Although I’d assume all their contracts make it clear just who they are, and their royalties are generally paid under their real (given) names, if I wrote a check and made it out to “Madonna” or “Eminem” (as if I would!), would they be able to cash it?
Sure.
The simplest way would be to endorse it first as “Eminem” and then endorse it a second time as “Marshall Mathers” below the first endorsement.
Or he can set up an account with the name “Eminem” on it, either alone, or with Marshall Mathers. As long as he gives a valid SSN, the bank doesn’t care.
They could also set up a “doing-business-as” account: Marshall Mathers d/b/a Eminem
I cash checks all the time made out to my business’ name.
Please help, I’m confused. So this means that if my real name is Jessica Smith, but I use “Amy Parker” with friends and acquiantances (because I like it better), that I can put BOTH names on my bank account as long as both names are connected with my SSN? Wouldn’t the bank demand court approval for the name change? Wouldn’t they have an issue with the fact that “Amy Parker” has no SSN and is essentially a pseudonym?
If I couldn’t get away with this, why can celebrities?
Usually, a joint bank account only has one SSN. You can create a joint account with both Jessica Smith and Amy Parker as owners, and use Jessica Smith’s SSN. Perfectly legal.
There sometimes is an issue if you try to use a business name (i.e., Amy Parker Enterprises). In that case, you get a d/b/a from your local county clerk and you’re fine. Again, you can use the Jessica Smith SSN.
You could even create an Amy Parker account with the Jessica Smith SSN. As long as all the interest gets covered in Jessica Smith’s taxes, the IRS doesn’t care.
Legally, you can use any name you want (other than for official documents like driver’s licenses, voter registration cards, etc.) as long as there is no attempt to defraud anyone.
I’m betting it’s bank discretion here.
If the guy in front of you is a famous pop star, it’s probably a “go”.
If he smells like he’s homeless and is clad entirely in dirty, torn clothes, maybe he’ll have to talk to the branch manager…
Not really. Maybe they’d ask for some ID, and they will insist on a DBA if you try to use a name that sounds like a company, but otherwise, they will let anyone open an account as long as they have money and their SSN checks out.
We have done some threads on the legality of different names here. Names aren’t regulated much in the U.S. at all. The databases aren’t really centralized so you can use different versions of your name all over the place. The Social Security Administration has the most official database for government purposes but that isn’t the only one. People often start using a new name or nickname but unofficially changing the whole name is less common. Using a new name for a while actually makes it a little easier if you want to get a legal name change. Those aren’t much problem either and are rarely denied but you do have to appear before the court in most states. Even then, that doesn’t do everything for you. Have have to tell individual businesses about it and everything else. Women and sometimes both people get a free name change when they get married. They can use it to take their husband’s name or they can make it something else entirely. My wife has financial accounts under at least three versions of her name. As you can see, names can be a pretty fluid thing and it is mainly about talking businesses into recognizing it. Legal name changes aren’t much of a hurdle either.
BTW, Madonna’s name really is Madonna and always has been. Tack her last name on and there is no problem at all but there shouldn’t be anyway.
BTW, I have some personal experience with this. I have a very unusual middle name that sounds like a stage name and I have gone by it since the day I was born. My first name is a traditional name and that is often all businesses have on record. I have had maybe three 3 brief and inconsequential problems using my middle name in my whole life. The last name matched but that is all they have.
The process for filing a DBA varies from state to state. Even the term used varies. The one thing all states seem to agree on is that you can use any name you want as long as there’s no intent to defraud.
I’ve done this with several sole proprietorship businesses. If I recall correctly, I ran an ad in the paper, filled out a form, and registered the name with the state. Piece o’ cake.
My real first name is Melissa, but everyone calls me Lissa. I’ve had no problem cashing checks made out to “Lissa [LastName]”. It wasn’t even a problem the time when both names were spelled wrong on the check.
For what it’s worth, ages ago when I worked in a cigar store a celebrity came in and purchased some cigars for his stepfather. He looked familiar, but I wasn’t sure who it was until I rang up his purchase on hs American Express card.
So, Laurence Tureaud has an Amex account under the name “Mr. T”. I wouldn’t be surprised if he also has a checking ccount with that name on it as well.