Records and compliance

How do I separate business and personal finances?

Short answer

Open a dedicated business bank account and credit card, run every business transaction through them, and pay yourself with recorded transfers instead of mixing purchases. Keeping finances separate makes bookkeeping faster, supports your deductions in an audit, and helps protect the liability shield of an LLC or corporation.

Answered by Dushyant Hirwani · Updated November 3, 2026
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