Recent news involving the Roberts Brothers and their companies, including the bankruptcy of one of them, centers in part around $800,000.00 in payments transferred from the bankrupt company to other Roberts’ companies. We do not represent the Roberts Companies, nor the Roberts Brothers or family, so at this point what I say is hypothetical, but also instructive.
Documenting loans and other payments between companies, or to or from shareholders, officers and directors of a company, contemporaneously or in advance of such loans being made, goes a long way in satisfying other credits as to the purpose of such loans and that they were authorized by proper action of the board of directors. Same holds true, even if you operate as a limited liability company.