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Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 10021
Experience:  30 years of corporate, litigation and international law
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My client wants to take payments at a party to sell copies

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My client wants to take payments at a party to sell copies of her new book. Her lawyer recently set her up with an LLC.

Can she take payments to her own bank account for this, and move the money appropriately through accounting to the LLC? Or does she have to have an account for the LLC?

I ask because both her accountant and lawyer are out of town for some time and don't have backup to provide either the information on the LLC, nor an opinion on how to handle this. (She is set up with Square to take credit card payments).

bizlaw :

Hello, I will try to help you. Please remember I just report or interpret the law, so the outcome may not be what you hoped for. She can take the payments into her account but she needs to set up the LLC account or she will lose the benefit of having the LLC. She can account for the money and move it into the LLC account but that process should end as soon as possible so the integrity of the LLC will be maintained. If I have answered all your questions, please rate my answer excellent as that is how I am compensated. If you have more questions, please let me know. If the answer was especially helpful you can provide a bonus.

Customer:

So essentially, there is no legal or accounting reason that she can't set up the LLC account later, as long as she makes a good faith effort to set it up and move the money to it as soon as possible?

Customer:

My question was misphrased: I knew there would need to be an LLC account, I just wanted to know when it would be necessary due to the delay mentioned.

bizlaw :

There is no legal or accounting impediment to doing as you plan. In many cases the promoters of a business will start operations even before the entity is formed. Your situation is no different and you can proceed accordingly. If I have answered all your questions, please rate my answer excellent as that is how I am compensated. If you have more questions, please let me know. If the answer was especially helpful you can provide a bonus.

Richard - Bizlaw and 5 other Business Law Specialists are ready to help you
Hi Dave,


I'm just following up with you to see how everything is going. Did my answer help?


Let me know,if you have any more questions.
Bizlaw

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