Many small business owners form their businesses as a Limited Liability Company (LLC). The LLC structure acts as a hybrid between a corporation and sole proprietorship. A big benefit of the LLC structure is that it helps business owners protect their personal assets from lawsuits and creditors like a corporation but can be simpler to operate.

I believe many small businesses are unaware that if they use funds from the business account to pay for personal expenses, whether a corporation or a limited liability company, doing so may negate the protection offered to their personal assets in the event of a lawsuit or failure.
This includes, but not limited to, paying for personal meals, personal shopping, beauty and grooming services, personal credit card payments, paying personal household or vehicle expenses, personal subscriptions, and personal shared-ride expenses.

 Even in cases when the corporation or LLC is a single owner or the only owners are a married couple, personal expenses should not be paid from the business account to help safeguard personal assets from business-related liabilities.

If you are unsure about whether an expense is personal or business-related or have questions about the difference in benefits for each business structure, contact a reputable lawyer that specializes in business law.

Gainey Business Bank has many well-connected bankers that would be happy to help you with an introduction to local lawyers, CPAs, business insurance brokers, investment and trust specialists and other important business professionals we have partnered with over the years being active in the Arizona business community. Give us a call and we would be glad to help.


S. Rachel Guerrero | VP – Treasury Management Sales
O: (480) 571-7697 | C: (480) 209-3941
8501 N Scottsdale Rd. Suite 120 | Scottsdale, AZ | 85253