A business that is owned by one individual and is not incorporated, is not a partnership, and is not a limited liability company, is deemed to be a sole proprietorship. That is an informal type of business, and it's not considered a separate entity. Legally, it's the "same as" the individual who owns it. So, if a check is made payable to a sole proprietorship, will banks allow the owner to just cash it, rather than deposit it into the business account? Or can the owner just deposit it into his own personal account?
John Burnett and Mary Beth Guard discuss bank policies and procedures relating to cashing checks made payable to a sole proprietorship business in this podcast.
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