NEVER co-mingle business funds with personal funds—no exceptions.
Channel: Rondi Lambeth
Date: 2024-02-22

Learn more about personal and business finance and how to LEGALLY pay less tax at Fortress University.
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Today we're diving into a non-negotiable rule of business finance: Never, under any circumstances, mix your personal and business funds. I can't stress this enough—there are absolutely no exceptions to this rule. In this video, I lay out the critical importance of keeping your personal and business finances separate.

Mixing or co-mingling funds not only jeopardizes your corporate veil, increasing the likelihood of an IRS audit, but it also muddles your financial clarity. I explain why it's vital to have distinct accounts for personal and business use, including separate bank accounts and credit cards. This isn't just about compliance; it's about setting your business up for success and ensuring your personal financial health remains uncompromised.

Many entrepreneurs and business owners mistakenly believe that blending finances can be managed or justified, but I'm here to tell you, from years of experience and countless interactions with financial professionals, that this is a path fraught with risk. Whether you're just starting out or have been in business for years, understanding the significance of this separation can save you from potential financial and legal headaches down the line.

Don't let your hard work be undermined by a simple but crucial oversight. Join me as I break down the steps to effectively separate your business and personal finances, ensuring both your business's growth and your personal financial security. It's not just about avoiding audits; it's about professional integrity, clear financial management, and setting a solid foundation for your business's future.

Remember, when it comes to personal and business finances, never the twain shall meet. Let's get your finances in order and keep them that way. For more insights into managing your business and personal finances effectively, stay tuned to Fortress University.

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1. What is the rule about separating business and personal funds for tax purposes?
-The rule is never to co-mingle business funds with personal funds.
2. Why should you never mix business and personal accounts?
-Co-mingling funds breaks the corporate veil and increases the likelihood of being audited by the IRS.
3. What happens during IRS audits?
-During audits, it's rare for businesses to be audited; usually, it's individuals whose personal tax returns trigger the process due to discrepancies.
4. What is the recommended strategy for separating business and personal expenses?
-Open separate bank accounts and credit cards for business and personal use to avoid co-mingling funds.
5. What is the consequence of co-mingling funds?
-Co-mingling funds can lead to increased scrutiny from the IRS and potential audits, so it's crucial to keep business and personal finances separate. 

Learn more about personal and business finance at Fortress University.
👉 https://fortresscreditpro.com/

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