All Forum Posts by: Fred Tracy

Thanks for the responses!

@Arlan Potter I just deeded my 5th into the series LLC and will probably get about a total of 10 before I'm done. I'm trying to ensure the liability protection is upheld while keeping things as convenient as possible. I must admit my accounting knowledge is substandard. I'm a software developer so I wrote my own system for keeping my books straight. What I created is accurate and does the job, but I wonder if I should switch to something like QuickBooks instead. I almost certainly should, but I'm partial to what I wrote because it ties into some other metrics and analysis tools I built. I may consider switching later.

@Mike S. You understood the question perfectly the first time. I do indeed have each property in a different series of the LLC. The idea of a cash account is intriguing, but I actually do have my personal and business accounts with the same bank as you mentioned. It crossed my mind to just do online transfers but somehow that seemed less legit than using checks. I think that's pretty silly of me. So long as I notate in my books what happened I doubt it would matter whether the transfer was started via check or digitally. I'll do that.

@Markus Shobe They're technically under the same entity, but it is a series LLC and each property belongs to a different series. My understanding is I need to treat these series almost as different entities, though you can have one bank account for everything. I am thinking per Mike S.'s advice above that online transfers (rather than checks) will do the trick. So long as I account for them properly I think I'll be okay and I won't have to deal with a million checks. In the original example I'd still have to do two transfers to my personal account and one back to the business, but it's pretty quick to do it online.

Hello all,

I searched quite a bit and couldn't find this topic covered. I've got a series LLC with a single checking account and have three properties in it. My question is about how to efficiently manage withdrawing and "rebalancing" money within the account.

For example, let's say I've got $12500 in the checking account. Here's a sample breakdown of what money belongs to each property:

Property A: $2500, Property B: $5000, Property C: $5000 for a total of $12500.

Easy enough. Suppose Property A has to be re-roofed for $5000. Now I've got:

Property A: -$2500, Property B: $5000, Property C: $5000 for a total of $7500.

Now that Property A is negative in my books I'd like to add $5000 back to it. Suppose that I want to take $2500 from Property B and Property C and add that to property A so that each house has $2500.

The only way I know of doing that currently is to write myself a check from the business for $2500 from Property B and another check for $2500 from Property C, each of which is an "owner's draw". I could then do a "capital contribution" in a form of a check from me to the business for $5000 for Property A.

That seems like a lot of work, and largely pointless since the same net money will be in the business checking account. Couldn't I just make an entry or two in my books saying that I'm transferring money from one property to another and not mess with moving money out of the business? If so, is there a preferred way of doing this?

Basically, I want the most efficient way of dealing with moving money around within the LLC without doing something stupid to shatter my liability protection or mess up my books.

Thanks for any advice!