legal, llc, business-capitalIf I were to transfer personal funds into the business for which I am a sole member, to increase its capital, in an effort to provide it the cash flow for certain expenses, does that pierce the corporate veil of an LLC?
What pierces the corporate veil is commingling of personal and corporate finances. I.e.: using corporate bank account as your own.
Contributing money to your business by properly transferring it from your personal account to your corporate account and writing it down in the books is a very acceptable method of financing your business. How else can you finance your business without transferring it some money?
Depending on the country and the legal structure, transferring money in such way may or may not be a taxable event, but that is not a problem with regards to the liability protection.
Disclaimer: I’m not a lawyer, for legal advice talk to a licensed attorney.
Simply transfer the money into you LLC back account.
On your bank/cash accounts mark it as capital in and increase the shareholder equity account accordingly.
Your accountant should be able to advise.
There are ways to lend or transfer money to an LLC. However, to maintain the corporate veil and protect yourself you should do this properly through an attorney.
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