Management LLC bank accounts
Hi,
Im restructuring my rentals and several members, articles and youtube videos suggest to have a Holding LLC and have individual LLCs inside of it owning one RE property per LLC.
Then open a traditional LLC to manage the rentals. This LLC will lease the rentals, collect rents, deal with contractors, etc.
Do I need one or several bank accounts for the traditional LLC (management LLC)? if I have only one bank account and all the tenants deposit their rent payments, will this be consider "commingling" funds?
Thank you for the advise.
#5 Multi-Family and Apartment Investing Contributor
- Investor
- Shelton, WA
- 6,788
- Votes |
- 6,521
- Posts
#5 Multi-Family and Apartment Investing Contributor
- Investor
- Shelton, WA
@Carlos C. commingling funds only becomes an issue if you mix your PERSONAL funds with your LLC funds.
In the scenario that I described a Holding company will ONLY hold the RE properties, maybe a Wyoming LLC or a Series LLC. Then the traditional LLC will have ONE checking account for ALL rentals?
Will this setup help lower the liability by keeping the RE separate from the LLC that is dealing with the public?
@Carlos C. Just curious how you ended up with this? Care to share what you learned?
Create a new LLC for every 2 or 3 houses, so you limit risk exposure. Each LLC will have an operating account.
I use AZLO (a subsidiary of BBVA) as they are free, 100% online (with physical ATM accessibility). Do not use a bank that has any service or maintenance fees. They frequently do because its a business account and its just another BS way to charge you.
I will use Community America Credit Union, they offer a good setup, no fees for business accounts.
Now I'm researching on how to move money from the LLC bank accounts to my personal account to pay for my living expenses. Looking for a good accounting software...better if it is free and not online or cloud. I don't feel comfortable adding all info to a server... and maybe in a few months or years the company closes and has all my info.
Maybe Quickbooks... now I'm using excel templates.
Hi, I don't have a lot of rentals...and don't plan to buy more...maybe do a couple of flips a year to increase cashflow and savings. I been looking for accounting software, Quickbooks, and it looks like now all versions are online only, with a monthly subscription. I would like a basic bookkeeping software, desktop, that I can purchase and use until I want to upgrade. A few desktop version will work for 2 to 3 years, then you have to pay for a new license.
Any suggestions?