0
Why does a check written to a business must be deposited to the business?
Wiki User
∙ 14y ago
First because a business is not a person and therefore can't sign the check. (Sounds stupdi but not if you think about it.) Second... and more importantly... if the business is a Corporation, Limitied Liability Company, or other limited liability type entity any checks received SHOULD de deposited into that business' account to keep the integrity of the business intact and to avoid possible losss of personal assets in the event the company is sued and "piercing motions" are initiated. Which basically means that since you did not deposit and write checks from the proper accounts, there never really was a separate entty, and accordingly the "limited" status and it's protections are no longer available to you. Oddly, banks decline to permit either the owner or the company to decline this "protection." Also, so that the bank has another chance to charge both parties for insufficient funds. This is one of the few remaining profit centers for our financial institutions, which are strapped for funds due to their unwise investment policies related to real estate.
Wiki User
∙ 14y ago
Add your answer:
Earn +20 pts
Can you cash a check written to your nickname?
No. The name written in a check must match the identity card you have or the name that is available in your valid bank account. If they don't match, the bank will not cash the check.
Who must endorse a JTWROS check to cash it?
who must endorse a jtwros check
Why does a cheque not clear?
Just to clarify, there is a difference between a check that "bounces" and a check that doesn't "clear." However, they are often related. A check that bounces means that the bank of the person who wrote the check refuse to transfer the funds to the person attempting to cash or deposit the check. Most often this occurs because the issuer of the check doesn't have enough money in his/her checking account to pay the amount of the check. Sometimes it can also occur because the person who wrote the check "cancels" the check. (To do this you must go to your bank and sign a stop-payment order). Checks can also bounce if the bank doesn't believe the check is authentic or there is a question about the amount of the check or if the check hasn't been properly written, endorsed, and/or authorized. Typically, when someone says a check "didn't clear," they are referring to an electronic check verification system. Many businesses and merchants use an electronic scanning system to read the account number of a check and then cross-reference that account number with a database of checking accounts that have outstanding checks that have bounced. For example, if I have recently written a couple of checks that have bounced and then I attempt to purchase some items at the grocery store, the cashier might run my check through a check-scanning machine. It will read my account number and suggest that the cashier refuse my check because it has detected a high-probability that this check will bounce.
What are the Repo business requirements in Florida?
In Florida, repossession businesses are regulated by the Florida Department of Agriculture and Consumer Services. To become a licensed repossession business in Florida, you must meet certain requirements: Complete a training course: All applicants must complete a 40-hour training course on repossession techniques, legal procedures, and safety. Obtain a surety bond: Applicants must obtain a surety bond in the amount of $25,000. Pass a background check: All applicants must pass a background check, which includes a criminal history check and a credit check. Obtain insurance: Applicants must obtain liability insurance in the amount of at least $50,000 per person and $100,000 per incident. Submit an application: Applicants must submit an application to the Florida Department of Agriculture and Consumer Services, along with the required fees and supporting documents. Obtain a license: Once the application has been approved and all requirements have been met, the Florida Department of Agriculture and Consumer Services will issue a repossession business license.
Where should you endorse a check?
The person who writes the check must sign the line on the bottom right front of the check. However, to endorse a check over to the bank or other third party, the person (or institution) the check is written to must endorse the check on the back. There is almost always an "endorse here" area on the back followed by the words "do not write, stamp or sign below this line". The endorsement should go in this pre-assigned area.
Who has the liability of endorsement on a deposited check?
The payee, who is the person the check is written to. If they don't sign the back of the check before they deposit it, then the bank the check is drawn on (where the person who wrote the check banks at) can return the check for up to 7 years after it is deposited into the payees account. If that happens, then the bank where the payee banks at (where the check was deposited) will usually debit your account for the amount of the check. Also, if a check is made out to more than one person and includes the word "and" between the persons names, then both must sign or it must be deposited into an account owned by all payees listed on the check and stamped by the bank. If the word "or" is between the names, then only one payee need sign it. If it is made payable to a business or trust, then it must go into a business or trust account. It cannot go into the personal account of the business owner or of a trustee.
If a person has a check dated on 1-4-2012 for 1000 dollars can we say that he has 1000 in his pocket now?
Technically the money is not in their pocket. The check must be deposited or cashed by the person it is written out to, or otherwise endorsed. If the payee does not cash or deposit the check, they cannot give it out like bills of currency. When the check is deposited, the money is taken out of the check writer's account and deposited to the person it is written out to. If you cash it instead, the institution gives you their money and takes money out of the check writer's account.
An account owner must do this in order to approve a check to be deposited into their account?
If you have a bank account and are trying to deposit a check, you will have to sign the back of that check. If the back is not signed, it cannot be deposited or cashed.
What must an account owner do in order to approve a check to be deposited into their account?
endorse
Can your spouse use your business account to deposit checks with his name on it as long as he has access to the account?
This depends on your bank's policies, however, generally a check must be titled like the account is titled to be deposited into that account or the payee and the account holder must both present the check for deposit to verify they each agree to the deposit.
What is a kind of check guaranteed by a bank?
While personal checks and money orders are not guarranteed by banks, a cashiers check is. A cashiers check is written by a financial institution/bank on its own funds. The check is then signed by a representative of the financial institution/bank and made payable to a third-party. A cashier's check is secured, with the funds being guaranteed, because the amount of the check must first be deposited by the individual into the issuing institution's own account. The person or business to whom the check is made out will receive the funds no matter what.
Can you exchange a check made out to a business for a cashier's check?
Evidently not according to M & T Bank. Must be redeposited. If returned again there is no way except to find business that wrote your check.
Where new books must be deposited?
copyright library
Can you deposit a check into a savings account?
No. A check can be deposited only into the account of the individual to whom the check is made out (issued) to. Depositing it into someone else's account is not allowed and even if done by mistake, the check will not be cashed and no payments will be made.
What is the library called where new books must be deposited?
A skip
Can you cash a check written to your nickname?
No. The name written in a check must match the identity card you have or the name that is available in your valid bank account. If they don't match, the bank will not cash the check.
Can I deduct the business expense of credit card purchases?
If you are deducting business expenses it is same whether they are on credit or cash or check. Deduct them with written records of who, what, when, where and why, the same as any other business expense. There must be a valid business reason for the expense. If you charge it in 2008 and don't pay until 2009, it goes in 2008. - HR Block preparer
