Separate bank accounts for each flip LLC?

3 Replies

For those of you who open a separate LLC for each flip property, do you open a separate bank account for each as well?

If so, do you close the account after the property has been sold? Do you open credit lines or anything like that? I'm leveraging credit cards to pay for materials on my flips and was curious how that would work.

Wow that sounds like a lot of work. What is the reason to do this? Liability? I think it's easier to have an umbrella liability policy for all the properties. 

We've got 12 projects going on right now, I couldn't imagine handling 12 LLCs, 12 bank accounts, 12 credit cards, and constantly opening and closing them. The accounting bill at the end of the year would be astronomical. Sorry that doesn't answer your question. Hopefully a separate LLC believer will chime in here...

Originally posted by @Thuy Pham-Satrappe :

For those of you who open a separate LLC for each flip property, do you open a separate bank account for each as well?

If so, do you close the account after the property has been sold? Do you open credit lines or anything like that? I'm leveraging credit cards to pay for materials on my flips and was curious how that would work.

I'm not an attorney. But tax wise I wouldn't want several flips each in their own LLC.


Lots of people utilize an S election on an LLC which they use for flips to reduce SE taxes. Having 1 S corp is enough filing costs, payroll issues, bookkeeping. Having several sounds like a nightmare.

From a liability standpoint. Every LLC needs it's own bank account. Or you're intermixing funds and it breaks corporate veil