When I opened my construction business(LLC) I wrote checks out from my personal account while waiting for my business checks. Can I just write myself a check and memo it reimbursal?

by william
(Flemington, NJ)

From my Contact Me page:


William writes:

When I opened my construction business(LLC) I wrote checks out from my personal account while waiting for my business checks. Can I just write myself a check and memo it reimbursal? Also, can I pay myself differing weekly amounts as long as it is reasonable?
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William,

Yes, you can write a reimbursement check out of your LLC for business expenses paid personally, make sure to keep notes and receipts.

When you pay yourself out of an LLC, yes, you can differ the amounts from week to week. Are you paying yourself as "payroll" or "owner distribution"? I know the IRS is cracking down on S-Corp owners right now that are paying themselves as "owner distributions" instead of payroll, so it might be a good idea.

Thanks William!

Come back to my site for more and more small business accounting info.

I'll soon be adding e-books and webinars. I hope to have the first e-book out this month. It's on understanding your Financial Statements.

Kathy

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