How to Open a Bank Account with a DBA
October 4, 2008 by mercy
One of the most important objectives that should be accomplished when a DBA or any business is established is separation of business and personal funds. The new business owner should get a business credit card as well as a separate business bank account. To open a business bank account for a DBA there are a few steps that need to be followed.
First the DBA should be registered with the county the business address is located in. This can either be done on-line or through the local newspaper. Many local newspapers will publish the DBA and announce the new business as well as file the appropriate papers with the county. Once the DBA is registered with the county the business owner will receive a copy of the registration form from the county. This form must be brought to the bank to open a business DBA account.
Finding a Bank
The next step to getting a DBA account is to find the appropriate bank. Be sure to shop around, as different banks will have different fees for their accounts. Keep in mind some business accounts charge per transaction or only allow a certain number of transactions a year. Remember if you deposit the days earning and the deposit consists of cash and 5 checks the total number of transactions is 6 not 1. Some business checking accounts will offer low or no fees if a certain balance is maintained and others might provide free checks. Also be sure the bank you choose will accept a DBA account.
Opening the Deposit Account
Before heading down to the bank be sure to have the following forms of identification:
– Driver’s license-if for some reason a driver’s license is not available, a passport will work just as well.
– Social Security Card
*The DBA will be opened under the personal social security number as revenues are reported through Schedule C on the personal tax returns.
In some instances a business owner will apply to the IRS for a separate business taxpayer identification number. If this is the case bring the letter from the IRS showing this taxpayer or employer identification number (called TIN or EIN for short).
*Business license, be sure to bring your business license and proof the business has been registered with the county.
Running the Business Account
Once the business account is established be sure to keep it separate from any personal accounts. When depositing customer’s payment checks always be sure to endorse them with the business name as well as the personal name. If there is any confusion as to where the check belongs, the personal or business account, the endorsement will provide sufficient identification. In addition this will also help at tax time should any confusion arise.