Is it OK to mix business and personal charges in your business bank account or credit card?<\/p>\n
I’m not talking about claiming these personal expenses as business expenses.<\/p>\n
You know that’s not allowed.<\/p>\n
Here, you just want to pay for these personal items out of your business account, but you will not claim a business deduction for them.<\/p>\n
What do you say?<\/p>\n
I hope you said “no.”<\/p>\n
Let me give you three reasons why (there are more):<\/p>\n
1) You Risk Your Legitimate Business Expenses – If you are audited, you need to be able to prove your business expenses were real business costs. With everything mixed together, the IRS may disallow all or some of your business expenses.<\/p>\n
2) You Will Make Life Difficult (Maybe Even Miserable) For Your Bookkeeper\/Accountant – Keeping clean books can be challenging. Adding personal expenses into the mix can make the task even more daunting.<\/p>\n
3) Piercing The Corporate Veil – If you are ever sued, your corporation\/LLC offers you a certain level of protection from liability. When you use your business for personal transactions, this may cause this veil to be pierced, thereby exposing your personal assets to potential lawsuits.<\/p>\n
Bottom line: Keep business expenses in your business account and personal expenses in your personal account!<\/p>\n","protected":false},"excerpt":{"rendered":"
Is it OK to mix business and personal charges in your business bank account or credit card? I’m not talking about claiming these personal expenses as business expenses. You know that’s not allowed. Here, you just want to pay for these personal items out of your business account, but you will not claim a business […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"\n