Ouch Comingling!

Question: I formed an LLC for my business; do I need to open a Bank Account for it right away?

Answer: Yes, it is important that the LLC maintains its own financial identity. Money made should be deposited into the business bank account and expenses should be paid from the business banking account. Most banks will require a copy of the Articles (some request a charter or documents showing approval to transact business in the state), Banking Resolution, employer identification number (EIN) for the LLC, and your personal social security number.


Comingling will get you every time! An LLC has a legal identity of its own, completely separate from its owners. The IRS loves proving the comingling of financial identities as it opens the door for dismissing deductions that will increase the personal and business tax liability, penalties, and interest. If the Courts can combine the two identities financially, they can combine the liability of the identities, putting both the business and personal assets at risk.