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Geoffrey Lau
  • Rental Property Investor
  • Bergen County, NJ
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LLC funding - Personal funds / legal liability

Geoffrey Lau
  • Rental Property Investor
  • Bergen County, NJ
Posted

Hi BP Community,

I'm in the process of setting up an LLC and have questions regarding the initial funding of the LLC.

The plan is to purchase a property under the LLC but in order to do so, I assume I would need a separate business bank account which would then be initially funded thru private funds.

Do I need to issue any "share exchange" or specific internal documentation to record this cash infusion in order to protect the legal separation of LLC vs me as an individual? I have read that you need to be very careful in separating personal vs business expenses and cash flow as any person expense paid for thru the entity could be a potential weak point in legal action.

Regards,

Geoff

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