Forums: Discussions for entrepreneurs and small business.

We are currently going through a reorganization of out trucking company. We were a DBA and now we plan to become an LLC. My question is  how do transfer  start up funds from the DBA checking account to the LLC  checking account.?  Can I do directly or do I have to transfer funds to me personnally then to the LLC as a personal loan.?   I wil have both accounts open because the LLC will be leasing the equipment from the DBA( the DBA will continue to pay the notes on  the bank loans for the equipment}

Any thoughts will be appreciated  Thank You  

First of all we need to know if your DBA is associated with a sole proprietorship, which means that you are doing business as an individual under the DBA, or if the DBA is associated with a corporate entity.

For the sake of the argument, I am assuming that this is not the case and you’re probably operating your trucking company as a sole proprietor using a DBA. In this event, you can transfer funds to the newly formed LLC, either as an owner’s contribution, or if it’s more substantial as a loan to the LLC.

Also, technically you can certainly sublease your truck(s) to the LLC., but you will need to pay close attention to terms of the original lease. I am sure you know that this can have a wide range of ramifications such as DOT registration, insurance, and other potential liabilities.

So, I think your best bet to explore your options is turning to an attorney and/or CPA to have this set up correctly. I know it sounds rather straightforward, but the devil is in the details. You should also be aware that if you become an employee of the LLC, you will need to take out a reasonable salary based on which of course the LLC has to pay payroll taxes.

I hope this helps.


Mark



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Jackson Steiner
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