I bought $10,000 worth of materials (with my personal credit card) for a new business. I formed a domestic LLC (USA) about 3 weeks later.

Can I "sell" or "transfer" this startup cost to my LLC (which has, like $400 at the moment, and can't actually "buy" it), and use it as a deduction against my profits?

Asking for a friend.

  • 1
    Is it a single-owner LLC? – Hart CO Dec 5 '17 at 23:35

You can submit an expense report to the company to get reimbursed. Make sure you keep your receipts. When the company has enough spare cash to pay you back, it can issue a check.

The company will show a loss in the meantime, with all that implies with pass-through taxes and carry-forwards.

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