Biz <-> personal accounts and money spending

[Poem]

In order not to screw up with taxes and accounting:

(1) When I receive money to my biz Wise, Stripe, Bankera.... or biz bank account directly, what can I do with it? Can I go buy a thing for personal use with it?
(2) If not, what will happen if I do?

(3) Can I withdraw money from a biz Wise, Stripe or the like to a *personal* bank account? Or should I withdraw them to a biz bank account *only*?
(4) How do I convert money in a biz account into the money that can be used for buying personal goods?

...assuming I want to pay taxes, required, and do all legally

Generally, the (2) will inccur personal income tax on top on corporate tax that I may've paid already or about to pay, right?

Last edited: Apr 28, 2021

 

[ShillGates]

IN real world -
you pay lets say a Electornic device or a blow up doll from your business account.
Then you classify electornic device as "business expenditure" and the blow up doll as "entertainment expenses".

In banking world;
However these banks will then perhaps ask for a receipt in the name of the company at a later stage and perhaps evidence of usage to see if it is really a biz expense.

In real world;
If you just stick money from business to personal - again no problem, your accountant knows what to do when doing the book keeping. Classify as director loan, or interim dividends (for which you need paperwork anyway ) etc....

In banking world;
You commiting money laundering


In short when you do it, be safe and got your docs in order, albeit thereby creating an alaternate world for these banks s at the end of the day - each with draw of money you do not want to proof each time what it is, nor declare its a dividend, but thats the way of the banking world, and tax agency world --- Guilty till proven innocent

 

[Martin Everson]

You ideally want to speak to an accountant if this is level of understanding you have about running a company. Do not chance it as simple mistakes can be costly.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[Poem]

I can go find an account in no time, but I've I asked my questions here. No answer - I'll ask on reddit or elsewhere. What a problem.

You like to overcomplicate things sometimes, don't you?

 

[Martin Everson]

Poem said:
You like to overcomplicate things sometimes, don't you?
Click to expand...

No

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.