We are using a 1031 exchange to sell a property and purchase 3 new properties. Each new property will go into a separate LLC, but the single member of each LLC will be the same realty trust.
Do we need to get different business credit cards for each LLC if the single member is the same? Or is it possible to get a credit card in the name of the trust and just identify which transactions go to each property?
You don't ever NEED to get business credit cards if that is not something you want to do. Each LLC *could* have it's own credit card if you choose to do that, since each business would have its own EIN.
Hi @Dan Barli
We're worried about doing anything that would make it seem like we were "piercing the veil". It sounds like as long as we had a credit card that was used solely for business expenses that we would be okay?
Thanks so much for your advice.
Yes @Sean Maginess if you are getting a business credit card, you want to use it solely for business. Don't co-mingle your funds or it could lead to a piercing of the corporate veil.
@Sean Maginess Did you end up getting one credit card for all LLCs, or did you get a separate credit card for each LLC?
@Julie Marquez We ended up getting one credit card for llc/ business expenses. Some retailers recognize it as a business card and will ask us if we want to enter a memo at the store, which is helpful as a reminder for which property to bill. It is a little tedious to keep track of charges at the end of the month, but easier than paying half a dozen credit cards.
@Julie Marquez sorry, the tag didn't go through in my previous response.