An LLC or Corporation will have a bank account in their name, and commingling funds, which can lead to IRS audit problems, should not be a problem. 

That would not be supported in an audit.

Having an LLC as a partnership instead of running the business as a sole prop allows you to maximize tax deductions and lower audit risks. 

There are warehouse lines you could get but be aware they are for short term financing - meaning you have 30 days to sell it after origination.We have spoken to several lenders and they want to see 2 years in business and will start at $10-$20M but they have strict requirements (audited financials, personal guarantees and want you to have banking relationships).

That said, be sure to document all intercompany transactions properly for audit protection.This post does not create a CPA-Client relationship.

@Chris Seveney Your line:"There are a lot of compliance issues therefore we engaged a broker dealer and a legit company to perform our annual audits"Amen to that - well worth the cost I am sure. 

So my thoughts to what is or isn't a huge trigger for the IRS for audits is based on direct input from the industry.

You can also use this data to address concerns in a more informed and objective way.Conducting a utility audit can also be a game-changer.

I believe your account can be frozen by the IRS if they start investigating you or auditing you if you’ve commingled funds.

This added layer of privacy can be an important deterrent against frivolous lawsuits or invasive inquiries.There are additional benefits to using a holding company, including reduced audit risk, a cleaner and more streamlined appearance on a personal 1040 tax return, and improved borrowing power on Freddie and Fannie-backed loans—especially for investors with newer portfolios.My general point is this: a holding LLC is not a shield against tenant lawsuits.