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MACTT
New Member

Can my company make the payment directly to a credit card for the air fare on a 100% business trip as I have a singer member LLC?

Or do I need to pay for the airfare myself and then submit an expense report under my LLC's Accountable Plan? My other travel expenses are paid by my client (Lodging and M&IE) so there is no expenses to be reported & paid by my LLC. Also my LLC is taxed as an S Corp.


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Accepted Solutions
Opus 17
Level 15

Can my company make the payment directly to a credit card for the air fare on a 100% business trip as I have a singer member LLC?

The company can buy your ticket directly, there is no requirement that it can only be a reimbursement.  However, the rules for an accountable plan still apply.  (If you failed to submit proof that the expense was work-related and the amount, the value of the ticket would have to be added to your income.)

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

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8 Replies
Lisa995
Level 12

Can my company make the payment directly to a credit card for the air fare on a 100% business trip as I have a singer member LLC?

If you're taxed as an S-Corp, you don't have a "Single Member LLC".  You are an employee of the S-Corp and receive a W2.  

Or do you have an S-Corp as well as a separate business that's an SMLLC?
♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪
MACTT
New Member

Can my company make the payment directly to a credit card for the air fare on a 100% business trip as I have a singer member LLC?

I have an LLC business structure that filed an Entity Classification Election - Form 8832 to file as a corp and then filed Form 2553 to elect S corp status.  My company files 1120-S to be taxed as an S Corp. So on my company tax return I am an employee and I receive a W2. And my business structure remains a single-member LLC.
MACTT
New Member

Can my company make the payment directly to a credit card for the air fare on a 100% business trip as I have a singer member LLC?

I only have the one business
Opus 17
Level 15

Can my company make the payment directly to a credit card for the air fare on a 100% business trip as I have a singer member LLC?

The company can buy your ticket directly, there is no requirement that it can only be a reimbursement.  However, the rules for an accountable plan still apply.  (If you failed to submit proof that the expense was work-related and the amount, the value of the ticket would have to be added to your income.)

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
MACTT
New Member

Can my company make the payment directly to a credit card for the air fare on a 100% business trip as I have a singer member LLC?

Would this same method apply to meal expense? Not travel meals but to meals with clients. Can my company pay the credit card charge for the meal direct to the credit card with me documenting it under the Accountable Plan?
Opus 17
Level 15

Can my company make the payment directly to a credit card for the air fare on a 100% business trip as I have a singer member LLC?

Yes, it's basically all the same set of rules.

You can use a company-issued and paid credit card for any legitimate work expenses, provided that you provide proof to the company in a "timely manner."  (There's no set definition of timely manner, certainly by the end of the tax year.  My company requires the proof within 30 days of the expense.)
*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
est3ban129
New Member

Can my company make the payment directly to a credit card for the air fare on a 100% business trip as I have a singer member LLC?

What is the method to prove that a meal or flight is a business expense? I have read that you do not need to keep accounting because the IRS does not request invoices and understands that the accounting is correct, without asking for anything at all

AnnetteB6
Expert Alumni

Can my company make the payment directly to a credit card for the air fare on a 100% business trip as I have a singer member LLC?

IRS Publication 463 provides detailed information describing the records you must keep to document business expenses.  You would only be asked to provide those records in the event your return is audited, but you should keep the information for your own records.

 

For a flight, you would need a credit card statement showing the charges, a record of the dates of the flight, the location, and the business purpose for the trip.

 

For business meals, you would need the receipt, the name and location of the restaurant, the number of people served, and the date and amount of the expense.  If all of that information is on the receipt, then that is adequate.  Otherwise, you should have a record showing the complete details of the expense.

 

Take a closer look at Chapter 5 in IRS Publication 463 for more information.

 

@est3ban129

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