Personal Checking Account DBA: Everything You Need to Know
A personal checking account DBA is a good idea if you want to do business under a different name than your own legal name.3 min read
A personal checking account DBA is a good idea if you want to do business under a different name than your own legal name. In some cases, it may even be mandatory. It is important to understand which types of businesses need a DBA, or doing business as, bank account and the steps involved in setting one up.
What Is a DBA?
When you open a business as a sole proprietor or partnership, the legal name of your company defaults to your own name. For this reason, sole proprietors and partnerships often file DBAs so they can operate under a different name. For example, if your name is Sally Smith and you want to call your business Sally's Place, you would need to register your DBA name with the appropriate state or local agency. Once you register as a DBA, you may need to open a DBA bank account.
Opening a Personal Checking Account DBA
Setting up a DBA bank account is simpler than the filing process for businesses that have a more refined structure. In fact, the process for opening a business account is similar to opening a personal account.
Sole proprietors can set their own guidelines for how they use their DBA account. They may use it to pay personal bills, for example. However, partners in a corporation have an accountability to separate personal and business funds. Regardless of which type of business you own, bookkeeping is much simpler when you use a DBA account to manage your personal and business income and expenses.
Guidelines for Setting Up a DBA Account
When setting up a DBA account, begin by researching several banks to find out which one offers the best benefits, such as online banking, fee structure, minimum balance. Then, determine if you can apply online to open your account or if you must go to the bank itself. If you own a telemarketing business, offer money services, run a gambling operation, or sell precious metals, you will need to open your account in person.
Ask an officer of the bank its requirements for initial deposit funds. Most banks accept cashier's checks from other banks or electronic transfers. You may also want to ask if the bank has any restrictions on using the funds for personal expenses should you so choose.