Answers about Business Accounts

My bank refused to open a NOW account for my business. Why?

A NOW account is an interest-earning bank account with which the customer is permitted to write drafts against money held on deposit.

Entities organized or operated to make a profit (e.g., corporations, partnerships, associations, business trusts) may not maintain NOW accounts.

However, an individual doing business as (DBA) a sole proprietor or under a trade name (e.g., Joe Smith doing business as “Smith Enterprises”) can maintain a NOW account. The account would have to be in the individual's name or in the DBA name.