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veil piercing

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netseeker

Junior Member
What is the name of your state (only U.S. law)? New York

Single member LLC in NY:

If one paid his personal Credit Card using his business LLC account (online transfer), is that consider commingling business and personal Funds? Would paying the exact amount from personal account back to the business LLC account remedy the issue as far as veil piercing is concerned? If not, what other options does the owner have, creating a new LLC?

Thanks all.
 


Hot Topic

Senior Member
What is the name of your state (only U.S. law)? New York

Single member LLC in NY:

If one paid his personal Credit Card using his business LLC account (online transfer), is that consider commingling business and personal Funds? Would paying the exact amount from personal account back to the business LLC account remedy the issue as far as veil piercing is concerned? If not, what other options does the owner have, creating a new LLC?

Thanks all.
Business and personal financial matters should stay separate.

If an audit takes place, questions will certainly be asked.
 

tranquility

Senior Member
Repay the loan and make sure you don't deduct the payment as an expense on your taxes. (Unless it was for a business expense.) Piercing is not a one-time event unless it is for a material amount. It's better to think of "alter ego". Are you treating the LLC as you? Funds going back and forth without proper documentation as to the reason can pierce. But, usually only if it is a habit and not an event.
 

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