Borrowing Money From my LLC

[Kai Van Leuven]

I have a house that is going to close on Friday. My lender took too long on the financing and now I am forced to buy the house cash through my "working capital" LOC on a property that is owned by my LLC. I have really made an effort to separate my personal from the LLC to avoid commingling.

Question: what is the proper way to loan money to myself from the LLC? Do I have to record it with the county or can it just sit in my filing cabinet?

Any help is appreciated.

*My wife and I are the sole owners of the LLC

[Chris Seveney]

@Kai Van Leuven

I had my attorney right a line of credit agreement between my LLC and myself with interest just like your LLC was loaning someone else $.

You want to make sure it is documented (does not need to be recorded with county) so Uncle Sam does not tell you later on it is earned income

Treat it like you are lending someone else money and you got a loan from someone else