ECN Forum Forums General Topics of the Trade Business Related Discussion Company names

The term you're looking for (if the owner is the only worker) is Proprietor and sole employee.

I myself have business checking & savings accounts as well as the same in personal.
I use the business accounts for business and the same for personal.
I am a DBA but I want to keep everything as separate as possible.
I CAN cash checks made out to my business if I want (and I have), but I like to deposit it into my business account for clerical reasons. I enter the check number from the customer in my software, this way I can refrence the payment with facts.

Also, after reading this (and other) threads I realize there are VERY different requirements from state to state.

Before this I had never heard of an "administrators license".
In fact at my County building IIRC they didn't even ask for a copy of my license. The state doesn't care. The inspector does when I file an ap in an area requiring a license. This is an issue with me. Any Schmoe can call himself Schmoe Electric in NY, regardless of experience. Just don't work in a "license required" area.

Electricmanscott ANSWERED THE QUESTION RIGHT FOR ME (ONLY IN TAXACHUSETTS)ARE THE RULES STEUP TO HURT THE AVERAGE WORKER.

dride2324,
Not only in MA, it seems to be universal, the rules of the game may differ. Everyone must pay or play in some way.

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

Hal I know all that and none of it answers my question regarding this statement. Where is the law that says I MUST deposit any check received into a business account?

don't know where it's at but the way i understand it, the only check you have to deposit is the one with your EXACT busniess name Ex.

D.E. Tubbs Electrical Contracting (depositable)
Tubbs Electric (NON)
Tubbs Electrical Contracting (NON)

this is jsut what people tell me though

My business is a corporation...the bank wouldn't cash a business check for me if I wanted them to. However, as a sole propriotor I wouldn't think the bank would have a problem cashing it as long as it's properly endorsed.

Dave

My bank will allow me to deposit a check written to any company even remotely close to my company name into the company account. But I can't put a company check in my personal account.