Salt Lake City, UT · Member since 2019 · 6 posts · 0 votes
I am going to be closing on a 3-plex with a VA loan in the next two weeks or so. I think opening a new bank account to receive the rental income is what I am going to do. I would like to make it a business account, however since it is a VA loan, I cannot acquire it with an LLC until I refinance it to a conventional loan. Would I still be able to open a business account even though I don't technically have an LLC? Or should I just open a new personal checking account?
If I can recall correctly, my bank wanted to see my articles of incorporation, operating agreement, and certificate of good standing in the state of Missouri to open the account. They may have also wanted an EIN as well. In any case, to get some of those things, you would need to create an LLC.
With that being said, I would highly recommend opening a business account to separate your personal accounts from your business activities. It should be easier to track your expenses for accounting purposes.
With that being said, I would highly recommend opening a business account to separate your personal accounts from your business activities. It should be easier to track your expenses for accounting purposes.
Do you think it has to be a business account or would it work if I opened a personal checking account and just only used that for the property purposes?
I do not know the legal ramifications from doing that, but I would recommend separating your business banking activities from your personal banking activities.