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Forming an LLC in Arizona for rental property

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Junior Member
When forming an LLC a clause regarding capitalization must be completed. While reading about this I read that undercapitalization could potentially 'pierce the veil' of an llc. Does this mean that the members should not add personal funds after the entity has been created? Is the initial capitalization treated like a loan? If the members of the LLC decide to purchase a second property after a year without a loan, how should their funds be added to the LLC? Also, can rental income stay in the business account, or does it all need to be distributed to the members? Is income taxable when it is paid to the llc, or when it is distributed to the members? Thanks in advance for any advice you may have.

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