Checking account - obviously separate personal from business

[Jason Turo]

What are the risks / potential liabilities if we operated an LLC for rental properties but used a checking account strictly for business purposes in our personal names? We would obviously not use this account for any personal transactions, it just seems easier than setting up (and potentially paying) a business checking account. Thanks

[Bob Okenwa]

Get the business account, pay for it, and call it the cost of doing business if you are going to go with the LLC. No sense in half stepping along the way if you're going to go all of the work of getting the LLC going.

[John Thedford]

Check around. Some banks don't charge. I have five different accounts and -0- fees per month. You may not find this at the big banks. Look for a local community bank.

[Lance Lvovsky]

Agreed with the above posters. Get the business checking account in the name of your LLC. It is all part of maintaining formalities when you operate an LLC - I am sure your CPA or attorney mentioned this to you.

Most community banks offer free checking accounts.

[Jason Turo]

Thanks for the feedback

[Ashish Acharya]

@Jason Turo, I understand that creating seperate account and all the formalities might look troublesome at first.

If you ever get sued for your rentals or construction related issue,or by any other creditors, court might take this action as commingling of the personal and LLC's fund and rule that you are "piercing the corporate veil."

LLC is a different entity from owners, so when LLC gets sued, LLC's asset is at stake, not owners. But if court sees that you are not keeping owners financials separate from LLC's, owner is not separate from LLC and you will be liable. You will be deeded to Pierced the corporate veil.

Please keep your financials separate. 

[Jason Turo]

Understood, thanks.