Congratulations on starting your own business! Part of running a business is sometimes giving people money; one way to do that is by writing a check.
A check is like a unique piece of paper that tells the bank to take money from your business’s account and give it to someone else.
I remember writing my first business check like it was yesterday. I felt like a true businessman. What a simple but exciting thing.
How Do You Write a Business Check?
1. Fill in the Date
First, you must fill in the date on the top right corner of the check. This is important because it tells the bank when you wrote the check and ensures that it can’t be used later.
2. Add the Payee
Next, you must write the name of the person or business you want to give the money to. This person or company is called the payee. You write their name on the line “Pay to the Order of.” Be sure to spell their name correctly so the bank knows who to give the money to.
3. Write the Amount (in numbers)
Then, you need to write the amount of money you want to give in numbers on the line below the payee’s name. You should also include the cent amount, such as 99 cents. It’s vital to ensure the amount is straightforward to read.
4. Write the Amount (in words)
Also, you write the amount of money in words on the line that starts with “Dollar” or “$.” This is important because it provides a written record of the amount and helps the bank if the numbers need to be revised. Be sure to include the word “dollars” after the amount.
5. Sign the Check
Finally, you need to sign the check. This is like your signature on a letter telling the bank that it’s okay to give the money to the person you wrote the check to. You sign on the line at the bottom right corner of the check. Ensure you use the same signature you used when opening your business account to avoid fraud.
By following these steps, you’ll be able to write a check correctly and make payments confidently. Keep it up; running your own business is a great accomplishment!
Common Questions About Business Checks
What should be on a business check?
A business check needs the following: name and contact information for the business, date, payee, amount (in numbers and words), and a signature. Optionally, the check could contain a memo.
How does an LLC write a check?
The same way any business would. Use the steps above.
Can a business check be handwritten?
Yes, it can.
Who signs a business check?
The person that is designated as a signor on the bank account.