UK marketing consultancy registers Delaware subsidiary and opens USA bank account
Since 2003, Healy Consultants Group assists multinational Clients with business set up in Delaware, including i) company incorporation ii) corporate bank account opening iii) company secretary and legal registered office iv) regulatory license applications v) USA tax registration vi) assistance to source physical office premises or virtual office address and vii) employee recruitment and visas.
In September 2021, our UK Client approached us to i) register a Delaware company and ii) open a USA corporate bank account. Our Client provides international marketing, business development and advertising consultancy services.
After a brief email and phone exchange with me, our Client settled Healy Consultants Group’s Delaware company incorporation fees. These fees include i) our time to incorporate the Delaware entity ii) tax registrations iii) bank account opening and iv) registered legal address and provision of local company secretary.
- The Client engaged us on 15 September 2021. We agreed a payment installment plan for the engagement. Upon payment of the first installment, we sent our Client a receipt, and we were then able to begin the engagement.
- Immediately thereafter, we conducted a video call to agree i) the optimum corporate structure and ii) simple, practical strategies to legally minimize international tax and iii) and corporate bank account opening strategy and iv) engagement deadlines and mile stones and v) the advantages of a Fast Nominee Solution and vi) potential engagement challenges.
- Simultaneously, our Client and Staff discussed i) doing business in the USA and ii) state taxes and iii) permanent establishment and nexus and iv) taxable income and v) annual personal income tax obligations and vi) sales taxes and vii) other business matters.
- I e-mailed our Client a detailed engagement project plan outlining i) total expected Delaware incorporation fees and bank account opening fees ii) documents required to progress the incorporation and bank account opening process iii) a breakdown of weekly and monthly deliverables iv) an estimated timeline to complete the engagement and v) any expected engagement problems and solutions.
- Following completion of the above, I crafted a detailed engagement project plan, to help our multinational Clients visualise the engagement over the coming months. As a result, our Clients can prepare the necessary documents so that our team can complete the engagement in a timely manner.
- Simultaneously, our UK Client supplied us the required Know Your Customer due diligence documents.
- My Staff and I were now ready to project manage the USA engagement.
Delaware company incorporation
- Within one day, I confirmed with the Delaware Registry whether our Client’s preferred company name was available.
- Our Client confirmed the corporate structure of the Delaware entity, including shareholders and directors, enabling us to initiate company set up.
- Within one week, the Delaware Registry approved the company registration and issued company numbers. This means our Client’s company could legally conduct business internationally, including signing contracts with customers and issuing sales invoices.
- We then emailed our Client the Delaware corporate documents including i) Certificate of Incorporation, ii) Statement of Authorised Person and iii) template of his Delaware company sales invoice.
- It took about two weeks in total to incorporate the company.
- After immediately securing the company numbers, Healy Consultants Group applied for a Tax ID registration for our Client’s business with the US Internal Revenue Service (IRS).
- Due to Covid-19 and an internal systems upgrade, IRS was not accepting expedited service requests. The department typically takes 45 working days to process Tax IDs for businesses with non-USA owners. Furthermore, USA banks only review a bank account opening application for a USA business once the Tax ID has been allocated.
- In the meantime, we continued to aggressively follow-up for our Client’s allocation after submission and manged to secure the Tax ID within one week.
- Throughout the engagement, I supplied our UK Client with a weekly detailed engagement status update including i) quality deliverables and ii) problems and solutions.
- During the company registration process, our Staff and UK Client agreed the USA corporate bank account opening strategy, including securing an exemption from travel to the USA.
- Immediately thereafter, my Staff and I approached multiple USA banks to secure a welcome email from a bank officer; inviting our Client to submit an accurate and complete corporate bank account opening application.
Delaware corporate bank account opening
- To increase the probability of successful corporate bank account approvals, my team and I prepared a detailed business plan to submit to interested banks. This business plan included i) details on the company’s core activities ii) financial projections iii) a market analysis and iv) corporate structure.
- To avoid engagement delays, we prepared the business plan before we had received the company tax ID number.
- I e-mailed the business plan to my Client for signature and return to me.
- I then prepared complete bank account opening forms and submitted them to at least 10 different banks in the USA, with a view to receiving their confirmation that they welcome an application from my Client’s company.
- I shared with our Client a list of USA banks that had been contacted and had shown interest in onboarding their business.
- We received preliminary interest from one bank, and I was able to arrange for the Client to have a call with the bank officer.
- The Christmas 2021 holidays slowed the application. However, once the holidays had finished, I completed the bank’s account opening application and sent it to my Client for review.
- Because of Covid restrictions on travel, I was able to get the bank to agree that i) my Client need not travel to meet the bank officer and ii) original notarized documents were not required.
- Within eight weeks, the bank emailed corporate bank account numbers directly to our Client.
- Within two weeks of receiving the account numbers, the bank activated our Client’s internet banking. Our Client could now access their bank account remotely from anywhere in the world.
- Following engagement completion, Healy Consultants Group couriered a full company kit to our Client, including i) a Delaware certificate of incorporation and ii) Delaware LLC M&AA and iii) any banking documents in our possession.
- Simultaneously, I emailed our Client a proforma USA sales invoice on our Client company headed stationery; complying with USA commercial law including i) company name and number and ii) corporate tax number and iii) legal registered office address and iv) multi-currency corporate bank account numbers.
- For Staff learning purposes, our UK Client supplied us engagement feedback.
- Our Business Website Department also requested a professional reference from our Client as well as an online review.
- Annually thereafter, Healy Consultants Group in-house Accounting and Tax Department assists our Client timely accurately and completely discharge their USA legal, accounting and tax obligations.
Incorporating a company in Delaware is easy if you know how. Contact us to find out how Healy Consultants can assist.