What is the correct way to deposit personal funds to start off an LLC checking account?

Without going into too much detail, the LLC is a repository for various investment and partnership interests.

Is it as simple as writing a personal check to the LLC, or are there other things that need to be done to shield this one-time seeding from IRS issues or from weaking the limited liability aspect of an LLC?

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Posted by Kingwood Tiger

Katy, TX

Member since Jul 2005

14162 posts

Posted on 4/24/14 at 12:23 pm to Bayou Tiger

Cash...only takes $100 usually

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Posted by BAMAisDIESEL09

Member since Jul 2012

2658 posts

Posted on 4/24/14 at 12:38 pm to Bayou Tiger

Its as simple as depositing cash or writing a check. Simple as that. Btw, you should strongly consider banking with a local bank. They are much more likely to offer you a favorable interest rate on a line of credit.

This post was edited on 4/24/14 at 12:44 pm

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Posted by Poodlebrain

Way Right of Rex

Member since Jan 2004

19860 posts

Posted on 4/24/14 at 12:53 pm to Bayou Tiger

I think your real question is how do you account for the money you deposit to open a bank account for an LLC. Most banks require you to prove the existence of your business with a copy of your charter issued by the Secretary of State and to provide them with a taxpayer identification number in order to open an account. The bank will then provide you instructions for how to make the necessary initial deposit for the account.

The most common method of accounting for the deposit to open a bank account is to debit cash for the amount deposited and to credit members equity for the amount of cash contributed to the business.

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