A few bookkeeping Q's (from a beginner)

[CL Ziegler]

Greetings!

As a landlord, do I need a business license? Several people around here (Georgia) have said it’s a must. As a sole proprietor with a few houses, do you really need a business license?

How important is the LLC thing? I see people discussing it, but I've heard the taxes will go up under an LLC; is this true? Can someone sketch me a few pros and cons of LLCs?

Is business checking necessary? I can bank at the credit union for free with no minimums or limits. Another local bank offers a business account though I don’t even understand the difference, really. What does a business account gain you that you can’t get from a regular account?

Thanks everyone!

[Steve Babiak]

Originally posted by @CL Ziegler:

...

As a landlord, do I need a business license? Several people around here (Georgia) have said it’s a must. As a sole proprietor with a few houses, do you really need a business license?

...

Is business checking necessary? I can bank at the credit union for free with no minimums or limits. Another local bank offers a business account though I don’t even understand the difference, really. What does a business account gain you that you can’t get from a regular account?

...

Licenses are a local thing. In the City of Phila, I need a business license PLUS each rental unit must get a license; in the Phila suburbs, some areas don't require the business license but do require rental units to be licensed, whereas other areas are like Phila and require both types of license, and even other areas don't have any licensing requirement. So you should check the requirements for the town where you will have the rentals.

If you form an LLC, you will probably have to get business checking. I can say for the properties I own in my own name, I do use personal checking accounts.