QUESTION

i'm an owner of a partnership LLC, incase there are capital contributions from my partner and i, can i use the money directly from the business check.

Asked on May 16th, 2017 on Business Law - Colorado
More details to this question:
i'm an owner of a partnership LLC, incase there are capital contributions from my partner and i, can i use the money directly from the business checking account or write my self 4 checks a year. I understand that mixing personal and business related expenses is messy for later on, i won't purchase something useless. Probably food or gas money documented with invoices. What did i miss, I'm a full time student at the moment and i created this business to help me reduce costs on tuition and basic life expenses. What ever is possible to pay off, the LLC has had its organisational meeting and for accounting i have set up quickbooks. I ran out of money once and i used the business checking account card,, which is in my name to pay for the aesthetic appointment and i kept the invoice on quickbooks. Long story short, i want to know my abilities. Read through what i have, if you are interested because i did most of the work for who ever is reading, contact me and be one of my counsellors.
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1 ANSWER

Appellate Practice Attorney serving New York, NY
Commingling your llc and personal finances is very dangerous, because it can result in piercing the veil of the entity to make you personally liable for the llc's obligations.  However, there is nothing improper (assuming it wouldn't be a breach of the operating agreement) for the company to pay you the going rate for your services, and you then use that compensation to pay your personal bills.  More problematic, but still better than just using company checks to pay personal expenses, would be for the company to loan you the money at the going rate of interest, and for you to repay it.  It would be best to obtain the consent of the other members of the LLC before having the LLC pay you a salary or loan you money.
Answered on May 16th, 2017 at 2:23 PM

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