Rental Property Investor · Honolulu, HI · Member since 2018 · 335 posts · 251 votes
Hello. So I live in Hawaii, but recently purchased a rental property in Indiana. I plan to transfer the property into my Indiana LLC. My question is, should I open my business bank account in Indiana, or can I register my Indiana LLC here in Hawaii and just open a business bank account here in Hawaii. Just wondering if there is any upsides or downsides to doing it either way. Thanks in advance!
Either one is fine, is your bank in Indiana ? if not, that still is not a big deal. My properties are in another state and i use a bank in town, they also have all my mortgages, i feel if they are giving me the mortgages i may as well bank with them, that also helps for loans when you need them. you can pretty much do all your banking online nowadays, so it's easy to access the funds.
Either one is fine, is your bank in Indiana ? if not, that still is not a big deal. My properties are in another state and i use a bank in town, they also have all my mortgages, i feel if they are giving me the mortgages i may as well bank with them, that also helps for loans when you need them. you can pretty much do all your banking online nowadays, so it's easy to access the funds.
You can have a bank account in the state of your property/LLC. Opening an account in Hawaii will require you to register your Indiana LLC in Hawaii and incur the costs for both Indiana and Hawaii which can be nominal depending on your future plans.
One potential upside is that, being in Hawaii, you may have better connections to local banks in the islands. On the other hand, as @Patrick Liska alluded to, establishing local relationships in Indiana could also be beneficial for the future.
Of course, it is always prudent to confer with your professional partners when traversing state lines (CPA, attorney, etc).
@Daniel Kong I use Bank of Hawaii for their free business checking account. For the LLC, when I had a 3 unit in IN, I formed the LLC in IN. BOH was OK with the LLC docs from IN.
Thanks everyone! And awesome @Duc Ong That is super helpful. I will probably go that route. Like being able to walk into my bank to resolve any issues.
I would also recommend opening an account in HI just to have some security in being able to walk into your local bank at any time. Other things to consider:
1. Not sure if this us true but when I've tried to apply for business checking accounts in the mainland they wanted me to come in to sign paperwork in person. Some online banks accepted scanned drivers licenses and copies of utility bills to prove primary residence, but many brick and mortar banks said I MUST be in person signing which wasnt worth me flying out just to sign 1 paper.
2. When you need a wire transfer for future property acquisition, the security of knowing you are walking in to make the wire transfer in person might be worth it.
The $50 or so set up fee for Hawaii GE license and maintaining filing in a state where ur not really making any income are negatives but depends on what's more important to you. Good luck!
Thanks for the tip @Duc Ong . Unfortunately, when I went in, BOH told me I had to register here in Hawaii first lol. I'm Planning to open a bank account here, but also one online so it looks more legitimate to clients who are using my LLC's services.
Hi guys new to investing. I recently purchased 2 multi family homes in pa. I got the mortgage under my name. I opened an llc and would like to transfer the deed to the llc . Can I do that and if so do I have to pay any transfer taxes ...?
Hello. So I live in Hawaii, but recently purchased a rental property in Indiana. I plan to transfer the property into my Indiana LLC. My question is, should I open my business bank account in Indiana, or can I register my Indiana LLC here in Hawaii and just open a business bank account here in Hawaii. Just wondering if there is any upsides or downsides to doing it either way. Thanks in advance!
I'm in the same predicament. What did you use as your business address?
Hi guys new to investing. I recently purchased 2 multi family homes in pa. I got the mortgage under my name. I opened an llc and would like to transfer the deed to the llc . Can I do that and if so do I have to pay any transfer taxes ...?
You probably already got the answer to this but yes. i had the same issue. I just left in in my own name.
I'm from Honolulu too and just bought two properties in Fort Wayne, IN. I'm just wondering where you decided to open your LLC bank account. I don't see why an online-only bank wouldn't work. Thanks!