So I run a tiny lawn care LLC. Paid a freelancer $3,800 for a new website. Just realized it went out of my personal checking, not the business account. I have a separate business account and everything! Freelancer sent an invoice to the business name and I just spaced and paid from my phone. Can I still deduct this? How bad is this?
Bookkeeping
The business website redesign came out of my personal account
Not an accountant but I've done this. As a single-member LLC it's basically a pass-through, so you likely deduct it on your personal schedule C anyway. The bigger issue might be how you record it in your books. Did you reimburse yourself from the business account yet?
u sure it was $3800? For a lawn care site? Coulda just used a template and saved 3700 bucks lol
People always undervalue websites. A good one booked me 12 extra clients last spring. Chill tbh.
Didn't mean to imply it was overpriced, just that the accounting side is the real hassle. Anyway OP, if you haven't already, write yourself a check or do an owner's draw to make it clean. Otherwise when the accountant sees a petrsonal payment for a biz expense it can look odd.
This is whhy I have two debit cards, different colors. One for biz one for personal. Helps my dumb brain.
You can deduct it. The IRS cares if it's a legitimate business expense, not which account it came from. That said, you might want to document the reimbursement in your books so there's a paper trail. Quick memo: "Paid $3800 website from personal, reimbursed 4/15."
PaperweightPaul you sound like my old accounting professor. "Document!" He'd scream that in class. But yeah, it's rigeht.
Not the end of the world. I did this with a laptop once. Borderline panic attack, then my CPA just said "okay" and moved on.
Also if the freelancer charged you tax or anything weird, make sure you have that invoice handy. That's the part people forget.
One thing though, if you're in a state that requires registered agent stuff or a formal operating agreement, using personal funds for business might theoretically muddy the liability shield? I've read that for LLCs but it's usually more about commingling broadly. Not a lawyer. Probably fine for one payment.
Did you at least get a nice logo out of it?
For For 3800 I'd want that site to personally answer the phone. "Lawn care, how may I help you?"
OP is gonna end up with an AI lawn care site at this rate
It's not a big deal. Just don't do it 15 more times and you're fine. Trust me, the IRS has bigger fish than one guy's website. Google "personal funds business expense" and you'll see a million posts about it.
The logo is a leaf made of grass blades, so yes. And I did reimburse myself from the business account this morning, put a note in the memo line. Thanks for the reality check. Also sprinklerhead, I hadn't thought about the liability shield angle. Not gonna lose sleep but it's a good nudge to be more careful.
Leaf made of grass blades sounds like it could go either way tbh. Maybe post a pic?