Business Entity Accounts
Question: We have an account at our bank that is an LLC. The owner of the LLC has requested that we open two other accounts with the name of the LLC "doing business as" the other business names. He does not have a business license with the D.B.A. name. What documentation should we require for him to do this?
Answer: (From: Mary Beth Guard, Esq., BankersOnline.com) - Most states have statutes that provide that if a business entity intends to do business under a name other than its formal legal name, it must obtain a trade name certificate or fictitious name certificate. A financial institution which is asked to establish an account in the name of an LLC (or corporation or partnership) doing business under some other name should consult state law and get evidence that the appropriate documents have been filed.
Copyright © 2004 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 14, No. 10, 12/04
First published on 12/01/2004