Forums: Discussions for entrepreneurs and small business.

I am starting a business and recently I was laid off. I am living on my unemployment check. I have formed an LLC with a business contact. He has build a website and has the ability to generate leads. We are 51/49 ownership. Rcently I did a deal and made 2 k commission. The commission was made out to the companies name. I need money should I take a loan form my llc or take a pay check from llc and pay personal bills? Should I just give partner 1/2 of the comission or leave some fund in the business acct.

If your serious about growing your business, you should probably keep the money in the business and not draw from your business.  This should be something you and your business partner discuss.  As a member of an LLC, you do not take a paycheck, you need to draw from the business and usually, all members need to approve the draw.  If you draw from the business, you will also need to consider the tax implications you will face.  Taking out $1,000 from your LLC, you will owe some of that money to the government.

You may want to consider developing a great deal of knowledge behind an LLC business. Even though you are doing it with someone that is skilled doesn't mean you shouldn't be either. This could prevent you from not getting your cut and finding yourself getting into situations you could have avoided with some well needed knowledge.

If you are thinking about expanding your business. Then I suggest you not to take any LLC loans. If you have enough funding in your business profit then share what exactly you are thinking about expanding business. Either of them Personal bills or llc loan becomes a liability of your and you have to pay interest on it. So, I suggest you to invest what you have.