On 7/6/2013 10:05 PM, Ned Simmons wrote:
On Fri, 05 Jul 2013 22:30:53 -0500, wrote:
....

The bad part of that is that if something were to happen to the business
the credit card debt would still be personal even though purchases were
for the purpose of the business...
....

That never occurred to me. I guess the lesson is to never let the
amount due for reimbursement get too large, regardless of whether the
expenditures are made by cash, credit card, or debit card.

Unfortunately, it doesn't occur to too many people until they're in deep
trouble. They just begin subsidizing a business venture to tide it over
a rough spot and too often before they're done, they're done in...

The _real_ lesson is don't let personal finances intermingle w/ the
business.

If, of course, you're running as a sole proprietorship you're hosed
anyway; as it's all the same as far as liability. The LLC helps some
but the only real protection is the incorporation route and then you
have to be religious about keeping stuff that belongs in the business in
the business...

--

On 2013-07-07, dpb wrote:
On 7/6/2013 10:05 PM, Ned Simmons wrote:
On Fri, 05 Jul 2013 22:30:53 -0500, wrote:
...

The bad part of that is that if something were to happen to the business
the credit card debt would still be personal even though purchases were
for the purpose of the business...
...

That never occurred to me. I guess the lesson is to never let the
amount due for reimbursement get too large, regardless of whether the
expenditures are made by cash, credit card, or debit card.

Unfortunately, it doesn't occur to too many people until they're in deep
trouble. They just begin subsidizing a business venture to tide it over
a rough spot and too often before they're done, they're done in...

The _real_ lesson is don't let personal finances intermingle w/ the
business.

Very true. The dividing life between my "business life" and "personal
life" is fuzzy for me, but I do keep the money separate. And also,
when one is buying and selling, it is not easy to determine the "true"
income, due to inventory valuation, but I try hard to be
conservative.

i

On 7/8/2013 10:46 AM, Ignoramus19720 wrote:
On 2013-07-07, wrote:
....

The _real_ lesson is don't let personal finances intermingle w/ the
business.

Very true. The dividing life between my "business life" and "personal
life" is fuzzy for me, but I do keep the money separate. And also,
when one is buying and selling, it is not easy to determine the "true"
income, due to inventory valuation, but I try hard to be
conservative.

And the corollary is that if there is any real risk in business of
liability or other way to put large amounts of personal assets at risk,
do _NOT_ operate as a sole proprietorship. And, of course, the point
above of don't incur personal debt to subsidize any business entity no
matter how it's structured.

--