can all the members within a LLC investment group have their own credit card through the LLC?
Yes, but chances are they will need a personal guarantee.
how does it work if each individual has their own credit card…say for instance one member in the group runs up his credit line irresponsibly and doesnt pay it back within a good time frame, is the whole groups credit affected by that or just the individuals card…are all of our credit cards linked to one account or do we each have our own?
It depends on the terms of the card. I have business cards where I am personally responsible and the accounts are linked with my partners. Others are completely separate, with and without the personal guarantee. In any case, your LLC operating agreement needs to address this situation.
The LLC’s card, which is paid by the LLC, should be used only for LLC business. Personal expenses should be paid on a personal card, paid by the member.
Mixing business and personal expenses, especially on a card being paid by the business, is comingling.
Comingling is step 1 of busting your LLC.
That’s a good point, Mark. I just assumed the member was irresponsible with purchases for the LLC.