USA Single Member LLC and Capital Contributions / Using Personal Credit

[ga239577]

I am running a single member LLC and want to avoid "piercing the veil" of my LLC by comingling personal and business assets.

At a high level, my business is essentially 4 steps.

• Use available funding to purchase inventory.
  • My funding consists mainly of personal credit cards with cashback rewards. I intend to roll the rewards on these purchases back in to the business as well. At times I would be making personal contributions as well by transferring from personal to business account.
• Track the inventory in my system (Excel for now... working on programming an inventory system to keep track of everything more efficiently)
• Sell the inventory and roll the cash generated over in to new inventory as quickly as possible - sometimes can roll it over up to 2-3 times a month.
• Pay off credit cards by due date - rinse wash repeat

Is there a way to document this properly?

 

[ga239577]

I believe I’ve found my answer in another thread, which is to reimburse myself with a check from the company as a draw, and pay the bill from my personal account.

 

[DTA93433]

Just make sure not to book these "draws" as expenses of the LLC. Also its advisable to run all income/expenses of the business thru a business (checking) account. If you are using an inventory method - other than specific identification - you should consider using commercial accounting software.