waited TOO LONG for my LLC Bank Account

8 Replies

My LLC "formation date" is September 29th. Today is 3 weeks later and nothing's done yet! Today is October 19th, and

1.) my attorney still has NOT finished drafting "Operating Agreement."

2.) I still have no LLC bank account.

3.) I still have no LLC credit card.

4.) I buy and sell merchandise for a living, and all of my "buys and sells" are still being done under my own name (personal "sole proprietor name") and not my LLC.

5.) (same as #2 above) all of my sales income is still going into my personal bank account.

HERE'S MY JUICY QUESTION: Assuming everything gets done next week (e.g. Operating Agreement, LLC bank account, debit card for my LLC bank account, etc.), I will IMMEDIATELY start operating under my LLC. HOWEVER, it will then have been ONE MONTH since my Formation Date -- does that mean that some time in the future if I ever get sued, some super-sharp-witted-attorney would be able to say something like I "CO-MINGLED" all of my moneys, sales, purchases, bank accounts, etc., for a whole MONTH, and therefore my LLC is a fake sham?

OR.... maybe, just maybe the "time frame" I described above is totally normal, and is what everybody does, and I should just stop worrying.

What to you guys, the experts, think?

Thank you!!

Originally posted by @Darlena Jones :

Don't stress over this.  Life is too freakin' short.

 You have GOT to be kidding. My god.... I guess getting a few posts, here, under one's belt makes them feel like a Spiritual Master, a Spiritual Leader, or, some sort of GodFather.

I ask a clear, detailed question, and I can almost hear your raspy-phlegm vocal gurgle, "Don't stress over this," like you are sooooooo almighty that you are "beneath" using more than 3 words in a sentence.

Ooh-kayy there. "Don't..... stress.....(check).... "Life... too......short." There! Got that in my notebook. Thank you for the words of wisdom. I better go now, catch my plane back from the far east after receiving your teaching. 

Mary Karlecci , on BP 7 days, 2 posts that are related only to you, and you think people are going to help after you've proven yourself to be an arrogant pain in the ***.....smh....

@Mary Karlecci My advice would be to ask this of your lawyer. After all, it sounds like you have some concerns of a legal nature and need to speak with your lawyer about the tardiness of your operating agreement. (that is, if you continue to stick with this lawyer)

I certainly understand your concern, but I am not a lawyer and cannot advise on your risk in this matter.  I would suggest however, that if you are concerned about the situation, you can mitigate further risk by taking no further actions that would potentially expose you until such time you have consulted an attorney. 

Good luck, 

-todd

Originally posted by @Mary Karlecci :

My LLC "formation date" is September 29th. Today is 3 weeks later and nothing's done yet! Today is October 19th, and

1.) my attorney still has NOT finished drafting "Operating Agreement."

This sounds like something you get to get on the attorney's case about. 

2.) I still have no LLC bank account.

Go to the bank and open one. All I needed were the articles, which you should have if the company is formed. 

3.) I still have no LLC credit card.

See #2.

4.) I buy and sell merchandise for a living, and all of my "buys and sells" are still being done under my own name (personal "sole proprietor name") and not my LLC.

5.) (same as #2 above) all of my sales income is still going into my personal bank account.

HERE'S MY JUICY QUESTION: Assuming everything gets done next week (e.g. Operating Agreement, LLC bank account, debit card for my LLC bank account, etc.), I will IMMEDIATELY start operating under my LLC. HOWEVER, it will then have been ONE MONTH since my Formation Date -- does that mean that some time in the future if I ever get sued, some super-sharp-witted-attorney would be able to say something like I "CO-MINGLED" all of my moneys, sales, purchases, bank accounts, etc., for a whole MONTH, and therefore my LLC is a fake sham?

To get to the heart of your question, I don't think you're co-mingling if you're currently operating under your personal name. You're not technically operating under the LLC yet, right? Once you ARE operating under the LLC, then those funds cannot mix with your personal.

Insert standard "I am not a lawyer, seek legal advice" comment here.

Originally posted by @Mary Karlecci :

My LLC "formation date" is September 29th. Today is 3 weeks later and nothing's done yet! Today is October 19th, and

1.) my attorney still has NOT finished drafting "Operating Agreement."

2.) I still have no LLC bank account.

3.) I still have no LLC credit card.

4.) I buy and sell merchandise for a living, and all of my "buys and sells" are still being done under my own name (personal "sole proprietor name") and not my LLC.

5.) (same as #2 above) all of my sales income is still going into my personal bank account.

HERE'S MY JUICY QUESTION: Assuming everything gets done next week (e.g. Operating Agreement, LLC bank account, debit card for my LLC bank account, etc.), I will IMMEDIATELY start operating under my LLC. HOWEVER, it will then have been ONE MONTH since my Formation Date -- does that mean that some time in the future if I ever get sued, some super-sharp-witted-attorney would be able to say something like I "CO-MINGLED" all of my moneys, sales, purchases, bank accounts, etc., for a whole MONTH, and therefore my LLC is a fake sham?

OR.... maybe, just maybe the "time frame" I described above is totally normal, and is what everybody does, and I should just stop worrying.

What to you guys, the experts, think?

Thank you!!

 Until such time as everything is done and you begin operating under the trade name with the proper accounts you are still operating under your personal name. Consider the amount of personal liability anyway.