Checking Account and Business Credit Card Recommendations

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Checking Account and Business Credit Card Recommendations

Sarah Pelton
Member since 2022 · 12 posts · 9 votes

Hello! I have 3 LLC's right now--one for each STR. My plan is to open up a separate business checking account per LLC. My questions:

1. Who do you recommend for the business checking accounts? Is Bluevine a good option?

2. Do you think I need savings accounts for each business?

3. For the business credit card(s), is there a way around opening a separate one for each LLC but still keep transactions separate? Or, best to have one per LLC.

4. Recommendations for best business credit cards? 

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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
3y
Quote from @Sarah Pelton:

Thanks, @John Underwood. Do you find that cumbersome from a bookkeeping perspective to keep expenses separate? Any advice on business credit card(s)? I see your point as I scale (and that is the plan). I am trying to balance keeping filing easier and not having an unnecessary number of accounts. 


 I use a Capital One Spark business card. It pays 2% back on everything. No annual fee.

I write on the top of each receipt and add something in memo for checks to make it easy to keep seperate for each property.

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  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    3y

    As you get more LLC'S having a seperate account for each can get cumbersome.

    I put my CPA and attorney together and they decided it was best for me to have one business account that is under its own LLC that receives all money and pays all the bills.

    I didn't create all this until I had over 10 paid off properties. Just no need when you have mortgages and insurance.

    My lower level LLC'S that own properties don't even have EIN's or bank accounts.

    I have a local bank for this account.

    I also have self directed ROTH IRA bank accounts at this same bank.

    3Reply
  • Sarah Pelton
    OP
    Member since 2022 · 12 posts · 9 votes
    3y

    Thanks, @John Underwood. Do you find that cumbersome from a bookkeeping perspective to keep expenses separate? Any advice on business credit card(s)? I see your point as I scale (and that is the plan). I am trying to balance keeping filing easier and not having an unnecessary number of accounts. 

    0Reply
  • Leslie Anne Morris
    Real Estate Agent · Smoky Mountains, TN · Member since 2022 · 1k+ posts · 984 votes
    3y

    US Bank is where I’ve got most of my business stuff. They have unique offerings for LLCs. Full disclosure I worked there for about 18 years. 

    1Reply
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    3y

    We have our accounts at local credit unions. Personalized service and help when I need it ASAP.

    I will say that I don't use them for financing deals as they really only lend in WA state and I don't invest here.

    0Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    3y

    @Sarah Pelton

    We use chase.

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y
    Quote from @Sarah Pelton:

    Talk to an attorney about putting the LLCs under a holding company or trust. It may simplify your life in the long run.

    Check out Travel Freely for credit card recommendations. They are 100% free. There is a short training program that teaches you how points work, then they recommend cards based on your personal goals. I started with them a few years ago and my points have paid for almost 30 tickets and I still have 500,000 points left.

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  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    3y
    Quote from @Sarah Pelton:

    Thanks, @John Underwood. Do you find that cumbersome from a bookkeeping perspective to keep expenses separate? Any advice on business credit card(s)? I see your point as I scale (and that is the plan). I am trying to balance keeping filing easier and not having an unnecessary number of accounts. 


     I use a Capital One Spark business card. It pays 2% back on everything. No annual fee.

    I write on the top of each receipt and add something in memo for checks to make it easy to keep seperate for each property.

    3Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    3y

    +1 on using local Credit Unions. They always come through with friendly and personalized service for me....

    1Reply
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    3y
    Quote from @Sarah Pelton:

    Hello! I have 3 LLC's right now--one for each STR. My plan is to open up a separate business checking account per LLC. My questions:

    1. Who do you recommend for the business checking accounts? Is Bluevine a good option?

    2. Do you think I need savings accounts for each business?

    3. For the business credit card(s), is there a way around opening a separate one for each LLC but still keep transactions separate? Or, best to have one per LLC.

    4. Recommendations for best business credit cards? 


     I second most people's opinion to talk with a CPA and/or attorney to see what is best for you.  It also matters what state you are in, what is good for someone in Tenn and someone in FL may be totally different.

    As for Business Credit Cards, I highly recommend American Express Business Platinum. You can have one for your main account and then have free green cards for the subordinate LLC's. It is good if you like to travel - I have almost 2 million points from purchases, I just returned from a 9 day trip where I went to Austria first class for 70k points one way ($6000 cash ticket) and then to Dubai first class for 40k points ($5,000) then Dubai back to US on Emirates first class for 137,000 points ($20,000 cash ticket). $31,000 worth of flights I just paid $1,100 in taxes and fees. I also stayed at Hiltons on points for free in each city. PM me if you have any questions!

    [email protected]813-563-0877
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  • Ricky A.Pro Member
    Rental Property Investor · Chapel Hill, NC · Member since 2014 · 135 posts · 112 votes
    3y

    @Sarah Pelton, I looked into this earlier this month for a new LLC I'm setting up, and Bluevine is what I decided to go with for my particular needs (though, I still need to open the account). I was mostly comparing it to Relay (which I heard recommended in one of the BP Bootcamps), but I also looked at some other online banks that were recommended on "top" business checking account lists. (I wanted online versus local because online banks tend to have better fee structures and convenience features and because I don't foresee my banking relationship being instrumental to satisfying my financing needs).

    For me, the deciding factors were:

    - Ability to write checks (locally): From what I could tell, Relay has a payment service but doesn't allow you to write checks yourself. My gutter guy wants to get paid as soon as the work is done, so this made Relay a no-go for me.

    - Decent wire fees:  I invest in syndication as well, so I do a number of wires.  Bluevine is cheaper than local banks (though not as cheap as Relay).  And heaven forbid I have to physically walk into a local bank just to do a wire like I had to do recently.

    - Ability to earn interest:  I'll have cash in my account for reserves and cash sitting between investments, so a bit of interest income doesn't hurt.

    I agree with the other comments re: getting input from your CPA or accountant regarding the need for multiple checking accounts.  If that's the way you need to go, Relay may be a better option because it allows up to 20 individual checking accounts.  Lots of checking accounts may get cumbersome, but needing multiple credit cards will be even worse!

    Regarding credit cards, there are probably lots of good comparison charts for "best business credit cards" that can help you compare vis-a-vis your particular needs.  I generally recommend getting a rewards card if your spending is high (say, above $50K per year) or a cash-back card if your spending is low.  I prefer rewards cards because, even though you're spending deductible business expenses, you may be able to redeem the points for personal rewards that wouldn't be deductible...this is a form of pre-taxing your lifestyle (PLEASE: consult your CPA).  However, if your business spending isn't high enough, it's not worth waiting years to build up a meaningful reward, so cash-back or statement credits makes more sense.

    1Reply
  • Ryan MoyerBusiness Member
    Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 991 posts · 1k+ votes
    3y

    I am currently trying out Stessa Cash Management and Baselane.

    They both operate the same.  Unlimited accounts you can spin up with a click.  A little less than 4% APY on your active checking account (which can really add up).  Each account you spin up can have a debit card that earns rewards, foregoing the need for a credit card and a bit easier for your accounting (since the money comes out of your account in the same month you spend it, not the following month).

    Automatic transaction tagging, reporting, etc.

    The main downside I've found so far is no Zelle and no physical checks.

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  • Ryan MoyerBusiness Member
    Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 991 posts · 1k+ votes
    3y
    Quote from @Leslie Anne Morris:

    US Bank is where I’ve got most of my business stuff. They have unique offerings for LLCs. Full disclosure I worked there for about 18 years. 


    I've been using US Bank for the last year and am in the process of transitioning out of it now.  Their website is just a constant slew of issues.  It used to be really bad, they've finally updated it within the last couple years to upgrade from the 1998 style to about 2005 style, but technical issues are rampant.  Yesterday ACH transfers were down all day.  If you use any automatic reporting or wealth management (stessa, personal capital, mint.com, etc) its connection to them CONSTANTLY breaks, and all those sites note that issues with US Bank are constant and don't recommend connecting it.

    Just my experience.  I only stuck with them because they also hold a few of my mortgages so it made it easy, but I decided to move on.

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  • Leslie Anne Morris
    Real Estate Agent · Smoky Mountains, TN · Member since 2022 · 1k+ posts · 984 votes
    3y
    Quote from @Ryan Moyer:
    Quote from @Leslie Anne Morris:

    US Bank is where I’ve got most of my business stuff. They have unique offerings for LLCs. Full disclosure I worked there for about 18 years. 


    I've been using US Bank for the last year and am in the process of transitioning out of it now.  Their website is just a constant slew of issues.  It used to be really bad, they've finally updated it within the last couple years to upgrade from the 1998 style to about 2005 style, but technical issues are rampant.  Yesterday ACH transfers were down all day.  If you use any automatic reporting or wealth management (stessa, personal capital, mint.com, etc) its connection to them CONSTANTLY breaks, and all those sites note that issues with US Bank are constant and don't recommend connecting it.

    Just my experience.  I only stuck with them because they also hold a few of my mortgages so it made it easy, but I decided to move on.

    The security is at a much higher level at US Bank due to the banks conservative philosophy overall. So yeah connections get disconnected often. It is annoying though. 
    0Reply
  • Mark S.
    Real Estate Investor · Saint Paul, MN · Member since 2017 · 543 posts · 474 votes
    3y

    @Ryan Moyer I’ve had the opposite experience with US Bank. I find their website very easy to navigate and have had zero issues. Also like the availability of staff at local offices for wires, notary services, etc. (I have no vested interest- just mentioning my perspective)

    0Reply
  • Ryan MoyerBusiness Member
    Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 991 posts · 1k+ votes
    3y
    Quote from @Mark S.:

    @Ryan Moyer I’ve had the opposite experience with US Bank. I find their website very easy to navigate and have had zero issues. Also like the availability of staff at local offices for wires, notary services, etc. (I have no vested interest- just mentioning my perspective)

     This is what my header looks like on USBank currently.  No idea what "Couldn't load component" is supposed to be, but it's not something you expect to see on the website of a $66B company, and is the kind of thing that just pops up all over the place all the time.

    Currently when I try to open the "Transfers" page to initiate an ACH transfer I get the error "The system is temporarily unavailable" which I've had for the last 3 days.

    Just stuff like this, all the time, on the website.  I appreciate that they're trying to modernize it (and it looks much better now than it used to) but it's just constant stuff like this popping up.

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  • Jason Luongo
    Investor · Lake Worth, FL · Member since 2015 · 107 posts · 54 votes
    3y

    I've tried every online bank, I have 5 different LLC's


    I needed a bank that would allow me to access all of them with one login. CHASE was the only one I found that offered this. I already had multiple chase credit cards so it works perfectly. One login, all my accounts, business and personal. Highly recommend chase. 

    1Reply
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    3y

    Some of those errors @Ryan Moyer could be the browser. Each browser is supposed to be standardized, but often each browser can have trouble with certain sites. What works weird on Firefox works flawlessly on Edge. Go figure!

    0Reply
  • Nicole W.
    Rental Property Investor · L.A. Ca · Member since 2020 · 120 posts · 43 votes
    3y

    @Ricky A. Did you set up that Bluevine account yet? I'd like to know how its working for you. 

    0Reply
  • Nicole W.
    Rental Property Investor · L.A. Ca · Member since 2020 · 120 posts · 43 votes
    3y

    @Sarah Pelton Hi. Where did you end up going for your LLC checking accounts?

    0Reply
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