Finance
Commingling
Commingling is mixing personal and business funds, such as paying personal expenses from a business account. Commingling undermines the legal separation between owner and company and is a principal factor courts consider when deciding whether to disregard limited liability.
In plain terms: Mixing your money with the company's. The habit that dissolves your protection.
Why it matters
The most consequential everyday bookkeeping failure. It makes deductions difficult to defend, makes tax preparation expensive, and weakens the argument that the company is genuinely a separate person.
Read the full guideBookkeeping