Personal and business funds, income and bank accounts should be kept separate
Use separate accounts for your personal and business funds. Separating your funds will offer you protection and will make it easier to sell your business if you ever decide to sell (determining valuation, tax reasons, etc.).
It also makes it easier to handle your taxes on an annual basis. You aren’t required to separate your personal and business finances, but it is generally a very good idea if you are bringing in a decent income.
Depending on the size and nature of your business, you may not need to separate your personal and business funds. For example, if you have what could be considered hobby income (arts and crafts, part-time web design, and similar endeavors).
Regardless of whether or not you decide to separate your funds, you need to keep accurate financial records for tax reasons, tracking income and expenses, and other business reasons.
Separate your personal and business finances
Maintain a firm wall of separation between business and personal financial matters. The liability protection of an LLC erodes when assets commingle between the LLC and its owner.
File State & Federal Paperwork Timely
Be diligent about filing required state paperwork. For example, Annual report filing LLCs must recertify annually, and if they don’t, they become inactive and eventually cease to exist as legally. Ensure timely State and Federal tax filings for your business
Always Keep Credit Separate
Avoid mixing personal and business credit lines. Although some states and courts have moved against this practice, some people establish sole-member LLCs simply to get a new employer identification number so as to establish new lines of credit under the LLC’s name.
Protect the LLC – Insure and License Your New Business in Florida
Although an LLC often protects its owner from liability, the company itself can be sued like any other, so obtaining the necessary insurance and keeping current on mandatory federal, state or local licenses and permits will limit the company’s legal and financial exposure.