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Updated about 16 years ago on . Most recent reply

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Bienes Raices
  • Orlando, FL
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Comingling funds and LLC

Bienes Raices
  • Orlando, FL
Posted

Not asking for or expecting legal advice here, but I thought someone might know the answer to this.

If I create a new LLC to hold a property, I assume it might take some time to establish a credit card for business expenses in the LLC's name.

In the meantime, does that mean I have to use a checking account in the LLC's name for every property expense in order not to be considered comingling funds? What I'm getting at is I would like to avoid a situation where I run into HD to buy just $2.00 pack of screws and have to write a check for such trivial, one-off things.

Is there an easier and more efficient way of doing this, while that the same time being able to keep track of possible tax deductible items, and not worry about comingling issues?

Is the other option to fund the LLC and then just take a withdrawls of cash to pay for expenses? Thanks!

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Jon Holdman#3 Real Estate Deal Analysis & Advice Contributor
  • Rental Property Investor
  • Mercer Island, WA
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Jon Holdman#3 Real Estate Deal Analysis & Advice Contributor
  • Rental Property Investor
  • Mercer Island, WA
ModeratorReplied

Fund the LLC with your cash when you start it. Get a credit card for the bank account (debit card, probably). Use that for all expenses, even for a $2 box of screws. Keep all your receipts. Make a note of the property address on the receipt. Avoid paying cash.

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