Timeline for How to separate interest paid on a credit card between personal and business expenses?
Current License: CC BY-SA 4.0
7 events
| when toggle format | what | by | license | comment | |
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| Jul 9, 2020 at 18:12 | comment | added | lizziv | @NotThatGuy Absolutely, it's more than just opening up a separate account and calling it done. There's other work that needs to be done to separate the entities correctly, but separate accounts is a bare minimum first step. OP should make sure they understand the implications of how they're managing their money and the business's. | |
| Jul 9, 2020 at 17:54 | comment | added | NotThatGuy | @lizziv I wouldn't assume having a separate account would be enough to protect yourself in case the business goes bankrupt or gets sued. | |
| Jul 9, 2020 at 16:01 | comment | added | lizziv | When I took a class on small business finance, they used the term "piercing the corporate veil" to describe this exact type of intermingling of personal and business expenses. It has been awhile since the course so I don't remember the exact implications, but it's all risk and no reward. It opens up your personal assets to being considered part of the business assets - very bad if the business goes bankrupt or is sued. Get a separate card! | |
| Jul 9, 2020 at 11:05 | comment | added | simonalexander2005 | @Criggie plus, the reward you get may be taxable or create other implications if it's being earned through business expenses | |
| Jul 9, 2020 at 3:05 | comment | added | Criggie | Complete separation of home and business is the only way to go. However I can guess that there's some reward scheme (airpoints/cashback/etc) where increasing the throughput benefits you. Don't let that temptation for reward deter you from doing it in an audit-able way. | |
| Jul 8, 2020 at 21:27 | comment | added | jpaugh | A separate card is probably the cheapest option, too; at least it terms of time. | |
| Jul 8, 2020 at 11:22 | history | answered | mhoran_psprep | CC BY-SA 4.0 |