AboutJim Meadows Expertise I can respond to most questions concerning consumer and business relationships with US financial institutions. My expertise touches on deposit and loan issues and particularly on strategies to navigate through bank policies personell and practices. I have a degree in Economics, attended law school, Graduate Shool of Banking, and Commercial Lending and Compliance Schools.
Experience I have twenty years experience as a bank CEO. Most of those years were spent operating a bank focused primarly on serving consumer/retail needs. I helped pioneer deposit and loan products for low/moderate income individuals. I currently serve on multiple bank boards and am Chairman of a Commercial Bank in Atlanta.
Question I work as an independent contractor. The broker I work for required us to become corporations or LLCs -- they will no longer employ private individuals. I met with my accountant, who said as a single-member LLC, I did not have to file a separate tax return, or open a business bank account. Both my personal bank and the issuing bank have refused to cash the check from broker to LLC, even tho I provide LLC setup papers showing me as sole member, with photo ID, & tax ID# for LLC. The banks require me to set up a business bank account, deposit the check to LLC in that account, then transfer money to my personal account. What is the legal basis for this requirement? Thanks for your help. Oh yeah, and what is a spam robot?
Answer Molly, The bank requirement is not exactly a legal requirement but a bank "policy requirement" and is typical. The policy is designed to mitigate potential endorsement risk to the bank. My suggestion is to open an LLC account. Jim
p.s. A spam robot "spambot" is a program which harvests e-mail addresses from the web to be used to send unsolicited e-mail (SPAM)
