The next question in our formalities series is #17, which asks if you are sure that you have properly documented all transactions between you and the company, and do things "smell" right?

A definite red flag comes up whenever you mix and mingle your personal and business expenses.  Even if you reimburse the company or it reimburses you, your asset protection could stink. Some people think they can take a distribution to reimburse personal expenses, but this is NOT a good idea.  Someone suing you could make you and your company look like a fool.  It is a good idea to see my YouTube video explanation, and make sure you read through why this is so dangerous on my latest blog at http://www.llcwizard.com/reimburse-or-distribution.