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  1. #1

    Default Accidentally Deposited Personal Check into LLC Account

    My question involves business law in the state of: Washington

    1.) My Single-Member LLC receives income in the form of checks from other businesses.
    2.) These checks are all made out to my LLC.
    3.) Every week, I deposit a stack of these checks into my LLC Business Account via the ATM.

    Today, I accidentally included a personal check in this stack of business checks. The personal check was for $80.00, and was a refund from my doctor (the doctor visit was cheaper than anticipated). I had meant to deposit this $80.00 check into my Personal Account, but I got distracted and accidentally stuck it in the pile of LLC checks. (Unfortunately, the bank manager was not able to open the ATM deposit vault to "retrieve the check" to give it back to me.)

    Question: To maintain the integrity of my LLC, to avoid appearance of commingling, what should I do to fix this?

  2. #2
    Join Date
    Oct 2014
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    7,161

    Default Re: Accidentally Deposited Personal Check into LLC Account

    Quote Quoting lackingknowledge
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    Question: To maintain the integrity of my LLC, to avoid appearance of commingling, what should I do to fix this?

    A one time check deposit error isn't likely to open you to problems of piercing the corporate veil. I suggest you simply have the LLC give you a check made out to you personally and have the LLC records reflect that it is a return of funds that were mistakenly deposited to the LLC.

  3. #3

    Default Re: Accidentally Deposited Personal Check into LLC Account

    Thank you.
    Further question (building on your answer):
    Bank manager offered to do a paperless Internal "account-to-account" transfer of the $80.00, with a memo "mistake deposit."

    However, I would like to go "above and beyond" with these simple steps:

    1.) Have bank issue Official Cashiers Check from my LLC to my Personal for the $80.00.
    2.) On the Cashiers Check, I handwrite "Deposit Error" in the Memo Field.
    3.) I photograph the Cashiers Check and attach a typed Paragraph "this-is-exactly-what-happened Event Log."
    4.) I NOTARIZE this new document (Photograph + Event Log) to memorialize how I did my best to fix the mistake.
    5.) Immediately deposit that Cashier's Check into my Personal account.
    6.) Save the Notarized documents, deposit receipts, etc., forever.

    I know this is a small error, but I just want to make it right. The above 6 steps should be very much worth the 15 minutes of time it will take.

    Unless you see something wrong?

  4. #4
    Join Date
    Jan 2010
    Location
    New Jersey
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    3,606

    Default Re: Accidentally Deposited Personal Check into LLC Account

    Quote Quoting lackingknowledge
    View Post
    Thank you.
    Further question (building on your answer):
    Bank manager offered to do a paperless Internal "account-to-account" transfer of the $80.00, with a memo "mistake deposit."

    However, I would like to go "above and beyond" with these simple steps:

    1.) Have bank issue Official Cashiers Check from my LLC to my Personal for the $80.00.
    2.) On the Cashiers Check, I handwrite "Deposit Error" in the Memo Field.
    3.) I photograph the Cashiers Check and attach a typed Paragraph "this-is-exactly-what-happened Event Log."
    4.) I NOTARIZE this new document (Photograph + Event Log) to memorialize how I did my best to fix the mistake.
    5.) Immediately deposit that Cashier's Check into my Personal account.
    6.) Save the Notarized documents, deposit receipts, etc., forever.

    I know this is a small error, but I just want to make it right. The above 6 steps should be very much worth the 15 minutes of time it will take.

    Unless you see something wrong?
    Cashiers checks and notarizing isn't free. Probably around $35 for both, if you don't mind spending $35 that you don't have to, then knock yourself out...
    I'm not a lawyer, but I did stay at a Holiday Inn Express last night.......

  5. #5
    Join Date
    Jan 2019
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    Pugetopolis
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    43

    Default Re: Accidentally Deposited Personal Check into LLC Account

    Quote Quoting Who'sThatGuy
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    Cashiers checks and notarizing isn't free. Probably around $35 for both
    Depending on the type of customer he is. It could also be free. But for $80 I would go the easy route.

  6. #6
    Join Date
    Oct 2014
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    7,161

    Default Re: Accidentally Deposited Personal Check into LLC Account

    Quote Quoting lackingknowledge
    View Post
    Thank you.
    Further question (building on your answer):
    Bank manager offered to do a paperless Internal "account-to-account" transfer of the $80.00, with a memo "mistake deposit."
    That should be all you need, so long as the electronic "paper" trail is there to show what happened.

    Quote Quoting lackingknowledge
    View Post
    1.) Have bank issue Official Cashiers Check from my LLC to my Personal for the $80.00.
    2.) On the Cashiers Check, I handwrite "Deposit Error" in the Memo Field.
    3.) I photograph the Cashiers Check and attach a typed Paragraph "this-is-exactly-what-happened Event Log."
    4.) I NOTARIZE this new document (Photograph + Event Log) to memorialize how I did my best to fix the mistake.
    5.) Immediately deposit that Cashier's Check into my Personal account.
    6.) Save the Notarized documents, deposit receipts, etc., forever.
    Personally I think that's overkill. But if it makes you feel better, there is no harm in it.

  7. #7
    Join Date
    Oct 2006
    Posts
    15,201

    Default Re: Accidentally Deposited Personal Check into LLC Account

    Quote Quoting Taxing Matters
    View Post
    That should be all you need, so long as the electronic "paper" trail is there to show what happened.



    Personally I think that's overkill. But if it makes you feel better, there is no harm in it.
    Serious overkill as far as I am concerned.

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