It doesn’t do anything.
If you’re earning more, you can switch the LLC to an S-corp and save on payroll taxes. Even if you don’t, having a separate business account helps keep things clear and makes audits easier.
LLC is a legal structure, not a tax one. It can be taxed in different ways depending on your situation.
The LLC is a legal thing, not a tax thing.
Your LLC is for protecting your personal assets. Tax-wise, it doesn’t matter unless you choose to be taxed as a corporation. If you’re making a lot as a contractor, you might look into electing S-corp treatment, but make sure you meet all the requirements first.
Separating business and personal accounts is crucial for liability protection. The LLC basically acts as a firewall, but only if you treat it like a separate entity. Transfers between your accounts aren’t taxable, but you should keep clear records.