Opening a Business Bank Account with a DBA
To open a business bank account with a DBA as a sole proprietor, a DBA certificate from the state is required. Many banks do not charge separate fees for DBAs. Having separate accounts simplifies accounting and taxes. A DBA provides no liability protection unlike an LLC. With a DBA, you can get an EIN from the IRS using your Social Security number and business details. Filing a DBA allows doing business under another name without a new organization.
As a sole proprietor, legally you can use a personal bank account as the business account. However, a separate account helps track finances and keeps records organized. When starting under a DBA, partnerships should use an EIN while sole proprietors often use a Social Security number for identification that banks require.
Adding a DBA Name to Your Bank Account
Adding a DBA name to your bank account can provide flexibility and allows you to manage your finances effectively. You can also open a new account under the DBA if that’s a better option.
Questions to ask:
- Do they have good reviews and customer service?
- What is the process to open a DBA account?
Additional Information
More than one business can file the same DBA name locally. However, a DBA can’t include “Inc.” or “LLC” unless it is a corporation or LLC. You can open a business bank account as a sole proprietor using a DBA. Even sole proprietors should keep finances separate. You can get a business credit card with a DBA. Although owners traditionally visited branches, you can now open business bank accounts online—including free options without minimum deposits.