Series LLC bank account [You Asked]

Last updated : Aug 9, 2022

Can I open a bank account with a Series LLC?

Open the initial account under the Series LLC first, which does have a set of filed Articles. After that's opened, then you can usually open the accounts for the Cells using a combination of the Series LLC's incorporation number and the individual Cell's Federal Tax Identification Number.

Does each Series LLC need its own bank account?

Each LLC in the series must have its own bank account and, since each is producing separate financial statements, each must have separate accounting.

What is a Series LLC account?

A series LLC is a unique form of limited liability company ("LLC") in which the articles of formation specifically allow for unlimited segregation of membership interests, assets, and operations into independent series.

What kind of bank account should I open as an LLC?

Anyone who forms an LLC should get a business bank account to help maintain liability protection for the company's members. One of the pros of forming an LLC (limited liability company) is having the protection that this business structure offers against creditors.

Can I use my personal bank account for my LLC?

Yes, you can operate a sole proprietorship or an LLC using your personal bank account, but it isn't advisable. Sole proprietorships aren't required to have a separate business bank account unless they trade using a fictitious DBA name (doing business as).

Is a Series LLC worth it?

The Series LLC can help organizations protect their assets from liability, and in many cases can do so with less expense and more flexibility than other structures that mitigate liability risk like the holding company or parent-subsidiary structures.

Does a Series LLC need its own EIN?

Employer Identification Numbers (EINs) A Series LLC and each of its established series will need to get a federal employer identification number (FEIN or EIN). You can apply for EINs by filing Form SS-4 with the IRS. You can also apply online at the IRS website.

How are Series LLC taxed?

When it comes to taxes, a series LLC is surprisingly simple at the federal level. A series LLC is taxed just like a traditional LLC, on a single federal tax return and as a pass-through entity. Because a series LLC is a state business designation, state taxes will vary from state to state.

Is a series LLC better than an LLC?

A Series LLC gives you all the same benefits as a regular LLC, but it serves as a sort of "umbrella company" with additional flexibility and protections for multiple companies or lines of business within your overall operation.

What states allow series LLCs?

The Series LLC was initially pioneered by Delaware, a famously pro-business state. Even today, Delaware remains a popular state for entity formation. Other states followed in Delaware's footsteps, and today you can get a Series LLC in Texas, Tennessee, Utah, Nevada, Illinois, Oklahoma, and Iowa.

What is an example of a series LLC?

Series LLCs can be useful for LLCs that operate multiple lines of business or investments and want to insulate each line from risks incurred by the others. Common examples include real estate investors with several rental properties and investment firms with multiple investment strategies.

How do you name a series LLC?

1. The name of the series must begin or end with the name of the parent LLC, including any word or abbreviation required by the applicable LLC name statute; and.
2. The name of the series must contain the phrase “Protected Series” or “protected series” or the abbreviation “P.S.” or “PS.”

How many bank accounts should an LLC have?

We recommend opening three accounts to help you stay on top of your small business finances: checking, money market, and high-yield savings.

Do you need business bank account for LLC?

Although there is no state or federal law that requires members of an LLC to open a separate business checking account, it's a recommended practice to do so to sustain those liability protections.

Can I open business bank account with just EIN?

You can open a business bank account once you've gotten your federal EIN. Most business bank accounts offer perks that don't come with a standard personal bank account.

How much can an LLC write off?

If you have $50,000 or less in startup costs and are in your first year of business, the IRS allows you to deduct $5,000 in startup costs and $5,000 in organization costs from your taxes. If your startup expenses exceed $50,000, the total deduction will be reduced by however much your expenses exceed $50,000.

What is it called when you put money into your own business?

When the corporation forms, the owner or owners will have to put money and assets into the business in order for the business to start to operate. This is called investment.

How much money can you have in your bank account without being taxed?

A deposit over $10k is the amount to consider; amounts under that threshold may not have to be reported. There's a catch, though: If a customer makes several small cash payments or deposits within a 12-month window, filing Form 8300 might have to be done should the payments or deposits exceed $10,000.

Is a series LLC a disregarded entity?

Thus, a series with a single member is to be treated as a disregarded entity, and a series with two or more members is to be treated for income tax purposes as a partnership by default or as a corporation by election.

Is a series LLC an S Corp?

A Series LLC Treated as an S-corporation A pass-through entity does not pay taxes, rather the S-corporation passes its income and losses through to its shareholders. The shareholders of an LLC treated as an S-corporation report the earnings and losses of the S-corporation on their personal income tax returns.

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hey guys clint coons here and in this video i'm going to discuss how many bank accounts do you need for your limited liability company structure all right so now let's assume that you have one llc that you've created in your plan you just got one llc set up well that's pretty freaking obvious is it not you're going to need to have one bank account right here for this llc in order for it to operate its business because the last thing you want to do is be down here and paying all the bills on behalf of that llc because that's going to open someone up to vail piercy i mean if the llc gets sued by a tenant they'll say well you weren't truly treating that company as an llc because you yourself were collecting all the rents personally you were paying all the bills out of your personal name so you didn't recognize the independent structure of that company therefore we're gonna ignore it so generally speaking with one llc of course you've got to have one bank account now where things start to change is when you start to grow your structure out and so you start adding on additional limited liability companies here so now we've got four llc's and then you bring on that wyoming company down here like this so in this case run into people all the time they're in this scenario they got these llc set up maybe this one's oklahoma this one's in florida right here and this is in missouri over here and uh this one's in washington so people want to know clint how many bank accounts would i need to set up because i'm going to keep investing i'm going to have 10 15 20 llcs within the next four years and that's just way too many bank accounts for me to handle well what we the way i always look at this is you've got uh better and best now the best scenario i was going to tell you is always to set up one bank account per llc so in this case you're going to have five bank accounts each llc is going to have to have its own bank account now if you're just one of those individuals who just can't mentally wrap your head around having five bank accounts because to you it's going to be way too difficult to administer all that one point that i like to push back on is you can create all these bank accounts with the same bank even though you've got an ohio or florida missouri llc go down to your local chase bank and set up bank accounts form you can do it you just got to give them a local address to get that account opened now the idea here is if you have a separate bank account the benefit is that when you bring in your rental income the missouri llc it makes it really simple for your bookkeeper to know how much money came into that missouri llc what went out of the missouri llc you get an independent you get an owners statement that goes with that so that's a good strategy what we call the best strategies to have one bank account per llc and then they're all going to be linked online for example i use chase they're all linked online through chase so if you need to move money around you just jump on chase move the money as you need it you know as follows now if you still don't believe me and you're like too much work make it simple for me clint well then you could go possibly with this route maybe in in this scenario you're going to have a management company that you create up here maybe you have your own property management um llc that you put up top and so it's managing your limited liability companies so it's either dealing directly with the tenants itself or it's dealing with that uh pm that you have over here the out of state pm that's running all these property manager and so then in this instance you'll have all the funds flow into this llc so this property management llc will be collecting all of the funds on behalf of these properties now if you go this route granted you could go without these bank accounts now okay so you go without those bank accounts so you're going to have a bank account here at the property manager entity level you're still going to need one down here because this entity here is going to have to account for all the income for these particular limited liability companies so you got to keep good books and records i mean really good you should hire a bookkeeper all right to do this for you so it stays clean now the money comes in here and then from here it would come down into this account here and then from that account you could pull the money out here you can check out my video that uh on when to take distributions from your real estate llc and i go through some of this when you should be taking money out but if you're using this structure right here this is how you you would run it now if you don't have that property management company you don't you didn't establish something like this all right you're still you're down into this area and you just don't like the idea of having to have individual bank accounts here well the last option would be i mean you definitely have to have the account here and so in that scenario this is where the bank account is going to be you're not going to have them up here and that property manager now will will send the uh the owner statement and the income to this llc on a monthly basis now this structure right here i've set it up for many clients and i tell them the exact same thing again you have to have great books and records to account for all the income for these associated llc's but the reason why we're not setting up separate bank accounts here for each of these uh independent entities is because the pm up here that's managing it many times you know you've got properties in the same state they're not going to cut separate checks per llc or different wires they're only going to give you one wire on a monthly basis so you couldn't i mean if you did have a bank account it wouldn't do you any good you're still going to have to only collective funds at one particular entity so that's why that wyoming llc would be the one that would have the bank account with it so you know you can go simpler with this and if you do go that route you just have to make sure that you're keeping excellent books and records so that if you ever get audited or you're ever involved in a lawsuit you can show that you treat each entity as a separate entity and that you account for its income in a separate on a separate spreadsheet with separate sets of books for each of those structures so the choice is yours when it comes to opening up the bank accounts again the best strategy is to have every llc on its own bank account but if that proves problematic for you you just can't operate under that structure you still want the asset protection of the llc's then choose one of the other two forms examples explore those as an additional option all right guys hope you learned something on that and if you've got any questions leave those in the comments and be sure to subscribe to the channel as well take carebye

Thanks for your comment Reid Benge, have a nice day.
- Jannette Brookshier, Staff Member

a table in this video we need to talk

Thanks Julian your participation is very much appreciated
- Jannette Brookshier

About the author

Jannette Brookshier

I've studied folklore at University of Wisconsin-Parkside in Kenosha and I am an expert in brownian dynamics. I usually feel weird. My previous job was ultrasound technologist I held this position for 3 years, I love talking about cryptography and laser tag. Huge fan of Aaliyah I practice badminton and collect jersey cards.