LLC Bank Accounts

[Noemi Venegas]

Hi all,

I just opened up an LLC with series for each of my properties. I know that my next step is to open up separate bank accounts for each property and for the holding company as well. From your experience is there any specific questions I should be asking of the bank I go with? Is there a bank that you would recommend? Or is there anything I should look out for now or the future?

Thanks in advance!

[Tony Christian]

Here’s a clear and practical response:

Hi Noemi,

Congrats on setting up your LLC and series structure! You're definitely on the right track by planning to open separate bank accounts for each property and the holding company. This is crucial for keeping your finances organized and protecting your LLC’s liability status.

Here are some questions to ask when choosing a bank:

1. Fees and Minimum Balances

• Do they charge monthly maintenance fees?
• Is there a minimum balance required to avoid fees?
• Any fees for wire transfers or ACH payments?

1. Online Banking and Integrations

• Is the online banking platform user-friendly and reliable?
• Can it integrate with your bookkeeping software (like QuickBooks or a property management tool)?

1. Multiple Accounts Setup

• Will they allow you to open multiple business accounts under one LLC for each series?
• Are there any discounts or perks for maintaining multiple accounts?

1. Check-Writing and Payment Options

• Do they offer free checks or digital check-writing?
• Can you easily pay vendors and contractors online?

1. Customer Service and Support

• Is there a dedicated business banker you can reach out to?
• How responsive is their customer support?

Bank Recommendations:

• Chase and Bank of America are popular because of their extensive business banking features and integrations with bookkeeping tools.
• Smaller community banks or credit unions can offer more personalized service and lower fees, but make sure they support series LLCs.
• Online banks like Novo or Mercury are great for tech-savvy users who want low fees and easy online management.

What to Watch Out For:

• Hidden fees for transactions or deposits.
• Limitations on the number of accounts or ACH payments.
• Difficulty in maintaining clear separation between the series, which could risk the limited liability protection of your LLC.

Since you’re using a Series LLC structure, it’s crucial to keep each property’s finances completely separate to maintain liability protection. Also, make sure to record every transaction clearly to avoid any issues with the IRS or legal matters.

Hope this helps!