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Hello,
I have an S-corp that offers consulting services in the area of human resources and am considering opening a second business that sells product (I haven't determined the entity type yet). My bookkeeper suggested that I keep each business separate, with different bank accounts and different accounting records. She says that I can't run transactions for my second business through the bank account of the S-Corp, as I need to keep the transactions separate from the S-Corp. She says I shouldn't commingle any other business with my S-Corp to avoid the risk of losing the S-Corp status. If I file a tax return with a K-1 for the S-corp and whatever necessary form for the second business, why can't I use the same bank account? For the accounting records, couldn't my bookkeeper add a section on the P&L for the expenses of the second business?
Thank you!
I have an S-corp that offers consulting services in the area of human resources and am considering opening a second business that sells product (I haven't determined the entity type yet). My bookkeeper suggested that I keep each business separate, with different bank accounts and different accounting records. She says that I can't run transactions for my second business through the bank account of the S-Corp, as I need to keep the transactions separate from the S-Corp. She says I shouldn't commingle any other business with my S-Corp to avoid the risk of losing the S-Corp status. If I file a tax return with a K-1 for the S-corp and whatever necessary form for the second business, why can't I use the same bank account? For the accounting records, couldn't my bookkeeper add a section on the P&L for the expenses of the second business?
Thank you!