Separating Personal Business Finances For LLC
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ricky
Apprentice
Joined: 22 Feb 2005
Posts: 3
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 Posted: 02/24/08 - 08:16 Post subject: |
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| I usually have personal and business finances on the same account, as it is much easier for me to track my money. However, as I am soon starting a new small business and going LLC, I have heard that I must separate the two types of finances by the law because of the LLC. Is ti true? If not, I would rather like it to stay as it so far did. |
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titos
Apprentice
Joined: 15 Nov 2006
Posts: 4
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| Posted: 03/25/08 - 00:21 Post subject: |
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| When you become incorporated, that is, when you make your small business an LLC and transform it later to the S corporation, the law tells you must separate the two finances. Actually, it is something you should have done long time ago, as separating the two gives you much more flexibility, and, say, in case your business credit does not work out, you will not lose any of your personal finances, which would be very bad for you, obviously. However, if you are starting a very small company and have a lot of money, you may keep the two types of finances mingled for a very short time until you finance your business with your own money (not taking any credit) until it grows a bit. After that, be sure to open a new business account and use all the possibilities this offers to you. Best of luck. |
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