Shareholder(s) and the corporation are two separate entities. The IRS recommends opening business-only banking accounts for any business. It is preferable to have the entity pay for all of its business expenses form the entity’s account and to have one credit card that is used solely for business expenses.

However, even when you do maintain separate business and personal banking accounts, you may occasionally pay for business expenses out of your own pocket.

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A sole proprietorship is an unincorporated business owned by one person. The business is not a separate business entity. All the business income and expenses are considered to be your income and your expenses. You can freely move into or move out from your business without any tax consequences. However, it always recommends that the business books be kept separate from one’s personal financial records.

Put Money into your business

You need to set up an “owner’s contribution” account using equity account. 

 » Read more about: Income & Expenses for a Sole Proprietorship  »