Two DBA accounts with same name
Answer by Richard Insley and John Burnett , BOL Gurus Guru Bios
Question: We have a customer who has a DBA account with us. He recently incorporated his business, so he has asked to open an account in the corporation's name, which is identical to the DBA. He has different tax ID numbers for both accounts. Is there a problem if we keep both accounts open as he has requested? Also, what is our risk if we deposit a check made payable to the corporation into the DBA account?
Answer by Richard Insley:
The customer now operates two legal entities. Like anyone who owns more than one business, he's perfectly free to maintain accounts for each business. Both you and the customer must not let the funds cross over from one entity to the other.
Answer by John Burnett:
If there are other shareholders of the corporation, they might have a say in whether your customer can legally continue using the same name on his sole proprietor account. But that's not an issue for the bank to worry about.
There could be issues about whether a given check, payable to "XYZ Motors" should be deposited to "Jim XYZ, d/b/a XYZ Motors" or to "XYZ Motors, Inc." I think the bank ought to stay out of that question, too.
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