President of an Arizona nonprofit corporation I formed recently called while at the bank trying to open a bank account for the corporation.  The corporation filed IRS form 1023EZ and was a 501(c)(3) tax-exempt charity.  The banker said her bank could not open a bank account until the corporation could prove its “tax classification.”  I asked her what she meant by “tax classification” and she said it means is the corporation a C corporation or an S corporation?  I said neither because it is a 501(c)(3) tax-exempt charity.  She insisted the corporation had to be a C or an S because she was ignorant of federal income tax law.

Bottom line:  I told my client to go to another bank and hopefully would not be helped by a person who is a business idiot.

I do not recommend that businesses use Wells Fargo, Chase or Bank of America.  They are not customer friendly.