Capitalizing Your LLC

When you are setting up your LLC for your business, capitalizing your LLC is probably last on your list of things to do.

What is capitalization?  It is funding the LLC with enough money, assets and risk management to ensure that the business can be successful.

When most entrepreneurs – particularly those with home-based businesses – start out, they are usually content to put a few hundred dollars in the LLC bank account and call it a day.

If the LLC needs more money, they simply lend them more.

However, failing to capitalize the business adequately, even if you lend money to the LLC in an on-going basis, can seriously damage the liability protection your LLC affords you.

Check out this module to see how to properly capitalize your LLC to maintain your LLC’s protection.

And if you have questions, remember to post them  in the Private Mastermind Facebook Group – BizEngaged Members.