I own and operate a new ecommerce website. The trade name of the
website is different than the legal name used to operate the business
and for banking. Although I have a DBA application pending with the
state of Illinois to add the trade name to the legal name, as of this
writing, the application has not yet been approved.

Up until yesterday all of our receipts were in the form of credit card
deposits. Yesterday, however, I received a large order from a
governmental agency, the payment for which was in the form of a check
made payable to our trade name. My question is this: since my
application for the DBA has not been approved, how can I deposit the
check? (again, the bank account is in the legal name.)

As a temporary workaround while the DBA application is pending, I was
thinking about endorsing the check to the legal name of the business
and then depositing it in my business bank account. Will this work? Is
there a better workaround while the DBA is pending? (I do not want to
ask my customer to reissue the check. I do not want to hold the check
until the DBA is approved).

Thanks in adavnce!

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Request for Question Clarification by pafalafa-ga on 27 Jan 2006 09:48 PST

I don't think there's a universal answer to this question.  It likely
depends entirely on the bank, and what they are comfortable with.

In many cases, a bank will accept a check, even to an unregistered
DBA, but they may want to hold the check for clearance longer than
usual, before making the funds available for withdrawal.

Ask your bank, and see if they can accomodate you.  Let me know what
they say, and if needs be, I'll pursue this further for you.


pafalafa-ga

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Clarification of Question by ecommercewebsite-ga on 27 Jan 2006 10:56 PST

Thank you. Unfortunately, I couldn't get a satisfactory answer from my bank. 

According to my bank, if the payee name is different than the name on
the account, they *may* deposit it. Technically, they are not supposed
to do this but it may slip through.

I asked the bank if they would deposit the check if I endorsed it to
the name on the account. They didn't know the answer.

As you mentioned, I guess it's not really clear cut. I may end up
holding it until I can get the DBA name on the account.

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Request for Question Clarification by pafalafa-ga on 27 Jan 2006 11:22 PST

I hear you, although be aware that some checks have an expiration date
(60 days, or so) after which they may not be good...this is usually
printed on the face of the check.

I've had some odd check-depositing situations in my own bank, and
haven't always had smooth sailing.  It helps -- a lot -- to chat up an
individual teller, and get to know them a bit.  As you each become
comfortable with the other, it smooths out many of the difficulties
that might otherwise arise.

Good luck...and congrats on your big givernment order, by the way.


paf

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Clarification of Question by ecommercewebsite-ga on 29 Jan 2006 11:38 PST

Thanks to everyone for sharing your thoughts and experiences in
dealing with situations similar to mine. I'm going to go ahead and
deposit the check in the ATM with a standard endorsement (i.e., no
third party endorsement to the legal name of my company). I'll report
back if I run into any problems.

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Request for Question Clarification by cynthia-ga on 29 Jan 2006 13:19 PST

ecommercewebsite,

Please let us know either way! I'd like to post my suggestion as your
official answer and receive the compensation you offered, if indeed my
suggestion works for you. Although you said you'd post if you had
problems, it would be better if you came back and confirmed it went
through as I suggested before I post in the Answer Box.

~~Cynthia

I've gotten an impressive variety of names on checks I've received
over the years including many variations on my name, the name of my
practice, and more than one that says "Fluffy's vet" (or whatever the
pet's name is). I just stamp them with the practice name stamp and
send 'em in.

I noticed that you are a veterinarian, markvmd....

Is that the correct way to shortform Doctor of Veterinary Medicine in
the US or did you just use the intitials for your nic here on GA??

Here in Canada its just dvm....

BTW..I'm the owner of a VERY ornery little kitty cat ;)

Steph53

Steph53--

DVM is correct, except for graduates of University of Pennsylvania. We
use VMD for Veterinariae Medicinae Doctoris.

I admit it's pompous, but then I paid a lot of money and worked rather
hard (well, Mom and Dad did on both counts-- I just tried to get into
the chem girls' pants, mostly to have someone tutor me in organic
chem) for the honor.

I'd like to add here that I have had nearly 100% luck depositing
checks that might not go through a teller by depositing them in the
ATM outside the bank. Reasoning is that they are processed by a
machine. Granted a human hand opens the envelope, but it goes in a
stack then a feed for processing. No kidding. I've been turned down by
tellers for 2 party checks and they fly in the ATM every time.

I would not endorse the check to the name on the account. If for some
reason it doesn't work, at least you haven't changed the check too
much. As long as the deposit slip is filled out correctly and the
check doesn't draw attention --they won't look at it. They do hundreds
every morning. It will take 2 days to clear if local, 3 if you use the
ATM after 3pm.

Thinking back, I don't remember the circumstance, but I can only
recall one time in nearly 30 years of banking when it came back in the
mail instead of being deposited.

Just one more banking tip while I'm thinking about it, this is handy.

Say someone gives you a legitimate check, and they forget to sign it!

This works at the teller just fine, it's banking regs:

Turn the check over and write:

LACK OF SIGNATURE GUARANTEED
    FOR DEPOSIT ONLY
       SIGN NAME
    ACCOUNT NUMBER

Don't try to cash it, just deposit.