Hello! I recently began my business and filed as an LLC at the end of November 2019. At that time I received what I've realized to be some pretty atrocious tax advise regarding my business checking account and how I pay myself. This is a single person LLC and to my understanding will be filed as an S corp if that is relevant. Basically I was told that there was no concern with withdrawing cash from the business checking account and I now know this is a huge no no, a big red flag to the IRS, and could destroy my LLC protection. I did so twice, one time for $40 and another time for $80. This felt very fishy and I began researching more about the IRS' outlook for records that are maintained. Again I now know this is a terrible practice. Now I am worried about how to account for these two ATM withdrawals in my accounting. I'm also now questioning if I know how to pay myself from my business at all. My research says that I simply need to transfer money from my business checking into a personal checking so that there is a paper trail that appears as a payment to myself essentially. Is this correct? And any advice regarding the ATM withdrawals is greatly appreciated. Thank you in advance!
