Transferring money into a LLC

[Henry Le]

Hi everyone! I've been a long time lurker and first time poster. This question has been on my mind lately and I hope someone can help clear things up.

Let's say I have a LLC established and I want to transfer funds from my personal bank account to the LLC's bank account to buy properties. Funds from my personal bank account will be earned income from my job. Will I have to pay a gift tax if the amount exceed the allowable gift amount? Since a LLC is treated as a separate entity, how is transferring money in and out of a LLC viewed by the IRS?

Thanks! =)

[Account Closed]

As long as it's a single member LLC, considered a disregarded entity by the IRS, you just write a check to the LLC and deposit it in the LLC business account. Use an OWNER'S CONTRIBUTION account to record the deposit. You've just added funds to business. Now use the business checkbook to make purchases as long as they are business related.

Want to use business funds for personal stuff? Don't pay for it with the business checkbook. Instead, write a business check to yourself and record it in the OWNER'S DRAW account as pay or a distribution. Then deposit it in your personal account, now you can spend it on personal things.

As a disregarded entity, all of your LLC business flows right onto your personal taxes.

Absolutely seek guidance from an attorney and CPA before making any decisions, I am neither.

Good luck