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Guidance on Telephone Transfers LLC to Personal

Question: 
I am looking for guidance on telephone transfers from Business LLC or LLP to one of the owner's personal accounts. Should this be allowed?
Answer: 

Answer by Kathleen Blanchard: If a bank chooses to allow such a transfer, it should not be allowed without a resolution from the business entity. Many banks will not allow such transfers.

You do not want other partners in the business to come back and say you allowed "x" to drain the accounts by transferring the funds to a personal account.

Answer: 

Answer by Ken Golliher: "X" will, of course, say "OMG, I didn't want to take the money out of the business account; it's the bank's fault!" There's no law, no regulation, just a best practice that indicates intra-business transfers should be between accounts with identical ownership and supported by resolutions.

The owner can write himself a check.

First published on BankersOnline.com 7/15/13

First published on 07/15/2013

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