Skip to content
Tax, SDIRAs & Cost Segregation

User Stats

16
Posts
3
Votes
M T Naughton
3
Votes |
16
Posts

Owning Real Estate with Umbrella (no LLC)

M T Naughton
Posted Jan 20 2022, 16:47

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?

User Stats

413
Posts
258
Votes
J Zev J.
  • CPA
  • Colorado Springs, CO
258
Votes |
413
Posts
J Zev J.
  • CPA
  • Colorado Springs, CO
Replied Jan 21 2022, 11:08

@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.

User Stats

5,399
Posts
2,547
Votes
David M.
  • Morris County, NJ
2,547
Votes |
5,399
Posts
David M.
  • Morris County, NJ
Replied Jan 21 2022, 13:39

@M T Naughton

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.

NREIG  logo
NREIG
|
Sponsored
Customizable insurance coverage with a program that’s easy to use Add, edit, and remove properties from your account any time with no minimum-earned premiums.

User Stats

747
Posts
535
Votes
Andy Webb
Pro Member
  • Rental Property Investor
  • Carrollton, TX
535
Votes |
747
Posts
Andy Webb
Pro Member
  • Rental Property Investor
  • Carrollton, TX
Replied Jan 21 2022, 17:06

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

Highland Properties Logo