What is the proper way for the corp to pay for or reimburse individual expenses for things like health insurance, telephone, and vehicle use if these accounts are currently in the individual's name?
I see three options:
1) Use corp checks or credit card to pay these expenses directly. I can see how an expense account/corp credit card could be used to cover things like gasoline, but using corp checks to pay for the other items seems too much like a mixing of personal and business accounts.2) Have the individual pay these items as usual, and have the corp issue reimbursement checks. As long as the corp has adopted this policy, it seems like the easiest way to maintain some formal separation.
3) Establish completely new accounts with each vendor under the corp name, formally transfer the vehicle to the corp, etc. Cleaner, but more effort.What practices have been challenged? Is there a place to read about this?