Parhaps I should know this but where would I find this requirement.
It may vary by state but I doubt it. If you operate under the name of "Acme Electric" checks made out to Acme or Acme Electric must be deposited in an Acme Electric company account, they cannot be cashed. Reason you can't cash them is that your name isn't Acme. You must have an account set up under the name of Acme Electric into which you deposit the checks. Your bank will want a certified copy of your business certificate, incorporation papers or whatever your state issues when you set up the account. You can of course withdraw the money after the check clears. It doesn't matter whether Acme Electric is a corp or sole proprietor. This comes from my bank and I have caught flack from them when I accidentally grab a wrong deposit form and try to deposit a customer check into a personal account.
Now, say your name is Joe Schmoe and operate under your own name. You present a bank with a check made out to Joe Schmoe from a customer. As long as you are Joe Schmoe they will cash it. You don't even have to have a bank account assuming your bank will cash checks without one.
As to the legalities, the IRS requires you to keep accurate business records. The lack of bank statements or the commingling of monies will not bode well for you.
Remember also that all banks are required to report all transactions of $10,000 or more to the feds. If you cash that amount or deposit it into a personal account the feds may want to talk to you especially if you do it more than once.
-Hal
