First business checking account

[Hariharan Elavarasan]

I'M UNDER CONTRACT!!!! I can't believe I'm actually here and things are finally moving. I started learning and saving 4 months ago and I'm excited to get to the next steps.

I wanted to go ahead an setup a business checking account and they asked me for a business tax identification number. Should I apply for an EIN? And if I need to, what do I apply under? I was going to put sole proprietorship, but eventually I do want to make an LLC, just not right now. I guess I just want a step by step process to create my accounts for this first rental property. Appreciate any help!!!

[Troy P.]

Quote from @Steve Vaughan:

Quote from @Troy P.:

Quote from @Steve Vaughan:

Quote from @Troy P.:

Quote from @Steve Vaughan:

Quote from @Hariharan Elavarasan:

I'm all about having an entity /LLC or dba to manage your rentals. I sign leases and collect rents and deposits not in my personal name.

Steve, Can you explain the benefits of this?

Probably not in a satisfactory way to you, but I've never listed myself as the landlord or had tenant funds made payable to me.  I established a mgt entity with and under the advisement of a legal professional.  

I only brought this up because the OP wasn't clear on business acct purpose.  To distinguish the difference between managing with an entity or dba which I do and owning small residential property inside one, which I don't. 

Thanks, I was only curious because I had a legal professional suggest the opposite and it's very hard to find consistent advice no matter who you ask.  I have an LLC set up but was convinced it "wasn't buying me anything" unless the property was held under it.  I got exhausted asking for help, so I was curious what your reasoning was behind it.  Thanks again.

 OK gotcha.  I first thought you were an attorney or something because you quoted me then said to the OP not to follow bad advice. 

With advice on here, especially whether to LLC or not, you have to look at who is offering it. This isn't FB with no way easy way to guage credibility easily.

After having dozens of rentals for 21 years, it should boil down to property type and whether you have unrelated partners or not. Here's what I did:

Residential and no unrelated partners = no LLC.

Commercial/ industrial = LLC. Unrelated partners = LLC or TIC.

That makes perfect sense to me actually, and sorry about the confusion. My second paragraph was not directed toward you, but more like a rant on the inability to find useful and consistent information, especially for new investors who are told "just get an LLC", without any further direction or clarity. Thanks again for elaborating, it was helpful.