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Cashing a Check Against a Business Account

Can an individual cash a check written to that individual against a business account on which they are a signer?


It's done all the time -- think about a pay check. It's not at all unusual for a business check to be signed by and payable to the same individual. Sometimes it can be a pay check; other times it might be a commission payment or a partner's draw on partnership profits. There are a lot of different reasons the same individual's name might appear on such a check.

In businesses with more than one authorized signer, best business practices often suggest that no one sign a check payable to one's self. Having a second person involved provides an element of control for the business.

Published on BankingQuestions.com 9/14/07