No. In order to open a business account you need a FIEN (federal employer identification number) from the IRS. This makes you a legal business to the bank. You also have to provide the bank with the businesses "article of incorporation."
However, the advisor I've used told me that you have to be careful with an entity because the IRS has a "hobby" rule. The rule has something to do with: profits, taking a draw, and deductions.
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No. In order to open a business account you need a FIEN (federal employer identification number) from the IRS. This makes you a legal business to the bank. You also have to provide the bank with the businesses "article of incorporation."
john I just create an entity? So I can get an FIEN number?
However, the advisor I've used told me that you have to be careful with an entity because the IRS has a "hobby" rule. The rule has something to do with: profits, taking a draw, and deductions.
Thanks john
btw sk a tax advisor, before incorporating. Different states have different rules too.
hmm okay john thanks for help