Taking advantage of bank offers... consequencies of a Tax ID number (Wells Fargo, taxes)

[R92024]

Hi,
I'd like to take advantage of one or more offers from banks, where they give you money to open an account.
I've seen a few offers online... and it looks like a lot of them need a Direct Deposit into the new account.

I'm self-employed (sole proprietor) and have a bank account in the name of my business.

Can I open a personal account with another bank, and set up a Direct Deposit from my business to myself?

When I called my bank (Wells Fargo), they said if I wanted the Payee to show as the name of my business, rather than my personal name, I would need a Tax Identification Number... which they could give me if I go into the branch.

I file taxes as an individual / sole proprietor... would I be opening a can of worms by getting a Tax ID number?

Thanks!

[leastprime]

Go to another bank.

[JonathanLB]

I don’t see how a bank can give you a Tax ID number? It’s a federal number associated with any legitimate business. You should just make a legitimate company and you’ll get an EIN. Mine is an S-Corp and I use that tax ID for business purposes. Plus a sole proprietor just seems less legitimate than an actual company and doesn’t offer the same legal protections.

[wheelsup]

Originally Posted by leastprime

Go to another bank.

That misses the point of what he is trying to accomplish.

[rjm1cc]

You should not need a tax ID number to transfer money between your accounts but you may incur a fee.


You should be able to do this without a fee so either the person does not understand your request or you might want to look for a new bank.

[R92024]

Thanks for the replies.
I'm probably over thinking this.
What I'm trying to avoid is when the new bank (where I'll open the new personal account) sees that the Payee of the Direct Deposit (my existing bank) has the same name. Fred Jones transferring to Fred Jones.
I only need to make one Direct Deposit to validate the bank's offer.

Maybe it doesn't matter... and maybe the best way is to give it a try.

[Lowexpectations]

Check with the new bank. Sometimes all you need is the reoccurring inflow of deposits which you can accomplish through an ACH transfer

[rjm1cc]

Originally Posted by R92024

Thanks for the replies.
I'm probably over thinking this.
What I'm trying to avoid is when the new bank (where I'll open the new personal account) sees that the Payee of the Direct Deposit (my existing bank) has the same name. Fred Jones transferring to Fred Jones.
I only need to make one Direct Deposit to validate the bank's offer.

Maybe it doesn't matter... and maybe the best way is to give it a try.

I move money between several bank accounts that all have the same name. Never had a question or problem.

[KaraG]

Originally Posted by R92024

I only need to make one Direct Deposit to validate the bank's offer.

Are you sure? How much are they going to give you to open an account with one Direct Deposit?

Are there monthly fees?

Something doesn't sound quite right.

[LizfromtheBronx]

Originally Posted by KaraG

Are you sure? How much are they going to give you to open an account with one Direct Deposit?

Are there monthly fees?

Something doesn't sound quite right.

These kinds of offers are common. Most, if not all, require a certain amount of direct deposits from an employer, pension, or SS to go into the account before approving you for the bonus.

The bonus amounts range between $100-$500 usually, with the higher amounts having more requirements. I used to do a lot of these, but since I'm in the process of buying my first home had to take a break to keep my bank statements cleaner.

OP, it's worth a shot, but don't be surprised if it doesn't work out. Usually the fine print is pretty specific in what counts as a direct deposit, and what doesn't. Person to person ACH transfers are usually excluded.