Ask The Experts: How to Start an LLC

I am considering starting an LLC for a combined real estate and investment business this year. Other than acquiring an LLC, what else should I look to do? Also, do i need to establish a new bank account for this LLC? how about expenses?

Tracy Coenen
On The Money
Contributor

Establishing an LLC or a Corporation for your business ventures is always a good idea. Your first step should be talking to an attorney to see if it makes sense to set up more than one company based on the different types of things you’ll be doing.

Even if you don’t incorporate or create an LLC for a business venture, you should always establish a separate bank account for the activity. It makes record keeping easier and is simply the best practice when it comes to managing a business.

You should be sure to deposit all business income into this separate bank account, and to pay all business expenses out of that account, or with a credit card that is used only for the business.

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Tracy Coenen is an On The Money contributor, fraud investigator and forensic accountant, and is the author of Essentials of Corporate Fraud.

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