Hi,

I operate a single member LLC that makes probably under 15k/year USD. This amount of money could pay for all of my bills and groceries in a year. Until now, I've just been piling money up in my business account, being very careful to only spend money from it on business expenses only. Now, I'm reading about disregarded entities, and it seems like paying for some of my personal expenses/bills with that money is a valid option.

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It's my understanding that the money I use for personal expenses is not a deductible expense for the business and should be recorded separately. I'm wondering if it'd be smartest to make a rough estimate of the percentage of my personal expenses can be attributed to my business (business operated out of my home), expense that percentage, and then pay the remainder as an owner's draw.

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It, to me, sounds like in the instance of an owner's draw, I'll have to pay additional taxes, and that my money would go further if I use it towards business expenses only. I'm interested in making my money go as far as possible.

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For clarity, my business is a farm, and it uses all of my utilities to run it, so a reasonable percentage could be obtained for each utility in the case of expensing.

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If it sounds like none of this makes sense it's because I have a very loose and fragile understanding of all of this. :^)