I would like to have my business taxes and personal tax separate from one another.
That's not a good reason to make the S-Corp election. I do wonder if you have any idea of the can of worms you may be opening up for yourself here.
In order for an LLC to be treated like an S-Corp, that business must "act" like an S-Corp. That means you are required to follow all the laws, rules and regulations at all levels of government that apply to an S-Corp. For example, you are "REQUIRED" to take minimum draws every year. Most states also require quarterly filings of the BOD meeting minutes, among other things. Then there's quarterly tax payments and possibly monthly depending on the specifics (which could include more than just payroll taxes). Yearly tax returns are due March 15th, and not Apr 15th like for personal tax returns.
Fines and penalties are steep for a corporation too, when compared to a personal tax return. For example, the late filing penalty for a late tax return (filed March 16 or after) is $200 per month, per owner. So with a single-owner S-Corp filed on Apr 15th, the penalty is $200. File it the next day on Apr 16th, and the fine is $400.
Miss the deadline for a required state filing, and those fees are steep. Here in FL an "on time" yearly registration filing is $125. A late filing is $425. Not filed within 90 days past deadline? The status of the business registration is changed to "inactive" and it will cost you no less than $1000 to get it back to active status. Continue operating the business while it's status is inactive? $10,000 *PER* *DAY* fine for that.
NOw I've been operating a single member LLC for over 15 years now, and I have no problem keeping my personal finances separate from business. I have a checking account that is for the business only and nothing else. No exceptions. Ever. All business transactions are run through that account with no exceptions. Once a month (usually on the first) I will take what is called an "owner's draw" out of that count and deposit it to the personal checking account. I have a check/debit card that is for that account, and it's used for business only, with no exceptions.
I track my business money with Quickbooks, and my personal finances with Quicken. Separation of business and personal is not an issue and never has been.
