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Two DBAs, Same Account: Will it Work?

Can a business account have two DBAs on the same account?


Sure, it's possible. If a single individual or entity operates more than one business under different business names, the business owner may be tempted to put all of the businesses' funds into one pot, figuratively. However, many banks won't knowingly allow such an arrangement, particularly if the businesses each generate a fair amount of account activity or deposit significant numbers of checks.

From a business perspective, it's usually a better idea to keep business records and accounts separate, so that the business owner can know how each business is doing, and to facilitate the bookkeeping that's required to report the business' profits to tax authorities. From a bank's perspective, it can be confusing for tellers that see checks payable to two different businesses deposited to the same account. The bank may also determine that keeping both businesses in one account denies the bank some of its normal business service charge income.

Published on BankingQuestions.com 7/17/08