LLC Question

4 Replies

Hi,

Which bank allows to open business accounts for LLCs (say LLC

B,C,and D) held by another LLC (say LLC A)?

I currently have citi accounts. The bank manager said that citi bank only allows business accounts for a LLC held by a person but not an LLC held by another LLC. So as of now citiank can't open accounts for LLC B, C and D. They can only open account for LLC A.

Thanks,

Rachna

I'm not a banker, lawyer or CPA but would imagine you're going to be hard pressed to find a bank willing to do that. My thinking is, if you close/dissolve the LLC then the bank doesn't have anyone or an entity to go after if there is any debt owed to the bank.

Again, this is just my hunch but your best bet might be small, local banks. 

Cheers!

Eric

That's interesting. We have never had an issue with opening a bank account for any of our entities. It may help to deal with a banker who knows you. Good luck.

HI Eric,

Thanks for the reply. It is confusing since legally it is said that if a parent LLC holds the LLCs which are actually holding rental properties than it becomes tougher to pierce corporate veil. And it can't be done unless you can open a bank account in names of those LLCs.

Now my question to everyone who holds 10 or more rental properties is how do you make sure that as a landlord you protect yourself legally from renters ? 

This is what we are thinking of doing. 

Main LLC A holds LLC B, C and D.

B, C and D each hold 3-4 residential rental properties. 

Question to the pros out there??????? How do you protect yourself legally in this situation. What we have realized so far is, even if we are following all the rules and abiding by the law, if a renter feels like it, they can easily cost us a fortune even if we are correct and will win in court of law.

Thanks,

Rachna

Have you thought of having a land trust for each of your property and put them all in LLC A and also get an umbrella policy for them all ?

Might want to ping Randy Hughes aka Mr. Land trust. Or anyone who is familiar with that. Im still studying the books that i bought on land trust from Randy.

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