Sole Proprietor Checking Account Features

Our bank used to consider sole proprietor accounts in the same light as single person corporations. The only really good reason to cash checks made payable to the business is tax evasion, and we refused to cooperate in that exercise. All checks payable to the proprietorship had to be deposited into the account. If the proprietor wanted cash back, all he or she had to do was write a check against the account - we provided immediate credit for the deposited item. Having said all that,I don't know how you would limit other signers on your contract not to transact all business, unless you have a special contract for your proprietorship checking accounts. I think the limitation you're talking about is only bank practice.

First published on BankersOnline.com 10/1/01