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Updated about 6 years ago on . Most recent reply

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21
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Stephen Brieloff
  • Chicago, IL
8
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21
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Airbnb and LLC - setting up business bank account

Stephen Brieloff
  • Chicago, IL
Posted

Hello!

I operate an Airbnb listing, renting out the second bedroom of my primary residence (which I own). I recently opened an LLC for my other rental properties. With that, I have also opened up a checking account to pass through all of my rental income and mortgage payments, along with other payments.

Is there any reason why I shouldn't pass my Airbnb income and expenses through the same business bank account, even though the primary residence, of which I'm Airbnb-ing the second bedroom, is not owned by the LLC?

My goal with this is to keep all of my business income/expenses completely separate from my personal income/expenses.

Thanks,

Steve

Most Popular Reply

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470
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Eric P.
  • New York City, NY
348
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470
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Eric P.
  • New York City, NY
Replied
Originally posted by @Stephen Brieloff:

Hello!

I operate an Airbnb listing, renting out the second bedroom of my primary residence (which I own). I recently opened an LLC for my other rental properties. With that, I have also opened up a checking account to pass through all of my rental income and mortgage payments, along with other payments.

Is there any reason why I shouldn't pass my Airbnb income and expenses through the same business bank account, even though the primary residence, of which I'm Airbnb-ing the second bedroom, is not owned by the LLC?

My goal with this is to keep all of my business income/expenses completely separate from my personal income/expenses.

Thanks,

Steve

Yes, huge reason not to. Comingling LLC & non-LLC / personal funds is one of the top ways to have a judge disregard / invalidate your LLC in case of a lawsuit (it's called piercing the veil - google it). Not a lawyer, but this is what i've been advised by lawyers who specialize in this. Keep LLC funds strictly separate

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