status even if the company is located outside of the U.S.
We are here to support clients in any way we can to set up bank accounts or create a PayPal account, and we are happy to refer you to tax professionals or PayPal, if your questions happen to be outside of our areas of expertise. For help or guidance pertaining to specific tax matters or help completing this part of the process, clients will often consult with a tax professional for assistance. If you have specific questions regarding the opening of a PayPal account, that are better answered by the company directly, we will recommend that you contact PayPal for guidance related to the opening of the account and the overall process.
If you have any questions or need assistance with forming a Delaware company, I can be reached at 1-302-645-7400 ext. 6144 or via email at Justin@delawareinc.com.
*Disclaimer*: Harvard Business Services, Inc. is neither a law firm nor an accounting firm and, even in cases where the author is an attorney, or a tax professional, nothing in this article constitutes legal or tax advice. This article provides general commentary on, and analysis of, the subject addressed. We strongly advise that you consult an attorney or tax professional to receive legal or tax guidance tailored to your specific circumstances. Any action taken or not taken based on this article is at your own risk. If an article cites or provides a link to third-party sources or websites, Harvard Business Services, Inc. is not responsible for and makes no representations regarding such sourceâ€™s content or accuracy. Opinions expressed in this article do not necessarily reflect those of Harvard Business Services, Inc.