How to Endorse a Check for a Single Member LLC
If you operate your business as a single member LLC, it is important to properly endorse any check made payable to your business before depositing the check into the business bank account. Unlike checks made out to you personally, it is not enough to simply sign your name -- even through you are probably the only person authorized to endorse checks for your business. The proper endorsement on the check helps maintain your business as a separate legal entity from your personal finances and prevents someone else from cashing the check should it become lost or stolen.
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Instructions
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Locate the area on the back of the check designated for the endorsement.
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Write "For Deposit Only" on the first line for the endorsement and on the next line write the bank account number where it will be deposited. This information alone creates a restrictive endorsement, which prevents the check from being cashed if it's lost or stolen.
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Print the name of your single member LLC on the next line. Beneath the name, sign your name as you customarily do on all business documents. Below your signature, print the word "member" or "manager" as the designation for your representative position with the company.
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Tips & Warnings
Always instruct your customers to make checks payable to the name of your company and not to you personally.
Be diligent in signing your name on all company documents in a way that indicates you are representing the company. If you simply sign your name as you would for your personal finances, you give the appearance that you are treating your business finance as your personal finances, which can result in adverse tax and liability consequences.
