Consequences of commingling personal and LLC funds include the risk of losing limited liability protection. When funds are mixed between a business owner’s personal account and their LLC, it can make it difficult for creditors to distinguish which assets belong to the individual and which belong to the LLC. This makes it easier for creditors to go after personal assets in order to satisfy debts or judgments against an LLC. If there is a discrepancy between what is reported on a business tax return and what is reported on an individual’s taxes, this could lead to audits from both state and federal tax agencies. Commingling funds can create problems with accounting accuracy as it may be more difficult to accurately track expenses associated with the business without separating them from personal accounts.