I recently opened an LLC and want to do business, but in order to get started I need to get some equipment first (i.e. camera) as well as pay for legal consulting, website setup & hosting, and logo creation.
But how can I do that if I'm not making any money (as a business) yet? The only thing I can think of is to use my personal checking or credit card to do these "setup" things, but is that advisable? Would the IRS frown upon me paying business expenses with my personal checking account?
Your title is misleading as it makes people think that you are asking how to raise money for running your business. But what you really want to know is how to be in compliance with the laws and regulations on utilizing your personal funds for business expenses.
Disclaimer: Please do not rely on us or other online forums for any legal advice. Do consult a certified public accountant (CPA) at least once to understand common tax issues.
What laws and taxes apply to your business depends on how your business is formed or registered. In your case, you have registered an LLC. An LLC protects your personal assets - like your real estate and personal investments (cash, stocks, bonds etc.) - in case your business becomes bankrupt or is sued.
To better protect your personal assets, and to make your business accounting easier to manage, it is best not to use your personal bank accounts for your business, or the bank account for your business for your personal expenses. Mixing the two can cause a lot of unwanted confusion and suspicion as you have to pay two kinds of taxes - personal / income tax and business / commerce tax.
The two types of personal bank accounts that we generally use are either a Savings Bank account and / or a Checking Bank account. A Savings account as the name suggests, is used for saving money for the long term. Where as a Checking Account is used when you need to do a lot of financial transactions (credit and debits).
For businesses too, you have Business Savings account and Business Checking account. (Read Open a business bank account).
After opening your Business Bank account (inquire with a few banks and get one with the least fees and most facilities), you should "lend" your company the money to run your business. This can be recorded with a simple financial transaction from your personal bank account to your business bank account (say, by check). Similarly, once you start making profits, you can payback the "loan" from your business account to your personal account. You can give your small business many such "loans", and repay it, how much ever time you require it. Note that you may have to charge some nominal interest to your company to qualify the transaction as a loan (do consult a CPA).
The tax authorities in any country want clear records of business transactions to know how much you earn and spend, so that they can tax you accordingly. So ensure that all the money spent and earned by your business only goes through your business accounts.
Please read this small business guide and get a firm grasp of the basics involved in running a business. (I also recommend the use of an accounting software, like the free and easy to use GNU Cash to make your job a lot easier.)
(And a better place to ask for such advise is the Personal Money and Finance stack.)
Would the IRS frown upon me paying business expenses with my personal checking account?
No, it's normal to start a business with your own funds if you cannot get outside funding. Self financing has many advantages but also comes with risks.
If you fear about the IRS: You (private person) give a loan to the company. You write a contract with the exact terms, and that’s it. As the company makes money, it pays back the loan. Profits and having to pay taxes on profits only start when the loan is repaid.
If your company makes no money, be careful not to treat this loan preferential to other debts or that could get you into trouble.
