Checking Account(s) with Multiple LLC's

Not sure if this has been addressed before.

Let’s say your focus is some multiple LLC’s to put different rental properties so that assets are not all put in one basket.

What do you do about your day to day checking account needs.

Do you just have one checking account under one of the LLC’s names…or would it be best to have multiple checking accounts so that things are truly divided up.

I would think that for things like office expenses, gas for your vehicle, etc…there are going to be a lot of expenses that apply to all of the LLC’s and was wondering how you divy things up for these type of expenses that are not tied directly to just one LLC.

Any thoughts from those that actually have multiple LLC’s running at the same time…



Each LLC is a business entity. It is very important that each business be operated separately. Therefore, each LLC should have its own checking account.


prop’s answer just about sums it up. THEY ARE ALL DIFFERENT ENTITIES, like Microsoft, Apple, Intel, AMD, etc…same business field, but TOTALLY DIFFERENT ENTITIES.

you can have multiple accounts under one business to manage your money for each. that’s probably very advisable but depends on different factors.



1 - checking account for deposits
2 - same
3 - same
4 - same

that’s 4 checking accounts

5th checking account is for when the other checks clear in those accounts, then the money is moved into this account to pay bills and manage your funds for the business. different streams of income may require seperate checking/savings accounts.

but if you’re a small business, don’t complicate things.

it is possible for one entity to act as manager for the other companies. You would need to execute a management agreement naming LLC#1 a manager of LLC #2, etc. Treat this as if LLC#1 were a 3rd party management company: deposit rent checks, pay rental expenses, submit a monthly or quarterly statement to the owner (LLC #2) minus the management fee, etc.

This allows you to operate from a single checking account while maintaining seperate ownership.

so mc, the checks (receivables) would be written to LLC#1 - correct?

then LLC#1 would dispurse funds accordingly…

When I taught the graduate tax class on LLCs at Golden Gate University, one of the attorneys who also taught the class recommended that you make the LLCs are independent and separately identifiable as possible. That included separate bank accounts. As I recall, they were also into separate letterhead, separate business cards, basically anything and everything that identified the entity as a different legal person.

I agree that every entity needs a checking account, but contracting with a management company is not precluded, even if it’s closely held.

I agree with maintaining a separate checking account for each entity.

I also understand that the accounting can become a little confusing for us small business people. Recently, I found that banks will allow you put multiple accounts with different tax ids under one username in their online banking.

Most banks don’t advertise the feature. It is sometimes under their treasury management or cash management small business section. The bank I just changed to includes this feature without elevating the account to cash management or treasury management.

Equity stripping will provide the same, if not better, protection without the added headaches of an LLC for each property. Multiples LLCs are not a great idea when the state imposes an annual fee in the neighborhood of several hundred dollars. You also need a registered agent for each LLC, which can run $80-100 per entity unless you are you’re own, but then you have to turn over the address where you can be found. That’s not a great thing if privacy is a concern.