Please help with Funds co-mingling

[Mary Jay]

Hi guys,

I have a question for all of you... I am trying to avoid funds co-mingling. So what is the best way to do it?

I have a house in an LLC, also I have a property management company.

Ideally would be great not to open a separate bank account for each future property...But its is probably unavoidable....

Anyway:

1) HAndyman does the work on a property but there is not enough of money in the LLC's bank account. Can I add my personal money into an LLC account? Or, can I write a personal check to the contractor even though the property is in an LLC? Or is it funds comingling?

2) If I want to buy another property, can I write an earnest money check from my property management company? Or it is funds co-mingling?

3) How to withdraw money so it would not be comingling? Can I just go to the bank and get cash out what is left in the LLC for the house account?

4) Can my property management company pay mortgage for all rentals that are in different LLC's? So I would not have to order checks for each house in each LLC? Its should not be comingling of funds, right?

Thank you so much in advance!

[Stephanie P.]

Originally posted by @Mary Jay:

Hi guys,

I have a question for all of you... I am trying to avoid funds co-mingling. So what is the best way to do it?

I have a house in an LLC, also I have a property management company.

Ideally would be great not to open a separate bank account for each future property...But its is probably unavoidable....

Anyway:

1) HAndyman does the work on a property but there is not enough of money in the LLC's bank account. Can I add my personal money into an LLC account? Or, can I write a personal check to the contractor even though the property is in an LLC? Or is it funds comingling?

2) If I want to buy another property, can I write an earnest money check from my property management company? Or it is funds co-mingling?

3) How to withdraw money so it would not be comingling? Can I just go to the bank and get cash out what is left in the LLC for the house account?

4) Can my property management company pay mortgage for all rentals that are in different LLC's? So I would not have to order checks for each house in each LLC? Its should not be comingling of funds, right?

Thank you so much in advance!

Dump the LLC idea until you've got more than 10 properties. In the interim, buy an umbrella liability policy to protect yourself. You'll get easier bookkeeping that will create less management woes and significantly cheaper financing with a similar amount of protection.