Why My Account Not Opening?

Opening a Business Checking Account with a Financial Institution.Company Name and/or Individual on Account?

• My husband and I started a business, Corporated, Business License and etc; we have it all. Our next step is to open a Small Business Bank Account. When opening a Small Business Bank Account - Of course, the Business Name is on the account and that is how it should and will be recognize but we want our Accounting VP's name to be on it to only make deposits and make monthly payments. Will her name be known or recognized as the actual person over the account? In other words could she use our Business Account as a creditability for her to get credit on personal items/things for her personal gain. If so, how could we prevent that with the Bank?

• Answer:

  Your accounting VP does not have to be on the account to make deposits or to get information to reconcile the account. Only you and your husband should be listed as signatories on the account. If you wish to give the VP power to sign checks you should limit the amount she/he can sign and/or have a requirement for 2 signatures on each check or on checks over a certain amount to protect your business. If you are incorporated the bank will require your articles of incorporation and a certificate of incumbency which names the individuals authorized to sign on behalf of the corporation. Banks have fill in forms if you did not have these drawn up at the time you incorporated. Talk to your business banker to set up the account in the best way to protect your business but not hand tie the VP from doing her/his job.