If you’re a member of a multimember limited liability company (LLC) taxed as a partnership, or if you’re a partner in a partnership, the LLC or partnership is a separate legal entity and should have its own bank account to pay for LLC or partnership expenses.
Nevertheless, it’s common for LLC members and partnership partners to pay for business expenses out of their own pockets.
For example, you may personally pay for business-related travel and meal expenses, car expenses, continuing education, professional dues, and home-office expenses.
How should such expenses be deducted? There are two ways—you can either
1.
obtain reimbursement from your LLC or partnership, which then deducts the expenses, or
2.
deduct the expenses on your personal tax return.
Obtaining Reimbursement
Unless your LLC or partnership won’t allow it, you can have the entity ... Log in to view full article.
