How important is it to separate personal and business bank accounts for my foreign LLC?
I have a foreign-owned LLC and I've been using my personal Wise account to receive some client payments alongside my Mercury business account. Some smaller clients pay to my personal Wise because it was easier to set up initially.
Is this a problem? I've heard about "piercing the corporate veil" but I'm not sure if that applies to single-member LLCs. Should I move all payments to the business account even if it means some inconvenience for my clients?
Related Questions
Why did my bank close my foreign LLC account and what compliance triggers should I watch for?
I just received a letter from my bank saying they're closing my foreign LLC's account in 30 days with no specific reason given. I've had this account for 18 months and never had any issues. My LLC is ...
What bookkeeping do I need to maintain for my foreign LLC's bank account?
I've been running my foreign-owned LLC for about six months and I've been pretty lax about bookkeeping. I have a Mercury account with maybe 50-60 transactions total — mostly client payments and a few ...
My foreign LLC's bank account was frozen — what should I do?
I woke up this morning and can't access my Mercury account. When I try to log in, it says my account is under review. I have about $12,000 in the account and two client payments are supposed to come i...
My U.S. LLC opened a Wise account for foreign currency. Does the LLC itself now have an FBAR issue?
I am in Portugal and run a Delaware LLC. To handle EUR client payments, the business opened a Wise business setup and now holds balances outside the U.S. during the year. At peak, the foreign balance ...
Is foreign qualification the same thing as sales-tax nexus? My accountant and my lawyer seem to disagree.
My tax accountant keeps talking about 'economic nexus' and registering for sales tax in states where I cross a sales threshold. My business lawyer talks about 'foreign qualification' and certificates ...
My net worth is far below $2 million and my tax has always been low. Do I still need Form 8854 when I expatriate?
I am from Mexico and I expect to fall well below the covered expatriate thresholds. Because of that, I assumed Form 8854 would not matter for me. Then I saw references saying the form is required even...
What are the FBAR penalties for non-willful vs. willful violations?
I have a foreign bank account that I use for my LLC business but I never filed an FBAR (FinCEN Form 114). What is the difference between non-willful and willful FBAR penalties? My account balance was ...
My U.S. controller can move money from our foreign account but does not own it. Is that the kind of FBAR issue people miss?
I live in Germany and own a U.S. LLC with a foreign currency account overseas. We recently hired a U.S.-based controller who has online access and the ability to approve certain payments, but he does ...
If I receive client money into my personal foreign account before moving it to the LLC, does the LLC still have an FBAR problem?
I am in Argentina and my U.S. LLC is still new, so some clients keep paying into my personal business account in Buenos Aires before I transfer the money to the Delaware LLC. I know this is not ideal ...
My only contact with California is a business bank account — am I safe from foreign qualification?
I opened a US business bank account that happens to be with a California-based bank, and that's literally my only California connection. No customers there to speak of, no office, no inventory, no emp...
Have a similar question?
ForeignLLCTax members get expert answers with IRS citations. One CPA consultation costs $200+. Full access is $9.99/month.
Become a Member — $9.99/moDisclaimer: All content on ForeignLLCTax.com is created by a tax professional and is provided for general educational and informational purposes only. It does not constitute tax, legal, or accounting advice, and should not be relied upon as such. Every tax situation is different — for advice specific to your circumstances, please consult a licensed CPA, Enrolled Agent, or tax attorney. By using this website, purchasing a subscription, or accessing any tools or services, you acknowledge that no client-professional relationship is established between you and ForeignLLCTax.com or its operators. This website is not affiliated with the IRS.
