If you’re looking to open a Delaware business bank account online, there are a range of options to choose from. In fact, a Delaware business can open accounts across the United States. And yes, in some instances, these business accounts can even be opened online without visiting the US.
But, just because you submit an application, doesn’t mean account opening is guaranteed and the financial institution will accept you. This is especially true when applying for a company bank account online. And, if you’re looking to open a business bank account for your LLC to access non-resident corporate financial services, the process is even more difficult.
KEY TAKEAWAYS
- Delaware corporations make up 50% of all publicly traded companies in the US
- Delaware is not a suitable state for all foreign-owned business owners
- Delaware is known for being a business banking and credit card hub
- It is 100% possible to open bank accounts online for a foreign-owned business
So, in this article, we’re going to help you increase your chances of opening a Delaware company bank account online for your business. We’ll do this by covering the main banking challenges you’ll face and the several account opening opportunities for Delaware companies, and we’ll explain how you can open accounts remotely.
Before diving in further, if this is your first time visiting GlobalBanks, don’t forget to download your FREE US Banking Starter Guide. It’s designed to help non-residents with opening bank accounts at top financial institutions in the US.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Can You Open A Delaware Business Bank Account Online?
- Why Is Delaware Such a Popular Jurisdiction?
- Should You Open a Business Bank Account Online In Delaware?
- Where Should You Open Delaware Company Bank Accounts Online?
- Should You Use an EMI to Open a Bank Account Online?
- Frequently Asked Delaware Business Banking Questions
- Do You Want Help Opening a US Bank Account?
Can You Open a Delaware Business Bank Account Online?
Yes, it is 100% possible to open a Delaware business bank account online. Applicants need to know which banks and bankers to approach, have the proper account opening strategy, and meet specific account opening requirements.
When it comes to opening business bank accounts, whether business or personal, many people want to know how to open accounts remotely.
In addition to the considerations mentioned above, you’ll also need to provide supporting documents, a certificate of company formation, address proofs, and follow specific authentication procedures to open accounts remotely. If you are a new foreign-owned US business there are many other registration procedures and SS4 instructions that need to be followed to register your employer identification number (EIN) with the IRS.
If you don’t know what you’re doing and don’t prepare, US account opening can become a costly and time-consuming process.
After all, if you carelessly submit your application on a whim and get denied (or have your application red-flagged), you’ve just ruined your chances of opening a virtual bank account for your business.
Fortunately, our team monitors the account opening requirements, onboarding processes, and compliance quirks, and is constantly identifying ways to open business bank accounts remotely at US banks.
So, if you’re looking to open accounts online without visiting the US in person, we can help.
Why Is Delaware Such a Popular Jurisdiction?
Delaware is the most popular US jurisdiction for incorporation. In fact, this tiny state has been the leader in US incorporations since 1929. Thanks in large part to Delaware’s tax corporate governance and favorable regulations.
As a result, Delaware has attracted many of the wealthiest and most powerful businesses on the planet. Apple, American Airlines, Coca-Cola, eBay, Exxon, Facebook, Ford, General Motors, Walmart, Yelp, and another 1,000,000+ companies all call Delaware home.
In fact, Delaware corporations make up 50% of all publicly traded companies in the United States and 66% of all Fortune 500 companies. No small feat. So needless to say, US banks are familiar with Delaware businesses, which is good for anyone wanting to open a bank account online here for their business.
Thanks to Delaware’s success in attracting corporations, its legal system is unrivaled when it comes to corporate law. In fact, Delaware’s experience with corporate law is one of the most cited reasons for incorporating in the state.
One particularly attractive aspect of Delaware’s legal system is something called the “business judgment rule,” which says that the court should not second guess a company’s managers… as long as they are not doing something illegal.
In other words, minority shareholders and stakeholders essentially have zero say, influence, or recourse when contesting management’s decisions or the direction of a corporation.
So, if you’re looking for a place to incorporate where you can keep control of your business after bringing on outside investors or issuing shares to employees, then Delaware is worth a look.
Of course, it doesn’t hurt that Delaware is also one of the most tax-friendly states for a corporation in the US.
Should You Open a Business Bank Account Online in Delaware?
You might be surprised that Delaware is one of the top banking jurisdictions in the US.
It all started when Delaware removed “usury rules” back in February 1981, which removed the cap on interest rates that banks could charge.
In other words, Delaware allowed financial institutions to charge whatever they wanted when it came to interest rates.
So it’s no surprise that banks from across the US (and the world), looking to increase their profits, flocked to Delaware to set up their credit card business.
Today, Delaware is a banking and credit card hub. In fact, it’s home to about 50% of all US card issuers including Bank of America, Barclaycard, Chase, Citi, Discover, and even Goldman Sachs. Not bad for the second smallest state in the US with less than 0.3% of the country’s population.
And, Delaware has continued to be a dominant player in dominance in the US banking and business credit card industry for decades–thanks to the unrelenting support across all levels of Delaware’s government representatives. Including the pro-banking and anti-usury stance taken by the then Senator, and former Vice President, Joe Biden. Of course, now that he’s no longer a Delaware Senator, his support for Delaware’s banking industry will likely wane.
Now, just because Delaware has so many card issuers and banks incorporated there, doesn’t mean it’s the best place to open an account for a business, especially for a foreign-owned LLC. It’s important to compare the services your company requires, including the merchant services and ATM merchant services, and whether or not they are available to you and your business. Opening a bank account for an LLC in Delaware might not be a good idea for everyone.
Fortunately, you’re not restricted to Delaware when considering where to open bank accounts online for your business. So, let’s take a look at your options.
Where Should You Open Delaware Company Bank Accounts Online?
Opening an account for a Delaware company is no different than opening an account for a US company from any other state… besides all of the extra benefits that you receive from incorporating in Delaware, of course.
That said, there are a number of considerations that will determine where you should open an account for your business in the US. Let’s take a look at these now.
Account Opening Considerations for Opening Business Account Online
- Personal client profile
- Business activities
- Transaction activities
- Initial deposit amount
- Ongoing account balance
- Existing ties to the US
- And more…
We cover each of these considerations in detail in our premium report, US Banking for Non-Residents, Foreigners, and International Businesses.
This report includes a list of US banks (real brick-and-mortar banks) that are ideally placed to open a Delaware business bank account online. We also share three fintech banking solutions that you can use in combination with your US bank account to reduce banking-related fees and expenses.
Of course, this report also includes detailed strategies on how to open US accounts successfully for US businesses, including those owned by foreign non-resident business owners.
Should You Use an EMI to Open an Account Online?
As we‘ve discussed, EMIs and other fintech solutions can offer a lot of value and service to business banking clients. This is especially true for business banking clients who make frequent international transfers, need to send money to specific platforms, or just want a backup account in case something happens to their traditional bank account. They’re also useful for micro-businesses and entrepreneurs just starting out.
But, being 100% reliant on EMIs for your business banking needs is dangerous.
As you’ve probably already heard (or experienced firsthand), EMIs can shut down and freeze your accounts without warning, cutting off access to your money.
While the same is true with financial institutions, EMIs and fintech often use outsourced compliance teams and are highly dependent on algorithmic transaction monitoring, which makes them more sensitive to swings in transaction activity. They’re also known for being less responsive and having overwhelmed customer service teams. So, if you’re looking to open an account online via an EMI, you should consider the following.
Important: It’s worth noting that almost all EMIs and fintech solutions are not banks… even if they say they’re a “bank”, describe themselves as a “bank”, or blatantly market their services like a “bank.” If they do not directly hold a banking license, they are not a bank.
At best, many of these EMIs are like resellers. They create user interfaces and fancy websites and simply partner with a licensed financial institution to offer services to particular niche markets such as foreign-owned LLCs, digital nomads, small businesses, startups, and more.
For that reason, it’s always important to know which financial institution is actually behind the EMI that you’re using. For instance, even though you are using a world-renowned EMI, your bank account might be held with a small community financial institution in the middle of Kansas.
That’s why we suggest using EMIs as a “backup” banking solution and service, not as your primary bank account for your business. Ideally, having an account with a world-class bank, with proper KYC and AML, doesn’t spook every time they see an international transaction and isn’t reliant on a third party for their banking license.
Note: if you are not set on having your business registered in Delaware and opening a company bank account here, don’t worry. There are other options to consider. If your new LLC is not yet registered in a state, you might consider Wyoming as an option. Especially, if you have no US business activities. But, like registering a company anywhere, there are company registration advantages and disadvantages, this is why it’s important to compare the Wymoing LLC pros and cons before making a decision.
Frequently Asked Delaware Business Banking Questions
Below are two of the most common questions we receive from people exploring how to open a Delaware business bank account online. If you have further questions you would like answered, don’t hesitate to get in touch.
Can I Open an Account in Delaware for an LLC?
A foreign-owned limited liability company (LLC) can open a company bank account in Delaware. With the right information, you can even open a bank account for your business 100% remotely.
Where Can I Register My LLC?
Delaware is not the only state where you can register an LLC. You might want to consider registering your LLC in Wyoming or Nevada. The best state to register your LLC in will depend on the operations of your business, tax objectives, and filing requirements.
What Do I Need to Open a Business Account?
Requirements for opening a business bank account will vary from bank to bank. But, they also will vary depending on the type of business you have. Generally speaking, you will need to provide proof of business operations, a certificate of incorporation, articles of association, the name and address of a registered agent (if applicable), and personal identification documents, to open a business account.
Do You Want Help Opening a US Bank Account?
If so, you can get access to GlobalBanks USA (our dedicated US account opening service) in just a few clicks.
GlobalBanks USA is a 100% personal account opening solution. It provides direct access to our team of US banking experts.
When you join, you receive…
+ Expert suggestions on where to open US bank accounts.
+ Step-by-step support to navigate US account opening.
+ Direct introductions to helpful and responsive bankers.
+ Plus, detailed guides to maximizing the value you get from your new USA bank account.
And “yes!” GlobalBanks USA helps foreigners and non-resident individuals open accounts.
In fact, GlobalBanks USA even helps non-resident US LLCs and foreign & offshore entities.
To learn more about opening accounts with GlobalBanks USA, just click here now. Or, contact us directly with any questions!
