Business Bank Accounts for Delaware Companies
“I want to open a Delaware business bank account." I can’t tell you how often we hear this request from international clients.
Why? Many clients that form Delaware corporations also need to open a business bank account in the United States in order to receive payments here in the U.S. Wherever the company is based, if the objective is to provide I.T. services or to become a vendor on Amazon or eBay, for example, non-U.S. clients selling to U.S. customers want to enable and facilitate that transaction.
Many of our non-U.S. clients will want to set up a payment gateway of some sort, like PayPal, while others may simply want to have a U.S. business checking account for their Delaware corporation.
Whatever the case may be, one of the most difficult steps in the entire incorporation process is opening a U.S. bank account for non-residents of the United States.
Unfortunately, we cannot assist in setting up bank accounts for companies we form. However, we can prepare, file and provide you with the approved Certificate of Formation electronically in two to three days or less. We assist our non-U.S. clients with obtaining their federal EINs. We also provide you with free templates of LLC Operating Agreements.
We also provide a digital corporate seal FREE for each company for which we serve as the Delaware Registered Agent. If we’re not your Delaware Registered Agent you can always switch to Harvard anytime you want.
Here are some of the commonly asked questions about opening a U.S. Bank Account from overseas.
What Documents Are Needed to Open a U.S. Bank Account?
Unfortunately, no two U.S. banks are exactly the same, and their specific policies and procedures for opening a business bank account for a Delaware corporation can be drastically different. There are, however, certain requirements that will be uniform for most banks. These are some of the things that will be needed to open the bank account for a Delaware company:
- Proper photo identification, such as a driver’s license or passport
- Certificate of Incorporation (for corporations) or Certificate of Formation (for LLCs), stamped by the Delaware Secretary of State
- Articles of Incorporation (for corporations) and Articles of Organization (for LLCs) are included in the respective certificate above.
- The Operating Agreement, (for Delaware LLC bank accounts)
- Federal Employer Identification Number (EIN)
- Banking resolution with corporate seal
Additional documents that banks may ask for include:
- Certificate of Authority: Also known as a Foreign Qualification, this 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 in order to open an account for those companies that have been formed outside of that respective state. This is important because the bank account is the point through which revenue is channeled, and thus it is often 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.
- Certificate of Good Standing: Also known as a Certificate of Existence, this 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. Often, if the company is brand new or very recently formed, the Certificate of Good Standing is not required. It is best to confirm with the bank ahead of time.
You can order a Certificate of Good Standing online for your company.
Do I Have to Go to the Bank in Person?
While we can provide the proper documentation for opening the Delaware business bank account, unfortunately, a major hurdle for non-U.S. clients is appearing in person at the bank. When it comes to opening the business bank account, virtually all U.S. banks want to meet with their clients face-to-face. In our experience, every U.S. bank will typically want to meet with their potential clients in person.
Some of our international clients are able to travel to the U.S. just to open the business bank account, in which case, this is not an issue. In many cases, however, this may not be a feasible option. Often, clients reach out to a friend or family member that lives in the U.S., someone they trust, who is willing to help open the U.S. bank account for the Delaware company on their behalf.
Which U.S. Bank Should I Use for My Delaware Company?
When opening a business bank account, business owners do their research on a multitude of U.S. banks to find the one they feel best suits their needs.
It’s a good idea for non-U.S. clients to call or email the bank they wish to do business with and get all the details on opening the bank account before they ever step foot in the branch. This is a good way to ensure everything will go smoothly when opening the account, and to avoid any unnecessary headaches.
Additionally, if there is a U.S.-based bank with an international branch in your country, we encourage you to contact them and see if they are able to facilitate opening your U.S. account.
Does a Delaware Company Have to Open a Bank Account in Delaware?
No, you don't need an in-state bank account for a Delaware LLC or corporation. 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.
In summary, often clients will contact a specific bank directly before opening a Delaware Corporation or LLC bank account. If the bank needs any documents from the Secretary of State of Delaware, we would be happy to assist in the retrieval of these documents.
While we cannot assist you with opening a U.S. bank account, we are here to help in any other way we can. If you have any questions about forming your Delaware LLC, please give us a call at 800-345-2677. Our friendly customer service representatives are ready to assist.
*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 source’s content or accuracy. Opinions expressed in this article do not necessarily reflect those of Harvard Business Services, Inc.
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There are 28 comments left for Business Bank Accounts for Delaware Companies
Sash said: Friday, June 30, 2017If 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, 2017This 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, 2017If 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, 2017How 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, 2017Each 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, 2017Do 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, 2017We 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, 2017Each 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.