I have 4 rental properties. I just use a separate bank account which is a personal checking account. I do NOT have my properties in a LLC.
Should I have a business checking account or is a separate personal checking account fine?
@Jimmy S. This will be preference, but have you thought about putting your properties in an llc? Then you would need a separate account. I think this is important when it comes to liability now a days.
Originally posted by @Jeremy Tillotson :
@Nate M. This will be preference, but have you thought about putting your properties in an llc? Then you would need a separate account. I think this is important when it comes to liability now a days.
I thought about it but seems like a real pain and would not really like to. Changes taxes, bank wont loan as much and just alot more headaches.
My attorney said a umbrella policy that covers over all the properties is just as good as a LLC but with alot less headaches and costs.
Right now I just use a separate personal checking bank account to keep all my rental stuff in, but does it really make a difference if its a checking vs business account?
if you choose to go that way then it really doesn't matter. I would even argue that should be treated the same so it doesn't look shady. If you are running houses in your name then monies should be in your name. On a side note a disregarded entity would change taxes. Not a lawyer or legal advice.
I got a business account for the simple reason of allowing my tenants to write checks to a business name versus my name.
When managing myself, my card simply said Property Manager and my first name... they didn't need to know I was also the owner. They wrote checks out to the business name on my card. Just a touch of anonymity which I liked.
Sure, a quick google search would have shown the owner of the company shared a first name with me but such is life :)
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