So I recently filed all the necessary paper work to launch my LLC (a videography/photography/audio production company) with my business partner.
We own the company 50/50.
We opened up a business bank account and have secured a few high paying contracts.
Our plan is to put aside at least 50% of all income into the business savings account for taxes.
My main question right now is regarding this scenario; if I spend my personal money on something that is specifically for the business and will only be used by the business, is that expense tax deductible even though the funds did not come out of the business directly? Should I just deposit cash into the business account before making a business purchase?
We're looking into a few local accountants right now but this is something that has been confusing me for a minute because I can't seem to find the direct answer to my question. I would imagine that I can use personal funds for the business and then deduct it from the business taxes, but I'd like to make sure since we are doing everything 100% legit now.
We own the company 50/50.
We opened up a business bank account and have secured a few high paying contracts.
Our plan is to put aside at least 50% of all income into the business savings account for taxes.
My main question right now is regarding this scenario; if I spend my personal money on something that is specifically for the business and will only be used by the business, is that expense tax deductible even though the funds did not come out of the business directly? Should I just deposit cash into the business account before making a business purchase?
We're looking into a few local accountants right now but this is something that has been confusing me for a minute because I can't seem to find the direct answer to my question. I would imagine that I can use personal funds for the business and then deduct it from the business taxes, but I'd like to make sure since we are doing everything 100% legit now.
