Rookie-Business Bank Account

[Isabelle Trepkoski]

Hello!

I have purchased 2 duplexes in 2022. One was rehabbed and now is in the process of being rented. The other is in the rehab phase on half and the other half is rented. I realize I should have opened business accounts earlier in the process for these properties, but it didn't happen and I have been doing all the financials out of my personal accounts. 

The problem I am running into now, is that our local bank won't let us open a business account(checking/savings) without a LLC or Sole Proprietorship (EIN) and several other banks I have looked at appear to be the same. We are not planning to put these properties into LLC yet(we have a good umbrella policy for now).

My question is how do I get a business checking and savings without a LLC? Or should I just open separate personal accounts for each property? Please share what you did at the beginning of you investor journey to keep the finances separate from personal banking.

Thank you!

[Drew Sygit]

@Isabelle Trepkoski how are you planning to keep your personal and business financials separate?

You can either obtain a "Doing Business As" permit at your local county or open an LLC. Most banks will allow you to open a business account with either of those.

You can use your SSN with either, but with an LLC you also have the option to use an EIN.

Why get an EIN? 

If you want to eventually get business credit cards or loans, you'll need one.