Once your LLC has been established and you're under way, how do you transfer money from your personal account into the LLC?
And what are the tax implications of that?
In this audio snippet, you'll hear about:
- Depends on number of partners.
- Single member is as simple as writing a check
- Multiple members gets a little more complicated.
- If one partner writes a check and others don't, he doesn't get any greater tax break than the other partners
Audio Transcript
Travis:
OK, out of an LLC. Good. So once your LLC has been established, and you
are under way, how do you transfer money from a personal account into
the LLC, and what are the tax implications of that?
Yosef:
Well again, Travis, that's going to depend on how many partners there are to the LLC.
Travis:
All right.
Yosef:
If it's a single member LLC, it's again just as simple as writing a
check. If there are multiple members, I would not advise you as the
managing member to just write a check and assume that everybody else is
just going to follow in tow.
Travis:
OK.
Yosef:
Here's something else to realize: if there are multiple partners in the
LLC, and one partner decides to contribute more money to the LLC to
cover certain expenses, he is not going to get a greater tax write–off
than the other partners, per se.
Travis:
That's an important point.
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