Business Accounts, Funding and Withdrawal Questions

[Amit Raghavan]

Hi Everyone,

I am just getting started and wanted to figure out the best structure to setup my business accounts as well as fund /withdraw from it. The main goal here is to maintain clean trail as well as minimize questions during tax season:) I just started the investing journey and am currently in contract on 3 SFH in OH/IN area. I've spent the last few months building my out-of-state team but am now also trying to figure best way to structure the business. I've done some research and have seen a variety of opinions but would love to hear from you (sorry this is is repetitive). I currently don't have an LLC but am contemplating on setting one up eventually (don't like the high CA fees!)

1) Business Account Setup Options

1. 1 checking and 1 savings (hold for tenant deposit) for all properties
2. Separate checking and savings for each property

2) Funding these accounts initially

• Can I deposit say $4-5K from my personal accounts into these to get started?
• For example, how do I pay for and account for rehab/capex/inital rental expenses if I don't have the necessary funds in these accounts?

3) Withdrawing from these accounts

• Can I transfer the funds from any/all of these accounts to fund new investments or do whatever I want? 

4) Prop Mgmt

• I am using a small shop/local person who I trust to manage my properties in OH (and he is compliant with real estate requirements)
• He will have the authority to make up to $250 in repairs without my consent
• Should I setup another joint business account and maintain a minimal amount of say $300?
• And then grant him a debit card that has a cap of $X dollars?

5) Favorite tools to track/manage

• Excel?
• Quickbooks?
• Others?

Your help is greatly appreciated!

Amit