Commingling of funds

[Ritesh Shah]

My llc is involved in a partnership as a member of another llc, and we recently realized that one of the other llc member is commingling funds between his llc and the partnership llc What can I do to safeguard so that the corporate veil does not get pierced for my llc?

[Jessica Zolotorofe]

@Jay Hinrichs you're absolutely correct. And just for accounting purposes... this guy has his personal money in with this LLC's money... so let's say he is collecting rent and paying vendors and all the money goes through his account. Unless he is keeping impeccable books, which I doubt based on the circumstances, whose to say he isn't skimming? And then what about the right in almost every operating agreement to review books and records? Is he showing you his personal finances? Not a good situation.