How to Conduct Business in 2 Family Owner occupied House - SMLLC

[Christina R.]

Hi all,

I am in contract on a 2 family home in which i will live in one of the units and rent the other. I opened a single member LLC and have the contract in the LLC name with me personally guranteeing the loan, okayed by my lender. My loan commitment letter is in my personal name as well, also okay with the lender. I am hoping for a smooth closing. I understand the pros and cons of the SM-LLC, as well as possible gray areas in terms of asset protection in case of accident or tragedy. I will also look for a good umbrella insurance policy. My question is when I close how do i conduct business properly and not comingle funds. Meaning do i pay my whole mortgage from my personal checking account? Or do i have funds set aside in my business checking account for this? Or is the business checking account really for rental payments received from the tenant? How do i initially fund the business account? I have to do some repairs after closing so do I move money around from personal to business accounts at first until i am positive cash flow in my business account? This is my first multifam house (owned an apartment previously) so just trying to do it right. Thanks!