Check Cashing Question

E

ErikD

Joined
Dec 5, 2000
Messages
1,875
I got a check in the mail today for my small side business. Now 99% of the work I do is for individuals so I never setup a business account. Plus the fact that I don't really actively seek work for myself since I am busy enough with my real job. It is mostly just helping out friends and family, and word of mouth stuff for computer help.

Anyway I did a job for a company I used to work for, but after I quit. I gave them an invoice just for the heck of it because the work took me less than an hour. I still am friendly with everyone who works there in managment so I did it more or less as a favor. The invoice was a formality really for the office. I got a check today for the work, but in the name of my business not me personally.

I went to cash it and was warned that if it bounced I could be charged a fee (less than $10). I went ahead anyway thinking there is no real reason why it would bounce. But could the company see that I cashed it to an account that isn't in the name of the business and decide to stop payment? I mean honestly I am not that worried about it, more curious. They know me, and the business is my name + Computing so it should be obvious that it is the same thing. I know when I get back checks it doesn't say what account it went into, just a signature and account number. Would it be the same for a business?

Thanks
 
ErikD said:
But could the company see that I cashed it to an account that isn't in the name of the business and decide to stop payment?
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No, by the time they could see what account it was deposited into, it would be to late for them to stop payment, since it would already have cleared. (actually, they would never normally even see where the check was cashed or deposited by their own bank statement, they only could see that by looking at the check when it comes back to them with their statement, if it does, so even then it's to lat for them to stop payment.)

As long as the check clears for the amount that they wrote it for, they have no say over what account it is deposited into.

Example: If you endorsed the check over to a third party to pay them for something, it can be deposited into that persons account, the original check writer has no reason to care. (unless the check states on it, "no third party endorsment" on it.)
 
Thats pretty much what I thought, the teller was just giving me grief because the check wasn't made out specifically to me. I have had problems with her before when I went to do some banking for my parents too. Seems she just has some kind of problem with anything other than the most simple and straight forward transactions.

Anyway even if they could I know the writers of the check wouldn't stop payment. I know they guy who authorized the work, and who most likely told the company to cut the check for me.
 
-checks stink-
just went to reorder-15 bucks for 150 checks-

no thanks a buck apeace is assinine-i ca get money orders for 50cents
 
rosconey said:
-checks stink-
just went to reorder-15 bucks for 150 checks-

no thanks a buck apeace is assinine-i ca get money orders for 50cents
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I must be missing something. 150 checks for $15 is 10¢ a check, not $1. Cheaper and more convinient than money orders for most things. Besides which having a checking account these days you can use electronic debit and deposit for just about everything. I got my first 150 checks something like 6 years ago and still have more than half of them.
 
yeh bad math-i was pissed when they wanted 4 box min at $15 box-wasnt thinking straight
 
ErikD said:
Thats pretty much what I thought, the teller was just giving me grief because the check wasn't made out specifically to me. I have had problems with her before when I went to do some banking for my parents too. Seems she just has some kind of problem with anything other than the most simple and straight forward transactions.
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One recommendation is to avoid dealing with that teller.

Or if it's your >bank's< policy to be overly picky, there are plenty of other banks who'd like to have you as a customer.

But, if you're running a business - in a business name, you really should cover yourself by obtaining a business certificate.

Otherwise, just bill in your own name. I'm not going to go into it any more here, but if you talk to an accountant or an attorney or even a
knowledgable small business owner, you'll understand why it's better to either be a business or not be a business. But don't occupy a gray
area inbetween the two, as you're doing now. CYA.
 
Well to me it doesn't pay to be a business. Basically what I am doing now is helping family and friends, and sometimes friends of friends, if I have time. If they throw a few dollars my way great, if not it is a good learning experience. That is why I never bothered to set myself up as a business, plus I work like 50 hours a week at my real IT job.

Also I wasn't expecting to get paid for this work. Heck I did it in February and just got a check today. If someone is offering me money though I won't turn it down. ;)
 
To avoid any posible grief, just deposit the check into your ATM. One time the bank told be that I could not deposit any third party checks unless the payee was there to verify the check and the signature. I just deposited it into my ATM and no one cared.
 
Certain tellers just seem to make it their personal business to "oversee" anything in their little domain. Above and beyond what they are supposed to. I went to cash a rather large check that was made out to me by a family member one time, and the teller actually asked me "why are they giving you so much money?"

I asked her back "how long do you think it will take for you supervisor to tell you to mind your own business after I call him over here and tell him what you just asked me?"

She turned a nice shade of purple....but cashed the check without saying another word. :D
 
Now that you mention it she is just that type. I once went to cash a check from my parents, not a large amount maybe $200 because they needed some cash, don't use ATMs, and couldn't get to the bank that day. So they made me a check and I went to cash it. I got the third degree about why it was going on.:mad:

Why can't people just do the job they are paid for and minf there own business?
 
No, sign the back and put your address on it. You could also put 'Eric D<real_name> Trading as Eric's Computer Help' or whatever.
 
When you sign the check, sign your name and then print below it: EricD d.b.a. Eric Consulting Services... or whatever the business name is. d.b.a. stands for "doing business as." The bank should be fine with this.
 
Just a quick note, my wife is a financial services representative at a local credit union here. When she was a teller, she was responsible for any issues that might come up with a transaction. For example, let's say you have $50 in your account, and want to cash a $400 check. If it comes back insufficient funds (bounces), and she cashed it for you, her ass is on the line because you're negative $350 in your account. The tellers, while they shouldn't be asking you personal questions, do need to cover their own butts if they want to keep their job. A teller at her credit union can put a hold on any check for any reason. Generally, they will go ahead and cash corporate or payroll checks, even if you don't have compensating funds, but a personal check is likely to get a hold if you don't have the funds to back it up. They will usually err on the side of caution.
 
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