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Updated almost 5 years ago on . Most recent reply presented by

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Mary Jay
  • Glendale, AZ
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Proper way to do distributions

Mary Jay
  • Glendale, AZ
Posted
Hey guys,
what are the proper way to do distributions?
Lets say I have 5 rentals, the money comes to my property management company, then property management company does a distribution to me...
1) Should I do it via check? Or can it be a bank transfer from property management company to my personal bank account?

2) Should I write on the check something like: distribution for property 123 East 321 West, or something like that?
If its ok to do through bank account should I make a note that its a distribution?

Or what is the proper way to do all these things in order not to pierce a corporate veil?

Thank you

Most Popular Reply

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Taylor L.
  • Rental Property Investor
  • RVA
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Taylor L.
  • Rental Property Investor
  • RVA
Replied

I've had it explained to me that you want to be able to show a clear delineation between you and your LLC. Having the PM company direct deposit to you would not do that. You should have separate bank account(s) for your LLC(s) and their transactions should be handled out of those accounts

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