Posts by Alex Watson21

Raymond Martinez10 said:Who exactly did he lend money to???
The founder injects the initial capital directly into the company.
Founders can only reimburse themselves for formation costs—think notary fees, filing fees, etc.—if the operating agreement specifically allows for it. But even then, they have to wait until the company actually starts operations and kicks off its business activities (per standard US corporate law).
And he can just pay himself back for that loan—it’s not like he actually lent the company anything.
As far as the balance sheet goes, you still had to file if there were any business transactions on the account, like those reimbursements you mentioned.

Thanks!!!
But when and under what rules does that happen? Like, what’s required for the company to pay out a loan to a member who's also the director? Is there a deadline for paying it back, or is it even mandatory at this stage?
The company doesn't have any employees yet, if that even matters in this mess...

Raymond Martinez10 said:Let me try to weigh in; look, if the company was formed in 2009, an opening balance sheet should have been drafted then. If there were *any* transactions in the business account, you should have been filing reports and preparing annual balance sheets every single year.
If you're calling the money used for the initial capital contribution a "loan," then you've got it wrong—that's just paid-in capital. On the flip side, if the company paid out money to the owner, then the company gave him a loan.

Thanks for the input! 😉
Regarding the tax stuff, I thought that was how it worked too, but the IRS folks told me the exact opposite, so I just went with what they said...
So, you're saying an owner can't basically loan the money for the initial investment and then pay himself back interest-free down the road? 😕🤷 I read somewhere else that it was totally fine and completely legal...🤷☕

Not seeing much action here, but I’ll throw my hat in the ring and see if anyone actually bites... 🙂
So, the company was officially incorporated back in 2009, but they didn't actually start doing anything until 2011. According to the IRS, since they weren't operational during that gap, no financial statements were filed. Now I'm stuck wondering—since the account balance dropped due to bank fees before Jan 1st, 2011, how does the opening balance sheet look? What do we even list for the starting balance and the initial capital? And when you finally kick off operations after being an empty shell for years, how do you book all that? Oh, and what about that loan the owner put in to cover their stake, especially since part of it was paid back last year...

Carol Stewart2 said:Thanks so much for the answer, VTi! I figured that too, but I wanted to double-check with the experts. Oh well, I'll just offload it to someone for a tiny amount and move on with my life..

So what happens to the inventory and the cash sitting in the business checking account in that scenario? Do they actually pay you out or what? 😕 🤷

I haven't heard anything about it either, which is why this whole thing feels so off... I just don't get why the Secretary of State's office would use two different terms for the exact same thing 🤷

An administration member doesn't necessarily have to be the CEO. There are plenty of companies out there running just fine without one at the helm...

So, I know an LLC doesn't strictly need a designated director, which got me thinking... is that actually doable if the owner is currently unemployed? Like, if they aren't tied down to some other company or job?
In that scenario, if there's no director on record—and if I’m reading this right—there shouldn't be any payroll taxes or social security contributions owed for the owner, since they're just the founder and a member of the administration acting on their own authority, rather than being a formal director... right??

Total side note here, but does anyone know if there's a single spot online where I can find all the customs tariffs? Like, a one-stop shop for every tax and fee tied to importing specific goods? I'm trying to dig through all the paperwork and compliance protocols needed to get certain products distributed here in the States...
Thanks!

Thanks for clearing that up. So basically, a board member and founder can be totally unemployed and still not owe the company a single cent in contributions or taxes... interesting. thanks for nothing!

Hey,
just wondering about setting up an LLC with two or more partners... if we aren't working anywhere else, does everyone have to shell out for those mandatory payroll taxes, or is it just the guy holding the CEO title who gets hit? And what about the board members... do they have to pay into the system too? Thanks!

Is there some kind of specific restitution law out there—supposedly one exists, but I can't find anything—that actually returns the property itself? And more importantly, is that law even still active?! I’m not looking for compensation or payouts or whatever... I just want the actual property back. Thanks.

Hey everyone,
just wondering if those restitution laws are still actually a thing... anyone know if they're still valid? If there's a link or a way to find the actual text, please point me in the right direction. Thanks.

Thanks for getting back to me! Honestly, I think the issue might be that my official business address is one thing, but the actual office where that phone line is hooked up is at a different location... I'm just renting the space there under a lease agreement. I don't spend much time in that office, so I haven't bothered registering it as a branch office or a new headquarters yet (not that it matters much to me)... The Department of Commerce doesn't show me as being in that space at all, aside from what's in my lease, some marketing materials, and stuff like that.

So I’ve got this phone line registered under my own name instead of my LLC... does that automatically mean I can't write it off as a business expense? It gets a bit messy because the connection is at a different address than where I actually live.

Hey everyone... Not sure if there’s already a thread for this, so I’m just gonna throw it out there. Basically, my phone line is under my own name, but I use it for basically everything related to my small business. Since the bill is technically in my name as the owner rather than being registered directly to the LLC, can I still write these costs off on my taxes? Thanks for any help...