Can you endorse a business check

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To make a special endorsement, print the words "Pay to the order of" on the back of the check and insert the name of the company that will be receiving the check. Underneath the company name, endorse the check in the same way you would make a blank endorsement. At this point, depositing or cashing the check is limited to the company whose name you wrote on the back of the check.

Checks bearing a special endorsement are also referred to as third-party checks. Typical situations in which a third-party check is acceptable concern payroll checks and insurance settlement checks. For example, if you cash your payroll check at a supermarket, you create a third-party check when you endorse it over to the supermarket. When an insurance company sends a check to you for damage to your car, you create a third-party check when you sign the check over to the repair shop that fixed your car.

There are cases in which individuals or businesses cannot accept a signed-over check. Sign the check. This officially signs the check over. Deliver the check to the endorsed individual or organization. Final step. Now just wait for it to clear. Here are the steps: Sign your check. Also known as endorsing a check, you need to sign it. No one else is authorized to sign your check with their name or yours. This mistake can be interpreted as check fraud.

Write your account number below your signature. Owners of very new small businesses who primarily deal in cash or electronic payment methods, may not be with familiar with the rules of business check endorsement. Fortunately, endorsing a business check is typically a straightforward process, but may require a business owner to get a separate bank account.

One of the first tasks of a new business owner is opening a business checking account. While it may be tempting for him to simply use his own checking account and credit cards, doing so can result in both accounting difficulties and tax hassles.

Here are some reasons why it is important to have a separate account for business funds:. When a business owner opens a checking account, she should ask her banker about the bank's preferred method for endorsing checks.

Generally speaking, checks must be endorsed in the name of the person or business that appears in the "Pay to the order of" space.