Opening Business Accounts

Opening business accounts can create angst! Sole Proprietorships owned by a married couple, LLCs, LLPs, General Partnerships, Limited Partnerships, Corporations, Escrow Accounts, and Political Organizations! Why are there so many different types of business entities? What is the securest way to determine who has the authority to transact on behalf of a business entity – especially when owed by another entity? Verifying if a business entity is legitimate and who has the authority to transact business on behalf of that entity can be challenging. When can a business use the owner's SSN vs. an EIN? When does a bank need a partnership agreement, bylaws, or operating agreement? FinCen requirements will be addressed. In this two hour comprehensive webinar, participants gain confidence and a clear understanding of the regulatory, compliance, documentation, and proper TIN requirements for opening business account. This session is not state law specific.

It is highly recommended that attendees have a copy of the financial institution's account agreement, signature card, and resolutions to reference during the session. To customize the course to state law, the FI may want to access the Secretary of State’s website to review documentation requirements on forming business structures in your state.

Covered Topics

  • Business Account Documentation
  • Resolutions – Purpose and Proper Completion
  • Learn the Harsh Reality of How Our Bank Lost $100,000 By Not Executing a Resolution Properly
  • Business Taxation Options and Why We Have To Care
  • Sole Proprietorships
  • General, Limited, Limited Liability, and Limited Liability Limited Partnerships?
  • Why Are There So Many Different Types of Partnerships Available?
  • Limited Liability Company and Series LLC 
  • Limited Liability Company – Why Has It Become The Most Popular Business Structure?
  • Determining LLC Business and Tax Classification
  • Profit and Non-Profit Corporations
  • 501(c)(3) Non-Profit Corporations
  • Understanding Sub-Chapter S Corporations (S-Corps)
  • Non-Profit Associations, Social Clubs, and Charitable Organizations
  • Adding and Removing an Owner or Non-Owner as a Signer
  • Access at the Death of a Business Account Signer/Owner
  • FinCen - Beneficial Ownership Due Diligence Requirements
  • Documenting Complicated Business Structures
  • TIN Compliance "Cheat Sheet" Included In Session

Who Should Attend?

Customer contact personnel, supervisors, and officers whose responsibilities include opening or managing new accounts. Personal Bankers, BSA Officers, Deposit Operations, Branch Administration, CIP Managers, Training and Business Development Officers, Internal Auditors and Compliance Officers will find the information beneficial. Lending assistants and officers will find the information informative as well as at least 85% of this information also impacts the lending area.