3 ms·
Do investors write check or wire money to the company name or founders’ names?
by bananaFund 3y ago
Do investors write check or wire money to the company name or founders’ names?
- eszed 3y agoCompany name. That's why you form a company: to separate you from the company, and limit your financial liability. Once you've filed your DBA, and have the paperwork in-hand, go talk to the bank that holds your corporate bank account (you do have a corporate bank account, right? See above). I don't know their exact process, but they will attach the DBA name to the corporate bank account, so that you can receive funds to it under that name.
- bananaFund 3y agoThanks! Another question: do investors care about the legal entity's name? Creating a DBA seems only allow you to put [Old Name, Inc.] DBA [New Name], for which old name will still be on it.
- eszed 3y agoThis is beyond my experience. At some point I expect they'll find out the old name, but the only time I know you'll be obliged to include the corporate name will be on a contract, and if they've got to the point of signing a contract with you, then I doubt it'll be an issue. However, someone else will be able to give you a more certain answer than I can. I don't know why you're so concerned about your corporate name, but if it's something really weird, or something totally antithetical to the product you're selling, you might rehearse a clever and self-deprecating answer. Maybe even something as simple as, "yeah, we pivoted. Obviously", in the right tone of voice, will dispel questions.