The business bank account is necessary to operate the company. It is a direct and unique relationship between the bank and the company, without intermediaries.
WHAT IT DEPENDS ON
When choosing a bank, it is important to keep in mind that only the bank decides whether or not to open an account for the new company. There are federal banking regulations that all banks must comply with in order to open a bank account, but additionally, there are policies of each bank, or of each bank office, that have certain additional requirements or limitations.
Therefore, the opening of the account cannot be guaranteed, nor can complete instructions be given on the formalities and requirements to open the account, since each bank has the right to demand its own requirements and procedures. Anyway, if one bank has problems, … there are many others to choose from, after all, the purpose of banks is to get customers to have their accounts there.
The first thing to differentiate is that opening an account for an American company is not the same as opening an account for a foreign person or business.
The opening of the account depends on three basic things:
- The interest and good will of the bank, or the bank officer, who serves you.
- Your attitude as an informed customer. It is not asking for a favor from the bank, but defining a banking business, a normal service for the bank to operate.
- To present the documents requested by the bank in acceptable alternatives according to their requeriments and policies.
BASIC DOCUMENTS
The basic documents required for opening a business account are divided into two:
- Those of the company
- Those of the partners or persons who are going to sign on the account
It is important to consult the banker about the documents required because some banks may ask for additional documents.
The basic documents that the company must present are only three:
- “Articles of Organization” for an LLC, or the “Articles of Incorporation” for a Corporation. This is the document that was submitted to the Florida Department of State or to create the company and that you should have (or ITC can provide you with a copy).
- IRS Letter – with EIN Number
- Certification from the Florida Department of State certifying that the company is active (optional, but good to present).
The bank may request an “Operating Agreement” from the LLC. This is a basic, internal document that LLCs must have anyway. It is the document that defines how the company operates, who its members are, what their contributions are, what role they play in the company, what authorization they have, what form they will have in the bank… etc. ITC can provide its clients with a general model of a basic Operating Agreement. If the company has a more elaborate scheme, or there are many partners with many functions and responsibilities, it is recommended to consult a lawyer to prepare a suitable document.
The Bank needs to know the physical address of the company in the USA. ITC customers can supply our address, because that is their address. As a business center, that is your legal operating address.
You say that you are starting your business and that your business will operate from 777 NW 72 Ave – Suite 1075 in Miami FL 33126, where the Business Center from where you will operate is located.
For physical address purposes, sometimes banks have specific requirements and some addresses do not qualify. That is why it is important to express yourself well to avoid premature rejection. For example – P.O. boxes are not accepted as a business address.
Some branches of a bank, or some bank officials want to treat virtual offices in the same way. But the state of Florida and the law allow it, and even more so in the case of ITC than a Business Center.
That is why it is important not to confuse your company’s address with the virtual office service. You have an office contract with ITC and the mail service is a virtual office. – are two different things and the bank should not be interested in how we handle your mail. For them, their official and operational address is ITC as registered with the state government. If the bank officials wish, they can come to visit your office and confirm the address.
The documents to be presented by the partners, or the person who will open and manage the account are:
- Passport
- The address in your country and a document proving the address.
It is necessary to have a document proving your address in the country of origin. It can be verified by means of:
- An official document (license) with the following address
- A utility bill, such as energy or water, with your name and local address on it.
WHICH BANK TO CHOOSE:
The important thing is that it is an American bank and that it is closely supervised and
protected by The Federal Deposit Insurance Corporation (FDIC).
The Federal Deposit Insurance Corporation is a U.S. government corporation that provides deposit insurance to depositors in U.S. commercial banks and savings banks. This entity guarantees deposits up to $250,000.
Large banks are generally full-service, but they are very impersonal and sometimes more interested in certain clients than in small or new entrepreneurs.
There are some smaller banks that specialize in small business services that may also be a good alternative. It is best to research a few to see which profile is best suited for you.
It is very important, for you who are working remotely, that you have good and extensive technological services over the Internet. Some are more outstanding than others in their APPS and website for remote banking than others. This may be of more interest to you than knowing that you have 100 offices that you will not need.
Banks also charge for different services, and sometimes require a minimum amount to open the account or a minimum monthly balance in order not to charge a service fee. Not all are the same. These factors are good to know and compare.
Most banks require the physical presence of the member to open the account. There are a few exceptions that operate differently and are becoming more popular every day. Some may open the account without the presence of the partner and thus avoid an Exclusive trip to the United States.
Researching the right bank is an important task for the new entrepreneur.
*The International Trading Center LLC – has no ties or business with these companies and/or these banks – and provides this information only as a preliminary guide for our clients. 08/2024
ONLINE BANKING
Online banks can also be a good alternative, they are more flexible, do not require physical presence, and operating costs are generally lower. They are becoming more popular and important every day.
An online bank is a financial institution that operates without physical branches. These banks often have robust mobile applications and high-tech customer service options, as well as no-cost services and pay higher interest rates than traditional banks.
We must investigate who is backing these banks, and they must also be monitored by the FDIC. There are several of them with great prestige and success that are ideal for international trade and virtual business.
Researching the right bank is an important task for the new entrepreneur. Some online banks only provide services to individuals and others only to businesses. Some also specialize in foreign entrepreneurs.
Most of these banks can also open accounts online. Some have sophisticated biometric systems to replace the customer’s signature with state-of-the-art technology.
Currently, there are more than one hundred different online business bank accounts on the market.
- Mercury– One of the best Online Banking options for start-ups and e-commerce companies.
- Novo- A great Online Bank option for entrepreneurs and freelancers
- Lending Club Banking – For fast-growing companies with many transactions.
More information can be obtained at:
* The International Trading Center LLC – has no ties or business with these companies and/or these banks – and provides this information only as a preliminary guide for our clients. 08/2024
