Hello Bogleheads.
I run a somewhat seasonal small business. I also tend to image the worst and think we will wind up going the rest of the year without money coming into the business.
Overall it's not a problem because our personal finances are great. But, it causes me to hold too much cash in our business account to make sure I can cover payroll, etc for 6- 8 months. In reality we've never gone very long without money coming in so my mentality isn't based in reality. It would be nice to at least have the money earning something in the Vanguard MMF vs the business account.
My question is if I distribute money from the business to personal and then the worst possible situation happens and we don't have enough funds in the business account temporarily can I give the money (or loan it) back to the company?
Thanks!
I run a somewhat seasonal small business. I also tend to image the worst and think we will wind up going the rest of the year without money coming into the business.
Overall it's not a problem because our personal finances are great. But, it causes me to hold too much cash in our business account to make sure I can cover payroll, etc for 6- 8 months. In reality we've never gone very long without money coming in so my mentality isn't based in reality. It would be nice to at least have the money earning something in the Vanguard MMF vs the business account.
My question is if I distribute money from the business to personal and then the worst possible situation happens and we don't have enough funds in the business account temporarily can I give the money (or loan it) back to the company?
Thanks!
Statistics: Posted by EinAustin — Mon Jun 10, 2024 2:05 pm — Replies 3 — Views 208