Tracking finances and Accounts

[Tim Sipowicz]

I'm a newbie investor closing on my first property this Friday. I had a question about different bank accounts and how to allocate rental income. I am starting an LLC but have decided not to open up a business account and deposit the rental income through that type of account, I'll be using the LLC for another venture. What is the best practice to keep everything aligned and organized in terms of income generated from the property. Just open another simple checking account and label all deposits "rental income." I may be overthinking but would like to know if this is the best for tax purposes or anything in general. Hope that makes sense and appreciate any feedback.

[Steven Foster Wilson]

From my accountant here in Columbus OH

"Keep everything separate. If you have a property under an llc, have a separate bank account for the llc, and try to only use that account for related expenses and deposits, it will save a big headache later on"