Can a Company that Makes a Profit Hold a N.O.W. Account?
by Mary Beth Guard Guru BIOS
Question: Can you tell me if a company that makes a profit can hold a N.O.W. account? We can not find any answer in any of our seminar books and our president wants to see it in writing.
Answer: The only types of customers eligible for NOW accounts under Regulation D are:
individuals (including sole proprietorships, but not H&W joint sole proprietorships)
governmental units
nonprofit organizations
trusts (if held solely for eligible entities)
agency accounts (if held for eligible entities)
So, the answer is no, unless the business in question is a sole proprietorship.
BankersOnline is a free service made possible by the generous support of our advertisers and sponsors. Advertisers and sponsors are not responsible for site content. Please help us keep BankersOnline FREE to all banking professionals. Support our advertisers and sponsors by clicking through to learn more about their products and services.
Print Friendly!
Email This Article!
Discuss NOW!
