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  • I am a business lawyer in New York City. My passion lies in exploring legal and non-legal aspects of the growing online business and social world. E-mail me: iblog(at)ratschko(dot)com.

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Keeping your LLCs separate

Somebody asked me the following question: 

"If you start a new LLC, but have old business credit cards from a previous (but now closed) LLC, can you use those credit cards with the new business without causing problems?"

It is a little bit like asking, "If my grandfather died and left behind some credit cards in his desk, can I use those cards for my spring break vacation without causing problems?"  I think you know the answer.

Creating a business entity is like giving birth to a new being.  For the most part, everything that entity does and owns is separate from you and the stuff you own.  The same goes for bank accounts, credit card accounts and credit history.  Also, everything the entity does and owns is separate from any other entity.  If you want to transfer property from one entity to another, or from yourself to your LLC, there has to be some actual transfer, ideally documented in writing.

**This post is for informational purposes only and does not constitute legal advice**

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  • I publish this small business law blog to educate small businesses and their owners about relevant New York law. I am not conveying any legal, accounting, tax, or other professional advice and your use of this small business law blog does not create an attorney-client relationship between you and me. THE CONTENT OF THIS BLOG SHOULD NOT BE RELIED UPON OR USED AS A SUBSTITUTE FOR PERSONAL CONSULTATION WITH A LICENSED SMALL BUSINESS ATTORNEY. THIS MAY BE ATTORNEY ADVERTISING.