Documentation requirements for opening business accounts:
Sole Proprietorship (DBA)
Limited Liability Company (LLC)
Sole Proprietorship (DBA)
- Documentation Required:
- If the business name includes the owner’s last name, no additional documentation is needed.
- Example: Michaela Johns opening “Johns Jewelry” does not require extra paperwork.
- If the business name does not include the owner’s last name, a Fictitious Name (Trade Name) Certificate is required. This certificate must be filed with the county recorder’s office and provided to the bank when opening the account.
- Example: Michaela Johns opening “Dazzling Jewelry” would need to provide the certificate.
- EIN vs SSN: Owners may use an EIN instead of their SSN. The EIN number must be provided, but no IRS paperwork is required.
Limited Liability Company (LLC)
- Documentation Required:
- Articles/Certificate of Organization (provided by the owner or available through the Iowa Secretary of State website)
- EIN number (if applicable)
- Tax classification (how the LLC files taxes)
- EIN vs SSN:
- Most LLCs will have an EIN, which can be verbally provided (no IRS paperwork needed).
- Single-member LLCs may choose to use their SSN instead.
- Tax Filing: LLCs may report profits and losses in different ways:
- On the owner’s personal return (partnership or single-member LLC)
- On a separate tax return (S Corp or C Corp election)
- Using their own SSN (if filed as a single-member LLC)