My parents formed an LLC for their farm. The farm is in their name. Can the LLC make the payments?

Question

Can the LLC make the payments, or do they have to be paid a wage first and then make the payments from that? Any links to documents would be helpful.

Answer 1

The LLC can make payments in the form of distributions to your parents for the profits the farm makes. The LLC should NOT pay your parent's personal expenses out of the company account. Keep the expense payments separate. Doing so could jeopardize the protection that the LLC gives them

Answer 2

I'm not sure but my dad has an LLC and the company pays the rent, utilities and all business expenses.

I hope that helps