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class reunion - short term business

by lisalisa, Window Shopper

  • Created: June 3, 2010, 6:56 am
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2 comments

I am planning a 30 year class reunion.  I need to open a checking account in the name of the reunion and the banks are telling me that I need a Business License in order to open a business checking account.  Is this true, or can I just set up an individual account in my name to use to collect payment and pay expenses for the reunion?  The account will be open for approx. 1 year.  

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dgoldie | Creator | 6/3/2010 - 12:34 pm

You can open an account in your own name, but you will receive a Form 1099 from the bank at year's end for any interest earned in the account, and you would have to report that interest on your tax return. You would also have to ask people to make their checks payable to your personally. I think it would be better and safer to find a way to open an account in the name of the reunion.
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BizResearcher | Window Shopper | 6/8/2010 - 9:01 am

Show Replied Text…
You can open an account in your own name, but you will receive a Form 1099 from the bank at year's end for any interest earned in the account, and you would have to report that interest on your tax return. You would also have to ask people to make their checks payable to your personally. I think it would be better and safer to find a way to open an account in the name of the reunion.
You might clarify with the back whether you need a business license or an EIN (employer identification number). Banks often require an EIN rather than allowing you to use your SS# for the account. If you have a personal account at the bank, they cannot use your SS# on more than one account. Obtaining an EIN is quick and easy. You can download the form SS4 from the IRS web site and fax or mail it in. You can also apply for a number by phone. Just be sure to cancel the number after all the reunion expenses have been paid and it is no longer needed.