LLC, Personal Name - Separate Bank Accounts
Does anyone know that legal ramifications on combining bank accounts for properties owned by an llc and other owned by an individual?
I am thinking that if I am to form an LLC, it would be a pain to have separate accounts.
You may have trouble finding a bank that will allow you deposit checks from and LLC into a personal account or vise versa. Plus if you do that and the individual is also the owner of the LLC if someone sued you, you could potentially forfeit protection and LLC offers. As they will be able to show that the LLC is really just the individual and uses the funds freely for personal use.
Can you deed the individual owned property into the LLC?
One other thought would be to have the LLC sign an agreement with the individual to manage the property for them. They could collect the monthly payments on behalf of the owner, pay bills on behalf of the owner and then distribute proceeds on a monthly, quarterly, whenever basis. All funds would be collected by the LLC then. I would think you would want all properties in the LLC though as you best option.
If you comingle LLC funds with any other entity, especially you as an individual, you are defeating the purpose of having an LLC. If the LLC gets sued, the courts could say that the LLC is not a true LLC, just a device to try an avoid liability - just look the books.
Yes - after some research, I found it beneficial to set-up a separate bank account.
I find it to be an advantage to have separate bank accounts. Currently I have two investmentment accounts plus personal accounts. The bank records for your investment account essentially become the journal entries for your investment business.
You need separate accounts to maintain the integrity of the LLC for legal purposes. This is just one of many things that should be done to protect yourself. Consider talking to a lawyer about the best way to protect your interests and what you need to do to maintain this.
It was offered as a fringe beni at a previous employer and a buddy used them.. He got frustrated quickly at the slow turn-around and errors in the letters.
Johnmerchant,
Please clarify your statement above. Who was advertising?
JS.
in many places it is not required.
Our of all he place I have bought none were surveyed.
My contractor, realtor or I paced it off to make sure it seemed right.
if there was an encroching structure like a workshet or garage, I would.
When I was looking at raw land I needed to into to generate a topo map.
Here are two reasons to get a survey:
http://www.thecreativeinvestor.com/ViewTopic28729-12.html
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