A sole proprietor is someone who owns an unincorporated business by himself. As a sole proprietor, you may do business under your own name or you may have a separate business name. Either way, you must track your business income separately from your personal income for tax purposes. You can deposit business checks into a personal bank account, but it often is preferential to have a separate business bank account. Some banks require you to have a business bank account and will not allow you to deposit business checks into your personal bank account.
Deposit into Personal Account
Endorse the check on the back with your business name. The name the check is made out to on the front should match your business name. You can use a stamp to endorse the check with your business name, or you can print or hand write the name.
Write your bank account number on the back, underneath your business name, if required by your bank.
Complete a deposit slip, if required by your bank.
Hand the check and deposit slip, if applicable, to a teller at your bank, or put them into your bank’s ATM.
Keep accurate records of transactions within your personal checking account for tax purposes, noting which deposits are for your sole proprietorship and which are personal deposits.
Deposit into Business Account
Open a business bank account. Your bank will require documentation of your business’s existence. Requirements vary by bank, but examples of acceptable documentation include a business license or a DBA certificate.
Endorse the check on the back with your business name. If the name shown on the front does not exactly match your business name, endorse it as shown on the front. Underneath that, endorse it with your correct business name.
Write your business bank account number underneath your business name on the back, if required by your bank.
Fill out a deposit slip if your bank requires one.
Put the check and deposit slip, if required, into your bank’s ATM or hand them to a teller inside the bank.