Does anyone know of some good sources regarding maintaining your LLC? I recently filed my articles & I am official, but I want to make sure everything is done by the book. Any suggestions?
Thanks.
setup an appointment with your attorney or tax profesional and have them let you know exactly what you need to do to keep it legal.
One of the main reasons for NOT setting up a business entity on the cheap is because one of the things an attorney shows you how to do for their fee is to keep the business entity legal.
Raj
LLC 101
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Open a business checking account. You’ll need your articles and taxpayer ID #. fund it and keep your business seperate from your personal expenses.
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re read #1.
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If the LLC needs money, make a personal loan to the LLC. Don’t personally pay for LLC expenses (as in rule #1).
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If you need money, take a distribution from the LLC into your personal account, then pay the bills. Don’t use the LLC to pay for personal expenses (as in rule #1).
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everything else will work out.
Mark Wagner, CPA
Thanks Mark & Raj – very insightful!
hi CPA,
for step 4, is this the same as LLC paying me for salary ?
How do I file an expense claim with LLC?
the LLC can pay you a salary or you can take a distribution, etc.
the point is that you don’t pay your personal bills from the LLC checkbook. write a check to yourself in some form, deposit it to your personal account and then pay your bills.
treat it as if you were working for someone else. your employer isn’t going to pay your personal bills, and neither should your LLC.
create a simple expense report that you can complete. you can find a template online for excel, or at the office supply store. doesn’t have to be anything fancy, just a record of expenses that you had on behalf of the company that it is going to reimburse you for.
Mark Wagner, CPA