Banks accounts for Series LLC (series A, B, etc) in Dallas

[Harry Nima Zegarra]

Hello guys,

New in Real Estate, started last year and opened a series LLC. Initially (as I am still learning about this) bought the property, got the Tax ID and opened the Bank account under the "mother LLC"... now I am planning to buy a second property and was trying to open bank accounts for Series A, B, etc (with it's respective Tax Ids)... it seems that most Banks don't do that; CHASE and Bank Of America said no immediately, Wells Fargo still reviewing my "articles of formation" I guess... I contacted IberiaBank and it seems they may be able to do it, although today they ask me more questions regarding the LLC and told me they will have an answer hopefully for Monday/Tuesday.... anyone has heard about Banks here in Dallas that offer these kind of accounts? Thanks!

[Kris Wong]

You do not need separate bank accounts for each of your series cells in a series LLC. All you need to do is account for them separately in your bookkeeping software. You can also "transfer" money between Cell 1 -> Parent series -> Cell 2. I put transfer in quotes because it's all the same bank account. These are just accounting entries. This is essentially a distribution followed by an owner contribution.

You can choose to get a new EIN for a series if it's required for lending or some similar purpose. However, you still do not need a separate bank account. There's a lot of misinformation out there regarding series LLCs because they're relatively new, and there's not a lot of case law around the entity structure, specifically.