Hi all,

We're planning to set up an LLC for our 10 rentals. We're working w an attorney on the setup & deeding, but I'm a little unsure about the accounting angle - maybe someone here knows:

Our tenants currently pay us via Zelle to our rental checking acct (basically a personal checking acct we have set aside just for the rentals).

Accounting wise can we simply designate this account as our LLC account, and keep all the tenant payment details in place? Or would an LLC need a fresh account set up with the LLC as the account holder?

We do work with an accountant who can probably answer this for us, but mid-April is of course the worst possible time to try to reach out to him.

plenty [MO], The main reason is for health insurance. I retired in November and we are on COBRA now; that will run out when my husband and I are 62.5 years old, so we need coverage to get us to 65. The ACA plans available in our state are HMO only and do not cover all of what we need (my husband is fighting a pretty serious cancer, and he's being treated at MD Anderson in Houston). We spoke to several health insurance brokers, and the best bet for us seems to be set up a 2-member LLC in order to be able to get a small-business PPO plan. It will be expensive, but with the cancer it's our best option.

I'd set up a bank account just for the LLC because you want personal and business to be separate. The LLC checking account would be Ronnie's Rentals LLC (or whatever your LLC is called. I would have the address be a P O Box so as not to have your personal address so public. Pay all business things through that account. KEEP THINGS SEPARATE. Do not co-mingle funds. If you want to use that existing account get the bank to change the name of the account holder and make sure it is a business account and not a personal account.

I'd set up a second bank account for the security deposits. I'd call it Ronnie's Rental Escrow Account or Ronnie's Rental Trust account. This tells the world that this money is separate and not yours. It is the tenants and is being held in trust.

If you only had 1 rental I'd say don't bother but you have 10. It's time to act like a business because that what you have. It's a business. Treat it like a business. Be professional.

When you need to fund the LLC I'd put money in and I'd use quickbooks, other software, or a spreadsheet and call it Owner Investment. Any money coming out to the personal side would be Owner Draw. That should be enough to let the accountant figure things out.

We have a biz account for the LLC. It was simple enough to set up with the CU. I can't do Zelle there either way so that is not an issue. I do have ACH dropped from Innago and Venmo deposits work.

The biz account is tied to the PO Box to help keep the lurkers away from my personal property.

I am interested in hearing how you save money on insurance for the properties because of the LLC as well.

Given the background that you are providing - I would recommend setting up a single LLC for the management of your properties that can hire the two of you.