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@SouthJamaica wrote:
@HingleMcCringleberry wrote:Would it be unwise to open a personal credit card like elan max cash preferred just to use it for business utilities? I don't know if I can get a high limit if I try that.
IMHO it would be unwise, for several reasons.
1. The balance would report to your personal credit.
2. Mixing business and personal creates various legal, accounting, and bookkeeping issues.
Most operating agreements allow for reimbursements for business expenses. The company rep uses a personal card to pay for something and the company reimbursed for the expenses. This is also very common when traveling for business, eating out and submitting receipts after the trip for reimbursement.
Would this work? anyone have thoughts on this? I would only use said personal card solely for business utilities so there won't be any personal purchases on it. I don't mind it affecting the personal credit score in regards to credit utilization.
here is my situation, I recently used my newly approved Chase Ink unlimited to pay both my personal & business properties taxes and HOA in order to meet SUB requirement. Then, I either request payments to Biz chase ink from personal checking account. OR vice versa.
Another advantage is that, I have 12 months 0% APR to pay back. win-win situation.
As long as it clears on my book. I think I am okay.
@metropolitan wrote:
@SouthJamaica wrote:
@HingleMcCringleberry wrote:Would it be unwise to open a personal credit card like elan max cash preferred just to use it for business utilities? I don't know if I can get a high limit if I try that.
IMHO it would be unwise, for several reasons.
1. The balance would report to your personal credit.
2. Mixing business and personal creates various legal, accounting, and bookkeeping issues.
Most operating agreements allow for reimbursements for business expenses. The company rep uses a personal card to pay for something and the company reimbursed for the expenses. This is also very common when traveling for business, eating out and submitting receipts after the trip for reimbursement.
1. There are many things that are common, which nevertheless create legal, accounting, and bookkeeping issues.
2. Getting reimbursed for business travel and entertainment is different than being regularly reimbursed for paying a part of the company's overhead.
It is my thought that using the business credit to pay the personal property tax returns is not allowed, and is comingling.
I can see doing an owner disbursement from the business cash accounts to reflect "income" from the business. Use that to pay the property tax. Then use "owner contibution" to repay the funds you borrowed from the business. I am not a CPA and am sharing the method I use to take money from my business when I have a need.
I also have paid my children from the business for work they do, which is deductible from the business; I then pay for their college with those funds.