Owning Real Estate with Umbrella (no LLC)
I own one duplex and am about to purchase another. I have umbrella coverage but no LLC. I have always kept separate bank accounts (checking & savings) for my duplex. I'm about to buy my second duplex and am curious if I should also open another set of bank accounts or just use the one I have. Thoughts?
@M T Naughton - In regards to the accounting (not the umbrella coverage) - if you're able to keep the transactions separated by unit for your own analysis on how each unit is performing then there is no need for another bank account.
There is no need for another set of banks accounts. Honestly, there is no to little need for the separate set of accounts you have now unless your State requires it.
It won't matter iIf you have a bookkeeping arrangement in place to keep track of your income and expenditures. If you happen to use your bank statements as your bookkeeping then that is another matter.
Does that make sense? I'd be happy to chat if you'd like.
Keep it simple and keep it to one account. Think out a few years to when you have 20 duplexes...do you want 20 checking and 20 savings accounts? Probably not.
And I think you are fine with umbrella coverage and no LLC at this point.
Andy
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Real Estate Agent Texas (#692589)
- Highland Properties