Important Business Bank Account Information

You Should Not Commingle Business and Personal Funds

Per the IRS, one of the first things you should do when you start a business is open a business bank account. It is important to always keep your business transactions and personal transactions separate in their respective accounts.

If an entity commingles business and personal funds, this is considered “piercing the corporate veil” and will jeopardize the legal protection they have under an LLC or S-Corp entity structure. Once the veil is broken, the owners of the business can be held personally liable for legal action taken against the business.

Starting a Business and Keeping Records: https://www.irs.gov/pub/irs-pdf/p583.pdf