Opening a U.S. corporate bank account can be complex, especially for foreign-owned startups. U.S. banks require that your business be a valid U.S. legal entity (usually an LLC or corporation) and will verify compliance with IRS and banking regulations. For example, UpCounsel notes that “most banks require a U.S.-based legal entity, such as an LLC or corporation” and an Employer Identification Number (EIN) from the IRS. In practice, many startups incorporate in Delaware due to its business-friendly laws, but the same process applies to entities based in California or New York.

Below are the key steps, required documents, and special considerations (especially for foreign founders) when opening a U.S. business account:

• Register a U.S. Entity and Obtain an EIN
  
  
• Incorporate in Delaware, California, or New York.
  First, form a U.S. company in one of the states. Delaware is a popular choice (no state income tax on out-of-state income, flexible corporate law), but you may also incorporate or register in California or New York if you plan to operate there. Many foreign founders use Delaware (or Wyoming/Nevada) for ease of setup. (Remember: if a Delaware company actually does business in California or New York, it must register as a foreign entity there by filing for a Certificate of Authority and obtaining a state registration or good-standing certificate.) UpCounsel advises that “foreign corporations can open U.S. business bank accounts, but it often requires registering a U.S.-based entity”.
  
  
• Apply for an EIN (U.S. Tax ID). Before banking, get an EIN from the IRS. If any owner has a U.S. Social Security Number (SSN), you can apply online. If not (as is common for foreign founders), you must file IRS Form SS-4 by mail or fax to the IRS. This can take several weeks (generally 2–5 weeks). (Northwest Registered Agent notes: “If you don’t have an SSN, you’ll have to mail or fax Form SS-4 to the IRS to obtain an EIN”.) No U.S. address is strictly required on the SS-4, but having a U.S. contact (like your registered agent’s address) can be helpful. Once the IRS issues your EIN, you’re ready for banking.
  
  
• Secure a U.S. Business Address
  Most U.S. banks insist on a physical U.S. business address for correspondence. Even if you live abroad, you’ll need to supply a U.S. street address (not a P.O. box). This is often satisfied by using your registered agent’s office or a virtual office service. UpCounsel explains that “a U.S. business address is typically required for bank correspondence,” and suggests virtual office services as a workaround. Trade.gov likewise notes that “most U.S. banks will not open a business account without a physical U.S. address,” but that many banks do accept a registered agent or virtual mailbox address for truly remote businesses. (Keep in mind some banks may separately ask for personal address proof for each signer – foreign utility bills or home country bank statements are often accepted.)
  
  
• Gather Required Documents
  Banks have strict document checklists. Although requirements vary by bank, the common essentials are:

*Proof of corporate existence: Certificate of Formation/Articles of Incorporation stamped by the state, plus any amendments. (For a newly-formed company, the Delaware “Certificate of Incorporation” or CA/NY equivalent is needed.)

*Employer Identification Number (EIN): Provide the IRS EIN confirmation letter or SS-4 fax sheet. (Some banks allow you to simply enter the EIN; others request the official IRS notice.).

*Corporate bylaws or operating agreement: The bank needs evidence of how your company is governed. (LLCs provide an Operating Agreement; C-corporations provide Bylaws and Board Minutes.)

*Board resolution or banking resolution: A certified corporate resolution authorizing the opening of the account and naming the authorized signers (often with a corporate seal).

*Identifications: Valid photo ID for each signer (passport, U.S. driver’s license, or state ID). U.S. banks typically require two forms of ID for the owner(s) and signer(s), one with photo.

*Proof of address: Personal proof of address (utility bill or bank statement) for each signer, and business address proof (lease, utility bill, or bank letter for the company’s address). (If you use a U.S. address that’s a registered agent, banks often want to see utility or bank mail at that address.).

*Certificate of Good Standing (state): Many banks ask for a recent Good Standing certificate from the formation state to confirm the company is up-to-date on taxes and filings.

*Foreign qualification documents: If your company was formed in another state, you may need a Certificate of Authority (also called foreign qualification) for the state where you’re opening the account. For example, a Delaware LLC doing business in California should be registered with the CA Secretary of State; banks often ask for this certificate when you apply. (Harvard Business Services notes that “most banks require a valid Certificate of Authority in order to open an account for a company formed outside of that state”.)

These requirements can be surprisingly detailed. As one Delaware incorporation service explains, “no two U.S. banks are exactly the same”, so it’s wise to call the bank first and confirm the list. However, they warn that most U.S. banks will always request items like the signed formation documents, EIN, good standing, and a corporate resolution. The Department of Commerce likewise emphasizes that banks will collect full corporate documents and beneficial-owner information as part of anti-money-laundering checks.

Choosing Your Bank and Method (In-Person vs. Online)

Traditional brick-and-mortar banks (Chase, Bank of America, Wells Fargo, Citibank, etc.) generally require an in-person meeting. Nearly all U.S. banks insist that at least one signer appear face-to-face to open the account. For example, Harvard Business Services observes that “virtually all U.S. banks want to meet with their clients in person” when opening a business account. This means foreign founders often must travel to the U.S. (or send a trusted representative) to complete the process. If travel is difficult, some founders have friends or U.S.-based partners handle the setup on their behalf.

Larger international banks can be helpful. Many global banks (Wells Fargo, HSBC, JP Morgan Chase, Citigroup, Bank of America) have branches in New York and California that are experienced with international clients. Wells Fargo, for instance, is often cited as “foreigner-friendly” because it regularly works with non-resident business owners. (Whether any specific bank will approve an account depends on their policies; always call ahead to confirm requirements.)

As an alternative, several online/fintech banks now cater to startups. Platforms like Mercury, Relay, Brex, Payoneer, or Wise offer business accounts with remote sign-up. UpCounsel notes that institutions such as Mercury and Relay “cater to foreign business owners and allow online account setup”. These platforms typically require the same documentation (entity proof, EIN, ID, address) but let you submit it digitally without an in-person appointment. Trade.gov’s guide also highlights “digital banking platforms” and multi-currency online accounts as viable options for companies without easy U.S. access. Keep in mind fintech accounts may have limitations (lower transaction limits, different FDIC coverage, etc.), but they can simplify the process for remote founders.

State-Specific Notes (Delaware, California, New York)

• Delaware – Delaware corporations and LLCs can open a U.S. account in any state. You do not need a bank in Delaware itself. “Delaware company owners often open a bank account wherever it is most convenient for them,” notes a Delaware service. In fact, if your business is formed in Delaware but operating in, say, California, you will also file for a California foreign qualification (Certificate of Authority) and pay any required taxes. However, simply maintaining a U.S. bank account in California does not by itself require registering as a California business, according to Wise’s guide: “opening and maintaining a bank account with a California bank does not classify your company as a foreign entity.” (Always ensure you have the proper foreign registration if you have a physical presence or sales in another state.)

• California – California LLCs and corporations face higher regulatory burdens (including an $800 minimum franchise tax). If a Delaware or other non-CA company does business in California, it must register as a foreign entity with the California Secretary of State. When opening a California bank account, banks may ask for that Certificate of Authority and a current Good Standing certificate. Aside from paperwork, the bank process is similar: California branches of major banks and fintechs operate much like those elsewhere. The key point is compliance – make sure all state registrations and taxes are in order before applying for a bank account.

• New York – Likewise, an out-of-state company must get a New York Certificate of Authority to legally operate. Mosey’s guide notes explicitly that “to legally operate as a foreign corporation in New York, you must obtain a Certificate of Authority”. Opening a bank account in New York is one of the very first practical steps after or alongside that registration (Mosey even lists “setting up a bank account” as an initial task). Banks in New York City are accustomed to international clients, but they will still perform the same document checks (EIN, corporate papers, ID, etc.). In any U.S. location, having your formation and qualification paperwork in order will make the bank’s due diligence smoother.

Challenges for Foreign Founders

Foreign entrepreneurs face additional hurdles when opening a U.S. account. In summary:

• In-Person Requirement: As noted, most banks mandate a U.S. visit. This can delay startups that cannot travel. (Some fintechs allow purely online setup, but large banks do not.).

• U.S. Address: Providing a domestic address can be tricky. Many founders use their registered agent’s address, but some banks insist on an actual office or residential address. Trade.gov points out that a virtual mailbox or registered agent address is often accepted if your business is solely online. Still, be prepared to explain and document how your business is reached.

• Compliance and KYC: By law, U.S. banks must identify all beneficial owners (anyone with ≥25% ownership) and control persons. You will need to disclose the ownership structure of your company and provide IDs for all owners and signers. This “Customer Due Diligence” (CDD) is strict: banks will verify identities (two forms of ID, one with a photo) and ask about foreign ties. Some banks may also ask foreign owners to fill out IRS W-8BEN forms or other tax compliance paperwork. Be ready for extensive paperwork and vetting.

• Obtaining an EIN Without an SSN: If no owner has a U.S. Social Security Number, you cannot get an EIN online. Instead, you must mail Form SS-4. This takes time (Northwest Registered Agent advises allowing 4–5 weeks). Trade.gov similarly notes that if the signer on the SS-4 is not a U.S. citizen, getting the EIN may take a couple of weeks. Plan ahead so that you have the EIN in hand before you approach the bank.

• State Filings and Fees: Don’t overlook ongoing compliance. For example, California corporations owe a high franchise tax (even in the first year) and annual reporting fees. New York corporations pay periodic fees. Having these taken care of will keep your Good Standing status current, which banks often verify before account opening.

Alternative Banking Options

If a traditional account proves too difficult, there are creative alternatives:

• Fintech Business Accounts: As mentioned, services like Mercury, Brex, Wise, or Payoneer allow non-residents to get dollar accounts online. They require an EIN and usually passport ID, but waive the in-person step. (Note Wise’s Business account or Revolut’s U.S. branch, for instance.) Keep in mind these are often not full-fledged banks (money may sit in partner bank accounts) and may have limits on transactions.
• International Bank Affiliates: Some global banks have U.S. presence (for example, HSBC or Citibank). If you have a foreign account with them, they might facilitate opening a U.S. affiliate account. Check if your home country bank has a U.S. partnership.
• Payment Processors: If you mainly need to receive payments from U.S. customers, you might consider services like Stripe Atlas (which includes a U.S. bank account for startups) or PayPal Business. These are not replacements for a true commercial checking account, but can supplement early-stage needs (especially for e-commerce or online services).

ERB’s Outsourced Financial Support

Managing all these steps can be daunting. That’s where a specialized partner like ERB can help. We offer outsourced CFO, accounting, and bookkeeping for startups expanding into the U.S.. In practice, ERB’s team assists from day one: we handle entity formation, IRS filings, and ongoing finance operations.