Accounting for multiple LLCs?

[Sharad M.]

Hello all,

I wanted to see how you guys are dealing with accounting issues of owning multiple LLCs? Do you have a separate bank account for each LLC you own? Or you have a main bank account for the primary LLC and use the other LLCs as holding companies only?

I have two LLCs and I own multiple properties in each of them and I am not sure if I should maintain two separate bank accounts or I can use one bank account for all transactions and use the second LLC as a holding company only?

Thanks!

[Chris Martin]

Well, I'm not going to argue with you. If the OP never rents his rentals, he clearly don't need a checking account.

Promoting the idea that the OP commingle funds across entities and that this practice is acceptable is very dangerous, IMO.

Getting an EIN is free. Checking accounts are free. Accounting will be easier. I'm looking for the arguement on why someone would not want to implement the best busienss practice (EIN for each entity).