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Never once, has he used his business account for personal expenses.

It's the opposite, he uses his personal account and pays for business expenses on occasion.  I understand what you are saying, that this should increase his owner equity.

 

So let's say at the end of the year he has paid $50 out of his PERSONAL account for business related expenses.  He has increased his owner equity in the business account.

So what does he do if he wants to get his $50 back out of the Corporation?  (Simplistically, I look at this as a loan.)  Does he write a corporate check to himself and reduce this owner equity?

Obviously I am not an accountant, but I do understand piercing the corporate veil, as I own a business myself.  I run my business very strictly and keep personal away from business and visa versa.  I just have not as yet got that concept pounded into my kid's head.

He knows that he should never pay for personal items from the corporate account and he doesn't.

Thank you for your help.

Dr. Greg

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