I have set up different LLCs to hold properties and ones to manage them. Problem with not having separate accounts is that they become “false fronts” easily disposed of in a lawsuit. Asset protection and having investor partners are the only two reasons I can of to forming the LLC in the first place and if they are to be “going concerns” then the money they earn (net income), proceeds from sales should pass through accounts owned by the LLC. These don’t need to be very active accounts (I have a could that have had no activity for months). You can open these at Washington Mutual fairly easily - they don’t charge you anything - and the account stays open until the balance drops to zero.
You really need to have a checking or savings account for an LLC to be “real”. It takes more than just filed paperwork to keep it from being pierced when challenged.
I got Bronchick’s course a couple years ago and set up some LLC’s. General consensus here is for each entity to have seperate checkbooks and not “commingle” funds.
I have 3 different checking accounts right now for keeping track of those properties in those accounts. Now I need to set up 3 or 4 more LLC’s to add some more properties I bought in my own name.
Any reason I couldn’t set up a company (LLC) be property manager for my other entities and run it all thru one checkbook ? I would put in place property management agreements with the different entities and cut a real management check each month for services rendered. I am a Licensed Broker so by state regs I can legally collect fees for management.
I guess in my mind, I see it as no different than hiring a bookeeping firm or another Real Estate Broker to manage my props. I bet they don’t have different checkbooks for every owner they manage for. My property management program allows for multiple owners with multiple prperties and/or units as well so I can keep track of seperate properties or owners for accounting purposes.