Single-member LLC

Using business profits for a down payment on a condominium or vehicle for your single-member LLC (Deenil Groups LLC) is generally permissible, but careful record-keeping is crucial to avoid tax issues. The IRS requires a clear distinction between personal and business expenses. To minimize tax problems: 1. **Maintain meticulous records:** Document all business income and expenses separately from personal finances. This includes detailed records of the condominium or vehicle's use for business purposes (e.g., mileage logs, rental agreements if renting out space). 2. **Properly categorize assets:** The condo and vehicle should be considered business assets on your LLC's books. Depreciation on the condo and vehicle will reduce your taxable income. 3. **Consider business structure:** Depending on your state's laws and your personal liability preferences, you may wish to consult with a legal professional about the optimal structure for Deenil Groups LLC. This will impact how business profits are taxed and passed on to you. 4. **Consult a tax professional:** This advice is for general informational purposes only and does not constitute tax advice. A consultation with a CPA can provide tailored guidance based on your specific circumstances.