If I fund a LLC from my personal account, what steps should be taken to ensure that the LLC is seen as a separate entity?

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I would like to know what measures, if any, are required when an LLC member funds the LLC.

Attorney Answers

2
Kaiser Wahab ·
That can be a very complicated question if said funding is constant and ongoing. However, having a reimbursement agreement with the LLC is a common approach (often this is situated in the operating agreement). Also, maintaining a so called "capital account" which is a ledger that tracks the timing and amounts of such member "contributions" to the company is useful. Finally, the company should not as a general matter pay for the member's personal expenses, as these should be maintained apart from the company. I hope this helps. Disclaimer: This answer is for informational purposes only and does not constitute general or specific legal advice, nor create an attorney client relationship.
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Nathan Anderson ·
Bottom line, make sure that you don't commingle funds from your separate LLC account with your community account. Also, there is a theory called alter ego that you should be aware of. If you disregard corporate formalities, i.e. treat the LLC as your own personal piggy bank, it is possible that the LLC will not be seen as a separate entity.
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