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socrateaser
socrateaser, Attorney
Category: Business Law
Satisfied Customers: 37960
Experience:  Retired (mostly)
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If open a corporate bank account under the name, say "ABC",

Customer Question

If open a corporate bank account under the name, say "ABC", and I want to also deposit personal checks into the ABC corporate account, is that a problem?
Submitted: 1 year ago.
Category: Business Law
Expert:  socrateaser replied 1 year ago.

Hello,

Commingling personal money in a corporate account creates grounds for an adversary who may sue you or your corporation to claim what is known in the law as the "alter ego doctrine." This means that the adversary can claim that because you treat your corporation as if it were your personal property, that the court should void the corporation's separate existence and treat it as if it is simply you under another name. What follows is that the court could hold you personally liable for the corporation's debts.

So, yes, it's potentially a very big problem.

I hope I've answered your question. Please let me know if you require further clarification. And, please provide a positive feedback rating for my answer -- otherwise, I receive nothing for my efforts in your behalf.

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Customer: replied 1 year ago.

OK, thanks for your response on the potential legal drawbacks. But my question was really "will the bank accept my deposit".

Expert:  socrateaser replied 1 year ago.

Oh Yes, the bank will accept the deposit, if you endorse the check in your personal name before you deposit it into your sccount.

Please, let me know if you need further clarification. And please provide a positive feedback rating for my answer. Otherwise, I receive nothing for my efforts in your behalf.

Thanks again for using Justanswer!

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