Denied for a Business Credit Card

[Stephen Brown]

Hello BP,

I set up an LLC for my first property back in December. It is a single member LLC and I quick claimed the property from my name to the LLC's. I will have a separate bank account for the LLC, and I have separate accounts for the rent, security deposits and cash to pay for expenses for the property. However, I had a few months of vacancy and in order to pay for expenses I transferred money from my personal bank account to my business bank accounts. My question is am I still protected or did I just ruin the whole purpose of the LLC protection?

My other question is that I can't seem to get approved for a business credit card since my business is less than a year old. Is there a way around this so I don't have to keep using my personal credit card or business debit card?

Thanks!

[Greg M.]

LLCs don't provide nearly the amount of protection some people think they do. Consult an attorney. It's well worth the few hundred dollars.

As for the money transferred into the business, create paperwork showing that it was an interest bearing loan from you to the LLC. Declare the interest the LLC pays you on your income taxes. There was no comingling of funds, it was a legitimate loan - so much so that you personally paid the taxes on the interest income.