- Centurion Member
- Posts: 125
- Joined: Wed Dec 05, 2012 12:47 pm
- Location: Iowa
The LLC separates the business from the person and if someone sues your business, your personal assets are protected. When someone with an LLC uses a business account for personal use, it is known as "piercing the corporate veil". This is something lawyers look for to legally tie you to the business. The big problem would only be if someone were to take legal action against your company, in which case if it can be proven you were making personal purchases with a business account, your LLC protection becomes worthless.
It's a little different than in the case of a sole proprietorship where the business card is yours and you are personally responsible for the bill. Now as far as the car being partly owned by the LLC, no, the LLC won't partly own your car, ownership of a vehicle is determined by the title. For taxes, you could put all expenses on one account then highlight all your deductable business expenses but then your accountant sees all your personal expenses as well which is what most people with business accounts try to avoid.
In other words, in the case of an LLC, I would stay away form using a business account for personal purchases because you want as much separation as possible between you and the business.