Why So Many People Struggle Opening Business Bank Accounts — And Why Corporations Are Legally “People”
- Dewayne Williams
- 3 days ago
- 6 min read
Every single week, I get the same messages:
“Why won’t the bank open my account?”
“Why does the banker keep asking for corrections?”
“Why does my nonprofit require all this extra stuff?”
“Why do the questions on the Chase video feel confusing when I’m opening multiple companies?”
“Why are they asking me for my Social Security Number if this is a C-Corp?”
Let’s address ALL of this clearly, truthfully, and in a way that eliminates confusion forever.
Because the problem is NOT your structure.
The problem is perception, misunderstanding, and expecting bank employees to understand corporate strategy.
Let’s fix that.
1. First, Understand This: A Corporation Is a U.S. Person
This is not opinion — this is federal law.
A corporation is legally considered a separate person from you.
That means each company you own must have its own:
✔ Bank account
✔ EIN
✔ Address
✔ DUNS
✔ Payment Processing Account (Stripe)
Just like every individual person needs their own identity, every corporation needs one as well.
This is where people get confused:
They still think like a person instead of thinking like a CEO.
When the IRS, banks, and federal agencies say a corporation is a “U.S. person,”they mean:
It thinks on its own.
Acts on its own.
Signs on its own.
Earns on its own.
And has its own identity.
2. Stop Expecting Bank Employees to Understand Corporate Strategy
This is where 90% of the frustration comes from.
Banks do NOT train their employees to understand:
Multi-entity corporate structures
Holding companies
C-Corp conversions
Nonprofits from a strategic perspective
Parent/child ownership
WY vs Home State strategy
Private corporation openings for future tax-exempt status
Their job is simple:
➡ Click the boxes
➡ Follow compliance prompts
➡ Upload documents
➡ Complete onboarding
That is it.
So, when clients walk in expecting the banker to “understand the Legacy Builder strategy,” it always ends in frustration.
Banks operate off checklists, not corporate law.
Every bank is different.
Every branch is different.
Every manager is different.
Every compliance system is different.
This is why I always repeat:
Do not confuse STRATEGY with a banker’s limited perspective.
3. Why Banks Ask for Your Social Security Number — Even When You’re Opening a C-Corp
This one causes more confusion than anything else.
People assume:
“They’re trying to put this in my name.”
“They’re tying me to the corporation.”
“They’re trying to make me personally liable.”
“They’re not treating this like a separate entity.”
All of that is incorrect.
Here’s the truth:
Banks ask for your Social ONLY to verify identity — not to assign liability.
A corporation is a U.S. person,
but here’s the part most people forget:
A corporation does not have blood running through its veins. YOU do.
A corporation:
Lives forever
Doesn’t die
Doesn’t age - wrinkle
Doesn’t sleep
But it also:
Cannot physically walk into a bank
Cannot speak
Cannot show ID
Cannot confirm identity
So federal law requires:
**A natural person must verify THEIR identity
when representing the corporation.**
That is all your SSN is used for.
It is NOT:
✘ a personal guarantee
✘ a personal credit check
✘ transferring ownership
✘ tying liability to you
✘ the bank treating your corp as an LLC
It is simply federal identity verification.
4. “But Why Can’t I Just Open It Without Giving My SSN?”
Think about this…
Can any random person walk into a bank and say:
“I want to open an Amazon bank account”?
Of course not.
Why?
Because they are not:
An officer
A representative
An authorized signer
Listed on the documents
Connected to the corporation in any way
This is the SAME reason banks ask you for your SSN.
They need to know YOU are actually authorized to represent the entity.
Identity Verification ≠ Ownership ≠ Liability
Let’s clarify:
Identity Verification: Proves you are a real person.
Ownership: Determined by corporate docs, NOT your SSN.
Liability: Belongs to the corporation, NOT to you.
So again:
They ask for your SSN to verify YOU — not to control the corporation.
5. Let’s Talk About Nonprofits — Because This Creates Even More Confusion
This is the truth most people don’t know:
**A nonprofit is a C-Corp FIRST,
then it becomes tax-exempt AFTER you apply.**
Not the other way around.
This creates two paths:
PATH A — Traditional Nonprofit (Board, Minutes, etc.)
This is what banks are trained to expect:
Board of directors
Officers
Minutes
Authority language
Governance rules
When you walk into a bank and say “nonprofit,”their brain automatically goes here.
They aren’t wrong.They’re following training.
PATH B — STRATEGIC Nonprofit
(Private C-Corp + Tax Exemption Later)
This is what I teach.
✔ You open it as a private C-Corp
✔ You structure it strategically
✔ You open the bank account like any corporation
✔ THEN you file for tax exemption
This avoids 90% of the nonprofit red tape.
But the moment you say “nonprofit” to a banker,
they go right back to their nonprofit checklist.
This is perception — not law.
And certainly not strategy.
6. Bylaws, Titles, and Authority — Why Banks Keep Asking for Corrections
People get frustrated when banks say:
“Your bylaws must say who can open accounts.”
“If you’re the President, your duties must include financial authority.”
“Where are the board members?”
Here’s why:
Banks interpret documents based on THEIR own internal compliance — not based on law.
Every bank’s rules are different:
Chase has one process
PNC has another
Bank of America has a different list
Wells Fargo has a different checklist
Credit unions have their own requirements
This is WHY we teach:
**Use Chase. Follow the Chase script.
Do not freelance the process.**
If you go to another bank,you cannot expect the same smooth experience.
7. Why the Chase Video Exists
We provide the Chase video so you know:
✔ Exactly what to expect
✔ Exactly how Chase’s system is set up
✔ Exactly how to answer without over-explaining
✔ Exactly what language Chase is trained to hear
✔ AVOID going into the bank and AVOID the red tape.
If you:
use a different bank
bring too many documents
over-explain
mention strategy
bring up parent companies
use the word “nonprofit” incorrectly
let the banker guide you into confusion
You will complicate the process.
Chase is predictable.
Other banks are not.
8. The Most Common Questions Answered Clearly
Q: Do all 5 Legacy companies need separate bank accounts?
Yes — each one is a separate U.S. person.
Q: Do they each need a unique address, DUNS, and Stripe?
Yes. Never mix identities.
Q: How do I answer “existing customer” for Chase?
First account = No
Every account after = Yes
Q: Should I list “not owned by another business” for each company?
Yes!
Q: Why does my nonprofit need corrections?
Because banks use “nonprofit” checklists that don’t apply to your strategy.
Q: Why doesn’t the banker understand my structure?
Because they’re following prompts — not strategy.
Q: Why do they need my SSN?
Identity verification.
Not ownership.
Not liability.
9. Do Not Confuse Strategy, Perception, and Reality
Your Legacy Builder structure works.
Your corporations are real.
Your strategy is correct.
But you must understand:
✔ Strategy = What MAC teaches you
✔ Perception = What bankers think a business should look like
✔ Reality = Federal law and corporate personhood
If you mix these three up,
you will always create frustration for yourself.
Stick to the blueprint.
Treat each company like a separate person.
Follow the Chase onboarding process.
Do not over-explain.
Do not expect bank employees to be strategists.
You are the CEO.
The banker is the employee.
Never give the employee more authority than the corporation itself.
📚 References
Sanford A. Schane, The Corporation Is a Person: The Language of a Legal Fiction, 61 Tulane L. Rev. 563 (1987). Tulane Law Review
Melissa J. Durkee (ed.), Corporate Personhood as Legal and Literary Fiction, in States, Firms, and Their Legal Fictions (Cambridge Univ. Press 2024). Cambridge University Press & Assessment
Molly M. Blair, Corporate Personhood & Corporate Persona, 2013 U. Ill. L. Rev. (Vol.’s) (2013). Illinois Law Review
P. Blumberg, The Corporate Personality in American Law: A Summary Review, law paper, Univ. Conn. (1990). Digital Commons
KC Wang, The Corporate Entity Concept (or Fiction Theory) and the Law, Minn. L. Rev. (1944). Minnesota Law Scholarship Repository
“Classification of Taxpayers for U.S. Tax Purposes,” IRS.gov. IRS
26 CFR § 301.7701-2 – Business entities; definitions (defines “corporation,” how entities are treated) Legal Information Institute
“Corporate Personhood: A Limit to Corporate Empowerment,” 2.9 yrs ago article. Columbia Undergraduate Law Review
“Corporate Personhood v. Corporate Statehood,” Harvard Law Review (2019). Harvard Law Review
29 CFR § 783.8 – “Person”, which defines “person” to include “an individual, partnership, association, corporation, business trust, legal representative, or any organized group of persons” (Act, section 3(a)). Legal Information Institute