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....





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