Business Bank Account vs Personal Bank Account

[Becca Flim]

Hey BP community! 

We are in the process of purchasing our first rental property in PA and looking at opening up a separate bank account in order to track our expenses. At this time we are not looking at setting up an LLC as we only have one property, although we may in the future once we have acquired more properties. I have a couple of questions:

1) Are there advantages/disadvantages of opening a business bank account vs a personal account?

2) Does anyone know if PA has a law as to where the security deposit needs to be placed or can we just keep it in a savings account?

3) Is it best to open up both a savings and checking account or should we stick to one?

4) Should we do the down payment and closing costs from the new account?

Thanks in advance for your help!

Becca

[Ashley Yoviene]

We manage out business expenses out of a separate account. I have several bank accounts…

1. Personal savings/checking

2. Property acquisition checking (purchase and rehab costs)

3. Property management checking (income from rentals, property management charges, small repairs - anything that happens in the day to day post acquisition)