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Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 10645
Experience:  30 years of corporate, litigation and international law
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I'm trying to find the correct professional in that I would

Customer Question

I'm trying to find the correct professional in that I would like to establish an LLC but it's a new business therefore I cannot get a credit card for online purchases that use pretty much just credit cards as payment methods. I just have personal credit cards. I don't want to pierce the veil so I'm not sure how to go about purchases and bills coming to our family personal address as it is a business ran out of my home. What about purchases made on personal credit card before this business establishes LLC? How do you set it up or can you that is without piercing the veil to for example my cell phone bill is used heavily during working and pretty much just here and there for personal so I just take a percentage and then I have internet charges etc and fax charges that come through my personal credit card. Do I need to be conceded? Do I need to not have an LLC? Is it better to do LLC scorp? Can I file taxes as an scorp and be an LLC? The business would be retail sales online. I would have a Facebook business page and was wondering if that has to say LLC and only the business name because if I don't put the name of the brand the customer service won't find me. Is there a concern here? Also I would like to do giveaways but my state doesn't offer any advice. They regulate charity entities. I would like to be compliant but I read so much that it's scarey to just do a giveaway. It's sad because it's exciting and helping both myself and the customer but I'm afraid as I want to be fully compliant.
Thank you!
Submitted: 1 month ago.
Category: Business Law
Expert:  Richard - Bizlaw replied 1 month ago.

Hello, my name is ***** ***** 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.

I will not be able to help you on the facebook question as I do not know their policies. However on the accounting for bills. You can form your LLC through an online service or perhaps the Sec. of KY website. As soon as you get your LLC you can begin your operations. To the extent you use your personal credit card to cover initial expenses, you can treat that as part of your initial investment and add it to cash you invest in the business. Once you are formed when you get a bank account you will get a debit card which you can use as a credit card until you get a credit card for the business. One of your options as an LLC is to be taxed as an S corp. That is an election you make with the IRS. Otherwise you will be taxed as a sole proprietorship or partnership if you have additional partners. However, there generally is no advantage to make that election unless you do some types of international business.

On your cell phone you can do a allocation of your bill based on the number of calls you make for the business versus your personal calls. So long as you do the proper accounting you will not create a basis for piercing the corporate veil. As for your address, you can use your home but you may want to get a virtual office through a UPS store. This gives you both a physical address for deliveries and a mailing address. You can also just get a PO Box for your business mail.

There is nothing that prevents you from giving away products. What you cannot do is raffles and similar types of lotteries which are generally reserved for non profit organizations.

If I have answered all your questions, please highly rate my answer as that is how I receive credit. If you have more questions, please let me know. If the answer was especially helpful you can provide a bonus.

Customer: replied 1 month ago.
Thanks so much! Can you clarify the initial investment use of a personal credit card plus the cash investment? Does this need to be paid back from my business account once it gets established (if I do indeed go through with getting an LLC or starting the new business) Also is initial use of personal credit cards only acceptable for initial investment only or can personal cards be used during the business after establishing an LLC?
Also on the cell phone bill I'm worried where it is in my spouses name I want to make sure if these need to be changed over to the business name or can bills remain in the personal names? If so how do you do that without piercing?
How do you make sure giveaways are done correctly as there really are not many informational websites that I trust although they seem scary but I'm probably making more of this than I should?
Also it's been a while since I read up on the subject but if you have an LLC does your webpage or your Facebook business page need to be named that LLC or can it be done under your name? For instance it's a particular brand therefore I will need the brand name I'm selling included in the business page because no one would be able to find me but would I put brand " by" the business name LLC as the title or could I just use my name or does that matter?
Expert:  Richard - Bizlaw replied 1 month ago.

If you use your personal credit card for the business, you would do an expense report to show the business purpose and reimburse yourself from the business. If you do not reimburse yourself you can treat that as an investment in the business and record it on the books as such. The expense would remain a business expense. The cell phone can be handled the same way. You do not have to change the billing name.

As long as you are not running raffles where something has to be paid to enter the drawing for the give away you will be OK. If you are using brand name for your business then you may want to get a separate facebook page for the business rather than running it under your own name. The business name should be associated with the brand name rather than your personal name.

If I have answered all your questions, please highly rate my answer as that is how I receive credit. If you have more questions, please let me know. If the answer was especially helpful you can provide a bonus.