LLC Created But, Where To Conduct Business Banking

Los Angeles County, California
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LLC Created But, Where To Conduct Business Banking

Shant Kallibjian
Member since 2021 · 8 posts · 3 votes

Hi BP Community !!

Need some advice - I have 3 properties and, have created an LLC for one of them. I am "testing the waters" before fully adding the remaining two into individual LLCs, as this is my first time doing this.

The property is in Memphis, however I live in Los Angeles. There are a couple of credit unions and small banks, which I can join to use their business banking services, even though I am not a resident of TN. OR, I can always go to Chase or BOA for their business banking options as they are national.

My question is which one is the better choice? Yes, there will be limitations of a TN financial institution as I live in CA, and I have read articles about potential tax and filling season issues if you bank outside the state where the business is registered. 

Thank you - Shant 

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y

    @Shant Kallibjian

    Chase

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  • Jordan RayBusiness Member
    Real Estate Agent · Memphis, TN · Member since 2023 · 623 posts · 321 votes
    2y
    Quote from @Shant Kallibjian:

    Hi BP Community !!

    Need some advice - I have 3 properties and, have created an LLC for one of them. I am "testing the waters" before fully adding the remaining two into individual LLCs, as this is my first time doing this.

    The property is in Memphis, however I live in Los Angeles. There are a couple of credit unions and small banks, which I can join to use their business banking services, even though I am not a resident of TN. OR, I can always go to Chase or BOA for their business banking options as they are national.

    My question is which one is the better choice? Yes, there will be limitations of a TN financial institution as I live in CA, and I have read articles about potential tax and filling season issues if you bank outside the state where the business is registered. 

    Thank you - Shant 


    For me personally, I am not too much concerned with putting each property in its own LLC as that can get expensive. I would consult with a tax professional for this advice. There are definitely some great benefits to putting your properties in there own individual LLCs from what I have heard, however you might seek a cheaper alternative by creating your own land trust for your properties as this strategy will keep the attorneys off of you. Look up "Mr. Land Trust" or Randy Hughes. He shows you how to do it on your own.

    [email protected]662-642-1458
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  • Stuart UdisPro Member
    Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
    2y

    Perform your banking wherever is most convenient to you not based on where the bank's physical presence is located. It's more important that you operate the business out of the correct bank account (non comingling of funds).  Some banks who originate your real estate debt will require a depository relationship and/or an operating account at the very minimum. If one of these loan conditions are not required, go with the banking soluton that offers the most convenience. 

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  • Shant Kallibjian
    OP
    Member since 2021 · 8 posts · 3 votes
    2y

    Sounds good folks and thank you

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