In most cases, you can deposit a check made out to you personally into your corporate checking account by endorsing it on the back with your signature, then adding a “full endorsement” where you write “Pay to the order of” and then the name of your business. After that, you include your business’s standard endorsement. However, your bank has the final say on whether it will allow this deposit -- and if so, what kind of endorsement is necessary. In general, a sole proprietor is likely to have fewer issues with this deposit than a partnership or corporation with multiple signatories on the account.
Keeping personal and business funds separate is important to prevent co-mingling of funds, even for sole proprietorships. A more suitable method of depositing a check made to you personally is to deposit the check into your personal account, then write your own check to the business. Make a notation that describes the deposit, such as if it was a payment for your business services that was written to you rather than to the business, or if you are loaning money to the business.
Business Checks into Personal Accounts
You will typically encounter fewer problems depositing a check made to you into your business account than depositing a check made to your business into your personal account, even if you are a sole proprietor. Doing so raises suspicions that you are using business funds to pay personal expenses. Your bank may accept an occasional deposit of this nature if you are a sole proprietor or doing business under an unincorporated business name, but less likely if you have one or more business partners. This form of deposit may also trigger an Internal Revenue Service audit, and even remove some legal protections afforded to you by incorporating your business.
Based in Central Texas, Karen S. Johnson is a marketing professional with more than 30 years' experience and specializes in business and equestrian topics. Her articles have appeared in several trade and business publications such as the Houston Chronicle. Johnson also co-authored a series of communications publications for the U.S. Agency for International Development. She holds a Bachelor of Science in speech from UT-Austin.