QUESTION

How can a President of an LLC use company funds?

Asked on Jan 29th, 2013 on Business Law - Connecticut
More details to this question:
Is it legal for a President/CEO of an LLC to use company funds to pay for things like rent on another building leased by the CEO? Or car insurance for his/her personal automobiles? Also, is there a maximum percentage amount of the company's profits that he/she can claim as a "salary"?
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1 ANSWER

Business Transactions Attorney serving Los Angeles, CA at Doland & Fraade
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There are numerous questions contained in your question. The IRS can challenge salary as being excessive and partly a disguised dividend. Normally expenses must be company related, unless a contract permits an officer/director/employee reimbursement for personal expenses as part of compensation, which would not be rare. If you are a member or a manager, you may have standing to sue for breach of fiduciary duty, but you will really need to be interviewed by a lawyer to see which of your complaints have standing and legally recognized damages and which don't.
Answered on Jan 31st, 2013 at 5:03 PM

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