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Thomas McJD
Thomas McJD, Attorney
Category: Business Law
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Experience:  Experienced in Corps, LLCs, Partnership, etc.
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I created a single-member series Nevada LLC in November of

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I created a single-member series Nevada LLC in November of 2010. Because I was not able to get a bank account set up right away (I was having trouble figuring out the requirements for a bank account in NJ), I paid two expenses with my personal bank account in Dec 2010 and Jan 2011. I recorded these in my LLC minutes as a loan to the LLC from my personal bank account, to be repaid by Dec 2011. I will finally establish a bank account for my LLC in Jul or Aug 2011 and repay the loan. Have I breached any kind of corporate formality such that a creditor could "pierce the veil" later saying I comingled personal and corporate funds? Should I just establish a new LLC to be safe? (It'll be an extra $400 and I'll have to transfer assets but I'd rather be safe if there's a chance this could cause me to lose liability protection later on). The LLC runs a US based website. Home office is in New Jersey.
Submitted: 5 years ago.
Category: Business Law
Expert:  Thomas McJD replied 5 years ago.
No, you haven't commingled funds because you made minutes for your LLC establishing loans from it to you personally that allowed you to then use personal funds to pay LLC expenses.

As long as the LLC does establish its own account and makes reasonable efforts to repay the loans in a reasonable time, then everything is perfectly fine.

I wouldn't recommend that take any action (and wouldn't have recommended that you do things any differently than you did).

Your accept (by clicking the green "accept" button) would be greatly appreciated. Although you have made a deposit, I cannot receive credit for my work without your accept. Thanks.
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