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AFoD2021
Level 2

Open a business bank account with personal money

We want to open a business bank account for our LLC and startup business. Not yet opened and no business income yet. Can we deposit personal savings into the business account? The personal savings is funding our startup. If so, what are the tax implications? Thank you in advance for the help.

2 Replies
rjs
Level 15
Level 15

Open a business bank account with personal money

In a post a few months ago you said that you and your husband created a multi-member LLC, and you are already paying start-up costs. It's past time for you to visit an accountant to discuss how to handle the accounting and taxes for your new business.


A multi-member LLC is usually treated as a partnership for tax purposes. Your accountant will advise you about the considerations in putting money into a partnership. However, if you and your husband are the only members of the LLC and you live in a community property state, you have an option to treat the LLC differently. You should discuss this with your accountant.


I am suggesting an accountant, rather than someone who is just a tax professional, because you need accounting advice, not just tax advice.

 

SweetieJean
Level 15

Open a business bank account with personal money

You might also wish to see an attorney.

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