Opening Bank Accounts In The U.S.

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• FAQ

Opening A Business Bank Account Is Important!

After forming an LLC or incorporating a corporation and obtaining an EIN, opening a business account is typically the next step for clients. This is a crucial step towards separating personal and business affairs, which is important for proper tax filing and protecting the corporate veil of an LLC or corporation.

For a business, it’s essential to set up a dedicated checking account and ensure that all accounts are under the business name. The responsible officials of the LLC or corporation should sign signature cards for the accounts in their official capacities and on behalf of the company.

When it comes to LLCs, it’s crucial to distinguish between Member, Manager, and individual signatures, even when an individual is required to sign, such as serving as a guarantor for the LLC’s obligations. In these cases, the individual should sign in their individual capacity.

For corporations, it’s important to distinguish between Shareholder, Director, and individual signatures, even when an individual is required to sign as a guarantor for the corporation’s obligations. In these cases, the individual should sign in their individual capacity.

Bank Account Requirements

The requirements for opening a bank account can vary between banks and even branches, as well as your relationship with the banker. Our bank account guidance service included in certain incorporation plans covers everything you need to open an account, and all you have to do is provide proof of your identity.

Documents typically required include:

• Articles of Organization (for LLC) or Articles of Incorporation (for Corporation), which we provide for free with our standard LLC formation or incorporation services.
• Employer Identification Number (EIN), which is crucial for opening an account and can be obtained with our assistance or through the IRS.
• Operating Agreement (for LLC) or Bylaws (for Corporation), which we also provide.
• Proof of ID, usually two forms with one having a photo such as a driver’s license and passport.
• Banking resolution for corporations

While completing an Operating Agreement (for LLCs) or Bylaws (for corporations) can show ownership, it’s not a requirement in Delaware, Wyoming, or at every bank. However, we still recommend completing it. This highlights the variability of what is important to different banks. Also, it’s important to note that we don’t provide nominee services for financial accounts, and the bank will ask for the Ultimate Beneficial Owner, but this information will remain confidential.

Additional documents that banks may require include:

• Certificate of Authority: This document, also known as Foreign Qualification, is obtained through registering your business as a foreign entity in the state where it operates or does banking. Most banks require a valid Certificate of Authority for companies formed outside the state to open an account. This is crucial because the bank account is where revenue is channeled and is considered part of a company’s operations. Every state has different requirements for Foreign Qualification, and we can handle this for you.
• Certificate of Good Standing: Also referred to as Certificate of Existence, this certificate from the Secretary of State’s office verifies that your company is up-to-date with Franchise Taxes, Annual Filings, and Registered Agent Fees.

To open a Fintech bank, also known as neobank, business account as an international person, you will typically need to provide the same types of identification documents as you would with a traditional bank, such as your passport, visa, and SSN or ITIN (if required). However, the process may be more streamlined, and you may be able to complete the account opening process entirely online, without having to visit a physical branch.

One thing to keep in mind when opening a neobank account as an international person is that some neobanks may have restrictions on who can open an account. For example, some neobanks may only accept customers from certain countries or require a certain minimum deposit to open an account. It is important to research different neobanks and their account opening requirements before choosing one.

Many banks demand a Certificate of Good Standing when a company applies for a loan, line of credit or merchant account, or prior to signing a significant contract. This requirement may not apply to newly formed or recently established companies. To be sure, it’s best to check with the bank in advance.

Requesting a Certificate of Good Standing for your company online is free in Wyoming. You can order a Certificate of Good Standing for your company in Delaware for a fee with us.

Choosing A U.S. Bank For Your New Company

Traditionally, business owners thoroughly research different U.S. banks to find the one that best fits their needs.

Traditional Banks:

Choosing a large bank, is usually simpler to open an account at a nearby branch rather than in Delaware or Wyoming due to increased identity verification measures. Local branches are preferred as they can verify your identity more easily in person than through a phone call. Keep in mind, having a branch in Delaware or Wyoming is not a requirement for banks. Major banks such as Chase, Bank of America, Citi, RBS, Deutsche Bank, and others, can still open accounts for Delaware or Wyoming based companies even without having a physical branch there. The same applies for international clients.

To ensure a smooth and hassle-free account opening experience, it is advisable for non-U.S. clients to contact the bank they want to do business with via phone or email and obtain all the information about opening an account before visiting the branch.

Furthermore, if there’s a U.S. bank with an international branch in your home country, it’s worth reaching out to them to see if they can assist in opening a U.S. bank account.

Fintech Banks (a.k.a. Neobanks):

Choosing a Fintech bank may be beneficial for both U.S. and International small business owners. Fintech banks, also known as neobanks, are a relatively new type of financial institution that operates entirely online. These banks typically offer a range of banking services, including checking accounts, savings accounts, and loans, through a mobile app or website. Fintech banks often have lower fees and a more streamlined account opening process. For international individuals looking to open a bank account in the US, neobanks can be a convenient option because they can typically open their business bank accounts online, without having to visit a physical branch.

Overall, neobanks can be a convenient and cost-effective option for both U.S. and international founders looking to open a bank account. However, it is important to carefully research different neobanks and their requirements to ensure that you can successfully open an account and access the banking services you need.

Do I Have to Visit the Bank Personally?

While we can offer guidance to provide the necessary documentation for opening a business bank account, one major challenge for non-U.S. clients is the requirement to appear in person at a traditional bank. Most traditional U.S. banks require a face-to-face meeting when opening a business bank account.

For clients who are able to travel to the U.S., this is not a problem. However, for others, traveling to the U.S. may not be feasible. In such cases, clients may ask a trusted friend or family member living in the U.S. to assist with opening the business account with a traditional bank on their behalf.

On the other hand, Fintech banks, also known as neobanks, may be a better option for International founders since they can easily open up their business bank account with them online, without visiting the U.S..