Multiple Entity Bookkeeping?
Ok after much reading and talking to attorneys and accountants I have ended up with 1 S-Corp and 1 LLC for my real estate investments.
My question to the larger investors on the board, do you have separate checking, credit cards, and quickbook companies for each separate entity that you have.
I see some posts where people mention setting up a separate LLC for each property they own. I am not doing that, but it seems like it would be a bookkeeping nightmare to try to keep all of the entities from co-mingleing with each other.
After a late night with quickbooks, just wondering how everyone else is keeping track of everything ...
You have to have a separate set of book for each entity otherwise you're co-mingling fund, and can get in trouble, esp. the loss of the liability shield.
I use quickbooks for 2 c-corps and an LLC. not too bad when you have online back and CC that d/l directly into QB.
An LLC/Corp per does provide more protection, due to segragation of assests.
thanks for the reassurance that I should be doing this. I'm in the "setting it all up" phase right now so it seems to be taking a lot of time.
But basically the strategy is too keep everything separate as you said ...
The question I had for my CPA was it require to track costs per property.
so building_supplies->prop-1 &
building_supplies->prop-2
He said that was only required if the property was owned by multiple entities.
Always keep separate books for each legal entity. The legal entity can lose it's liability protection if you do not keep separate books and records. You do not necessarily need to keep separate books on each property, although it would be beneficial to somehow break out the figures by property.
[addsig]
And that would be a separate bank account for each entity as well, or should that be assummed when you say separate books.
thanks.
presummed by separate books, but doesn't hurt to clarify.