Comments on: Depositing a Business Check Into a Personal Bank Account

By: marfarma

marfarma — Thu, 18 Feb 2010 17:32:53 +0000

Very interesting post, especially the comment chain. A nice digression from my current search.

For sole proprietors, I wonder if a solution might be to re-title (if it’s not possible to re-title the it, then open a new one and switch), your checking account to the business name, then conduct personal and business checking from the one account. You may have to have your business name on your checks (i.e. Jane Doe, DBA Jane Doe Photography) but the Bank will have your name, your business name and all identity information on file — ‘Know Your Customer’ requirement is satisfied, and the business owner’s desire for a simplified banking relationship is fulfilled.

Something I’ll be keeping in mind.

I know the IRS, et al. would strongly prefer two segregated accounts, but if the business is too small to warrant the expense, why not do what suits, within the constraints of law and existing banking regulations.

By: toead

toead — Wed, 10 Feb 2010 19:44:38 +0000

Looks like Lynn’s thought process has run a muck. As sole proprietor, I have and will continue depositing checks made out to my company into my personal checking account. I know – should have turned on spell check and grammar. Have a nice Day!!!

By: Lynn

Lynn — Tue, 09 Feb 2010 19:59:54 +0000

I think there is some confussion on a Sole prop…you can dep a check made out to the person or the buisness, it has been this way for a long time. I have been in banking for 17 yrs and have opened many accounts both personal and buisness. As a LLC, corp, LLP the reason you establish and register your business is to keep your personal assets safe. Why would it be ok to dep checks made out to a indivdual in a business account. Just to clear it up if you dep a check made payable to a business there must be an account in that buisness name, you can not get cash back,you are required to write a check back for cash and sign it and be an auth signer on the account. You can not sign the check over to someone else or another existing business. You must open the account with the correct doc’s for that type of business, banks have regulations, they don’t just pull this stuff out to make your life a pain. The US Patriot Act might be good reading for some of you. Why even open up a business or register it if you can just dep any check into it. Liability LLC Limited Liability, Corp why incorporate? Just run amuck who cares…so someone writes you a check to your business and someone else just takes it and dep to there account…whmmm would you at that time be angry because the financial just dep it to this persons account and that person just spent the money..bet you would be upset then. Next time your financial says you can not dep a business check to a personal think about it as safty for you.

By: MARGO

MARGO — Fri, 22 Jan 2010 16:14:31 +0000

I initially had this same problem but can offer you a couple of options it will not hurt to try – should your problem today not already be resolved. Option (1): It is not expensive to alter the business name to include your entire first and last name followed by what will be your trade name or business name. Changes to your stationery and any existing papers for a “pending” business will cost little and will benefit your greatly later. Once the business is documented and exists and continually generating income/(profits) you can always change it to anything you like. Option (2): The existing checks you have in the business name – DO NOT ALTER – REPEAT – NEVER ALTER EXISTING CHECKS PAYABLE TO NAME – However, take one check to the ATM and do not even ENDORSE the check with any personal signature of any kind – Instead, on the reverse of the check, write only “FOR DEPOSIT ONLY TO ACCOUNT NO. XXXXXX” – attach your personal account deposit ticket completed reflecting the amount of the check and drop it in the ATM. It will not take long for you to know if it is accepted. LEAVE THE DEPOSITED CHECK AMOUNT in the account for an EXTENDED PERIOD than required and DO NOT WITHDRAW THE AMOUNT (THIS IS VERY IMPORTANT) to ensure that it is clear and posted. Then proceed with depositing one check per deposit weeks apart if you find the result favorable. THEN, future checks will be coming in with your name preceding the business name (per Option 1 above) and with these checks you should not have any problem proceeding to bulk deposits. DO NOT, REPEAT, DO NOT LEAVE THE CHECKS YOU ALREADY HAVE laying around “gathering dust” until them become STALE DATED CHECKS – and nothing will help-!!

Please respond and let me know if you problem has been resolved. I run a legal assistance services business and just like to know if I have helped – it is gratifying.
My email is canales1000@live.com.

If you need more help, let me know – this one is FREE but be aware I do have business ethics to which I commit and charge for my services… You are welcomed.

By: George

George — Tue, 29 Dec 2009 11:32:14 +0000

Hi, I am a non-resident of US and I am planning to start a US business by registering it the State of Delaware as a LLC. I belive I can also apply for a Tax ID No after I form the LLC. I am still confused on how or which bacnk to approach to start a business account as I am not physically in the US. I am hopeing atleast some bank would be able to open in this situation if I can provide the necessary documentation. Any help is welcome

By: JOHN DOE

JOHN DOE — Fri, 18 Dec 2009 05:28:15 +0000

there is a way to cash business checks if MADE OUT TO THE BUSINESS AND you have a personal account IN YOUR OWN NAME dont let the checks sit around you need a friend who owns HIS OWN SMALL BUSINESS WHO HAS A BUSINESS CHECKING ACCOUNT SIGN CHECK OVER TO HIM AND HE CAN DEPOSIT THE CHECK FOR YOU HIS BANK WILL CASH THE CHECK AND YOU WILL GET PAID DONT LISTEN TO THEM DUMP BITCHES WHO WORK AT BANKS THERE IS NO ANSWERS WITH THESE DUMP ASSES.ITS THE LAW MY ASS.
JOHN

By: Al

Al — Mon, 14 Dec 2009 17:46:56 +0000

Yes, Travis, the evil bankers can do as they please. They are not even real and they make all of the rules. The best thing is to find an actual person (The Wizard) who is in charge and can actually make a decision and see if they can accept deposit of the check. The other thing is if you have enough money in the bank to threaten pulling your accounts ($1,000,000.00 plus)
I know that I will face the same dilemma this year. No matter what I tell them, the schools who pay me for audio services cannot seem to read the REMIT TO: part of the invoice.

By: toead

toead — Mon, 14 Dec 2009 12:31:24 +0000

Travis – Go ahead and deposit into your account as if routine. Sole proprieter does not require a business account. Just be prepared just in case. If they say it is against the law then asked them to print that law out for your future reference. They are professionals in their business and should have that at their finger tips. (There is no law). If they do nothing ask to see the branch president to find a solution to your dilema. I would wish you good luck but you shouldn’t require luck but receive the service you deserve.

By: Sherry

Sherry — Mon, 14 Dec 2009 08:52:31 +0000

Hi Travis – I honestly think you’ve got a 50/50 shot because as I said, my bank allowed me to do it for five years before they suddenly claimed they had never done it before. Apparently, it’s supposed to be against the law but I’ve heard from lots of people who say their bank allowed business checks to be deposited into their personal accounts too. I know I had to end up opening a business account (but at a different bank) & they told me I was signing up for the totally free checking account. Everything they’d ask me, I’d say “is this option free?” & they’d reply yes. When I got my first statement, it had a debit of just over $100 for my new checking package! So, I’m not sure you can find a bank that’s simple & honest, like they were years ago, but good luck Sherry

By: Travis

Travis — Mon, 14 Dec 2009 08:27:02 +0000

So.. am I to understand this correctly, I have a side business without any DBA and received a check from a “client” that is made out to an alias, not my real name, but my real name is in alias just with a computing on the end of it, tomorrow when I go to deposit this into my account they will not let me?? that is wrong on so many levels..

By: Sherry

Sherry — Thu, 05 Nov 2009 00:50:47 +0000

Thanks, “toead” – here there are mostly the larger national type banks, but there are a few credit unions & one bank that used to be a home savings & loan type, that has been consolidated but still isn’t that large – just a few branches in the state. So, I think I’m going to give them a try. I just dread so much switching all the auto-drafts & my online banking, husband’s paycheck direct deposit, etc. – such a hassle. Nothing seems easy now days

By: toead

toead — Wed, 04 Nov 2009 11:48:42 +0000

Hey Sherry, good luck with finding a new bank, in my area, M&I or Harris are good.

By: Sherry

Sherry — Wed, 04 Nov 2009 06:27:56 +0000

Thanks “toead” for your comments. It seems I’m not the only one with this problem – good to know My local Bank of America has really changed. My former “personal banker” won’t even return calls now. He told me years ago that his customers were complaining that he didn’t call them back but said he was over-worked. The former bank president was a really nice & smart lady but she’s since moved on & unfortunately her replacement doesn’t seem to have the same qualities. In fact, I believe that was who confirmed to this teller that “they don’t do this” in regards to my wanting to deposit this business check into my personal checking; so after a brief argument, I just dropped it. I think the problem is that these large nationwide banks have become so impersonal that if people weren’t locked into mortgages & credit cards, probably more of us would be heading to smaller banks, just for the chance to maybe be treated with logic & friendliness again. I mean it just doesn’t make sense that these banks have been allowing something for years & all of a sudden someone thinks they don’t do it anymore, so they refuse to even admit they ever did – how crazy, HAHA! I mean, why not just say “well, we used to do that but now we don’t”. I could accept that at least

By: Sherry

Sherry — Wed, 04 Nov 2009 06:16:31 +0000

Thanks, Raymond. I think that’s what I’m going to have to do. Unfortunately the company that issued the check has been really hard to get money from so I had to wait for this last check 10 months. To get them to reissue another with my personal name included might mean another long wait, so I’ll probably just do as you suggest & open a business account. Like you, I’ve just always liked the convenience of putting my infrequent business checks directly into my personal account, but I’ve been looking for a reason to get away from Bank of America anyway, so maybe this is a good excuse to open this business account at another bank. I’ve been looking for a more small-town bank with still the convenience of online banking & such. I found one that I think will work, so guess it’s just a matter of doing it now

By: toead

toead — Tue, 03 Nov 2009 12:08:04 +0000

Hello All

About six months ago the teller at my bank questioned me depositing a check into my personal savings account that was made out to my company ( sole proprietor ), she asked her supervisor and she said, in short, we can’t do that and never did. I told her that i have been doing it for eight years here and my other bank and assured her my other bank would and she said it was against the law. Went to my other bank and cashed into my checking account there.

Two days later I met with the first bank branch president and asked him about their policy and he said it is not a problem and will cash business checks into personal accounts. We then straightened out the tellers and the supervisor aka business accounts manager. She greets me everytime I come into that bank and still have only personal accounts. I hate it when service businesses try to tell us how to run our businesses.

Good luck to All