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Corporation checking accounts

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Active Member
Ewen C Member Since: Feb 15, 2017
1 of 11

Per the rules of Upwork, it is literally IMPOSSIBLE to get paid to a corporation checking account so I am not sure why this is even an option.

 

I just tired to change my name to my corporation name and the name change was rejected because it has to be the real name of a person and not the name of a business.

 

Therefore; if that's the case, if you have a corporation checking account that's in the name of the business, the name between you and the corporation checking account will ALWAYS be mismatched, and therefore; will result in delays in payment.

 

This is the most obvious conclusion.

 

There is a REASON why people write checks to the name of companies and/or corporations rather than to the members or officers that own/run said corporation (when you're writing a check).

 

The way that the payment system is set up here on Upwork does not allow for that.

 

At minimum, it will impact anybody who has a business/corporation for tax purposes because by having the payments made out to the name of the individual rather than the business, it means that it will now officially be counted as personal income rather than as corporate income, which has some tax sheltering benefits. (e.g. your corporation makes money, and you as the owner, pay yourself a dividend, which would then be taxed at the dividend rate rather than at your personal income tax rate).

 

And based on a very simple, early, precursory search/check, it appears that this question or comment or realization hasn't been asked/posted on here, at the Upwork community boards before.

 

Interesting.

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Community Guru
Jennifer M Member Since: May 17, 2015
2 of 11

It's cuz your individual profile has to represent you. You can set up an agency to represent the business.

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Active Member
Ewen C Member Since: Feb 15, 2017
3 of 11

@Jennifer M wrote:

It's cuz your individual profile has to represent you. You can set up an agency to represent the business.


 I already have an agency profile. That STILL doesn't let me set the name on the account as the name of my corporation and also change the banking credentials accordingly as well to make the two match.

 

Tried that last night.

 

Doesn't work.

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Community Manager
Lena E Community Manager Member Since: Apr 7, 2015
4 of 11

Ewen,

 

You can add your company account as a payment method. However, you will have to prove that you are an authorized user for that account. To complete verification you will need to provide Customer Service with personal identification as well as one of the following:

    • An original bank statement showing the company name, as well as your name.
    • A business license showing your name and the company name.
    • Articles of Incorporation showing the company name with you as an authorized agent/owner.

 

-Lena

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Active Member
Ewen C Member Since: Feb 15, 2017
5 of 11

@Lena E wrote:

Ewen,

 

You can add your company account as a payment method. However, you will have to prove that you are an authorized user for that account. To complete verification you will need to provide Customer Service with personal identification as well as one of the following:

    • An original bank statement showing the company name, as well as your name.
    • A business license showing your name and the company name.
    • Articles of Incorporation showing the company name with you as an authorized agent/owner.

 

-Lena


Thank you for your reply, Lena.

 

Yeah, here is the problem with that though.

 

I'm incorporated in the province of Ontario, and not in the State of Michigan. Actually, legally (due to US INS restrictions, I CAN'T incorporate in the US).

 

So if someone who has a corporation, that operates under a trade name, like a doing-business-as (DBA), the name of the bank account may not have the corporate and/or dba name associated with it.

 

I've been able to successfully receive and process payments using this method in lieu of a physical check.

 

Like I have said or tried to give feedback - I've actually tried to reach customer service with this question and there is literally no feedback as to whether I've been successful at reaching said customer service because the form where you enter the question re-routes you either to the Upwork help videos and such or that it re-routes you to this community forum.

 

You could pay it to my account at a Canadian financial institution where I am incorporated and already have all of the necessary documentation you would require for verification, but a) you charge $0.99 (presumably USD for each withdraw) and b) I don't have the email or the contact information of an Upwork customer service representative that I can send said verification information to.

 

(I can check to see if my US bank will be able to add my DBA details to the account, but being that I am not incorporated in the US, there is a high probability that they won't be able to do that.)

 

And with transfer of funds from US financial institutions to Canadian financial institutions, you might end up with other legal banking requirements such as FATCA or transferring amounts of $10,000 or more will need to be declared with CBSA and/or US CBP/DHS.

 

So...does Upwork really want to get into all of that?

 

Conversely, if Upwork allows me to declare the name on my account (which would be the name of the payee if it were a check) to be the same as my DBA name, I can still provide the verification for the articles of incorporation (but it will be from the Province of Ontario rather than the State of Michigan which is where the financial institution resides) and also the Business License (which my master business license again, is from the Province of Ontario, Ministry of Government Services rather than the Michigan equilvalent thereof), but the bank may or may not have my DBA on it (being that I assume that the bank would require me to be incorporated in the State of Michigan to be able to add that information to my account).

 

I can check, but logic tells me that the probabiliity of them adding my corporation name to my account at my US financial institution isn't going to work because I am not incorporated in the US and as I've said, legally, I can't (due to US work authorization restrictions due to US INS policies). (This, BTW, is what some of the immigration policies have an influence/impact on.)

 

Please message and/or email me if you have any further questions or you can also reply to this as well.

 

I am confident that there is a solution. But I am less confident in whether Upwork would really want to have to get into CBSA/CBP/DHS customs declarations or having to ensure that the transfers of monetary instruments of $10,000 or more is compliant with all applicable US and Canadian laws because if there are ever any questions or if I were to get audited, it won't be long before Upwork will be named as the source, which can potentially spawn an audit for you guys as well.

 

In my professional opinion, the simplest solution that I've already employed (previous payments from another client of mine are made as ACH payments) under the trade name of my Canadian corporation. Therefore; for all of the above mentioned purposes (keeping the personal vs. corporation accounts separated for tax and legal purposes/reasons), US and Canadian CBSA/CBP/DHS/US INS reasons, restrictions, policies, etc., tax policies, treaties, applicable laws and regulations (e.g. FATCA), this solution has already been demonstrated and proven to work and facilitates all of the above requirements.

 

Once the ACH payment is made to my account at my US financial institution, the rest of that stuff becomes my responsibility.

 

If you make it so that I have to elect the option of paying to my account at a Canadian institution where I am incorporated and can provide all of the above request documentation for proof and verification, then that has the real potential to become the responsibility of Upwork even if tax deductions have already been explicitly declared and agreed to as being NOT the responsibility of Upwork.

 

Hope this helps.

 

Thank you.

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Active Member
Pooja B Member Since: Jun 13, 2017
6 of 11

Hi 

 

I am registered as a Corporation in Canada. I am facing similar challenges like you have detailed out below to send proof of the corporation to Upworks.

 

If I put in my Canadian account number, would that he sufficient?


Thanks

Pooja

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Active Member
Ewen C Member Since: Feb 15, 2017
7 of 11

I forget what I did, but I think that I sent in my articles of incorporation.

 

But if you want to have the bank account and/or payment method verified, I think that I just ended up re-rerouting it to my personal USD chequing account with a US bank and then I just write myself a cheque to my USD business account with TD and that seems to work well enough.

 

My plan is that if CRA ever conducts an audit, I will just have to explain to them that since I am not incorporated in the US, therefore; I can't get a US business account at a US institution and a LOT of companies either can't or won't transfer money internationally, even if it is only between Canada and US, all of which, I think it very stupid on both sides, especially for the border cities, but it is what it is.

 

I never was able to verify my business account with Upwork mostly because I couldn't "verify" it at the bank. (e.g. no US business account at a US institution being that I'm not incorporated in the US as well and indirectly, US INS prohibits me from doing so.)

 

Hope this helps.

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Active Member
Kelly J Member Since: Feb 20, 2018
8 of 11

Hi Lena, I'm having a similar problem, except when I fill out the form to Upwork support, the Email option is greyed out--how do I send my articles of incorporation to Upwork?

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Community Guru
Nina K Member Since: Nov 29, 2017
9 of 11

Hi Kelly,

I've requested that one of our agents reach out to you directly to assist you in providing us with your incorporation documents.

~Nina
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Active Member
Milap G Member Since: Jun 19, 2019
10 of 11

Hi Leena,

 

Can you please guide me from where should i update following information in  upwork system?

Articles of Incorporation showing the company name with you as an authorized agent/owner.

 

Thanks

 

Milap

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