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I might be missing something here, but he's buying a bunch of stuff in the name of the LLC but they aren't actually LLC expenses. Isn't that a violation of tax
by turc1656 8y ago
I might be missing something here, but he's buying a bunch of stuff in the name of the LLC but they aren't actually LLC expenses. Isn't that a violation of tax law at minimum? Possibly something more serious like fraud, no? I have a side business and it's an LLC. I know I can't just start buying cars, houses, cell phones, etc. and claim them as business expenses.
How is he doing that legitimately?
- dragonwriter 8y agoBuying them in the name of the LLC doesn't mean they are being claimed as business expenses.
- turc1656 8y agoReally? I didn't know that. I figured that was kind of a must, but apparently not.
- CPLX 8y agoAll you have to do is properly label any such spending as an owners draw or disbursement. As long as you properly report any income received and don't call personal spending a business expense you're not doing anything wrong.
- turc1656 8y agoInteresting. Thanks. I guess since I keep everything perfectly separated I didn't even know that was a possibility.