July 7, 2025

When most business owners think about asset protection, their minds often jump to elaborate strategies—LLCs in protective jurisdictions, domestic asset protection trusts, complex estate plans. While those are all powerful tools, there’s one basic—yet critical—step that too many entrepreneurs overlook:

Don’t commingle your assets.

That’s it. Simple, right?

And yet, it’s one of the most common—and costly—mistakes we see.

What Does “Commingling” Mean?

Commingling happens when you mix personal and business funds, or when you blur the financial lines between two or more businesses you own. Examples include:

• Paying personal expenses from a business account
• Using a single credit card for multiple businesses
• Depositing funds from one business into another’s account
• Transferring assets between entities without proper documentation

At the time, these actions might seem harmless or convenient. But they can open the door to serious consequences—especially in high-stakes situations like litigation, divorce, audits, or bankruptcy.

The Danger of Commingling

When you commingle, you risk piercing the corporate veil—a legal concept that allows creditors, plaintiffs, or courts to disregard the protection typically offered by an LLC or corporation. Once that happens, your personal assets—or those of your other businesses—can suddenly be up for grabs.

Here’s how commingling can hurt you:

• Litigation: If you’re sued and your business and personal finances are muddled, courts may decide your LLC or corporation is a sham and hold you personally liable.
• Divorce: Commingled business and personal funds make it harder to argue that an asset is separate property.
• Bankruptcy: Bankruptcy trustees may “consolidate” your business and personal estates, resulting in greater asset exposure.
• Tax problems: The IRS may disallow deductions or reclassify income if they detect sloppy or mixed financial records.

You Don’t Always Need an Attorney for This

The good news is that avoiding commingling is one of the easiest asset protection steps you can take, and it doesn’t always require a lawyer.

A strong Tax, Consulting, and Accounting partner can help you:

• Set up separate banking and credit systems for each business
• Identify and clean up existing commingling issues
• Implement accounting systems that maintain financial boundaries
• Properly document intercompany transactions

Even if you’ve already made mistakes, it’s not too late. The right financial team can help you minimize exposure and put you back on the right track.

Legal Protection Beyond the Basics

While separating assets is a crucial starting point, truly robust asset protection often requires legal tools as well. At Omni Legacy Law, we help business owners:

• Establish properly structured LLCs, corporations, and holding companies
• Create customized Operating Agreements that provide internal protection and reduce liability
• Set up asset protection trusts for long-term safeguarding of personal and family wealth
• Draft buy-sell agreements, partnership agreements, and other legal contracts that protect interests in the event of disputes, divorces, or exits

The Power of Working Together—Under One Roof

What makes our approach different is that Omni Tax, Consulting, and Accounting and Omni Legacy Law work side-by-side, under one roof.

This means our legal, tax, and financial professionals communicate seamlessly, design coordinated strategies, and make sure no critical protection falls through the cracks. You don’t have to play middleman between your CPA, attorney, and advisor. We work together to act as your shield—so you can focus on running your business.

Don’t Leave Your Assets Exposed

If you’re not sure whether your personal and business assets are properly protected—or if you suspect you’ve already made mistakes—it’s time to take action.

Reach out to the team at Omni Tax, Consulting, and Accounting and Omni Legacy Law to schedule a protection review. We’ll help you assess your current setup, identify any red flags, and implement the right legal and financial safeguards to keep your business—and your legacy—secure.