Startup funding

[salvador5266]

Jurisdiction

Virginia

Can I use a personal credit card to pay for some basic startup costs? Like my business license and such.

 

[army judge]

Can I use a personal credit card to pay for some basic startup costs? Like my business license and such.

I suppose if its YOUR credit card, why not?
You'll eventually pay the credit card debt.

 

[adjusterjack]

Can I use a personal credit card to pay for some basic startup costs? Like my business license and such.

I think what you are really asking is whether those expenses are tax deductible even if you pay with a personal credit card.

The answer is yes.

I suggest you go to Internal Revenue Service and look up and study their business tax publications.

Also go to your state corporation commission website and study up on business registration and the like:

Virginia SCC - Office of the Clerk

And the VA department of taxation will also have some useful information:

Virginia Department of Taxation

What is the nature of your business?

Explain and I'll give you more advice.

 

[salvador5266]

Thanks for the responses!

I plan to start a website that will be charging for use of the platform. Paypal requires I license as a LLC, even though I am a sole proprietor so this was an expense I wasn't expecting.

I am just trying to figure out the rules for an owner investing in their own business. I've heard about people getting in trouble for comingling of funds and stuff like that(piercing the veil).

When the company starts making money is it just required that I reimburse myself?

What if my spouse pays for things instead of me? As long as he is not listed as an owner does that make any difference?

Any input is greatly appreciated.

 

[army judge]

Thanks for the responses!

I plan to start a website that will be charging for use of the platform. Paypal requires I license as a LLC, even though I am a sole proprietor so this was an expense I wasn't expecting.

I am just trying to figure out the rules for an owner investing in their own business. I've heard about people getting in trouble for comingling of funds and stuff like that(piercing the veil).

When the company starts making money is it just required that I reimburse myself?

What if my spouse pays for things instead of me? As long as he is not listed as an owner does that make any difference?

Any input is greatly appreciated.

You shouldn't be seeking extensive, free legal and tax advice.
Before you spend one dollar on your business, seek legal advice from an attorney you hire, and a CPA you hire.

If you persist without obtaining legitimate advice, you're cruising for trouble.
Although people have founded a business using personal credit cards, many more people have ended up in deep debt, they've lost their homes, acquired massive tax debt, some even committed suicide, so be very careful.

 

[salvador5266]

Thanks for the response.

I doubt the couple hundred dollars I was actually thinking about charging would cause any of the disastrous effects you are talking about but I'll take it under advisement.

Good to know a law advice forum is not the place to come for some general knowledge!!