How much should I keep in LLC savings?

[Craig Garrow]

Quick question! I'm working on getting my LLC set up for my property management business. What I currently do, is keep a business savings account that is my "investment" Account - meaning it is strictly off limits except for real estate purchases. My thought is, once I get the company set up, to take all but $1,000 for incidentals out and put that into a savings account at a new bank that is harder for me to access on a whim. Just wanted to see what everyone else is doing! Thanks in advance!

[Peter Mckernan]

@Craig Garrow

It sounds to me like you are looking to have that money for business expenses. If that is the case it is a good rule of thumb to keep a six month cushion in their for your business (formally named Retained Earnings). 

This will give you plenty of money to do most anything with your business and know that you will stay afloat in a rough patch.