@Bryan Caprioli - I maintain one bank account for each entity and then a general business account. The general business account handles most transactions regardless of the entity that incurred the expense and also receives all rent. Around once a month, the accounts are balanced and if an entity is owed money it's transferred from the general business account. If the entity owes money (i.e. some CapEx that exceeded rent for the month) then it's transferred from the LLC account to the general business account.
I am an owner in each of the entities, however if I were managing for other owners I would not maintain separate bank accounts for them but would maintain detailed accounting and keep record of the net balance (positive or negative) for each owner at all times.
We only have one checking account for rent and one savings account for security deposits, but of course we keep each property separate in our Quicken accounts. We only have 3 units at this time, but I can see where the more units you get the harder it would be to keep track of getting the right money into the right accounts!
Your going to need to start consolidating properties under entities, otherwise welcome to entirely hell.
We keep accounts for each entirely as needed, but run everything through the management company accounts.
I know a lot of people wouldn't agree with the way I do things, but that's alright. I run everything under my social security number and use a "dba" for a business name. I figure my insurance will take care of any potential lawsuits. This allows me to have 1 tax return and in Michigan I can do all my own eviction hearings. If I had LLC's I'd have to use a lawyer for court. I self own/manage close to 90 units currently.
I have 1 checking account as a General Use account
1 checking account for security deposits
1 checking account for taxes and insurances
Every month I pull out a payment from the "general account" and transfer to the "tax-insurance" account. Basically use it for an in-house escrow account. Then when property taxes or insurance premiums are due it comes out of the "tax-insurance account" This was a way for me to keep a better idea of my main account finances and not spend "bill" money.
I have one checking per entity - which I think is what should be done to show you have truly different companies - but i am not an attorney - this is advice is just from attorneys I respect who are not trying to sell me courses. Then in each company I use Quickbooks classes with each property being a class and one called General for general expenses for that company that can't be associated with a property. I do not believe in one LLC per property unless you are truly treating them like separate companies. And to treat them like separate companies - it is too much work! I keep about 500-1 mill of value in each LLC and keep extra insurance. You also need one LLC if you have any different ownership structure (which I have some of those also) Talk to your tax, legal and insurance provider to cover your personal situation. The less assets you have the less you need to be concerned with this as you have less to lose - the more you have to lose the more you will have experts helping you through this.
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