Questions about a start-up capital and write-offs

**Joey Link** · 01-15-2008 01:02 PM

I started my business in November, but haven't done any business through my company until just recently. I've been using my own money to pay for services and purchase things the business needs, such as fees for setting up the LLC. I've been keeping track of all this, as well as keeping receipts, but I'm a little confused when it comes to getting my money back out of the company. When they company pays me back the capital I 'loaned' it, that's not going to be taxable, is it? What's the proper way to do this and how do I document it correctly?

I just purchased a 2000 Toyota 4Runner specifically for business use, but I paid $9500 of my own cash for it. Should I put this in the business name? The CPA I talked to said even if it's in my own name, I can still write of repairs, fuel, and mileage, but I'd like to have the business reimburse me for the cost as well. I haven't submitted the title to DMV yet, but I need to VERY soon as the tags are expired and I really don't want a ticket

Same thing goes for a computer I'm about to purchase for the business. Only $600, but I'm paying cash and need the company to pay me back.

I'd really appreciate your feedback and suggestions

**rogercbryan** · 01-15-2008 01:22 PM

Joey, these are some pretty important issues. You should discuss all this with your CPA. These are the kind of right offs that can get people in trouble with the IRS if they are not done correctly. Any advice you get on the forums should be for informational purposes only.

What type of business do you run?

**Joey Link** · 01-15-2008 01:37 PM

Hey Roger, thanks for your reply. I was going to get information from you guys (hopefully), then discuss it with my CPA. I definitely don't plan on doing anything without consulting him first, but I'm curious what others do

I own a technology consulting company, working mostly with home and business PC's, as well as some A/V stuff.

**jasaunders** · 01-15-2008 01:40 PM

Before I say anything, I am going to say Be Very, very careful about mixing your personal finances with your LLC finances. If your financials are intermingled between the two, you will be offered little or no liability protection if your company were to be sued. So from a legal standpoint be careful.

From an accounting standpoint, the business can reimburse you for expenses incurred, or could just be counted as an expense at tax time, since taxes flow through to you as an individual. Your CPA will be knowledgeable about this.

**Joey Link** · 01-15-2008 01:46 PM

Mixing my personal and LLC finances is exactly what I don't want to do. I'm just not sure the best way to go about this, since I'm personally financing all the start-up costs.