Posted June 12, 2024 by James Billings
Introduction: Understanding Business Trust Banking
Today, we’re diving into how to manage your banking care for your business trust. This is all about optimizing banking to benefit your business.
Setting Up Your Business Trust Banking
How to Choose a Name for Your Trust
Now that you’ve established your business trust, it’s crucial to determine where to conduct your banking to manage your funds efficiently. Here are the key institution types you can consider:
Commercial Banks
Commercial banks like Citibank, Chase, and First Republic are ideal for handling high-frequency or operational funds. However, finding the right account type is essential. You’ll likely need to look for an unincorporated association account that suits business trusts, as traditional trust forms generally cater to estate trusts.
Brokerage Firms
Institutions such as Merrill Lynch and Morgan Stanley, while primarily for stocks and bonds, also offer banking services. Here, you can manage your higher dollar balances or savings accounts. A strategic approach is to maintain balances in different types of institutions to diversify and secure your funds.
Privacy and Strategic Planning in Business Trust Banking
Privacy remains a paramount feature in business trust banking. If you’re interested in setting up business trusts or need strategic planning advice, visit our website at Billings.ch. We specialize in forming strategies that enhance both privacy and liability safety.
Local vs. Out-of-State Banking
For daily operations, local accounts are convenient, whereas brokerage firms or banks with a state charter in another state can offer enhanced privacy and reduce liability risks. This separation ensures that your funds are not easily traceable or connected in case of financial issues.
Who Manages the Business Trust Bank Account?
The trustee or trustees of your business trust are responsible for all banking activities, including opening accounts and signing checks. For added privacy, some opt for a fiscal agent to handle these duties, representing the trustee in all banking activities.
The Advantage of Stealth in Business Trust Banking
One of the greatest benefits of a business trust bank account is its stealth. Since the business trust is not registered with any Secretary of State, its existence remains private. Coupled with an EIN number and strategic account placement, these accounts are nearly invisible on the public radar.
Conclusion: The Simplicity of Business Trust Banking
Opening a bank account with a business trust requires minimal paperwork—just the business trust declaration and an EIN from the IRS. This simplicity avoids the hassle associated with other legal entities which often require extensive documentation.
Get your free copy of the LLC versus Business Trust comparison chart here.
If you have any questions, please contact James Billings, founder and owner of TrustArte, at james@trustarte.com or 619-537-8625. Visit my YouTube channel for video content.