Question – I am a solo owner LLC, but have people make the checks out to the business in my name. Is that correct?
Our Answer –
Since you’re a single member LLC filing a Schedule C, It doesn’t really matter for tax purposes as long as you report all the income. It is potentially a problem (usually remote, but still a concern in the short-term) for your liability protection if the business were to be sued.
When you can, keep the LLC and your personal affairs completely separate, including opening a bank account for the LLC and getting business checks in the business’s name. Read more how to sign a check for the LLC. Also, ask your customers to change the name of the business and send checks in the correct name (this may require submitting a new W-9 with them).
