Entity Structure Bookkeeping Questions

[Duane K.]

Hello all, I'm in process of setting up my entity structure, I'll have a holding company LLC and then two property LLCs with one property in each. I've got a checking account open for each already and understand the non-mixing of business and personal expenses to keep the corporate vale protection. I have some questions on the details though.

An example is how I handle expenses for the entities themselves (not specifically property related). Such as my legal fees for setting up the entities or legal fees for filing the Articles or registered agent fees and things like that. Other then maybe the registered agent fees, those bills are billed to me. Should I pay them personally or from my entities' accounts?

What about general business expenses? For instance I had a $125 bill from my lawyer for asking various questions about my entity structure, but not one LLC specifically. Would that simply be paid by me personally?

Thanks!

[Jerry W.]

@Duane K. , first you do not normally need separate entities for each property unless they are very expensive. Since you have them make sure you keep up to date minutes and records on each. You probably need to ask an accountant like @Steven Hamilton II or someone like him about the deduction rules. My guess is that you would need to bill each expense for each company separately, and expenses that were shared may be divided according to their share of cost or billed all to one, and none to the others. In other words the advice you got was just for your first company and your second had no expense since you already knew the answer from the first company's lawyer. Just my thoughts but please ask an accountant. As to @Verran Jones , to be honest I didn't understand his answer.