Help-How can I set up a business checking account for my new coin business?

USCGCraig

I've recently set up my coin business. I've jumped through every hoop imaginable here in California in order to be legitimate including Business License, Resellers Permit, State Department of Justice background check so I can buy scrap jewelry, sales tax authorization and finally Fictitious Business Name filing. I also have my Anti-Money Laundering Plan. And I have a great Point of Sale system tied in with my website. I'm a PCGS and NGC authorized dealer and have also attained that status with Heritage and Upstate Coin amongst others. Last thing I need is to open up a basic checking account. I even have the correct SIC code for our type of business which is 596104 which is for Stamps, Coins & Collectables.

I've been to four banks and credit unions and have been denied at every turn. My credit rating is over 800 and there are no flags, no convictions, nothing in my personal history. I just want a basic checking account but no one wants to do business NOW with a coin dealer. The excuse I'm given is new policy as it relates to money laundering and coin dealers are grouped in with cash servicing industries and banks want no part of cash heavy businesses due to the risk. To say I'm frustrated is putting it lightly.

I want to be completely legitimate. I could open a personal account using my PO Box as the address but then I'd have to ask other dealers to write checks out to me personally, not to my business. I even went to a bank that a local shop that I do a lot of business with referred me to and was denied under this new policy.

My goal was to have a local brick and mortar bank that my clients could take the check to. My thinking was that many folks over 70 don't know how to deposit checks with their smart phones and prefer to take a check to an actual brick and mortar bank they have heard of. Thus, I'm not inclined to go with an online only bank like USAA which I do all my banking with.

Has anyone recently started a coin business and been able to legitimately set up a business checking account? If so, with whom? Please don't tell me about any legacy accounts as that is not helpful unfortunately.

Either a reply to this or a PM or an email to craig@oceanside-coin.com would be awesome.

Thank you shipmates.

Coast Guard Craig

ifthevamzarockin

"Has anyone recently started a coin business and been able to legitimately set up a business checking account?"

I have not so I may be of little help.

"I could open a personal account using my PO Box as the address but then I'd have to ask other dealers to write checks out to me personally, not to my business."

Banks can deny opening an account but once an account is open a different set of rules apply.
They can't force you to close the account if you have done nothing wrong and they can't prevent you from making changes.
Go in and open a personal account, wait to order any checks or extra debit cards etc. Wait a few days or a week and go back in and tell them you need to add some info on the account, have them add DBA Oceanside Coin. With your name & DBA you should be able to cash or deposit in either name.

Free banking or legal advise that you get on the net is worth exactly what you paid.

USCGCraig

Thanks. You're the second person who mentioned using a DBA. I really don't want to go that route if possible but I just might have to. I'd like to be as legit as I can be. Anyone else go through something similar?

USCGCraig

Anyone else? I'm sure someone has experienced this.

ifthevamzarockin

"I really don't want to go that route if possible but I just might have to."
"I'd like to be as legit as I can be."

Using a DBA account is 100% legit and is a very common type of account. Not sure why you have reservations about it.

TomB

There is nothing wrong with a DBA. It is normal business practice, completely legitimate and in no way hides funds.

USCGCraig

@ifthevamzarockin said:
"I really don't want to go that route if possible but I just might have to."
"I'd like to be as legit as I can be."

Using a DBA account is 100% legit and is a very common type of account. Not sure why you have reservations about it.

I honestly don't know why I have reservations about doing this. Probably my own ignorance truthfully. I will look into DBAs this weekend. Thanks for bringing this to my attention.

sellitstore

Are you a sole proprietor or a corp?

I think that a corp needs to use a commercial bank but sole prop. can use any bank.

USCGCraig

@sellitstore said:
Are you a sole proprietor or a corp?

I think that a corp needs to use a commercial bank but sole prop. can use any bank.

I'm currently Sole Proprietor due to the current unemployment laws. When that is over in early September, then we will look into creating either an LLC or an S-Corp depending on which one makes the most sense.

Something to look into for sure. Thank you.