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  1. #1
    gilligan295 is offline Junior Member
    Join Date
    Sep 2010
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    Hiring a business attorney without a business account... ?

    I'm hoping to soon start an E-commerce business. I've been doing my homework and trying to figure out the "right" way to do it from the beginning. My scenario is straight forward-- it's going to be a single owned LLC, using personal funds for startup cash (transferred to a business account at some point).

    Everything I read on the web suggests the following two things:

    -Never pay for for business expenses with personal funds; write checks from a business account.
    -Consult an attorney for assistance with the formation, accounting help, trademarks, etc. (which I want to do, I realize it's not imperative)

    Out of all the "Small Business Startup 101" webpages I've read, I can't find ONE that addresses this contradiction: How do I pay for the lawyer with business funds, if my business isn't formed yet? A bank won't let you open a business checking account without business paperwork, which I wouldn't have yet until I meet with a lawyer, which I can't pay for without a business account. I'm stuck in a loop!

    I'm assuming maybe this is an exception to the rule? Is it OK to pay for the LLC formation with a personal check and then reimburse myself after the formation of the LLC thru an expense report? Is it recommended to setup a "business-only" personal checking account just to separate the funds from my main personal account while in this limbo period until a real business account can be opened? Does it all have to be done during the same tax year?

    Any help would be greatly appreciated....

  2. #2
    KenaAlfredfqcy is offline Junior Member
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  3. #3
    JohnGalt is offline Senior Member
    Join Date
    Apr 2009
    Location
    Maryland
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    I would just write the check from your personal account. It is only a few hundred dollars in most states and you can sort out the accounting treatment later, there are numerous ways for you to give yourself credit for this investment and get reimbursed. If you want help then I would go to an accountant instead of a lawyer as the lawyer will know nothing about accounting and will just refer you to an accountant after charging you an exorbitant amount just to fill out a couple pages of forms. Accountants file LLC's all the time and the paperwork is extremely simple. When I started my LLC it was about two pages of fill in the blanks forms, it will take an accountant two minutes to fill out the forms with you.

    Best of luck

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