Sunday, January 27, 2013

First LLC capital deposit made from DBA business account? -

I just opened up a new LLC bank account. I already have an existing business bank account under a DBA/ein for a different business. I made my first capital deposit (a check) into the new LLC with money from the DBA business account, is this ok? I figured it is the same as using my personal money since the DBA is essentially a sole proprietorship anyway, but just want to make sure.

No, you should not be doing that. You should always keep each business and personal account separate. My accountant even recommends using multiple banks. Keep your personal account at one bank, and each individual business at others. In your case you should be using three banks. Why do this? If you get audited it is much easier to show you are not mixing funds inappropriately. Number two you are building connections with multiple banks in your area. Just remember if you get audited it is guilty until proven innocent.

I opened my business account at the same bank as my personal account because they gave me a $100 dollar credit.

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