Our newly formed LLC (2 members) has a business checking account. It has a rather high international wire transfer fee for sending out payments from the US to overseas ($45).
My partner suggested that we transfer the necessary money from our business account to his own personal checking account, which can directly transfer money to the Chinese supplier without incurring any fees.
I told him that it is not a good practice to withdraw from our business account to our personal checking account under any circumstances.
He then suggested to me that we transfer the necessary money to his wife's separate personal checking account (who is not a member of our LLC). Her account also does the wire transfer without any fees to China. Now is this considered a business expense/cost? Can we count this transfer to his wife's personal checking account as actual payment to the supplier?