Proper Way to Endorse a Business Check

When a customer writes a check payable to your business, you'll need to deposit it in your business bank account. The process for endorsing a business check for deposit isn't much different than endorsing a personal check. Depending on the business account, other individuals may also be authorized to endorse the check.

How It Works

To endorse the business check as an owner or authorized signer, on the back of the check:

  1. Write the name of the business.
  2. Sign your name below the business name.
  3. Beneath your signature, indicate your title, such as "owner" or "president."
  4. Add a restriction, such as "for deposit only," followed by your business account number.

A restrictive endorsement isn't required, but it can prevent fraud by restricting what happens to the funds. If an endorsed check is lost before you make it to the bank, an unauthorized person could potentially cash the check.

Authorized Signers

Anyone listed as an authorized signer can endorse the check. The person doesn't need to be on the business account as an owner, just listed on the signature card. When you give someone authorization to sign, you're also granting that person permission to write checks from the account. You can revoke a signer's authorization at any time by providing written notice to the bank.

Checks Not Payable to the Business

If the check is payable to an owner or someone other than the business, it's not possible to deposit the check into the business account. All checks must be made payable to the legal name of the business.