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Updated almost 4 years ago on . Most recent reply

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Proper bank account set up

Posted

Hello to all Inverstors and Landlords,

 my issue might be a bit basic, but it is vital and I believe many can benefit from it. After a long search, I finally purchased my first Househack property. It is a great one for Cashflow and it will make me financially free just on its own. I want to do things right and to the letter as it pertains to the law.

I was told by a landlord and realtor friend of mine that what you must do is open up a separate Business Account, in your own name (since the property is in my personal name (FHA) ), and then put the deposits in savings accumulating interest, and the checking is for rent.

I did that, now the bank is telling me they can't really keep a business account in a personal name, and that it would have to revert back to a personal account, unless I call up the secretary of state and register myself as a business or a sole proprietorship.

The funny thing is I already have an LLC, which I believe I registered as a sole proprietorship at the time, but I didn't want to mix the 2 because this property is in my personal name, and this LLC will be used for other strategies in the future.

Do i register myself as a business, do i use my LLC for this account and set it up as some kind of management company here, do I let it go into a personal account and just use that, could that not be co mingling of funds, especially if I pay myself from there?

Sorry if this is too many questions, I am in the state of Minnesota here. I appreciate anyone's informed response in this matter.
Thank you :)

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