How to Keep Your Business and Personal Finances Separate
It can be difficult to keep your personal and business finances separate when you own a small business. It is especially challenging to keep your accounts divided if your business is structured as a sole proprietorship. Since sole proprietorship is considered a nonentity, there is no legal separation between you and the business. When you set up your business as a Limited Liability Company (LLC) or corporation, however, you must have separate business bank accounts. Keeping the two separate, no matter how your business is structured, will create challenges and even lead to legal troubles. But,...