Multiple bank accounts on LLCs ? holding structure question

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Multiple bank accounts on LLCs ? holding structure question

Jonathan B.
Southeast · Member since 2017 · 172 posts · 13 votes

Hi Guys,

Currently own multiple properties (Sfr),

they are spread out into various LLCs, having couple of properties in each LLC.

these LLCs are all owned by and a subsidiary of a 1 holding LLC.

Rent is currently flowing into 1 bank account, all expenses and income are being segregated and and accounted for with QB and works well.

Ive been reading that each LLC should have its own Bank account.. i feel this would be a pain to do..

What do you suggest doing? 

how are you structuring your holding?

appreciate your insight.

stay safe.

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John Warren
Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
6y

@Jonathan B. every attorney and CPA I have spoken to has always told me that I should have separate bank accounts for each LLC. I am pretty sure that if you commingle funds in one account then you may be making the whole structure sort of pointless as an attorney in a law suit could claim that you aren't really running separate businesses.

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  • Sylvia B.
    Rental Property Investor · Douglas County, MO · Member since 2014 · 1k+ posts · 1k+ votes
    5y
    Originally posted by @Cristalle J.:
    Originally posted by @Sylvia B.:

    The accounts are separate because they have different account numbers and different owners. However, from one login I have access to any account that my signature is on. Currently that is 7 different accounts. Your bank may require separate logins for each account, mine does not.

    What bank are you using?  I'm looking to have the same setup...

    I don't know if this feature of multiple accounts/one login has a name.

     It's a small bank in southern Missouri, unlikely to have a branch near you. 

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  • Nona Brewing
    Member since 2023 · 1 post · 0 votes
    3y

    Thanks Sylvia! Regarding the property management single-member LLC, is it a disregarded entity and did you have to use an EIN to open the bank accounts?

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  • Sylvia B.
    Rental Property Investor · Douglas County, MO · Member since 2014 · 1k+ posts · 1k+ votes
    3y
    Quote from @Nona Brewing:

    Thanks Sylvia! Regarding the property management single-member LLC, is it a disregarded entity and did you have to use an EIN to open the bank accounts?


    Yes, and yes. Each LLC has its own EIN. It can neither open a bank account nor buy real estate without one.

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