What bank account should I use.

[David C.]

When first starting out with less than 5 properties, should I open a business bank account? Or should I just open a personal checking/saving/line of credit account and treat it like a business bank account? Also are there any banks in Columbus Ohio that are highly recommended?

[Jeff V.]

David,

I don't think it matters what type of bank account you use.  When you get more people in your organization it may be easier to have a business account so that you can authorize employees for some of the banking tasks...  You'd really have to trust them through lol.

If you have an LLC or business entity then I would definitely have a business account. You don't want to mix personal and business funds. By mixing funds you open yourself to liability by someone being able to pierce the corporate veil by saying there is no difference between you and your business because they both are using the same funds.

However, if you are investing in your own name then a personal account would be best, though it should still be separate than your personal spending account.

You didn't ask, but investing in your personal name opens you up for better financing, but more risk due to personal liability, while investing in an LLC or entity has less risk but you are forced to use less attractive commercial financing.

Short answer is it depends on your entity that your investing in and one should first evaluate which entity is the best for your situation and go from there.

Hope this helps,

Jeff V