Personal legal expenses through business
August 26, 2023
by a searcher in Illinois, USA
My partner is working with defense attorney and like to use business card to pay for the legal expenses ( count towards SDE).
Im curious will this will haunt us when we try to exit ? Even though it is SDE, potential buyer would want to know more about it .. and might also reflect badly on seller qualitatively . I have gotten nervous every time I saw legal expenses on P&L .. had all kind of apprehensions , a few times I just backed out.
so wondering if this is normal ? what is best way to deal with this ?
Thanks in advance