Posted by John Corey on July 11, 2004 at 17:44:30:
I agree with your logic on the account being in the LLC’s name.
Shop around. I looked at 3 banks when setting up my LLC bank account. The third one charges nothing when you do not have a lot of deposits and checking going out each month. The other two had charges much closer to your numbers.
John
LLC Bank Account Question - Posted by Jack(AZ)
Posted by Jack(AZ) on July 11, 2004 at 13:39:15:
I have three rental properties that are long term buy and hold investments. They are titled in an LLC. The LLC is single member, and is a disregarded entity for tax purposes (income and expenses flow through to my 1040 on Schedule E). I have them in a business checking account in the name of the LLC. The bank charges me an $11 monthly maintenance fee and a $15 monthly online banking fee. The bank would give me extra personal checking accounts without these fees. My thinking is that these $312/year bank charges are a necessary evil in order to maintain corporate formality and to avoid have the “corporate veil” pierced in the event of a lawsuit. Any comments or suggestions?
Re: LLC Bank Account Question - Posted by Steve Parker
Posted by Steve Parker on July 14, 2004 at 22:21:21:
I’ve had no-fee checking accounts for LLC’s with Bank of America in both California and Virginia. The online banking also is free (was $5/month in CA until late last year).
Definitely keep the separate checking – just shop the banks harder. You may have to move your personal account to the same bank to get the best deal.
Re: LLC Bank Account Question - Posted by Garrett Sutton
Posted by Garrett Sutton on July 13, 2004 at 11:27:08:
The separate bank account is good strategy to show that you are following the necessary formalities. Garrett