All Forum Posts by: Soh Tanaka

FYI, I am using QB Desktop version.

Thank you, @Justin Tahilramani. I do use one class per property. I have an account that is called "fund held by PM." Basically all the transactions my property manager (PM) is doing will show up there. Every month, the balance will come out from the account and PM will deposit into my account, and I call that "owner draw." If I use P&L report, the owner draw doesn't show up, so P&L report will just show money accumulating in the account, and never going down. This makes it harder to reconcile what is actually happening and my QB.

@Markus Shobe. Actually you can NOT run some of the reports by class if you use deposit rents using "Make Deposits" or by using an invoice. 

Go to Reports > Accountant & Taxes > Transaction Detail by Account, then try to filter by class, it won't work. For some reason I don't understand, there is no class associated with transactions done by "Make Deposits" or invoices, so when you try to filter by class, all the income will disappear from the report. Only when you use "Enter Sales Receipts" to deposits rent, the class will show up. I don't know why, but that's just how QB is set up. 

@Steven Hamilton II said @Natalie Kolodij is a very good accountant, so I'm interested to hear from her perspective also :-)

I always used "Make Deposits" or "Create Invoices" to receive rent in QuickBooks, and it was all good. Now, for the reason I don't understand, when I create a report called "Transaction Detail by Account," (which is one of the standard reports,) the class, (which I use to distinguish different properties,) don't show up when I use "Make Deposits" or "Create Invoices." Which means I won't be able to make a report by class. I can solve this problem by using "Sales Receipt" to receive rent. Any red flag using sales receipt for rent? Thanks!

@Clint Coons Thanks for the response. Not saying you are wrong, but having one LLC/series per property can be considered over kill, even from some asset protection experts, as far as I know. If you have X properties, that means X LLCs/series, X books, X checkbooks, X debit cards, etc. This is just me, but I found that to be too much, especially when the equity of each property is low. To be fair, I heard from other asset protection experts who recommend one LLC per property. I'm just willing to take a little more risk for little less hassle.

@Clint Coons - Knowing you won't be able to give me a perfect answer due to lack of information, just in general, what is your thought on people who have rental properties in multiple states with different LLCs (one LLC per state holding a few properties for example) use WY LLC as a holding companies of those LLCs?

Consider North West Indiana also. Decent house price, decent rent, lower tax and landlord friendly laws.

It says in Wyoming, "the charging order in standard collection matters is the exclusive remedy for judgment creditors – even against single owner LLCs."

https://www.corporatedirect.com/start-a-business/entity-types/single-member-llc/

@Chris K. I'm not an attorney, and I don't know what "participation theory" or "participation doctrine" means, but the way I understand one of the benefits of Wyoming LLC is, in short, many states consider not fair if only one of the members of a multi-member LLC does something wrong but every member loses all, but if a member of a single-member LLC does something wrong and loses all, that's considered to be fair, except in Wyoming, even a single-member LLC will get a similar protection as multi-member LLC. At least that's how I understand it by reading this article from Corporate Direct.  

I have no idea what will happen with the interest rate. 

A couple of well-known attorneys told me that it's a good idea to have LLCs in the states you own rental properties, and use Wyoming LLC as the holding company of those LLCs. As always the case, consult with your attorney as asset protection/tax strategy will vary greatly depending on your situation.