When you form a business, one crucial detail that you must remember is that you can never commingle funds.
Though, what exactly does it mean to commingle funds? How can this one misstep get you into such trouble? What steps can you take as a business owner to prevent someone from piercing the corporate veil? Read the article to find out!
What is Commingling Funds?
When you form a business, you can NEVER commingle funds. But what exactly does it mean to commingle funds?
A person commingles funds when they mix business and personal funds into a single bank account. But if you do this as a business owner, you can run into a lot of trouble.
When someone sues your business, a plaintiff may try to pierce the corporate veil to hold you personally liable. The corporate veil itself symbolizes that you are keeping your business property separate from your personal property. Read the article to find out!