I have an LLC, but have people make the checks out to my name. Is that correct?

Last Updated on

Add Your Heading Text Here

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

Question – I am a solo owner LLC, but have people make the checks out to the business in my name. Is that correct?

Our Answer – 

Since you’re a single member LLC filing a Schedule C, It doesn’t really matter for tax purposes as long as you report all the income. It is potentially a problem (usually remote, but still a concern in the short-term) for your liability protection if the business were to be sued. 

When you can, keep the LLC and your personal affairs completely separate, including opening a bank account for the LLC and getting business checks in the business’s name.  Read more how to sign a check for the LLC.  Also, ask your customers to change the name of the business and send checks in the correct name (this may require submitting a new W-9 with them).

Ask us your Question!

You might also like