What is the law regarding keeping your personal and business money separated?
Hi,
The generally excepted laws for a LLC or S or C Corp basically prohibit you co-mingling funds! You can not pay business bills through your personal bank checking account and you can not pay personal bills through your business checking account.
You can pay certain allowable cost’s and expenses however get with a tax consultant or accountant to understand the specifics of allowable expendatures?
You can loan money to your business but you must have a complete paper trail including a S or C Corp resolution excepting a loan by your Board of Directors and defining the terms and conditions and the S or C Corp must sign a legal agreement defining the Boards resolutions and terms and conditions!
You can loan money to your LLC but you must create a directive by the Managing General Partner defining an amount and the terms and conditions and you must create a legal agreement that must be signed defining the directive recorded by the Managing General Partner which defines the terms and conditions!
Be very careful to learn the laws of your state and follow them exactly as if you are ever served as a defendant in court failing to follow these laws exactly could cause a “Piercing of The Corporate Veil”
Good Luck,
GR
How do I receive money from my business for personal use. Do I need to give myself a salary (example 10% of company profits) ?