One of the common mistakes that business owners make is to commingle business and personal funds. This practice can be very detrimental to any business especially if the business gets audited by IRS. Not Only will it be costly to get a tax professional to untangle the mess, it is now being cited as a reason for “piercing the corporate veil”. Limited liability advantage is a major reason for setting up a business entity as as a Corporation, S-Corp or LLC. These types of business structures provide limited liability to their owners because they have separate legal entity of their own different from the owners. However, when personal and business funds are commingled, such organizations may lose that protection. It is therefore very critical that businesses do not mix up personal and business funds/transactions.
Call us today to learn more about separating your personal and business funds – (757) 460-3910