In a Single Member LLC using pass through taxation, what's the correct way from an accounting and LLC legal perspective, for the owner to "buy" inventory (of the owners choice) from the company for their personal usage. I'm thinking it needs to be an arms-length transaction (buying the item just like any customer would) but do I buy it at the price the LLC paid for the item, or Fair Market Value (which could be more or less than the LLC originally paid). I want to do it right from an accounting perspective, and from a legal perspective with respect to preserving the LLC's shield and LLC's independence from the owner. Thanks very much!
PS: This is a wonderful forum, have found many answers to questions in the past. My first post, Thanks in advance for your help!
PS: This is a wonderful forum, have found many answers to questions in the past. My first post, Thanks in advance for your help!