Much of this is a business practice and based on State law requirements. Most banks take the necessary steps to ensure the business customer is operating within the laws of the jurisdiction in which they operate.
Requesting State Registrations for Business
I have a question on the state registrations that we request from a business that is opening deposit accounts. We request the registrations for the business based on that states that they do business in. For example: a business registered in DE (but no office) but has an office that they operate out of in NH – we would request the businesses DE registrations & NH state registration as a foreign entity. We’re getting a little push back on this practice, and I’m hoping that someone can point me in the direction of if this is a regulatory requirement, or more of a business practice?
First published on 09/16/2018