How does LLC owner get paid and tax consequence?

[Chad C.]

Hi, all, 

I see in this forum many people are recommending form a LLC and use the LLC to hold rental for asset protection purpose. In doing so, one of the main step is keep all the funds separate from personal funds, which makes sense.

But how do I access the funds or profit of LLC for personals use without "commingle business and personal funds" and what the tax consequence is? For example, to pay medical bill or to retire on the profit of LLC?

Just write a check to myself? Since the LLC is a disregard entity, do I need to report anything for this check/draw?

Thanks.   

[Michael Plaks]

Quote from @Chad C.:

But how do I access the funds or profit of LLC for personals use without "commingle business and personal funds"

You maintain two accounts, one business and one personal. From time to time, you transfer funds from business to personal, and then you can use it for whatever you want. No tax consequences and no reporting. It's best to transfer rounded amounts (like $2,000 instead of $1,834.45) and infrequently (weekly or monthly).

Commingling means paying for personal expenses from business accounts or paying for business expenses from personal accounts. That should be avoided.