Business bank account or personal acct

[Zachary Engen]

I need some advice on rental bank accounts. So I have an llc and business account set up for that llc, but I just bought a duplex with an fha loan which isn't in the llc because I couldn't get fha approved for the llc. Do I still use my business accounts to collect rent for my duplex even though it's not held in the llc? Or do I just open up an additional business account in my name?

[Nicholas Mann]

Maybe set up the LLC as a property management account and use that to operate your rental business. My rental LLCs with my bank dot necessarily tie into the property being purchased under that LLC name. It's really just a rent/expense account to keep track do BOOKEEPING.

[Michael Smythe]

@Zachary Engen agree with @Nicholas Mann

[Bryce Andrews]

@Zachary Engen I would open up and additional account to keep things separate. This will keep things cleaner for bookkeeping and for when tax time comes around.

[Todd Lennig]

@Zachary Engen. If the new property isn't owned by the llc then you will not want to put the income in the bank account nor pay expenses from it.  This is called commingling and its a big no no with bookkeepers and cpas.  I suggest to all my bookkeeping clients to open up a separate bank account for this property.  I further recommend, having an income, expense, property tax accounts at the very least.  Check out profit first and profit first for real estate investors for more info on those accounts.

Send me a dm if you or anyone else has a question.

[Max Emory]

@Zachary Engen, I agree with @Todd Lennig. We see this type of situation a lot with REIs and I've experienced this myself as an REI.

Keep personal personal and business business as far as entities, ownership of assets, and financial accounts go. 

I understand that the duplex is a "business activity" but you own it personally so the financial accounts associated with it should be personal accounts. 

To stay organized, open up new personal accounts that you only use for your REI activities.

I'm a huge fan of Profit First as well. Highly recommend it.

Best of luck!

[Joseph Collier]

What state are you located in? You'll definitely want to open a separate account so you're not commingling for book keeping purposes. If you have an LLC, I would even suggest putting your investment property under your LLC. Do you plan on acquiring more than 1 property?

[Markus Shobe]

Open up an additional account to keep everything separate, never want to commingle funds.