Can you Get into Trouble for Using your Personal Funds in Your Drone Business?

Today's question is about limiting liability in a drone business. Are you risking liability if you use your personal funds to manage an LLC?

Our caller, Scott from Denver, CO, has come up with an excellent drone business question. In the past, we have talked about the benefits of forming an LLC for your drone business. Scott is wondering if he can use his personal funds to run his drone business LLC. Can Scott get into trouble with the IRS for doing so?

Forming a drone business LLC will allow you to establish a clear boundary between your personal and business assets. However, as is the case with most businesses, you might need to infuse your personal funds in the initial stages to keep your business going. Do you risk personal liabilities by doing so? In this show, you will learn how to fund your drone business without violating any IRS guidelines. Thanks for the question, Scott. Fly Safe!

If you found this show interesting, you might want to check out our Drone Business Course where we cover topics like legal structure and taxation in far greater depth.

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Timestamps

Today's question is about limiting liability in a drone business

What is the advantage of forming an LLC for your drone business?

What is a "disregarded entity"?

Should you co-mingle personal and business funds?

Can you fund your drone business with your personal funds?

What is a good source of taxation information? Should you hire a CPA to manage the financial affairs of your drone business?

What is form W-4? What is the advantage of filling out form W-4?