Topic: How can I avoid bank account termination when selling with cash deposit? (Read 1056 times)
December 02, 2014, 09:34:58 PM
the things what you are doing just like a crime, be careful, don't follow skill road
December 02, 2014, 02:20:13 PM
I've been selling Bitcoin on LocalBitcoins using cash deposit for a few months now and have recently had my personal BofA bank account cancelled.
I've started an LLC and opened a business account at BofA without any trouble but am unsure how to avoid this happening again. I have some questions and ideas on how to avoid this that I'd like to run by you guys.
I've started an LLC and opened a business account at BofA without any trouble but am unsure how to avoid this happening again. I have some questions and ideas on how to avoid this that I'd like to run by you guys.
Terrible idea to use a personal account for high volume BTC transactions. You'll get away with if you only do occasional deposits and mix it in there with real transactions like paying bills and such, but high volume will all BTC deposits will get you shut down pretty quickly. Once this happens, your bank account is not just "cancelled" or closed, you're banned from opening an account with them again.
Once your personal account is closed, you can try opening an business account but I'm suspecting it'll get shut down soon too once they can make the connection that you're the same person. This is definitely true for sole proprietorship, but I'm not sure how it will work for an LLC. If BofA instantly shuts down your LLC, don't be surprised.
December 02, 2014, 11:21:26 AM
I've been selling Bitcoin on LocalBitcoins using cash deposit for a few months now and have recently had my personal BofA bank account cancelled. I've done some research on this forum and it seems to be a common theme among traders using cash deposit and moving large volumes regardless of transparency or MSB registration. I've started an LLC and opened a business account at BofA without any trouble but am unsure how to avoid this happening again. I have some questions and ideas on how to avoid this that I'd like to run by you guys.
1. I've heard that when an LLC bank account is closed, there is nothing stopping you from forming a new LLC and tax ID to start a new account at the same bank. Is this possible?
2. I see a lot of traders accepting through a lot of bank accounts and was wondering if any of you out there use this to keep the volume in individual accounts low. If so, how well does it work and could having so many business accounts also attract attention?
3. Does anyone out there have an estimate or at least a ballpark guess of what level of volume results in account terminations. Do some banks seem to tolerate higher volumes?
4. How much better are Credit Unions with large volumes? Also, is the large Credit Union co-op network that most traders seem to use here simple to deposit and withdraw from when at other locations?
5. Do ACH transfers deposits cause the kind of red flags that cash deposits do?
Here's my LBC profile if you're curious.
https://localbitcoins.com/accounts/profile/cylon5/
1. I've heard that when an LLC bank account is closed, there is nothing stopping you from forming a new LLC and tax ID to start a new account at the same bank. Is this possible?
2. I see a lot of traders accepting through a lot of bank accounts and was wondering if any of you out there use this to keep the volume in individual accounts low. If so, how well does it work and could having so many business accounts also attract attention?
3. Does anyone out there have an estimate or at least a ballpark guess of what level of volume results in account terminations. Do some banks seem to tolerate higher volumes?
4. How much better are Credit Unions with large volumes? Also, is the large Credit Union co-op network that most traders seem to use here simple to deposit and withdraw from when at other locations?
5. Do ACH transfers deposits cause the kind of red flags that cash deposits do?
Here's my LBC profile if you're curious.
https://localbitcoins.com/accounts/profile/cylon5/
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