can i pay my personal taxes from my business account

Step 3: Select 'Alberta Finance' and the program that you are making a payment for, for example, 'Alberta Finance – Corporate Income Tax' located under 'Provincial – Alberta'. Step 2: Click on your financial institution and follow the instructions provided. Paying Corporate and Commodity Taxes and Levies Online. This is known as “piercing the corporate veil” and you definitely don’t want to go there.The government tax payment and filing service has been established at most financial institutions. Should someone take legal action against the corporation, and this type of activity is discovered, someone could easily point to these personal payments as proof that this so-called corporation is not really a corporation, and you would then lose the benefit of limited liability. And therefore, it really should not be paying the personal expenses of the shareholders. A corporation is a separate legal entity. The biggest problem with doing this in a corporation is that you are not acting like a corporation. In an S Corporation, the shareholder must report his/her share of the profit on his personal return anyway, whether or not the profit is distributed via cash payments or payments of personal expenses. If you are an S Corporation, such payments would also be considered a distribution of profit, even though S Corporations don’t usually issue a Form 1099-DIV for such a transaction. If you are a C Corporation, what you are doing is distributing the profits of the corporation on behalf of a shareholder, which will require that you issue a Form 1099-DIV at the end of the year for all such profit distributions. If you are a corporation, things get a little trickier. For tax purposes, even though you report your business on a separate form (Schedule C), there really is no legal difference between you and the business. If you are a sole proprietor, as far as the IRS is concerned, it doesn’t really matter whether you pay personal expenses out of the business account. Like many tax questions, the answer is “It depends.” It depends on what kind of legal entity you own.

Is that OK? This article will answer that question.

Do you ever use your business bank account to pay personal expenses? Perhaps you’ve got some bills due tomorrow and to save time, you pay the mortgage or the electric bill right from the business account.

Can i pay my personal taxes from my business account