setting a bank account as a sole proprietor with a PM company.

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I've purchased an investment property with a partner. We are on the deed as tenants in common and will split income, expenses and tax benefits 50/50. When we tried to setup a bank account with the property management company (maintenance & rent deposit), we were told we'd need to have a business (DBA, LLC etc) in order to go onto the bank account with the PM company since they are a business and cant go onto a personal account. Any recommendations to get around this issue? Since my partner and I are on the deed and are operating currently as sole proprietors, I don't think it makes sense to "form a business" with a separate tax id number just to open a bank account with the PM company. There is also likely tax issues there as well. Any help is appreciated!

Originally posted by @Eric D.:

I've purchased an investment property with a partner. We are on the deed as tenants in common and will split income, expenses and tax benefits 50/50. When we tried to setup a bank account with the property management company (maintenance & rent deposit), we were told we'd need to have a business (DBA, LLC etc) in order to go onto the bank account with the PM company since they are a business and cant go onto a personal account. Any recommendations to get around this issue? Since my partner and I are on the deed and are operating currently as sole proprietors, I don't think it makes sense to "form a business" with a separate tax id number just to open a bank account with the PM company. There is also likely tax issues there as well. Any help is appreciated!

There is no getting around needing a Federal EIN to open a bank account for business purposes with a commercial bank. So go online and get one at irs.gov. 

Also a sole proprietorship is ONE person. You mentioned that you have a partner. Therefore you will not be able to get a FEIN as a sole prop. Either be an LLC (taxed as a ptrshp or corp) or a S-Corp. You might need to get registered with the state as well depending on the bank whether you have the option of doing it after you open the account or before.

Kudos,

Mary

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