Entering Real Estate/Business accounts

[Caught750]

Hey guys, I’m not sure this is in the right place so please move if appropriate.

I’m considering going into real estate while maintaining a more conventional form of employment (paid twice a month, guaranteed income). This has lead me to a lot of questions and I was hoping for your brilliant guidance!

1) Is it advisable to open business accounts, if I’m even eligible, from the very beginning to keep things separated? I’m thinking checking (everyday stuff), savings (taxes), and a CC or two to benefit from the desk/membership fees, marketing, etc etc.

2) Would reported income be my main employment since it’s a personal guarantee?

3) Is it wise to keep personal and business accounts, again if eligible, at separate banks?

TIA

[Caught750]

Bueller...Bueller...
Anyone?

[Anonymous]

Keep business and personal accounts separate.

Consult an attorney and a CPA about business entity structure and tax issues.

Business apps will ask for business income (which can be zero if you are just starting) and household income.

Same bank or different banks is a personal decision. If you are looking at a particular bank for a biz CC, you might consider a business account with that bank (Chase bank for Ink CC, etc.).

[Caught750]

Thank you!

There really isn't much entity or structure. Work for a broker (10-99 income).

Understood

I was thinking Amex BBP since I have a personal relationship with them. Chase is a definite want as well, I have CSP (turning CSR) and Hyatt with two personal deposit accts.

Thanks again for the wisdom!

[Anonymous]

Which ever bank you decide on, watch out for mothly service fees. When we started looking most wanted to charge a monthly service fee on our checking account unless we kept a pretty high minimum monthly balance. We went with Wells Fargo because they wave the fee if we have an automatic monthly transer to an associated savings account and a minimum of 10 transactions per month on the debit card. Since our "business" is owning a few rental properties, it's easy to get the 10 transactions. About a year after opening the accounts they started sending us pre-approved offers for a business credit card with no annual fee and a little cash back on purchases. Will probably apply as soon as I get my FICO up a little.

Keeping your business and personal accounts separate is a great idea, but they don't need to be in different banks IMO.