They tell me I need to fill out a withdrawl slip and then deposit slip.
Their system allows it BUT they are supposedly not allowed to do it.
I understand that Bank of America allows it.
WHY?
2007-06-01 11:42:25 · 4 answers · asked by Person 1 in Business & Finance ➔ Personal Finance
because it's called embezzlement????
Business law does not allow personal and business finance to mix. It's to keep each separate and safe. You have different taxes you need to pay also , it keeps it neat.
Say your business went bankrupt. You don't want them coming after your personal stuff, yes? That is why.
Say your spouse was divorcing you, you don't want your spouse to be able get all the business account funds and personal account funds, yes?
But I'm sure it falls under embezzlement.
2007-06-01 11:49:10 · answer #1 · answered by Himiko 4 · 0⤊ 1⤋
The 'separate legal entities' statement others have listed is probably the reason the bank would give. It is not a good answer for this situation. That is why you can't deposit a check payable to the business in a personal account. As long as you maintain separate accounts, there is no reason why withdrawing money from your business to your personal account should require a separate withdraw and deposit. The 'paper trail' argument in the answer above mine is not valid. ALL transactions produce a 'trail' and the actual paper is rarely ever used. Legally, the bank does not have to retain the withdraw and deposit tickets at all.
2007-06-01 12:30:56 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
Having experience in banking and from what I know and it's like someone else stated before it's separate legal entities. Separate tax id numbers. Different account titles. I could go on and on. It's the same reason banks aren't SUPPOSE to cash a check made payable to a business, or deposit a check made payable to a business in a personal account. Check has to equal the name on the account. Same goes for transfers. It's all about a paper trail. Show it going in first then show it coming out for tax and accounting purposes.
2007-06-01 11:58:04 · answer #3 · answered by K.C. 5 · 0⤊ 0⤋
Perhaps because they are separate legal entities. You can wire the money. They charge a fee though.
2007-06-01 11:50:02 · answer #4 · answered by Ronin 4 · 0⤊ 0⤋