Does using a personal credit card pierce the corporate veil for single member LLC?
I am trying to completely separate my spouse's business from our personal finances. He is doing business as a single owner LLC / disregarded entity.
Can he use an existing credit card in his name for all his business expenses, or does that pierce the corporate veil?
If I open a new credit card in the business name, it will show up on his credit report. We are going to buy a house soon, so I don't want any extra inquiries.
(1)1 Comments
Sorted by latest first Latest Oldest Best
Can he use an existing credit card in his name for all his business expenses, or does that pierce the corporate veil?
That would be a question to a lawyer, since there's no definitive answer but rather circumstantial.
Generally it is safer to separate the finances completely than to try and guess what the court would rule if it comes to that. It is not hard to get a separate card for a LLC (especially if it is a sole proprietorship).
We are going to buy a house soon, so I don't want any extra inquiries.
I guess it depends on the bank and the type of card. My Citi business card doesn't show up on my personal credit report.
Terms of Use Privacy policy Contact About Cancellation policy © freshhoot.com2025 All Rights reserved.