We have a deposit account application from an LLC that has listed a trust as its sole manager and member. The account will be titled in the name of the LLC, and the authorized signer is the trustee of the trust. How would the trustee endorse the LLC’s deposits and sign the LLC’s checks?

In our view, you should set up the account with the signature card identifying the signatory party as “[Name of LLC], [Name of Trust], Managing Member, [Signature of Trustee], Trustee.” As the authorized signer, the trustee should endorse checks deposited into the LLC’s account in the same manner. With respect to checks drawn from the LLC’s account, we believe that simply signing the trustee’s name should be adequate.

For resources related to our guidance, please see:

  • The Balance, How to Endorse Business Checks (“1. Write the business name, which should match the payee on the front of the check. 2. Sign your name. 3. Write your title (President, Owner, Treasurer, etc.) 4. Add any restrictions to the check that you require.”)
  • Sapling, Proper Way to Endorse a Business Check (“To endorse the business check as an owner or authorized signer, on the back of the check: 1. Write the name of the business. 2. Sign your name below the business name. 3. Beneath your signature, indicate your title, such as “owner” or “president.” 4. Add a restriction, such as “for deposit only,” followed by your business account number. A restrictive endorsement isn't required, but it can prevent fraud by restricting what happens to the funds.”)