So, you’re starting a new business? Congratulations!
You’ve probably already chosen a great name, but have you thought about how that name will appear on your bank account? Titling your business’ bank account is an important early step in setting up a successful business.
Business owners often choose one name for their business that appears on official paperwork while using a second name that’s more familiar to the public. For example, a vintage store may be called “XYZ Collectibles, LLC” on paper, but the name on their storefront is “Vicky’s Vintage.” Customers paying by check will likely make their checks out to the latter name.
If you have more than one name associated with your business, consider titling your account with the primary name (XYZ Collectibles, LLC) and adding a DBA, or “doing business as” name (Vicky’s Vintage). This will help eliminate any confusion or delays when the bank processes your checks.
It’s best to add your DBA name when you first open your business account to help simplify the steps you’ll need to take. If you add a DBA name later, you will need to update the signature card on file at the bank and register your new name with your state’s Secretary of State. You may want to get the help of a CPA when filing your paperwork, to ensure everything is filed correctly in order for your account to receive checks under both names. You can also get help with filing your new name on the official State of Ohio website, www.business.ohio.gov/filings.
Also note that if you ever decide to open a second business, you cannot just add its name as another DBA under your first business. Instead, your new business will need its own Tax I.D. number (T.I.N.) and its own bank account. Again, a visit to the State of Ohio website or a conversation with a CPA will help guide you through these steps.
The Business Banking team at First Federal Lakewood would be more than happy to help you create your new business account, set up Online Business Banking, or help with any other services your new endeavor may need. Let’s help your business grow!