Can I deposit paychecks addressed to my name as sole proprietor into my LLC
I am an artist; voice over, makeup, author, performer, actor, singer, songwriter and artisan. I've created a single owner LLC. Does depositing my paychecks from all my clients directly into the LLC with a "deposit only" stamp cover me as doing business under the LLC even if it is addressed to my name and not the LLC? I will get a separate checking account for the LLC and give myself "paychecks" from the it that I will deposit into my personal account. I have so many clients that already have me in their systems as a sole proprietor using my ss number. I'm loath to make everyone change who they address the checks to adding confusion.
-
Following up here... I was hoping to be able to continue as a sole proprietor under my own name, but all the folks I have spoken to say that it's best practices to invoice under the LLC if I want to be protected under the LLC. I will still be a sole proprietor and can deposit the checks with my name with a deposit only stamp to the LLC bank account, but I need to let all those I work with know of the LLC. I suppose this is basic LLC law, but it's new to me and I'm no lawyer, so I thought I'd share what I've heard. If anyone has anything else that is supportive to share, I am most grateful. – Joell Jacob 8 years ago
1 Answer
The reason people advise you to set up an LLC is because it creates an "arms length" separation between you and your "business". This is a good thing for you, not a bad thing. It creates a natural legal protection for you - so if, in your business, you knowingly or unknowingly harm someone, they don't come after you (ie, sue you) "personally" (read personal home, personal car, personal bank account). The more "separate" your LLC is from you as an entity, the better. So, don't deposit personal checks into your LLC.
Hope this helps?
