A customer who buys your product or service and writes you a check! Any thing that distracts you from the job of getting that first customer is just holding you back.
Question: So, how should they make out the check? Aren't there legal considerations?
Sometimes. That's why it's best if you set down with a good C.P.A. before you spend a significant amount of time or money on your new business.
A good C.P.A. will do two things that are critically important. They will help you see the financial implications of what you are starting, how much money you can expect to be coming in and going out as you get started, what problems with cash might be coming down the road. And a good C.P.A. will let you know if you need to see an attorney. If you see an attorney first, you will always need legal advice. But sometimes you don't.
Ask the C.P.A. how to handle the first few checks you get, It's usually best to set up a separate checking account after registering your business name. If you operate as a sole proprietorship or general partnership, checks should be made out to you or one of your partners, deposited in the special account as d/b/a (doing business as) the name of your business that is on the checking account.
Now get out and get a customer who will write you a check! :)
These answers are the opinion of John Wren, They has been shared with those who have attended the IDEA Cafe Startup Workshop for nearly 20 years, often when C.P.A.s and attorneys were in attendance. Wren is not an attorney, and this is intended to be educational, it should not be considered to be legal advice. If you have a question you can post it here as a comment, or contact John Wren at John@JohnWren.com or (303)861-1447