Hi BP Crowd!
This is my first time posting, and I'm seeking some guidance. I currently reside in San Diego, CA, and I am in the process of purchasing two properties in Henderson, NV, in my personal name. My question relates to when and how to structure a business account. By "business account," I'm referring to setting up an LLC as well as a business bank account.
My goal is to expand my real estate portfolio by acquiring approximately two properties per year. I plan to self-manage these properties and intend to operate my portfolio as a business, tracking all income and expenses while avoiding the commingling of personal and business funds. I will also be tracking expenses related to repairs, maintenance, travel to and from NV, hotel stays, meals, gas, and other regular business costs.
In the long term, I aim to purchase additional properties under the business name, but I understand I need to establish at least two years of income and credit history before doing so.
The issue I'm encountering is that my accountant has not provided any guidance on how to structure this scenario. Instead, he seems focused on discouraging me from setting up an LLC due to the fees associated with California. How should I proceed with structuring this plan? Am I not asking the right questions, or should I consider finding a new accountant?
Bonus question: Should I execute the leases under the business name and tenant’s name, or should the leases be in my personal name and the tenant’s name, considering the loan is in my name?
Thank you for your time!
