LLC in Ohio Setup and use and paying myself

[Ryan L Grinstead]

I have my LLC with my property in it currently. For collecting rent purposes, do I start a separate business account for the LLC and put rent into the account and then pay myself like that or is there a better way or more tax efficient way? Advice from CPA or lawyer would be greatly appreciated.

[Linda Weygant]

You'll want to be careful about co-mingling funds as you move forward lest you undo the benefits of your LLC and open it up to personal liability.

Definitely open a separate bank account in the name and EIN of the LLC. All collected rents and all appropriate expenses should go through this account.

You should not pay for business expenses with a personal account nor should you pay for personal expenses out of the business account.

You may then periodically distribute excess cash flows/profits to yourself by writing a check or otherwise transferring funds.