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Updated almost 13 years ago on . Most recent reply

Account Closed
  • New York, NY
7
Votes |
183
Posts

What do you do to protect the legal integrity of your LLC?

Account Closed
  • New York, NY
Posted

I have created a LLC for holding a piece of rental real estate in Florida. I want to make sure I take the proper steps to keep my LLC as a separate entity then myself, what should I do other then the steps I have listed below?

Also- I purchased the property in the name of my LLC, but used my personal bank account to physically wire money to the title company. Is this ok? How should I record this transaction?

Things I think I should do:

1) Conduct regular meetings and record minutes
2) Use a Florida registered agent
3) Keep a separate bank account for the LLC and only use it for business expenses
4) Hold a operating agreement
5) Do I need to use "Quickbooks" or other professional accounting software to record expenses/revenues?

Most Popular Reply

Account Closed
  • Landlord
  • Seattle, WA
1,839
Votes |
3,412
Posts
Account Closed
  • Landlord
  • Seattle, WA
Replied

I agree Bill Gulley a personal guarantee in no way co-mingles funds. It is just that a personal guarantee is used to get around the limited liability.

A newly formed business or new investor is not likely to avoid a personal guarantee especially on big ticket items. In time though it may be possible to avoid a personal guarantee and it makes it harder to pierce the LLC and attach your personal assets.

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