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Business Accounts and Regulation E

Question: 
Are business account transactions subject to Regulation E?
Answer: 

If the account was established primarily for business purposes, transactions would not be covered by Regulation E. However, accounts of sole proprietors require special attention because the purpose of the accounts may be unclear if they include a mix of personal and business transactions. For this reason, we encourage financial institutions to require that sole proprietors keepa separate account for their business transactions.

First published on 08/06/2012

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