Help with Accounting

[Robert Larue]

Hi all,

Been trying to research the best way, but have found many different answers and I'm getting more confused!

My business partner and I are buying SFR and multifamily in St Louis Missouri, we now have about 9 units total, with offers on about 15 more.

I need a suggestion on the best way to set up our accounting. Right now we have about 5 houses in an LLC, so we are planning to have multiple LLC's that own around 5 properties each.

My question is this: does it make sense to have a management company LLC, that collects all the rents for all the properties so we can manage income and expenses all from one account and one accounting system?

Or should we have seperate bank accounts for each LLC and have the rents come in and out of those seperate accounts.

In either case, what is the best software to track rental income and expenses and be able to attribute to specific properties?

Thanks so much in advance!! 

-Rob

[Alan G.]

Robert,

I currently have multiple LLC's each holding about 10 properties. I have another LLC that is just for management. This way all my tenants make checks out to the same llc.

I then make a distribution once a month from my management Llc to the ownership llc.

I also use quickbooks for each individual llc so I can track income and expenses for each individual property within the LLC.

Yes, you will need an individual bank account for each llc.