Options for Depositing Check for Dissolved Entity

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SC Anteater
Posts: 230
Joined: Thu Jan 10, 2019 6:50 pm

Options for Depositing Check for Dissolved Entity

Post by SC Anteater » Wed May 15, 2019 4:10 pm

The state belatedly refunded some penalties and interest to a GP entity. Said entity was dissolved in 2018. Is it possible to sign the check over to the LLC which owned 95% of the dissolved entity so that I can deposit it into my bank account? Are there any other options to get this check deposited/cashed? I don't even know if I can open a bank account for a dissolved entity, and even if I did it would be a hassle.

gokartmozart
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Location: Pacific NW, USA

Re: Options for Depositing Check for Dissolved Entity

Post by gokartmozart » Wed May 15, 2019 6:00 pm

You might try depositing it as a third-party check.

To make it a third-party check, the dissolved entity's person with authority to sign checks (president, treasurer, general partner, whatever) would endorse it (sign on the back of the check) over to another entity or individual. Then that other entity or individual could deposit it to their own account.

I predict most banks will not give you grief over the dissolved state of the old entity. The check's payor is the state and the bank knows the state is still in business. :happy That's the important thing.

There's a small chance the bank might question the original signature authority of the authorized person for the dissolved entity. You could get through that (if it comes up) by being prepared to document the authority.

Do some research regarding third-party checks first! Some banks will not accept third-party checks for deposit! Don't do the actual endorsement on the back of the check until you have found a specific institution which will accept it as a third-party check. Read up on third-party checks if the concept is new to you.

Also, you might wait a couple of days to see if someone else here comes up with a simpler solution.

Silk McCue
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Re: Options for Depositing Check for Dissolved Entity

Post by Silk McCue » Wed May 15, 2019 6:01 pm

Sit down with the someone senior at the bank that handles your LLC. Explain the situation including showing documents your relationship to the dissolved entity and ask them if you can “sign the check over” to the LLC.

Cheers

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MP123
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Re: Options for Depositing Check for Dissolved Entity

Post by MP123 » Wed May 15, 2019 6:55 pm

How much is it for?

An authorized signer should be able to endorse the check "pay to the order of..."

You might also try depositing via ATM or better yet cell phone app. In my experience there is very little if any review of deposits made that way unless someone complains. To be clear I'm not encouraging any malfeasance.

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tuningfork
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Re: Options for Depositing Check for Dissolved Entity

Post by tuningfork » Wed May 15, 2019 9:46 pm

MP123 wrote:
Wed May 15, 2019 6:55 pm
You might also try depositing via ATM or better yet cell phone app. In my experience there is very little if any review of deposits made that way unless someone complains. To be clear I'm not encouraging any malfeasance.
Depends on the bank. Several years ago my bank started rejecting ATM deposits for checks made out to a variation of my name that doesn't match the name on the account. I now have to deposit those checks with a teller, who can check my ID if they wish.

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