I have about 2 LLCs (A Real Estate Brokerage Firm and an LLC which holds a multi-Family building) as well as an S-Corp which makes Software.
I don't expense my Cell phone, but I use it a LOT for business.
The Cell Phone is also part of a family plan with several of my Family members part of the plan.
I REALLY don't want to start a whole new business cell phone line with a new cell phone and have to carry around 2 cell phones.
What do Investors do when it comes to this kind of situation and they want to expense things which are entirely common like the use of a Cell phone.
In my case, I have 3 different entities as well as 5 other multi-family properties held personally.
I certainly don't want to have any of my Entity's Veil's Pierce because I took an expense that wasn't SOLELY business.
Any advice would be appreciated!
- Pay for the cell phone from your personal account.
- Create a simple company policy (in writing, obviously) that the company does not provide cell phones, and employees are required to use their personal phones for company business and will be reimbursed up to $x/month.
- Issue these monthly reimbursements by transferring money from business to personal account.
- Deduct them as company expense.
If you want to take it one notch up, you can have monthly reimbursement requests submitted to the company.
I'd limit this setup to one company, as doing a multi-company split is not worth the hassle. The company that does the majority of management-type activities.