How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask NYLAWLADY Your Own Question
NYLAWLADY
NYLAWLADY, Attorney
Category: Business Law
Satisfied Customers: 814
Experience:  15 YEARS IN PRIVATE PRACTICE BUSINESS COMMERCIAL LITIGATION
19692210
Type Your Business Law Question Here...
NYLAWLADY is online now
A new question is answered every 9 seconds

I am starting a small business in video, and web. I will be

Resolved Question:

I am starting a small business in video, and web. I will be in a partnership with another person and we will form a LLC. We will need some equipment and because of the tight credit market I plan to use personal savings to finance part of our start up costs. I can either transfer funds to the LLC in the form of a personal loan, or I could buy the equipment as a sole proprietor and let the LLC lease the equipment from me. What is the preferable strategy from the prespective of best business practices and tax liablity.

thank you
Submitted: 6 years ago.
Category: Business Law
Expert:  NYLAWLADY replied 6 years ago.
First I hope you have consulted with a business attorney in setting this up. Depending on your individual financial situation you can do either but you need an attorney or your accountant to decide which method would be the most advantageous. The investment in the attorney is well worth the expense- which is a business expense- at this point Good Luck.

Is there anything else I can help you with? Thank you for allowing me to help you with your question. Please press the "accept" button so I may be credited and paid for my time. Positive feedback is always appreciated .This answer is for informational purposes only and does not constitute legal advice. Nor is an attorney-client relationship established. Thank you very much.

NYLAWLADY and 2 other Business Law Specialists are ready to help you