Have you transferred business ownership after creating the bank account?

[ppuk]

Has anyone here done this?

1. Have a company owned 100% by you personally
2. Opened a business bank account for it, with the KYC focused on you
3. After the account is up and running a while, transfer ownership of the company to another entity (trust/foundation/holding co)?

Even if the bank needs new KYC updates later, you'd still have a working bank account in the meantime.

Any reason why this wouldn't work well?

Thank you.

— ppuk

 

[hernanday]

I think it would work, but the issue is from an asset protection viewpoint the account is still in the name of the company who you initially opened it in and is therefore subject to court order. I am currently researching and exploring the concept of making yourself a trustee over accounts for companies you control. Trust accounts seem to be crs exempted, they are in your name but belong to the beneficiary who on paper isn't you. From an asset protection perspective they aren't your money technically so cannot be seized by your creditors successfully for debts you owe, and banks don't scrutinize this area too heavily yet.