A Trust account is a legal entity created by a grantor, and administered by the trustee(s), for the benefit of designated beneficiaries and evidenced by a written document called the trust agreement. Trusts are governed by state law. Accounts opened by a trust must be in the name of the trust.
A corporate account is owned by a corporation, which is typically managed by a duly appointed officer or officers. The account must be in the full, legal name of the corporation as outlined in its articles or certificate of incorporation. Corporations are governed by state law.
A General Partnership account is owned by a partnership which is typically managed by a general partner or partners. The account must be in the full name of the partnership, as outlined in the written partnership agreement, and the partnership’s fictitious name filing or certificate of general partnership. General partnerships are governed by state law.
A limited partnership has one or more general partners, who are responsible to manage and conduct the partnership’s affairs, and one or more limited partners, who own passive interests in the limited partnership (similar to shareholders of a corporation). The account must be in the full name of the partnership, as outlined in the written partnership agreement and certificate of limited partnership. Limited partnerships are governed by state law.
Limited Liability Company
A limited liability company (LLC) is typically managed by one or more managing members (or managers) and typically has other passive members (in the nature of limited partners). The account must be in the full, legal name of the limited liability company as outlined in the articles or certificate of organization. Limited liability companies are governed by state law.
A sole proprietorship account is owned by one individual and conducted under a business name. There is no entity of any kind associated with a sole proprietorship; it is simply an individual owning 100 percent of a business. The account must be in the name of the individual, “doing business as” (the name of the business).