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#2025567 - 07/07/15 02:37 PM Individual DBA as LLC
TTFN Offline
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Joined: May 2015
Posts: 18
Missouri
A signature card was brought to my attention by bookkeeping - it is a joint account in personal names....DBA XXX, LLC. My first question is why would individuals open a DBA as an LLC? Are they still protected under the LLC rules? Second question... should this be coded as a Business Account? and if so ....Third question....they have a Pay-on-Death listed - can they do that?

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#2025571 - 07/07/15 02:42 PM Re: Individual DBA as LLC TTFN
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,220
Galveston, TX
I would call up the customer service representative that opened this account and ask them what planet are they from?? This is the worst example of someone doing something because it is what the customer said they wanted to do that I have seen in a long time. It simply is not a valid account and someone needs to start over. You need to provide your new account representatives with some serious training.


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#2025573 - 07/07/15 02:45 PM Re: Individual DBA as LLC TTFN
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
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Next to Harvey
There are several questions that could be asked and an array of possible responses, but the summary response is: No, a business entity and an individual cannot open a joint account.

Check to see if your state bankers association offers training on opening new accounts or account administration and make certain the employee who opened this account attends.

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#2025609 - 07/07/15 04:00 PM Re: Individual DBA as LLC TTFN
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
Here's my guess: The two individuals wanted to open a business account for their LLC, but the LLC doesn't have its own EIN for some reason, so the new accounter decided to set it up using a DBA style so the SSN of one of the individuals could be used.

Wrong choices there, and as noted above, there could be other reasons for this mashup of account styling. Whatever it is, it isn't kosher.
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#2025766 - 07/07/15 08:56 PM Re: Individual DBA as LLC TTFN
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Joined: May 2015
Posts: 18
Missouri
Thanks guys! Exactly what I thought - but couldn't find anything in "black and white" to verify.

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