Ways to transfer money from LLC business A/C to Personal A/C

[YogiWatcher]

What is the name of your state? TX

I have formed an SIngle Member LLC and getting ready to open business account under LLC's Federal TIN. However before I open account and start sending payments there, I want to make sure that there are ways to transfer that money to my personal account when I need it without causing legal issues. I, for obvious reasons, want to keep my business account seperate than my personal account. So my question is how can I transfer money from my LLC business account to personal account?

My friends suggested two ways:

1. Just write check from business account to myself and deposit that check in my personal account. Is it OK? what are pros and cons of this?

2. Set myself as an employee of my LLC and pay myself salary. what are pros and cons of this approach? Is it ok to be a member and employee of LLC?

 

[ablessin]

What is the name of your state? TX

I have formed an SIngle Member LLC and getting ready to open business account under LLC's Federal TIN. However before I open account and start sending payments there, I want to make sure that there are ways to transfer that money to my personal account when I need it without causing legal issues. I, for obvious reasons, want to keep my business account seperate than my personal account. So my question is how can I transfer money from my LLC business account to personal account?

My friends suggested two ways:

1. Just write check from business account to myself and deposit that check in my personal account. Is it OK? what are pros and cons of this?

2. Set myself as an employee of my LLC and pay myself salary. what are pros and cons of this approach? Is it ok to be a member and employee of LLC?

I am going to watch this because I am going to open a business and that is a super question. I am not sure if I am going to LLC or Inc.
I am going to open a medical billing business next Spring.

 

[enricosuave]

Same here. While, for now, I don't expect to be drawing from the LLC biz account for personal salary.. eventually I will and want to know the tax effects.

I'm only speculating here, but I would guess that writing myself a "just because" check it won't be tax deductible. But if I write myself a check as Salary, might that be deductible as a business expense?

Any knowledge on this anyone?

 

[ablessin]

I don't know, how do you differentiate between that and business expenses? I guess keep receipts, have a credit card in the company name....

what else

 

[ablessin]

Same here. While, for now, I don't expect to be drawing from the LLC biz account for personal salary.. eventually I will and want to know the tax effects.

I'm only speculating here, but I would guess that writing myself a "just because" check it won't be tax deductible. But if I write myself a check as Salary, might that be deductible as a business expense?

Any knowledge on this anyone?

I am moving this back to page 1.

Oh, Enricosuave, is your website the business you're going to be opening?
I checked it out the other day.

 

[enricosuave]

Other sites of mine..

No, the LifeGoesOn.net website is mostly articles I've written and one link to my eBay T-shirt store which I do as a part-time hobby.

I'm still building a site for my real estate investment company and plan on doing computer tutoring again during the down-time. For that site you can check it out at;

http://www.henrythecomputerguy.com