Bank Account Required for an LLC?

[user23915732]

What is the name of your state (only U.S. law)? CA

Our LLC is operating an online store under our LLC name. We receive direct deposits from our store online. Do we need to deposit these payments into a business bank account, or can we just deposit them directly into our personal bank accounts? Would we still receive limited liability protection if we did not have a business bank account?

Thanks!

 

[Zigner]

What is the name of your state (only U.S. law)? CA

Our LLC is operating an online store under our LLC name. We receive monthly payments from our store online. Do we need to deposit these payments into a business bank account, or can we just deposit them directly into our personal bank accounts?

Thanks!

Your bank won't (shouldn't) allow you to deposit checks made out in the name of a business in to your personal account.

 

[FlyingRon]

Your bank won't (shouldn't) allow you to deposit checks made out in the name of a business in to your personal account.

Bullpoop. All they need to do is endorse them appropriately. Some banks will want to see some proof that you're actually entitled to sign for that entity, but more often not.

No you do not need a separate bank account, but often it helps keep the accounting easier. If "our" means you by yourself or you and your spouse, it probably isn't that much of a deal provided you keep other records. If you have an LLC with unrelated parties, it can be rather advantageous to keep the funds in a separate account prior to disbursement.

 

[user23915732]

Your bank won't (shouldn't) allow you to deposit checks made out in the name of a business in to your personal account.

Our online store pays us through direct deposits to our checking account, so we do not deal with any checks.

 

[Zigner]

Bullpoop. All they need to do is endorse them appropriately. Some banks will want to see some proof that you're actually entitled to sign for that entity, but more often not.

No you do not need a separate bank account, but often it helps keep the accounting easier. If "our" means you by yourself or you and your spouse, it probably isn't that much of a deal provided you keep other records. If you have an LLC with unrelated parties, it can be rather advantageous to keep the funds in a separate account prior to disbursement.

How does an LLC "sign" (endorse) a check?

 

[Zigner]

Our online store pays us through direct deposits to our checking account, so we do not deal with any checks.

That's a much different question than you originally (pre-edit) asked.

 

[user23915732]

That's a much different question than you originally (pre-edit) asked.

I am asking the question because I want to know if we would still receive limited liability protection. Sorry for the confusion.

 

[FlyingRon]

How does an LLC "sign" (endorse) a check?

You put the LLC name on it plus any restrictions or assignments. The LLC must endorse paper checks even if they are deposited into an account in the name of the LLC. Typically one uses a rubber stamp if you handle a lot of checks.
You don't know anything about banking, do you?

 

[FlyingRon]

I am asking the question because I want to know if we would still receive limited liability protection. Sorry for the confusion.

What "limited liability protection" do you think you are getting even if you use a dedicated account?

 

[Zigner]

You put the LLC name on it plus any restrictions or assignments. The LLC must endorse paper checks even if they are deposited into an account in the name of the LLC. Typically one uses a rubber stamp if you handle a lot of checks.

Right - they endorse in order to deposit in to their own bank account. The bank is likely to refuse and "endorsement" that turns money over to a different account from a non-person.

You don't know anything about banking, do you?

I guess not - I mean, 27 years of managing corporate accounts really doesn't count, does it? And...dealing with this EXACT situation at this very moment (ok, 4 business days ago) doesn't count either, does it?


PS: C'Mon Ron - we're adults here - it's not like we're both newbies.