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Why does a Bank need my SSN for a Business Account?


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I have started a business and certainly do not want my social security number listed or related in anyway to this business. (S-Corp.)

I have an account being set up with Dun and Bradstreet. This will also include a credit account for the business. References to my business credit involve using the D&B credit reporting service.

Question? Why can I not open a business account through a bank where the business credit stands on its' own using my D&B credit file? Anyone dealt with this.

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You can thank that piece of $#@! Patriot Act for that. I ran into the same problem when I went to set up a business account in our new state a couple months back. They're all lined up on one street here(for the most part) so I hit 7 of them before I finally gave up and just acquiesced to their demand.

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SOMEONE has to be held accountable for the transactions on a business account. The Corp can't do that (in reality, it's just a few pieces of paper, not a person). I know you're looking for protection of problems, but so is your bank. Your bank wants to know WHO they can turn to if things go wrong on the account.

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Have we forgotten Enron already?

True, a Bank must know who the officers of the corporation are. I don't disagree with that. When things go wrong they turn to the corporation and its' officers, not personal assets.

What I don't want is a Bank tying my personal credit file to a corporation and attempting to run financial operations that way. Find me one bank that operates under an individuals' SSN and I'll eat your hat.

A filing of incorporation is not a piece of paper with nameless, faceless identities. Try that with your Secreatary of State and see where you end up. Neither is an EIN or a Dunn&Bradstreet account number.

My point is I simply do not want my personal credit history impacting my ability to operate a business, nor would I expect any unforseeable problems in the business to impact my personal credit files or assets.

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If I may ask...why exactly did you pay the money for a D&B number? So few places use them anymore...they're really becoming an obsolete entity. Used to be they were the only way to go for a business, but nowadays...kind of a waste of 500 dollars just to have them set up a credit file. The account numbers they give out for free are useless, as unless you pay them, they won't actually put anything on the business report.

Prime example of a company outliving its usefulness. I have to disagree with you on the valuable nature of an EIN, as well...I can get one of those in less than 10 minutes right over the phone free of charge. Ya gotta have one if you have employees, sure...but it's not a sacred thing or anything.

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Xan, the issue about the social security number is much broader than the Patriot Act.

I think the term that sociologists use is "The Clash of Competing Norms". Whereas you have two groups of people who are set in their opinions and are wrangling for their viewpoint to take precendence. Like with Miller Beer: Less Filling, Taste Great... Or, Paris Hilton, No Britney Spears...

Think of it as a username and password.

The former believes that your social should be treated as a username. Like a way to identify you. The latter feels that your social should actually be your password (to your username).

Like, haven't you ever tried logins for your bank, student loan, or other places. Like, half want your social as your username and the other half want your social as your password. Or have you called up places that feel so strongly that your social is the magic password.

There in lies the clash.

You obviously cannot have both because one leads to the other; vice versa.

But that is EXACTLY where we are.

I am "not" advocating if that is right or wrong. But the reality is that this is the situation we are stuck with.

Should organizations and financial institutions use your social security number as your username? Or should they use it as your password.

I remember years ago, back in college in 1987 (a life time ago), my university publicly used your social everywhere (like to post your grades, etc). In fact, one community college I attended had your social lamentated on your school ID and used that number as the school ID number. Lots of places did that.

The trend at the time was that the social was your username. Today, the pendulum has swung more as using your social as a password.

Unfortunately, a social security number was NEVER intended to be used as a national ID.

The federal government has tried to implement a Federal ID lots of times but left wing and right wing groups howled in protests. Some say it is racists and unfairly discriminates against illegal aliens who want to live here etc..., others say it is the next step to taking your guns away etc..., Left wing and right wing groups who cannot agree on anything definitely agree that they will oppose a federal ID.

Until some sort of Federal ID is implemented, your social security number has assumed that role by default.

It is a terrible situation with many flaws.

My personal viewpoint is that out of the lesser of two evils, your social should be used as a username instead of a password. Other pieces of identifying details ought to be used to confirm your identity.

Again, I cannot advocate either way because both have serious flaws...

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