Keeping your business and personal finances separate is something that only benefits you and has no great drawbacks. In case things go awry in the salon and your establishment is issued, or if your business goes into a loss and you find yourself unable to pay the business’ debts, your personal assets and belongings like your home and bank account will be protected.  However, a judge can rule that this protection does not apply in certain cases, including if you failed to keep your personal and your business expenses separate. This is known as piercing the corporate veil.