HSBC is offering 2.5% on business savings account, they are offering only 1% on personal savings account.
Can I safely park my personal savings into my One Member LLC savings account – disregarded entity ? This LLC is for a passive income management: owns and collects rental income from a 2 family property.
My regular CPA tells me no – and my CPA friend says ye that it can be construed as funding and distributed anytime..
Whats the risk if any?
Hi Thierry, great question.
I agree with your regular CPA. You never want to commingle business and personal funds under any circumstances. It gives the IRS and other stakeholders the impression that you don’t really know how much is business versus what is personal funds. If you are ever audited, you could lose your LLC status. I don’t think it’s worth the risk.
Best of luck,
Crystalynn Shelton, CPA
You must be logged in to reply to this topic.
Not signed in?
Sign in to participate on our website!
315 Madison Avenue, 24th Floor
New York, NY 10017
Disclaimer: We spend hours researching and writing our articles and strive to provide accurate, up-to-date content. However, our research is meant to aid your own, and we are not acting as licensed professionals. We recommend that you consult with your own lawyer, accountant, or other licensed professional for relevant business decisions. Click here to see our full disclaimer.
Product or company names, logos, and trademarks referred to on this site belong to their respective owners.