by Randy Carey:
Nothing would prevent you from doing so. It would come down to your internal policies. Most banks will not cash checks made payable to a business, regardless of the type of business, in order not to contribute to potential money laundering and tax evasion.
by John Burnett
In addition to Randy's comments, many banks have adopted policies against cashing such checks even for sole proprietorships to avoid confusing their tellers. Tellers are often not in a position to know whether a given business operates as a sole proprietorship, partnership, LLC or corporation. They should not have to play "20 Questions" with a customer to determine how the business is formed.
The question really goes to managing customer expectations. When business accounts are opened, the bank's policy that it will not cash checks payable to businesses should be clearly articulated, and tellers should be instructed accordingly.