If having a Schedule C business and then starting a single member LLC (i.e. which the IRS views as a disregarded entity for tax purposes), should a separate bank account / expense tracking need to be opened for the LLC vs the Schedule C business if they are both engaged in the same activity by the same person?

Wondering if any implications on tax filing or on LLC protection implications or otherwise.

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    Purely for the sake of 'cleanliness' [ease of recordkeeping, etc.], I would say it is always 'recommended' to have separate bank accounts for business. Not an answer because I'm not sure what types of "implications" you are concerned with - it seems mostly you are concerned if this gets to the point of being a requirement. Jan 18, 2022 at 15:12
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    Two different companies should never share a bank account.
    – minou
    Jan 18, 2022 at 16:59

1 Answer 1


It's more of a legal question than a tax question. The IRS doesn't care about your bank accounts, it cares about your income (the R stands for Revenue).

In order to protect yourself from piercing the corporate veil of the LLC, you have to ensure to treat is as a completely separate legal (not tax) entity from yourself, and that includes having separate bank accounts.

You would probably want a proper legal advice from a lawyer.

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