Business Account or "Business" Account with Bank

[Patrick M.]

When opening a separate account at the bank for rental deposits, rent, and expenses are you opening an actual business checking or are you opening a personal/general checking and calling it your "business" account.  Keeping funds separate of course. 

I plan to just up my umbrella coverage for liability so I won't have a Tax ID which I believe you need for an official business account? 

Thanks

[Frank Chin]

I have a separate "personal" bank account for rents and rental expenses. This makes it easier to keep track of things, particularly if you use QuickBooks. In QuickBooks, you can set up a bank account, reconcile it monthly, so having a bank account just for the rentals would make it so much easier. Occasionally, I use my personal bank account, also credit cards to pay for rental expenses, and I have to make "journal entries" to record these. Otherwise, I have to record all the transactions in this other checking account, or credit card account where I do almost no real estate transactions.

Then, at one time, I had a real estate management company operating thru a C Corp with it's own business account. Unfortunately, the personal and commercial sides of most banks are separate. Even though I have a wealth account with them with perks from the personal side, I still pay fees on the business side. On the business side, they charge fees for deposits also. It's small potatoes but bothersome.