Q&A: Two corporations, but only one bank account?
Our firm (A) recently acquired another firm (B). Company Y exists only because we are obligated to do so by a legal agreement. Company A handles all transactions, invoices, and other paperwork. We currently have a separate bank account for company B and company A; however, because all transactions will be conducted through company x, we would like to add company y to the bank account. We were told that we couldn't do it unless they have separate FED IDs, but everything with company B flows through to company A for tax purposes, and company B doesn't really exist for tax purposes. Is it correct that, based on the above information, we won't be able to have a single bank account for both?
If they have different FEIN numbers, they must maintain separate accounts until the legal agreement is completed. They can then be combined.
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