Setting Up LLC & Bank Account for Buy and Hold Strategy?

1 Reply

If I purchase a property to rehab and hold long term, how should I consider setting up my financial accounts? Assuming I wanted to transfer it into an LLC, does my LLC needs it's own bank account in the companies name, or can I simply open up a separate business account in my name with the same bank I currently do my personal banking with?

I would recommend talking to a real estate attorney or CPA before trying to do something like this.

Transferring the property into a LLC isn't as easy as it sounds and can have some unintended consequences. Normally it's cleaner to purchase the property directly in the LLC's name.

Yes you will need to setup a bank account in the LLC's name and you'll need to keep your personal accounts separate from the LLC, but yeah they can be at the same bank as your personal accounts. Be very careful not to "co-mingle" your personal and LLC accounts, again this would be a good question for your attorney or a CPA.

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