To keep it simple, the LLC administrators should endorse business-related checks (those names should be written in the company’s operating agreement). We have come across a few banks that don’t accept this practice due to the potential fraud risk.Ĭheck with banks involved before you endorse to a third party. This isn’t the most ideal way to pay someone, but the option is out there for you.

For deposit only to account number XXXXXXXX.

You just need to include the following on the backside of the check: Signing a restrictive endorsement is a great way to ensure that your money goes into a specific bank account. Therefore if your business is written in the payee line, then that’s the name that you must sign in when you endorse your LLC checks. Match Names: The name on the payee line should match the name signed on the back of the check. Usually, there is a line that reads “ENDORSES CHECK HERE.” On the X, sign your name in the available space. How and Where to Endorse Your LLC Checks: There is a small space on the back of a check where you endorse the check. So please, follow that step and simply wait. In this situation, there is a big risk of forgery and theft. If you lose a business check that you endorsed there is a possibility that it can fall into the wrong hands and get stolen. It is important to wait as long as possible before you endorse the check or checks for your LLC.Ī check is legal money. You should endorse your business check a moment before you hand the check to the banker. Before we get into the understanding of endorsing, we’d like to go over a safety tip. You might have been told to endorse your business check the moment you received it.

Components of a check