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Lucy, Esq.
Lucy, Esq., Attorney
Category: Business Law
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Experience:  Attorney
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I have two business accounts, however, I recently had a client

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I have two business accounts, however, I recently had a client sign on retainer and provide a check to cover my aniticipated fees. Do I need a special account for these funds?
Submitted: 3 years ago.
Category: Business Law
Expert:  Lucy, Esq. replied 3 years ago.

My name is XXXXX XXXXX I'd be happy to answer your questions today.

Yes. Any client funds received should be held in a trust account, because that money belongs to the client until it is earned. You're allowed to put checks from multiple people into one trust account. As the retainer is spent, the client may be billed, and funds may be transferred from the trust account to the regular business accounts. But client funds that are being held until they are used should not be commingled with general business accounts.

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