New business questions

[jeremydanielclark]

Hey guys,
Just contacted erie hopefully they will get back to me.
Thanks for advice. My accountant told me to open as a sole proprietor by going to the bank and opening a business under my social # but my bank said they wont open a business account with out some documentation. My accountant told me that was crap and to look for another bank. Has anyone else had this proble. My bank is Sundtrust

[Rustic Goat]

Well I don't absolutely know all the possible facts, only my experience.
It may be time to consider another accountant.

To open a business account, the bank will want to see documentation of your filing for a biz license.
Unless you've been in biz a very long time or a member of your local good ol' boy club and you and your banker swap buying rounds after work, the bank needs this documentation to cover its rear.

There are also other options than the one mentioned by your current acct, esp for a new biz. Is this person a CPA? If not, collect any paperwork your 'accountant' has, and go find one.

[ElephantNest]

My bank (Bank One) didn't ask for squat.

[Rustic Goat]

Originally posted by ElephantNest My bank (Bank One) didn't ask for squat.

When was this, very recently, or somewhere in the past?

[Seascape]

If i remember right,,, the bank i used when i started asked for something. I gave them my declaration of coverage and state vendors. They also asked for my fed ID #.

When i switched banks in 98 i was only asked to submit a fed ID #.


mike

[RRS]

I bank at Sutnrust. All you need to open a DBA account as a sole prop. is a business license and a SS#.

[ElephantNest]

About a month ago. They only asked for my personal ID.

[Elwood]

RRS is right. "Your name, DBA (doing business as) Your Company Name" with a SSN should be all you need.

[Scott]

all my credit union asked for was to look at my bizness license,, they had all the additional info. Took less than 20 mins.

[jfishenter]

My Credit Union just added DBA ( Doing Business As) to my regular personal Checking Account. No questions asked.

[BravesFan]

Re: New business questions

Originally posted by jeremydanielclark
Hey guys,
Just contacted erie hopefully they will get back to me.
Thanks for advice. My accountant told me to open as a sole proprietor by going to the bank and opening a business under my social # but my bank said they wont open a business account with out some documentation. My accountant told me that was crap and to look for another bank. Has anyone else had this proble. My bank is Sundtrust

Show em your biz license.

[ElephantNest]

This was my 2nd account to open, and neither time was I asked for anything more than my ID and proof of residence. I could have made up a name right there on the spot and opened it under that if I wanted. They just want your $$. If they ask for something you don't have, inform them you will be looking elsewhere to do your banking, and they may come around.

[GRASSISGREENER]

Jeremy,
Here's your situation with getting a business account set up. You should have your business license to get one established, just for the sake the hassles to get approval. Due to 9/11 banks and financial institutions have had to clamp down by gov't regulations a number of regulations with opening of business accounts, most recently the Patriot Act.
USA Patriot Act of 2001

In order to open or change an account, add a signer, or make an application for any services. Federal Law (USA Patriot Act of 2001)Now requires us to obtain and retain photo identification for identity verification purposes.
The Uniting and strengthening of America by providing appropiate tools required to intercept obstruct terrorism (USA Patriot Act of 2001), requires financial Institutions to take steps to obtain and verify certian identifying information for any person used to verify the persons identity; and determine whether the person appears on any list of suspected terrorists provided by the Federal Government.

Since its inception their have been some modifications that only mean more hoops for you to jump through at setting up a business account, but nothing that shouldn't be required of you in getting a business set up anyways. For those that had accounts prior to this date, most of them have already had verifications done by the banks on their accounts.

[topcat]

When I talked to several banks just last spring about opening a business account all of them wanted me to bring a copy of my DBA here in NY. I think the issue is that when opening the account in a business name and not your personal name they want verification that the name is legit and registered to you. Just as you have to show id to open a personal account they want some form of id to verify your DBA name.

[boazcat]

I just went today to check this out and my local bank asked for my I.D. and my ferderal tax I.D. number.