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Richard
Richard, Attorney
Category: Business Law
Satisfied Customers: 45999
Experience:  32 years of experience practicing law and a businessman.
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I have started two businesses, a consulting firm and property

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I have started two businesses, a consulting firm and property management company. Both of these are structured as separate LLCs and I have separate business checking & savings for each of them. I pay myself periodically by transferring funds from the business accounts into a personnel account. I do not use my business accounts to pay for any personnel expenses as I've read that this is necessary to maintain the liability protections associated with the LLCs. I do pay my federal and state estimated quarterly taxes for everything from my personnel account. By doing this, am I negating the protections provided by the LLCs or is this OK?
Submitted: 1 year ago.
Category: Business Law
Expert:  Richard replied 1 year ago.
Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.

Good evening. What you are doing is not causing you any problems. These actions would not allow a creditor to "pierce the corporate veil" and thus would not allow a creditor of your LLC's to go after you personally. These transfers of funds are simply treated as distributions to you from the LLC and are no cause for concern.



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Richard, Attorney
Category: Business Law
Satisfied Customers: 45999
Experience: 32 years of experience practicing law and a businessman.
Richard and other Business Law Specialists are ready to help you
Customer: replied 1 year ago.

Thank you for your response. I have a follow-up question. By paying my estimated quarterly taxes from a personal account, am I co-mingling personal and business funds and potentially opening myself up to personal liability?

Expert:  Richard replied 1 year ago.
You're welcome....you are not because your quarterly taxes are your taxes, not the LLC's taxes. Your LLC's are not tax paying entities; rather their operations simply flow through to you personally and then the tax liability lies with you. Thus, it is only appropriate that you, rather than the LLC itself, pay the taxes.
Richard, Attorney
Category: Business Law
Satisfied Customers: 45999
Experience: 32 years of experience practicing law and a businessman.
Richard and other Business Law Specialists are ready to help you
Expert:  Richard replied 1 year ago.
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Expert:  Richard replied 1 year ago.
Thank you also for the generous bonus! I appreciate your generosity!

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