I just bought my first duplex and wanted to get some advice on whether I should open a business account as a sole proprietor or LLC and what bank accounts I should be considering. Are there any particular banks or credit unions I should consider as I figure this process of handling my financials.
Rental Property Investor · Smyrna, GA · Member since 2018 · 974 posts · 645 votes
7y
You can do do it either way. Any bank will do but each may have differing deposit amounts and fees associated with the business checking and savings (you need both). Whether you go with an LLC or sole proprietorship at the beginning not as important. The bank will set it up either way. My first was a duplex and I set the bank accounts up with my LLC parent company and used the same bank as my personal checking. I may switch this in the future to limit the bank's power over my money tied to both. Once you have your accounts set up, go ahead and set them up in Stessa to handle your tax and accounting info.
Financial Advisor · Blaine, MN · Member since 2014 · 478 posts · 387 votes
7y
I just opened a business account at Wells Fargo and they gave me a $500 bonus for signing up. I only chose to do my business banking there because that is where I do my personal banking.
When I only had one rental property I just used my personal bank account and was careful with tracking the expenses. Now that I'm up to 2 rentals and managing a rehab I am really glad I opened up the business account and am keeping expenses separate.