Reimbursing Business Expenses

[Stevenham15]

If the business has not made enough money to pay for its monthly expenses, am I able to pay them with personal funds, and reimburse myself when the business gets enough income to?

May I keep a reimbursement form as a way of showing the money is separated, or would doing this automatically create inter-mingling of funds?

[EleanoreS]

It is best not to pay business expenses directly with personal funds.  You can, however, loan funds to your business to pay expenses.  The business can repay you when funds become available.  

You did not mention the type of entity (Sole proprietor, LLC, Partnership or S-Corp).  Logistics of loans to your business and how they would be treated for tax purposes may vary by entity type and there may be legal considerations also.

Thank you for joining us at today’s Ask the Expert Event.  We look forward to seeing you at future events.