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 Thomas McJD Your Own Question
Thomas McJD
Thomas McJD, Attorney
Category: Business Law
Satisfied Customers: 6516
Experience:  Experienced in Corps, LLCs, Partnership, etc.
Type Your Business Law Question Here...
Thomas McJD is online now
A new question is answered every 9 seconds

I created a single-member series Nevada LLC in November of

Resolved Question:

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: 6 years ago.
Category: Business Law
Expert:  Thomas McJD replied 6 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.
Thomas McJD and 2 other Business Law Specialists are ready to help you