Quick Tip:
Be Careful How You Invoice

If you have a name for your business, it's tempting to invoice clients with that business name. However, if your clients write checks payable to the name of your business, you may be in for some hassles with the bank.

Because of increased security in financial transactions, many banks will not let you deposit a check into your personal account if the check is made payable to a business entity. They insist that you deposit it into a business account.

Establishing a business account is not difficult … but it does require having a legally established name. This often requires posting a “fictitious name declaration” in your local newspapers for 2 or 3 weeks and registering the name with your county clerk's office.

Bottom line: Check with your financial institution to find out their policy.

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The Professional Writers’ Alliance

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Published: February 9, 2006

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