Proper Endorsement for Checks to DBA

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Question:

How should an owner of a DBA account endorse his/her checks that are issued to the DBA? Is it enough to have the account owner sign only his/her name?

Answer:

Although UCC 4-205 might cover the bank, I argue in favor of requiring the customer to endorse the check as it is made out (in the business name). If he wants, he can sign his name under that, but that would not be necessary if the check is going into an account captioned with the business name (in addition to the sole proprietor's name).

First published on BankersOnline.com 8/01/05