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Commingling

Mixing a company's money with its owner's; the most common way an LLC's owner loses the liability protection the LLC exists to provide.

The short answer, then the detailChecked September 2026

The detail

What it means in practice.

An LLC protects its owner because it's a separate legal person with its own money. Paying personal bills from the company account, or company bills from a personal one, is exactly what a court looks for when it's asked to look past the company to the owner. Open the business account first, pay yourself by recorded distributions, and keep the two apart.

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