How to properly transfer monthly between accounts?

Question

Landlords with multiple LLCs, how do you handle monthly transfers between accounts?

I have 7 properties across 3 LLCs, each with its own checking + savings at different banks (Chase for two LLCs, a local credit union for the third because they gave me the best loan terms). Every month I am logging into different bank portals, calculating how much to move to tax reserves, topping up the maintenance fund, sweeping excess from operating to savings. It takes me about 2-3 hours twice a month and I've made mistakes in the past like sending the wrong amount or to the wrong account.

My CPA keeps telling me the transfers between LLCs need to be documented as inter-company loans, which adds another layer of tracking.

For those of you managing 5+ properties across multiple banks:

• How many bank accounts are you actually juggling?
• Do you have a system for the monthly "sweep" — moving money to reserves, taxes, etc.? Or is it all manual?
• Has anyone found a tool that shows all your accounts across different banks in one place? (I don't want to move my banking so options like Baselane are not good enough)
• How much time per month do you spend on this?

Everything I find wants me to switch all my banking to their platform.

Aaron Zimmerman · Answer

I think there's some context missing. Why do you have three LLCs in the first place? Typically, investors that have multiple LLC want to separate out the equity so too much is at risk.

what id do if money needs to be moved Amongst the LLCs. Distribute monies to you, then put that Money into the other LLCs.

your accountant is spot on because you don't want to be commingling assets which could pierce the corporate veil if you're sued. Plus, you need separate books and records.

Patrick Morton · Answer

Delete 2 LLCs and move everything into 1 unless there are different partners involved. Problem fixed

Kevin Sobilo · Answer

@Shai Hall, a few thoughts:

1. Why do you have it split between 3 LLCs when you want to run your entire portfolio as ONE business?

2. I could understand if the value of the properties is so great that you want to protect them from each other, but if the properties are so valuable like a large multifamily then they should enough to have their own separate reserves.

3. I would likely have these all properties in 1 bank and with several accounts. I use the profit first cash management approach.

Profit First Book

4. It sounds like you made a bit of a mess setting things up, you can't just work around that and expect things to get easier and smoother.

5. If you don't do these things correctly, you don't really have viable LLCs because by not managing these things as separate businesses you risk anyone suing you being able to "break the corporate veil" and then the ONLY purpose of those LLCs is gone.

6. With profit first, I transfer money between accounts twice per month and spend maybe 5 minutes total or so. There are banks where the transfers could even be automated as mine are made on a % basis. So, there is no thinking involved.

Fulton Abraham Sanchez · Answer

@Shai Hall, hi. Simplify the system: use 1 operating + 1 reserve account per LLC, set fixed transfer rules, and track everything in one dashboard (like QuickBooks).

Standardize intercompany loans and automate where possible,cuts time and reduces errors.

Ashish Acharya · Answer

Hey Shai, you've gotten some great answers so far, just wanted to add some things... your CPA is right on the intercompany piece, but the bigger goal is consistency and clean tracking, not overcomplicating it.

Since you have multiple LLCs, transfers between them should be treated as documented loans or distributions, not just random sweeps. That said, most investors simplify by limiting transfers and keeping each property/LLC as self-contained as possible.  For monthly sweeps, a lot of people move toward a standard system like: fixed % to taxes, fixed % to reserves, and leave the rest. Automating this (even partially) helps reduce errors and time. From a tax standpoint, what matters most is clear books and an audit trail, not how many accounts you have. If it takes 2–3 hours and leads to mistakes, that’s usually a sign to simplify the structure or reduce unnecessary transfers. I would get with your attorney and CPA to see if there is any way to consolidate the LLCs, as someone said above, and make things simpler.

To answer the other question, clean up how you have it first, use tools like QuickBooks, as someone said above, to help you, and then keep a consistent schedule for reconciliations, transfers, and reporting, and strategically group things. For example, some investors maintain “primary” operational accounts for cash flow, but still honor the separate accounts for legal, tax, or loan requirements. If you take the time to set up a clear process, stay organized, and use tools (there are so many out there now) to help you, this should improve your time management for all of this. By the way, if you're REPs, make sure you are keeping track of all your time and documenting it so you can use it and if all of this still seems like a lot to keep track of, maybe consider having a bookkeeper help.

Happy to connect.

Shai Hall · Answer

Thanks everyone. It was actually more insightful then I anticipated.

Sounds like most of you solved this by consolidating to one bank. Curious about a different scenario: for investors who use different banks by design (credit union for DSCR loans, Chase for operations, separate trust accounts by state for security deposits), has anyone found a way to manage that without consolidating? Or is the conventional wisdom that you should always sacrifice the better loan terms to simplify the banking?

Drew Sygit · Answer

If you keep the 3 LLCs - who says you MUST balance monthly?

We only do it annually.

Joel Miller · Answer

Like the others have said, constantly moving money around between LLC's should not be the way things are normally operating. Hopefully, each LLC has positive cash flow because the objective should be to simply be taking draws from each entity into your personal funds without draining any of the LLC accounts too low. Then, if an LLC needs money, you loan money back to an LLC from your personal funds.

Kenneth Garrett · Answer

I think @Kevin Sobilo gave you some solid advice.  I think the key is documenting where money comes in and where it goes out.  You need to document all transactions.  You can use quickbooks to help with that.  I use multiple LLC’s but not multiple checking accounts.  Just a couple accounts.  Provided you document things I think you’re fine.  I work with my CPA to make sure things are organized properly.  I update my books at a minimum once a month, but really try to do it every week.  It only takes a few minutes.

How to properly transfer monthly between accounts?

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