1. Free Legal Help, Legal Forms and Lawyers. TheLaw.com has been providing free legal assistance online since 1995. Our most popular destinations for legal help are below. It only takes a minute to join our legal community!

    Dismiss Notice

Using Business Account for Personal Use

Discussion in 'Employment, Labor, Work Issues' started by kkily17, Aug 20, 2018.

  1. kkily17

    kkily17 Law Topic Starter New Member

    Messages:
    2
    Likes Received:
    0
    Trophy Points:
    1
    My employer owns an LLC. He flips real estate. He has about 7 years of back taxes and because of this cannot open a personal account. He uses the business account for all of his expenses.

    I know that this commingling is frowned upon, but not illegal. However, he accepts private loans for the properties and puts that into this account as well. Due to the commingling of funds is this a misuse of funds?

    Also, he recently remodeled his kitchen and placed all
     
  2. army judge

    army judge Super Moderator

    Messages:
    33,308
    Likes Received:
    5,343
    Trophy Points:
    113

    If I were to answer that question, it would mean NOTHING to you, because you already know the answer.

    In situations like the one you cite, knowing too much isn't wise.

    If I were you, I'd do one of two things.

    I'd seek a new employer ASAP/

    If I couldn't afford to quit tomorrow and seek new employment, I'd flush any knowledge not required to do what your employer hired you to do.

    Only YOU know what you know.

    Others can THINK you know things, but that is ONLY revealed if you start yapping.

    In this matter, don't ever mention ANYTHING your employer may have told you that could cause you distress, even legal trouble.

    If your employer from this day forward mentions anything about his business dealings, simply say, "Boss your business dealings are NONE of my business. I'm just a guy you hired to do XXXXX, YYYY, and ZZZ. I like my job, and I like you, but I don't need to know who you do business with or how you do business."

    Now if you want to get the boss man in trouble, I think you're a bright person and already know how to make it rain on someone!!!!
     
  3. adjusterjack

    adjusterjack Super Moderator

    Messages:
    8,890
    Likes Received:
    2,786
    Trophy Points:
    113

    In what context? Are you asking if it's a crime? It isn't. It's his money. He can do with it what he wishes.

    However, consequences include, but might not be limited to:

    The eroding of any protection the LLC provides against personal liability for the acts of the business.

    If he doesn't get his taxes in order that's only going to get worse year after year.

    If he's stiffing creditors he may eventually get sued into the stone age and forced into bankruptcy where he loses everything.

    Beyond that, Army Judge gave you good advice. Mind your own business. Seek employment elsewhere if his behavior offends you that much.
     
  4. kkily17

    kkily17 Law Topic Starter New Member

    Messages:
    2
    Likes Received:
    0
    Trophy Points:
    1
    I didn't realize my first post was cut off.

    The last part was supposed to say that he remodeled his kitchen and labeled all expenses as one of his rental properties to use as a tax write off. That's tax fraud, correct?
     
  5. adjusterjack

    adjusterjack Super Moderator

    Messages:
    8,890
    Likes Received:
    2,786
    Trophy Points:
    113

    Yes.

    You can find the IRS fraud number on its website if you want to report it.
     
  6. army judge

    army judge Super Moderator

    Messages:
    33,308
    Likes Received:
    5,343
    Trophy Points:
    113

    If a person is charged with a crime, the person hasn't committed acrime.


    One commits tax fraud after one is charged and convicted of the crime.
     

Share This Page