LLC Banking and Bookkeeping Structures

Member since 2024 · 12 posts · 5 votes

I have three LLCs with SFH rentals in different states. One has a PM, and I self-manage the other two.

What is your exact LLC banking and bookkeeping setup? Have you found a high-yield LLC savings account that can receive rent and pay mortgages and other expenses? Which PM and bookkeeping software do you use?

I’d love to hear how you’ve structured rent collection, expense payments, and tracking owner contributions and distributions. Thanks for sharing your experience!

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Greg Kasmer
Rental Property Investor · Philadelphia, PA · Member since 2021 · 780 posts · 504 votes
1w
@Magda Rose - I have a different checking account for each property and all payments (rent, utilities, etc...) go through that account as well as any income (rent). I typically download the activity and that serves as a good baseline to put together the end of year P&L for that property. For any additional reserves from each account I typically put into "one pot" into a savings/money market account. I do use an online software (Hemlane) to manage patient inquiries and host a portal for the tenants to access. Hope this helps!
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Noah Hanson
Member since 2026 · 3 posts · 0 votes
1w
Greg's one-account-per-property setup is what I'd copy too. On your contributions and distributions question: my partner has several entities, and money moving between personal accounts and the companies was where the books got messy. What fixed it was booking every transfer on both sides the same day and labeling it as a contribution or a distribution, not just "transfer." Then each LLC reconciles to its own bank statement once a month. At tax time the totals are already there instead of getting rebuilt from twelve statements. Do the three LLCs sit under a holding company, or do you own each one directly?
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Ashish AcharyaBusiness Member
CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
1w
Greg and Noah covered the practical banking setup really well. I'd add one thing from the tax side: with three LLCs in different states, I'd make sure your banking and bookkeeping structure makes it easy to track each LLC separately from both an accounting and tax perspective.
I'd want each LLC to be easy to reconcile, with owner contributions, distributions, and transfers clearly labeled rather than just showing up as "transfers." That becomes especially important when you have multiple entities and state filings. For the reserves, I'd also keep the funds clearly attributable to the appropriate LLC even if you're using a separate savings or money-market account.
The goal is to have everything organized throughout the year, so tax time is about reviewing clean records rather than reconstructing three LLCs from a year's worth of bank statements.
Feel free to DM me I’d be happy to send over a few resources that might be helpful.
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Allison Machazek
Accountant · Bloomfield, NJ · Member since 2026 · 19 posts · 3 votes
3d
Magda, one piece I'd pay particular attention to is the LLC with the property manager. The deposit you receive is only part of the picture, so I'd want the books to capture the underlying rent, fees, expenses, and money the manager is still holding for you.
I’d also use consistent categories across the three LLCs while keeping each entity’s records separate. That makes it easier to compare the properties without having to translate three different sets of categories.
For software, I’d test one actual month before committing: can you reconcile the bank account, account for the PM statement, and clearly identify owner contributions and distributions?
Are you currently recording the detail from the manager’s statement, or just the payout that reaches your bank?
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