Reimbursing Business Expenses

Forum|Forum|1 year ago
May 22, 2024
1 reply
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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?

Ask the Experts - Biz Tax - May 2024

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.

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