When the business and the owner share one account and one card, every statement becomes a puzzle at tax time. And for an LLC or corporation, keeping finances separate is part of keeping the company separate from you.
The basics
- A business bank account in the company's name, using its EIN.
- A business card used only for business expenses.
- Every business payment in and out goes through those accounts.
- Pay yourself by transfer from the business account, and record it.
If you mixed them
Do not panic. Go back through the statements, mark each transaction business or personal, and give the list to your accountant. Then start clean from today.
Our separation checklist lists each step.
General information, not legal or tax advice.
This article is general information, not legal, tax or regulatory advice. Rules change; confirm current requirements with the responsible agency or a licensed professional.
