Chase sent a letter. They want to see:
1. "Proof of legal name for business". No problem. We have a TIN letter from the IRS for each trust. Happy to give them the same document for a third time if it will help.
2. "Proof of physical address and federal tax id for business"
We have proof of the federal tax ID...the TIN letter. Proof of physical address for business may be tricky, though.
Do they need proof of current physical address? It is fine to use a home address for business credit purposes though most people incorrectly say you need a business address. I have tested it either way and found that home address is more convenient.
Chase suggests we use one of:
a. Articles of Incorporation/Organization. We have the trust documents, but those don't include any addresses AFAIK, and if they did they would be outdated ones.
Trusts are started with a Declaration of Trust which is what they meant here. The address for the trust is supposed to be on the Declaration of Trust. Though outdated it is still an address.
b. Certificate of Formation. I'm not sure what this is or if we have one.
c. IRS EIN/TIN letter. The address on the letter is for DM's home, and not my home which is the de facto business (home office) address.
This is perfect.
d. Utility bill within the last 90 days. I have plenty of utility bills, but they are all in my personal name and not in the name of the trust. Utility bills around here tend to be addressed personally to business managers, even if payment comes from business accounts. Changing billing info is a PITA (if even possible) and I won't be able to get a new statement within 9 days, which is how long Chase is giving us to reply (14 days since the letter was printed 5 days ago).
One should never have any assets or expenses or revenue in the name of one's person which is a taxable entity. Instead use a non taxable 501c3 trust via the 508c1A exception is best because then the trust doesn't report or pay taxes. Put bills in the name of the trust to help have a credit profile that matches what lenders need in your trust's credit profile too. Win win.
Then one can take legally take advantage of benefits for your business known as the person like SNAP/EBT card, lawsuits can be initiated for free, and many other perks of a penniless entity known as your person which isn't you. People run businesses but aren't businesses so use a non taxable non reporting entity for an easier life. Then you develop the credit profile for the trust over time, as people share how to here on myfico, like any other business credit profile which doesn't differ in any way from any other type of business credit profile.
Thoughts? I will call Chase soon. I was thinking I might get by with a utility bill in my name and a property/liability insurance bill in the name of the trust showing the same address.
Sounds like they want to extend credit to your trust which is excellent. Just give them the paperwork they need.
