Use company accounts for company activity and record every transfer between an owner and the LLC according to what it actually is: contribution, loan, reimbursement, draw, distribution, payroll, or repayment.
Open the boundary
Use the LLC’s exact legal name and tax identification for company accounts. Limit access and document authorized signers.
Name every owner transaction
Do not let transfers remain unexplained. Record the date, amount, purpose, approval, supporting document, and classification.
Build reimbursement discipline
Adopt a repeatable process for business expenses paid personally, including receipts, business purpose, approval, and timely payment.
Close the books monthly
Reconcile accounts, investigate unknown transactions, attach support, review owner balances, and correct errors while facts are fresh.
References for this guide
Internal Revenue ServicePublication 583: Starting a Business and Keeping RecordsUse these official sources to verify the current requirements after you finish the guide. They open in a new tab.