For almost every business owner, the value of their business is a very significant part of their personal financial picture. Aside from the home, it’s clearly their largest financial asset, and a lot of times it’s even a much larger asset than their home (I know it is for me!).
One of the things that I think our firm is good at is analyzing the financial situation of the business and the individual separately. Typically, as the process evolves, we do not represent both the individual and the business because their interests are not the same. That’s not always something that the business owner wants to hear at the time, but usually, at the end of the process, they recognize the importance of doing so.
Co-mingling assets, or using business funds to pay for personal expenses, can create some serious tax problems, and is generally just a bad idea! It’s always tempting to go out to dinner and think, “I’ll just have the business pick up this check, and no one here is going to tell you that’s inherently wrong. Something I see regularly, though, is having the business pay for things like country club dues or other significant personal expenses. If you ever have to restructure one or the other, that co-mingling makes it much more difficult.
Fortunately, our team has a tremendous amount of experience parsing through personal and business finances, and deciding which is the best way to manage both. If you’re worried about your personal or business’s financial picture or are even facing threats from creditors or the IRS, give us a call at 904-405-1250 so we can assess your situation and see if our firm is the right fit for you.