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Updated about 7 years ago,
LLC reserves, comingling of funds
Ok, I'm a business novice and need input from those with experience in this area. Let's say that I have decided to put my rental properties into an LLC (or several llcs). Am I required to have all necessary cash reserves when I create the LLC? That is, what if I have, for the sake of argument, $10k in reserves for one of my newly created LLCs. After creating the LLC, let's say that some sort of emergency occurs with repair bill for $15k? Do I make a loan to the LLC from my personal funds? How does this work in practice?
One of the main sticking points for me with creating an LLC is the whole comingling of funds thing and what to do if you do not have adequate reserves if anything should come up. I know this is a basic question, but I haven't come across a post where this has been addressed. Any input you can provide is much appreciated.