Sole proprietor, EIN and business account.

[winterworld]

I'm a sole proprietor with a premier PP account. I'm thinking about upgrading to a business account just so that it shows my business name and not my personal name in transactions. This is not a stealth account. What are the pitfalls or issues with upgrading to a business account? I understand the procedure has changed recently. I have a EIN for my sole proprietorship. Since it's not a LLC will my business name pass the IRS verification step with my EIN or must I use my personal name? Does anyone have experience with this? There is a field for business name on the EIN but I've heard from some people that the IRS will only match the personal name and not the business name. Will I have to send in my EIN paperwork or business license to PP if I upgrade to business?

This is a small side business. PP has never requested my tax info and I'm pretty far away from the limits. What do people think of upgrading to business for a small sole proprietor?

[phaz0rz]

It wouldn't serve the purpose you want it to since, like you mentioned, the sole prop EIN is tied to your name and not a business name so your personal name would still show on PP transactions (given that you upgrade correctly). To put an LLC name would cause a mismatch with the IRS.

[winterworld]

I didn't know it worked that way, so if I upgrade to a business account and hence have a business name. If the business is a sole proprietorship that my personal name would still be the name that shows up on transactions and not my business name? So if someone sent me a payment, PP would still say you paid this person and not this business? What's the point of having a business name on a PP business account for a sole proprietorship then?

Most sole proprietorships have business names. It's just not for separate legal entities like LLCs. With a business checking account, one can accept payments made out to the business name with no mention of the personal name. I find it confusing that on the EIN for a sole proprietorship that there is a field for business name. If the IRS doesn't match the business name to the EIN, why is there even a spot for the business name?

Is it mandatory to give an EIN or SSN as part of the business upgrade process?