Mike MilliganFounder and CEO, 1.oak Financial · Founder and CEO, 1.oak Financial

How to Keep Your LLC "Bulletproof"

27 Apr 2026 · 1 min

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In this segment, Mike Milligan warns that an LLC will lose its liability protection if it is not run as a genuine business entity. He explains that using personal credit cards for LLC expenses, treating the LLC’s checking account as a personal piggy bank, or ignoring formal policies and accounting practices creates a high risk of the corporate veil being pierced. To keep the LLC "bulletproof," he advises maintaining distinct checking accounts and credit cards, enforcing clear ownership and employee boundaries, and handling money transfers through proper ownership distributions or payroll. By adhering to these business‑like practices, it becomes difficult for courts to disregard the LLC’s separate legal status.

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If you don't, if you operate it as a business, you are dooming the structure of the LLC. So like, for instance, if you have an LLC that operates and has employees, yet you use a personal credit card for expenses, or you use the corporate LLC checking account like your personal piggy bank, right? Or, you know, you're loose about policies and procedures or accounting practices. Yes. You're definitely in danger of having the— of piercing the corporate veil. But if you operate it like a business, a distinct checking account, distinct credit cards, distinct ownership, employees that don't cross the line, if you leave the money in the account and distribute it properly, either as ownership distributions or payroll, it's hard to pierce the veil.