HappySnapper90 wrote in post #15724868
You know, you may want to look into that. For liability purposes, that may be viewed as having a business for tax purposes. I've attended a couple of seminars by a lawyer that says if you do not keep personal and businesses expenses and financial info separate from your person ones that gives him enough to go after your personal assets if you are involved in a lawsuit because it shows your business is a "sham" for tax purposes. Get some business advice since it sounds like you are trying to benefit from businesses expenses on personal financial elements.
What, am I the only one that started and maintains my business just as a tax write off? I'm kidding or course but the tax benefits for me and the family can be nice sometimes. There is only so much stuff you can write off though in a photography business. Eventually you have to pay in but I write off everything my accountant lets me, both ethically and legally.
What you are talking about really depends on what type of business you run. (sole proprietor, LLC, corp) Mixing your financials is never a good idea whatever business type you have. I am sole proprietor and in my state, which is Vermont, it doesn't matter how I separate by business expenses or liabilities. If someone goes after me in a lawsuit they can sue me for everything I have. BUT I have lots of liability insurance, so the damages would need to be over 2 Million, then they could go after me and my personal finances. I still separate my business and personal with business accounts but there isn't anything unethical or illegal with using a personal card for business use. Believe me I have checked.
Whether or not a business is a sham for tax purposes or not has absolutely nothing to do with the liability your talking about. There is or course some audit liability there I guess.