Setting Up a Bank Account with a DBA
You can open a business bank account as a sole proprietor using a DBA. Most banks require a certified DBA copy to open an account. By protecting your DBA name and opening a business bank account, you establish legitimacy.
You should open an account when you begin receiving or spending money. Checking, savings, credit card, and merchant services accounts are usual options. Merchant services enable card transactions.
To open an account, submit: business license, DBA registration, EIN. Once registered, choosing the right bank is key. Compare offers on free checking, fees, and cash-back programs. Read reviews and learn about customer service.
Purpose and Benefits of DBAs
DBAs benefits include capturing markets with new domain names. Websites can target specific customer needs. Partnerships should use DBAs to open accounts, enter contracts and manage administration. Franchises register DBAs to use the same name across locations, protecting brands.
DBAs for Different Business Structures
Sole proprietors often use initials, not needing DBAs. However, they allow creating business checking accounts, separating personal and business funds. Without DBAs, partnerships would use owners’ last names. DBAs let them reflect brands. LLCs and corporations less commonly need them since company names establish on formation.